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AtlasClear Holdings Inc

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AtlasClear Holdings Inc AI Insights

Informational only. Not investment advice.
As of 2025-12-17

Snapshot

  • Tangible book value is -13.6M with goodwill/intangibles at 20.5M (299% of equity) - balance sheet quality severely impaired[Tangible Book Value]
  • Interest expense TTM of 8.1M exceeds revenue of 12.3M - debt burden unsustainable at current scale[Interest Expense]
  • Operating margin -34.4% vs industry median +12.5% - burning cash on operations while peers profit[Operating Margin TTM]

Watch Triggers

  • Cash and Equivalents: Falls below 1.5MAt -1.9M FCF burn rate, sub-1.5M cash signals <6 months runway without new financing
  • Interest Expense: Exceeds 70% of revenueAlready at 66% - any increase likely triggers covenant breach or forces dilutive raise
  • Total Revenue TTM: Fails to reach 20M within 12 monthsMinimum scale needed to cover interest and approach breakeven operations

Bull Case

Recent financing of 5.1M demonstrates capital access; if revenue scales 3-4x, operating leverage could flip margins positive

Cash Flow from Financing ActivitiesTotal Revenue TTM

P/S ratio 1.4x is cheap vs industry median 8.9x - if turnaround succeeds, multiple expansion potential

P/S RatioEnterprise Value

Bear Case

Interest expense 8.1M on 12.3M revenue (66%) makes profitability mathematically impossible without debt restructuring

Interest ExpenseTotal Revenue TTMNet Income TTM

Gross profit declined 40% YoY while intangibles represent 299% of equity - impairment risk could wipe equity

Gross Profit 1Y GrowthGoodwill and IntangiblesTotal Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
20%

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Forward Thesis

Cash runway critically short without additional financing or rapid revenue scale

3-12mhigh
  • Cash of 2.7M vs FCF burn of -1.9M TTM
  • Current liabilities 49.6M exceed current assets 47.2M
  • Interest expense alone consumes 66% of revenue
Working capital -2.4M TTMFCF TTM -1.9M with no capex cushionFinancing inflows 5.1M keeping company afloat

Valuation Context

Caveats

Public Strategies Rankings

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Fundamental company data provided by Morningstar, updated daily.

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