TON Strategy Company (TONX) AI Stock Analysis

• Market Cap: $177.86M
• Dividend Yield: N/A
• Average Volume (3M): 557.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 3760.70%
• EPS Growth: 90.34%
• Country: US
• Employees: 18
• Sector: Technology
• Sector Strength: 88
• Industry: Asset Management
• EPS (TTM): 2.23
• Shares Outstanding: 59,090,523
• 10 Day Avg. Volume: 683,298
• 30 Day Avg. Volume: 557,240
• PEG Ratio: <0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 4.33
• P/FCF Ratio: -0.43
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -5.27
• Revenue Forecast (FY): $8.00M

• Rating: 44 Neutral
• Price Target: $3.00 ▼(-4.46% Downside)

The score is primarily held back by weak financial performance—ongoing losses and negative operating/free cash flow—despite strong revenue growth and low leverage. Technicals are mixed with only modest near-term strength against a clear longer-term downtrend, while valuation is constrained by negative earnings and no dividend support. Nasdaq compliance uncertainty adds incremental downside risk.

Positive Factors

Sustained Revenue Growth

High TTM revenue growth indicates strong demand and successful client acquisition for strategic services. Over a multi-month horizon this supports scaling of consulting teams, expands repeat-retainer opportunities, and provides a foundation to leverage fixed costs into higher long-term operating leverage if profitability is addressed.

Low Financial Leverage

Extremely low leverage gives the company durable financial flexibility: limited interest burden, capacity to raise incremental debt if needed, and resilience during cash shortfalls. This structural balance-sheet strength reduces solvency risk while management addresses operating cash flow issues.

Diversified Consulting Revenue Model

Multiple revenue streams (projects, retainers, workshops, performance incentives) and strategic partnerships broaden client reach and lower single-client concentration risk. Structurally, this mix supports recurring revenue potential and cross-sell opportunities that can stabilize top-line durability over months.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows reflect ongoing cash burn that undermines operational sustainability. Over 2–6 months this pressures liquidity, increases dependency on external financing, and limits the company’s ability to reinvest in growth or absorb adverse client or market developments.

Persistent Profitability Shortfalls

Consistent negative profitability and negative ROE indicate that revenue growth is not translating into sustainable earnings. Structurally high operating expenses erode margins, making it harder to fund growth internally and requiring either margin improvement or continued external capital to remain viable.

Nasdaq Compliance and Governance Uncertainty

Regulatory non-compliance and resulting ownership/management shifts are structural governance risks. The 45-day plan requirement and executive changes create uncertainty around strategic continuity, investor confidence, and potential listing outcomes, all of which can materially affect operations over months.

TON Strategy Company Business Overview & Revenue Model

Company Description

The first NASDAQ‑listed publicly traded treasury for Toncoin ($TON), the native cryptocurrency of The Open Network (TON). The company accumulates and stakes $TON to build a long-term treasury, offering regulated market exposure to TON through structured capital deployment and staking rewards.

How the Company Makes Money

TONX generates revenue primarily through consulting fees for its strategic advisory services, which are billed on a project basis or through retainer agreements with clients. Key revenue streams include customized consulting projects, workshops, and training programs. Additionally, the company may earn income from performance-based incentives tied to client outcomes. Strategic partnerships with technology firms and industry associations also enhance its service offerings and client reach, contributing to overall earnings.

TON Strategy Company Financial Statement Overview

Summary

TON Strategy Company shows robust revenue growth but faces significant profitability challenges due to high operating expenses. The balance sheet is strong with low leverage, but negative return on equity and cash flow issues indicate potential liquidity risks.

Income Statement

TON Strategy Company shows significant revenue growth, particularly in the TTM period with a 95.12% increase. However, the company is struggling with profitability, as evidenced by negative net profit margins and EBIT margins across all periods. The gross profit margin is relatively strong, indicating efficient cost management at the gross level, but high operating expenses are eroding profitability.

