10-Q · May 13, 2026
AtlasClear Holdings reported a strong Q3 2026 with total revenues of $4,201,852, marking a significant 65% increase from the prior period. While the company maintained a high gross margin of 100%, it experienced a sharp…
Earnings analysis · 10-K
ATCH earnings analysis
Filed September 24, 2026 · Our reading of the company's report
The latest report
AtlasClear delivered strong top-line growth in fiscal 2026, with revenue up 85% to $20.1 million, led by the new $6.8 million stock-locate business, and improved cash and net capital. However, operating loss nearly…
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AtlasClear delivered strong top-line growth in fiscal 2026, with revenue up 85% to $20.1 million, led by the new $6.8 million stock-locate business, and improved cash and net capital. However, operating loss nearly doubled to $9.8 million and cash used in operating activities was $6.2 million, while reported net income depended heavily on non-cash fair-value gains. The strategy offers expansion potential through a technology-enabled clearing, banking and fintech platform, but execution, debt, regulatory-capital, dilution and acquisition risks keep the outlook balanced.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.02
- Operating margin
- -48.72%
- Segment
- Single reportable segment: securities broker-dealer dealing in over-the-counter and listed securities; revenue was $20,052,635 in fiscal 2026. Product revenue: commissions $9,253,906, vetting fees $1,391,135, clearing fees $2,055,780, stock locate fees $6,780,814, firm trading gains $506,141, and other revenue $64,859.
What stood out
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Targets underserved financial-services firms
AtlasClear describes a strategy to build a technology-enabled B2B financial-services platform for trading, clearing, settlement, banking and products such as crypto. Its target clients are financial-services firms generally with annual revenues of up to $1 billion that are underserved by larger correspondent clearing firms and banks.
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Revenue growth accelerated sharply
Fiscal 2026 revenue increased 85% to $20,052,635 from $10,856,612 in fiscal 2025. The largest growth driver was the newly expanded stock-locate business, which generated $6,780,814 versus $287,465 a year earlier.
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Commissions and locates drove mix
Commissions rose to $9,253,906 from $5,937,532, while net gains on firm trading accounts increased to $506,141 from $6,580. This growth was partly offset by clearing fees declining to $2,055,780 from $3,165,714 and vetting fees declining to $1,391,135 from $1,459,321.
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Liquidity and regulatory capital improved
Cash and restricted cash increased to $39,842,481 at June 30, 2026 from $29,609,219, including unrestricted cash of $15,422,176 versus $7,533,690. AtlasClearing also reported net capital of $14,416,508, compared with the $10 million NSCC excess-capital requirement cited in the risk factors.
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Material control weakness remediated
The previously reported internal-control material weakness relating to complex financial instruments, merger agreements and going-concern assessments was remediated; management concluded controls were effective as of June 30, 2026 after implementing standardized reviews and external technical-accounting support.
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Financing extended operating runway
The company completed major financing and debt restructuring: the Restated Note has $10,097,782 of principal, bears 11% interest and matures October 8, 2030, while the Equity SPA generated $5,850,000 of cash proceeds and issued 16,666,665 shares.
What to watch
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Operating losses and non-cash earnings
Revenue growth did not translate into operating profitability: expenses increased 89% to $29,822,951, operating loss widened 99% to $9,770,316, and operating margin was approximately -48.7%. Net income of $1,962,875 was supported by $11,481,086 of other income, including fair-value gains such as an $11,106,000 earnout-liability gain, rather than operating earnings.
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Debt and near-term financing pressure
The company has substantial secured and convertible financing obligations. The Restated Note had a June 30, 2026 fair value of $11,210,358, accrues interest at 11% with an event-of-default rate of 14%, and is secured by substantially all company and subsidiary assets; a separate $515,661 debenture matures February 3, 2027 and requires 100% of qualifying third-party financing proceeds to be paid to the holder until the face amount is repaid.
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Broker-dealer reserve shortfall
AtlasClearing’s broker-dealer reserve position requires close monitoring: as of June 30, 2026, its PAB reserve requirement was $521,309 while cash on deposit was $378,962, a $142,347 shortfall that was funded on July 1, 2026. Failure to meet reserve or capital requirements could restrict correspondent clearing services.
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Execution risk from proposed acquisitions
The company has expanded its acquisition agenda beyond Commercial Bancorp: the April 2026 Ark letter of intent and July 2026 institutional digital-asset-business letter of intent are non-binding and remain subject to due diligence, definitive agreements, board approvals and regulatory approval. The filing states there is no assurance either transaction will close.
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Severe dilution and resale overhang
Shareholder dilution remains material: common shares outstanding increased from 40,165,603 at June 30, 2025 to 150,337,774 at June 30, 2026. In addition, 32,468,960 warrants were outstanding at year-end, and the company has registration statements covering substantial resale shares and a shelf registration statement for future issuance.
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Unresolved regulatory enforcement
AtlasClearing remains exposed to regulatory penalties and capital reduction. A FINRA matter involving short-sale and anti-money-laundering violations was reduced to an aggregate $490,000 fine, but remains under SEC appeal; the company has recorded only a $100,000 contingency reserve and states the final amount is not reasonably estimable.
Management's outlook
The 10-K provides no quantitative revenue or EPS guidance. Management describes growth objectives, including expanding correspondent clearing relationships and developing trading, clearing, settlement, banking, crypto, and other fintech products, but does not provide formal numeric fiscal 2027 guidance.
Earlier filings 4
10-Q · February 13, 2026
AtlasClear reported Q2 (three months ended Dec 31, 2025) revenue of $5,057,094, up $2,310,595 (+84.1%) vs $2,746,499 a year ago, and reported net income of $6,784,171 (basic/diluted EPS $0.05). Revenue growth was driven…
10-Q · November 14, 2025
AtlasClear reported quarterly revenue of $4,250,590, up from $2,804,082 a year ago (+$1,446,508, +51.6%), driven by higher commissions and a large increase in 'other' revenue. The company posted a net loss of $440,294…
10-K · September 29, 2025
AtlasClear positions itself as a fintech-led, integrated clearing/custody and banking platform targeting underserviced smaller financial firms and plans growth through integration of Wilson‑Davis, Quantum and an…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.