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AtlasClear Holdings, Inc. (ATCH)·Q1 2026 Earnings Summary

Executive Summary

  • Revenue grew 52% year over year to $4.25M; operating loss narrowed to $(0.877)M; net loss was $(0.44)M as prior-year benefited from one-time fair-value adjustments .
  • Balance sheet inflection: stockholders’ equity turned positive at $6.86M; cash and restricted cash were $32.2M; post-quarter $20M financing resolved prior going concern .
  • Operational momentum: Wilson-Davis remained profitable; net capital $12.28M; third correspondent clearing client signed and onboarding; stock loan revenues accelerating .
  • Near-term catalysts: regulatory filing timeline for Commercial Bancorp of Wyoming, correspondent clearing onboarding in Q1 CY2026, and fintech/LocBox product expansion in 2026 .

What Went Well and What Went Wrong

What Went Well

  • Positive equity and going concern resolved following $20M financing: “We have achieved positive stockholders’ equity… secured $20 million in additional financing…” — John Schaible .
  • Strong revenue growth and narrowing operating loss: Revenue $4.25M (+52% YoY); operating loss $(0.877)M vs $(0.941)M prior year .
  • Subsidiary performance and capital strength: WDCO net capital $12.28M (≈$2.0M above requirements) and profitability; third correspondent clearing client signed .

What Went Wrong

  • Consolidated bottom line remains negative: Net loss $(0.44)M vs prior-year net income $10.7M (prior year benefited from one-time fair-value adjustments) .
  • Dilution and capital structure complexity: shares outstanding increased to 126.8M as of Sep 30, 2025 due to conversions; derivative liabilities and financing structures remain a focus .
  • Operating cash flow pressure: operating cash outflow $(2.50)M in the quarter; financing inflows $5.14M offset liquidity needs .

Financial Results

Year-over-Year (Q1 FY2026 vs Q1 FY2025)

MetricQ1 FY2025Q1 FY2026YoY Change
Revenue ($USD)$2.80M $4.25M +52.0%
Operating Loss ($USD)$(0.941)M $(0.877)M Improved
Net Income ($USD)$10.7M $(0.44)M N/A (prior year included one-time gains)

Sequential (Q4 FY2025 → Q1 FY2026) — Balance Sheet/ Liquidity

MetricQ4 FY2025 (as of Jun 30, 2025)Q1 FY2026 (as of Sep 30, 2025)Seq Change
Total Assets ($USD)$60.9M $73.6M +21%
Cash & Restricted Cash ($USD)$29.6M $32.2M +$2.6M
Stockholders’ Equity ($USD)$(6.8)M $6.86M Swing to positive

Quarterly Trend (last 3 quarters) — S&P Global data

MetricQ3 2025Q4 2025Q1 2026
Revenue ($USD)$2,535,703*$2,488,960*$3,420,438*
Net Income ($USD)$(2,902,828)*$(1,675,222)*$(440,294)*
Diluted EPS (Continuing Ops) ($USD)$(1.25)*$(0.0797)*$(0.0100)*
Operating Income ($USD)$(118,627)*$(540,825)*$(519,787)*
EBITDA ($USD)$234,002*$(186,524)*$(163,992)*
EBITDA Margin (%)9.20%*(6.75%)*(3.86%)*
Net Income Margin (%)(114.15%)*(60.63%)*(10.36%)*

Values marked with * are retrieved from S&P Global.

Note: Current quarter press release/10‑Q report operating loss of $(0.877)M and revenue $4.25M; S&P Global quarterly classifications differ, which may reflect consolidation scope and timing. Cross-reference to primary filings for definitive GAAP figures .

