$ATCH earnings report

AtlasClear reported fiscal 2026 GAAP revenue of $20.1 million, up 85% from $10.9 million. Commission revenue increased 56% to $9.3 million, while stock locate fees rose to $6.8 million from $0.3 million. Stock locate represented approximately 34% of total revenue, and sources other than commissions accounted for approximately 54% of revenue compared with approximately 45% in fiscal 2025. Clearing fees declined to $2.1 million from $3.2 million, while vetting fees were $1.4 million compared with $1.5 million.

The higher activity came with substantial operating costs. Total expenses rose to $29.8 million from $15.8 million, and the operating loss widened to $9.8 million from $4.9 million. Compensation, payroll taxes and benefits increased 91% to $11.7 million, data processing and clearing costs increased 98% to $4.2 million, and the Company recorded $3.6 million of non-cash stock-based compensation related to executive employment agreements. New stock locate and Loanet cost categories totaled $0.8 million and $0.7 million, respectively.

GAAP net income was $2.0 million, or $0.02 per basic and diluted share, compared with $5.8 million, or $0.96 per share, in fiscal 2025. The fiscal 2026 result was supported by $11.5 million of total other income, including an $11.1 million non-cash gain from the change in fair value of the earnout liability, a $1.8 million gain related to the Winston & Strawn agreement, and a $1.7 million warrant-liability fair-value gain. These gains were partly offset by $5.1 million of interest expense and a $570,000 loss on settlement of the Winston & Strawn agreement.

Liquidity strengthened, with cash and cash equivalents of $15.4 million versus $7.5 million a year earlier and stockholders’ equity of $21.1 million versus a deficit of $(6.8) million. However, operating activities used $6.2 million of cash, while financing activities provided $16.5 million. AtlasClearing’s $10 million revolving line of credit remained undrawn. Management concluded that substantial doubt about the Company’s ability to continue as a going concern had been alleviated and that internal control over financial reporting was effective as of June 30, 2026.

The principal growth opportunity cited is the onboarding of six newly signed correspondent broker-dealers, none of which contributed meaningful fiscal 2026 revenue. Management expects these relationships to begin contributing during fiscal 2027 and to expand stock loan and interest-income opportunities. The filing provided no quantitative forward guidance. Execution on correspondent onboarding, operating cash flow, and regulatory progress on the Commercial Bancorp transaction are the reported items that will determine whether the revenue growth translates into operating leverage.

AtlasClear reported preliminary, unaudited fiscal 2026 total revenues of approximately $20.1 million, up approximately 85% from $10.9 million in fiscal 2025. Interest income of approximately $1.8 million was presented in other income under GAAP, producing the company’s supplemental total-revenues-plus-interest-income measure of approximately $21.9 million, up approximately 70% from approximately $12.9 million. The separate audited annual report of AtlasClearing reported approximately $21.8 million of total revenues because it includes interest income within revenues.

The revenue mix changed materially during the year. Commission revenue increased approximately 56% to approximately $9.3 million, but its share of total revenues declined to approximately 46% from approximately 55% in fiscal 2025. Stock locate fees increased to approximately $6.8 million from approximately $0.3 million and accounted for approximately 34% of total revenues. Non-commission revenue lines consequently represented approximately 54% of total revenues, compared with 45% in fiscal 2025. Net gains on firm trading accounts contributed approximately $0.5 million.

The company expects to report approximately $2.0 million of net income, its second consecutive year of positive net income, although this result includes non-cash gains from changes in the fair value of financial instruments. Liquidity and capital measures improved: cash and cash equivalents were approximately $15.4 million versus $7.5 million a year earlier, stockholders’ equity was approximately $21.1 million versus a prior stockholders’ deficit of approximately $6.8 million, and total liabilities were approximately $50.1 million following a reduction of approximately $17.6 million. AtlasClearing net capital rose to approximately $14.4 million from $11.2 million, approximately $14.1 million above its minimum requirement.

Capital discipline was a stated feature of the year. The company sold no shares under its equity line facility during fiscal 2026 and has not conducted an at-the-market offering or other dilutive capital raise since its October 2025 institutional unit financing. It had approximately 150.3 million shares outstanding at June 30, 2026 and approximately 151.8 million as of the release date. AtlasClearing has signed six new correspondent broker-dealer agreements, but those relationships generated no meaningful fiscal 2026 revenue. Their conversion and contribution during fiscal 2027, together with collection of stock locate receivables that are deducted from net capital until collected, are central items to monitor.

The release provides no quantitative financial outlook. Management expects to file its fiscal 2026 Form 10-K and report full results by September 28, 2026. The final filing is important because the current figures are preliminary and unaudited, may differ materially from audited results, and do not disclose several core profitability and cash-flow measures, including gross margin, operating income, EPS, operating cash flow and free cash flow.