XCHG Limited Sponsored ADR (XCH) AI Stock Analysis

• Market Cap: $63.32M
• Dividend Yield: N/A
• Average Volume (3M): 46.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 184
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 40,920,177
• 10 Day Avg. Volume: 38,759
• 30 Day Avg. Volume: 46,135
• PEG Ratio: -0.91
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 2.85
• P/FCF Ratio: -15.41
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 2.70
• Enterprise Value/Ebitda: -7.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.96 ▼(-6.37% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

XCHG Limited faces significant financial and technical challenges. The company's inability to achieve profitability and negative cash flow, combined with bearish technical indicators, weigh heavily on its stock score. The absence of valuation metrics further complicates the investment outlook.

Positive Factors

High Gross Margin

A ~50% gross margin indicates strong unit economics in core trading and services, giving XCH room to cover operating expenses and invest in product development. Sustained gross margins support long-term scalability if revenue volumes recover or grow.

Improved Balance Sheet Position

Positive equity and moderate leverage (D/E 0.35) signal a more stable capital structure versus past negative equity. This improves financing optionality and resilience to shocks, enabling the firm to raise funds or absorb losses without immediate solvency pressure.

Access to Flexible Capital (ATM Offering)

The $12.8M at-the-market program provides optional, on-demand equity funding for working capital, R&D and capex without a single large issuance. This structural liquidity tool reduces near-term cash stress and allows management to support strategic investments when needed.

Negative Factors

Chronic Unprofitability

A wide negative net margin shows the company fails to convert gross profit into net earnings, driven by outsized operating expenses. Persisting losses erode capital, limit reinvestment capacity and force dependence on external funding or restructuring to achieve sustainable profitability.

Negative Operating Cash Flow

Consistent negative operating and free cash flows indicate operations do not generate enough cash to fund growth or cover obligations. Long-term reliance on financing raises refinancing and dilution risks, reducing financial flexibility and increasing vulnerability to market stress.

Revenue Decline & Legal Overhang

A sharp revenue drop in H1 2025 driven by policy shifts shows sensitivity to regulatory and trade conditions, risking sustained top-line pressure. The arbitration claim adds potential liability and management distraction, compounding financial strain during a revenue trough.

XCHG Limited Sponsored ADR Business Overview & Revenue Model

Company Description

XCHG Limited Sponsored ADR (XCH) is a financial services company that operates in the cryptocurrency and digital asset sector. The company focuses on providing a platform for the trading and exchange of digital currencies, as well as offering services related to blockchain technology and asset management. XCH aims to facilitate secure and efficient transactions within the digital economy, catering to both retail and institutional investors.

How the Company Makes Money

XCH generates revenue primarily through transaction fees charged on trades conducted on its platform. Each time a user buys or sells a cryptocurrency, XCH collects a percentage of the transaction value as a fee. Additionally, the company may earn revenue from subscription services for premium features, market data analytics, and other financial services tailored to institutional clients. Partnerships with financial institutions and technology providers enhance XCH's service offerings and expand its user base, contributing to its overall earnings. Furthermore, XCH could also monetize through interest earned on held digital assets, staking services, and potentially through strategic collaborations with other financial entities in the crypto space.

XCHG Limited Sponsored ADR Financial Statement Overview

Summary

XCHG Limited shows revenue growth but struggles with profitability and cash flow management. Despite a strong gross profit margin, negative net profit margins and reliance on external financing highlight financial challenges.

Income Statement

XCHG Limited has shown a significant increase in total revenue over the years, with a notable revenue growth rate of 9.58% from 2023 to 2024. However, the company is struggling with profitability, as indicated by negative EBIT and net income margins. The gross profit margin stands at 50.28% for 2024, which is strong, but the negative net profit margin of -28.28% highlights ongoing challenges in controlling expenses and achieving profitability.

Balance Sheet

The balance sheet shows a positive equity position in 2024, with stockholders' equity at $29.51 million. The debt-to-equity ratio is 0.35, indicating a moderate level of leverage. However, the equity ratio is 51.65%, suggesting a balanced capital structure. Despite improvements, the company has faced negative equity in previous years, indicating historical financial instability.

