AtlasClear is a financial-services/fintech company built around brokerage, clearing, settlement and banking services. Its operating business is Wilson-Davis, a registered broker-dealer, with newer businesses including securities lending/stock locating. It is also pursuing acquisitions to expand the platform.
MRQ EPS was -$0.01 for Q3 FY2026, versus -$1.25 in Q3 FY2025. Nine-month EPS was +$0.04 basic and +$0.05 diluted. The EPS trend is improving substantially, although the quarterly business is not yet consistently profitable.
There are significant accounting items. The nine-month 2026 profit included changes in fair value of financial instruments and other financing-related items. Operating income was actually negative $6.27M for the nine months, while net income was positive $4.41M.
Revenue growth is encouraging. Q3 revenue rose 65% to $4.2M, and nine-month revenue rose 67% to $13.5M. Stock-locate and securities-lending revenue went from essentially zero to $3.0M year-to-date. Preliminary FY2026 revenue is about $20.1M, up 85%.
The pipeline consists mainly of expanding the brokerage/clearing platform, onboarding correspondent relationships, growing securities lending and pursuing the Dawson James Securities and Commercial Bancorp acquisitions. Five correspondent relationships were signed or actively onboarding as of March.
At March 31 cash was $16.7M, while total cash including segregated customer/PAB reserve cash was $41.2M.
Debt is manageable but significant relative to the company's size. The company had approximately $15.6M of debt according to the latest balance-sheet data. It also has a $10M BMO revolving credit facility available for clearing-margin requirements.
Assets were about $73.9M and liabilities about $51.7M at March 31. Stockholders' equity had improved to $22.3M from a $6.8M deficit at June 30, 2025.
Dilution is a major historical issue. Shares outstanding rose from 40.2M at June 30, 2025 to 149.8M at March 31, 2026 and 150.3M by May. The company has used private placements, convertible notes, equity SPAs, warrants and shares issued to settle debt and other obligations.
The company also has a $12.25M equity line allowing it to sell shares at a discount to VWAP, which creates additional potential dilution.
Short interest is about 6.97M shares, or 4.6% of shares outstanding, with about 5.6 days to cover. It has fallen substantially from 12.06M in June. So short interest has been declining rather than increasing recently.
Disclosure: 2k at $0.20 usd