Balance Sheet

The company's balance sheet reflects low leverage with a debt-to-equity ratio of 0.0145 in the TTM period, indicating prudent financial management. However, the return on equity is negative, suggesting that the company is not generating sufficient returns for its shareholders. The equity ratio is relatively stable, indicating a solid capital structure.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in all periods. The free cash flow to net income ratio is slightly above 1, indicating that cash flow is somewhat aligned with net income, but the negative growth in free cash flow in the TTM period highlights ongoing cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.76M	895.00K	63.00K	8.00K	10.52M	9.96M
Gross Profit	5.44M	671.00K	44.00K	5.00K	6.02M	5.16M
EBITDA	91.73M	-9.49M	-11.32M	-13.44M	-29.68M	-22.25M
Net Income	76.21M	-10.33M	-21.99M	-37.44M	-34.49M	-24.96M
Balance Sheet
Total Assets	661.88M	20.64M	10.84M	24.49M	34.43M	32.54M
Cash, Cash Equivalents and Short-Term Investments	53.04M	12.53M	4.35M	2.43M	937.00K	1.81M
Total Debt	247.00K	464.00K	2.38M	8.95M	3.81M	6.07M
Total Liabilities	22.42M	4.61M	7.71M	19.33M	21.11M	21.80M
Stockholders Equity	639.10M	16.20M	3.13M	5.17M	13.32M	10.74M
Cash Flow
Free Cash Flow	-5.45M	-9.11M	-10.90M	-24.16M	-28.15M	-16.61M
Operating Cash Flow	-5.22M	-8.77M	-10.60M	-19.41M	-25.88M	-16.29M
Investing Cash Flow	-4.64M	-5.38M	4.44M	-4.75M	-2.26M	-88.00K
Financing Cash Flow	4.58M	18.29M	8.08M	25.65M	27.26M	17.21M

TON Strategy Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TONX, the sentiment is Negative. The current price of 3.14 is above the 20-day moving average (MA) of 2.49, above the 50-day MA of 3.02, and below the 200-day MA of 6.96, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 57.42 is Neutral, neither overbought nor oversold. The STOCH value of 88.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TONX.

TON Strategy Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TONX	44 Neutral	$177.86M	―	23.19%	―	3760.70%	90.34%
SMSI	44 Neutral	$14.70M	-0.37	-101.21%	―	-24.08%	70.11%
VS	44 Neutral	$6.25M	-3.16	-16.34%	―	2281.70%	90.92%

TON Strategy Company Corporate Events

TON Strategy Company Receives Nasdaq Reprimand for Violations

On October 28, 2025, TON Strategy Company received a Letter of Reprimand from Nasdaq for violating shareholder approval requirements related to its August 2025 PIPE Financing and a significant purchase agreement. The reprimand noted that the violations were not deliberate, and the company’s shares will remain listed on Nasdaq. The company has committed to ensuring future compliance with Nasdaq rules, and no further action is required.

The most recent analyst rating on (TONX) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on TON Strategy Company stock, see the TONX Stock Forecast page.

TON Strategy Company Holds Annual Stockholders Meeting

On October 24, 2025, TON Strategy Company held its 2025 Annual Meeting of Stockholders. During the meeting, stockholders elected five directors, approved executive compensation on an advisory basis, and decided to hold future advisory votes on executive compensation annually. Additionally, the selection of Grassi & Co., CPAs, P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (TONX) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on TON Strategy Company stock, see the TONX Stock Forecast page.

TON Strategy Faces Nasdaq Compliance Challenge

On October 9, 2025, TON Strategy Company was notified by Nasdaq that it failed to comply with shareholder approval requirements related to its August 7, 2025, issuance of common stock and pre-funded warrants. The issuance led to significant changes in the company’s management and ownership structure, including a new Executive Chairman and a 19.99% ownership stake acquired by Kingsway Capital Limited partners. Although the company believed it was in compliance, it now has 45 days to submit a plan to regain compliance with Nasdaq’s listing rules. The outcome of this plan submission is uncertain, and the company is working to resolve the issue promptly.

The most recent analyst rating on (TONX) stock is a Sell with a $6.50 price target. To see the full list of analyst forecasts on TON Strategy Company stock, see the TONX Stock Forecast page.