Cash Flow

XCHG Limited's cash flow statement reveals a challenging situation with negative operating and free cash flows in 2024. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting net income into cash. The company relies heavily on financing activities to support its operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	42.28M	42.20M	38.51M	29.42M	13.16M
Gross Profit	20.14M	21.22M	17.57M	10.70M	4.63M
EBITDA	-7.34M	-11.49M	-7.69M	1.80M	-1.51M
Net Income	-7.55M	-11.94M	-8.08M	1.61M	-2.07M
Balance Sheet
Total Assets	41.77M	57.14M	40.96M	29.14M	19.24M
Cash, Cash Equivalents and Short-Term Investments	12.78M	26.77M	15.66M	8.34M	4.80M
Total Debt	9.85M	10.39M	18.54M	4.65M	1.89M
Total Liabilities	71.47M	27.63M	71.00M	57.19M	49.95M
Stockholders Equity	-29.70M	29.51M	-30.04M	-28.05M	-30.71M
Cash Flow
Free Cash Flow	-6.89M	-7.82M	-6.10M	635.03K	-6.57M
Operating Cash Flow	-6.72M	-7.20M	-5.58M	848.70K	-6.48M
Investing Cash Flow	-373.92K	-533.66K	2.27M	1.22M	-4.84M
Financing Cash Flow	11.54M	19.15M	10.74M	2.28M	15.19M

XCHG Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XCH, the sentiment is Positive. The current price of 1.02 is above the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.08, and below the 200-day MA of 1.27, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.14 is Neutral, neither overbought nor oversold. The STOCH value of 57.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XCH.

XCHG Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BWEN	65 Neutral	$58.47M	12.06	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GTEC	62 Neutral	$16.87M	0.79	21.29%	―	-1.36%	―
CVV	55 Neutral	$27.26M	-145.76	-0.73%	―	19.84%	95.71%
LASE	43 Neutral	$25.43M	-0.71	-109.15%	―	176.99%	-30.97%
XCH	41 Neutral	$63.32M	―	―	―	―	―
BURU	35 Underperform	$48.30M	-0.08	―	―	-98.20%	93.77%

XCHG Limited Sponsored ADR Corporate Events

XCHG Limited Sets Up $12.8 Million At-the-Market ADS Offering with A.G.P.

On January 30, 2026, XCHG Limited entered into a sales agreement with A.G.P./Alliance Global Partners, allowing the company to offer and sell from time to time up to $12.8 million of American depositary shares (ADSs), each representing 40 Class A ordinary shares, under an effective shelf registration statement on Form F-3. The arrangement is structured as an at-the-market program, with no obligation for XCHG to sell any ADSs, and provides that the sales agent will receive a 3% commission on gross proceeds, subject to customary conditions, indemnities and expense reimbursements, with the agreement terminating once all ADSs are sold or upon earlier termination under its terms. XCHG said it plans to use any proceeds raised for working capital and general corporate purposes, including funding research and development, operations and capital expenditures, signaling an effort to bolster liquidity and support ongoing growth initiatives without committing to a fixed-size equity issuance at a single point in time.

The most recent analyst rating on (XCH) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on XCHG Limited Sponsored ADR stock, see the XCH Stock Forecast page.

XCHG Limited Posts Lower First-Half 2025 Revenue and Faces New Arbitration Claim

In a Form 6-K filed on December 19, 2025, XCHG Limited reported its unaudited financial results for the six months ended June 30, 2025, highlighting a sharp year-on-year revenue decline from US$20.1 million to US$12.5 million, mainly due to trade policy turbulence and shifting renewable energy regulations that prompted customers to delay purchases. Product revenues fell to US$12.1 million while service revenues grew modestly to US$0.4 million, and although gross profit decreased to US$6.4 million, gross margin improved to 51.3% as cost of revenues shrank as a share of sales; however, operating expenses jumped to US$13.9 million, surpassing total revenue and pointing to mounting cost pressure. The company also disclosed that on October 28, 2025 it received a formal arbitration notice from the China International Economic and Trade Arbitration Commission over an investor claim demanding repayment of RMB16.71 million (about US$2.33 million) plus interest and costs, with joint and several liability sought from XCHG, its German subsidiary and its founders, adding a potentially material legal and financial overhang at a time of weaker top-line performance.

The most recent analyst rating on (XCH) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on XCHG Limited Sponsored ADR stock, see the XCH Stock Forecast page.