Segment/Operational KPIs

KPIQ1 FY2026Prior Periods / Notes
WDCO Revenue ($USD)$4,253,741 YoY +51%
WDCO Net Income ($USD)$900,475 YoY +49%
WDCO Net Capital ($USD)$12,281,941 +7% vs Jul 31, 2025
Correspondent Clearing ClientsThird client signed; onboarding begins Q1 CY2026 Scaling pipeline
Net Stock Loan Revenue (Monthly)Sep: $400k Jul: $258k; Aug: $281k

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Correspondent Clearing onboardingQ1 CY2026Not providedOnboarding of 3rd client expected; contribute to FY2026 revenue New qualitative
Commercial Bancorp of Wyoming acquisitionRegulatory filing timelineNot providedFormal Fed filing targeted no later than Jan 31 (confidence in process) New qualitative
LocBox fintech/digital asset loan platform2026Not providedExpansion and potential product launches in 2026 New qualitative
Revenue/EPS/Margins/OpEx/TaxFY2026/Q2No formal guidanceNo formal numerical guidance providedMaintained (no guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY2025)Current Period (Q1 FY2026)Trend
Balance sheet repair / de-SPAC liabilities83% reduction of de-SPAC debt; equity up >$43M vs YE 2024 Positive equity $6.86M; going concern resolved via $20M financing Improving
Correspondent clearing pipelineThird client signed; expected to contribute materially in 2026 Onboarding begins Q1 CY2026; recurring revenue model highlighted Scaling
Bank acquisition (Commercial Bancorp of Wyoming)Extended contract; strategic positioning Formal Fed filing targeted by Jan 31; management confident Advancing
Stock loan platform performanceMomentum from April; Sep net stock loan rev ~$400k Double-digit MoM growth continues; supports WDCO profitability Improving
Fintech/LocBox initiativesOLA digital account opening launched; roadmap for 2026 Exploring digital asset loan platform expansion in 2026 Building

Management Commentary

  • “This quarter marks a key inflection point for AtlasClear… secured $20 million in additional financing to fund expansion and strengthen liquidity.” — John Schaible, Executive Chairman .
  • “Operationally, we continue to see growth and diversification… stock loan platform continues to deliver double-digit month-over-month revenue growth.” — Craig Ridenhour, President .
  • CFO perspective: “The successful $20 million capital raise… fully resolves the going concern qualification… strategically positioned to accelerate integration of technology, clearing, and banking.” — Sandip Patel, CFO/GC .

Q&A Highlights

  • Regulatory process timeline: Management anticipates formal Fed filing for Commercial Bancorp of Wyoming by Jan 31, expressed confidence in bank’s profile and process .
  • Correspondent clearing pipeline: Third client onboarding Q1 CY2026 expected to materially contribute to FY2026 revenues .
  • Operating leverage focus: Emphasis on disciplined expense control and capital efficiency as revenues scale, aiming to expand WDCO’s regulatory capital buffer .

Estimates Context

  • S&P Global consensus estimates for Q1 FY2026 EPS and revenue were unavailable for ATCH; the company did not provide formal numerical guidance in the press release or call [Values retrieved from S&P Global].

Key Takeaways for Investors

  • Balance sheet de-risking and fresh capital materially reduce insolvency risk and support integration/execution; equity is now positive, a clear narrative shift since de-SPAC .
  • Revenue growth (+52% YoY) with narrowing operating loss indicates improving unit economics; watch for operating leverage as correspondent clearing ramps in CY2026 .
  • WDCO profitability and net capital strength underpin recurring revenue; increased stock loan revenues provide incremental margin tailwinds .
  • Regulatory milestone for bank acquisition (Commercial Bancorp of Wyoming) is a key medium-term catalyst for integrated platform economics; filing by Jan 31 is the next checkpoint .
  • Dilution remains a consideration given share count expansion from conversions; monitor future capital raises and warrant exercises for potential overhang .
  • With no formal guidance and limited Street coverage, near-term stock moves likely hinge on execution updates: correspondent client onboarding timing, bank filing progress, and stock loan growth cadence .

Bolded surprises/beats/misses: None relative to Street due to unavailable S&P Global consensus. The primary surprises were qualitative: elimination of going concern, positive equity swing, and $20M financing completion .