AtlasClear (ATCH) investor relations material

Executive summary

• Revenue for the quarter rose 65% year-over-year to $4.2 million, with nine-month revenue up 67% to $13.5 million, driven by new stock locate fees, securities lending, and participation as a selling agent in an at-the-market offering.

• Net loss for the quarter was $1.93 million, an improvement from $2.90 million in the prior year quarter, while year-to-date net income reached $4.4 million, reversing a prior-year loss per share.

• Stockholders' equity improved to $22.3 million from a $6.8 million deficit nine months ago, and total liabilities declined by $16 million.

• Five correspondent clearing relationships were signed or are onboarding, with additional prospects in late-stage documentation, expected to drive future revenue.

• The company is pursuing the acquisition of Commercial Bancorp and has entered a letter of intent to acquire Ark Financial Services and Dawson James Securities.

Financial highlights

• Total revenue for Q3 was $4.2 million, up 65% from $2.5 million in the prior year quarter; year-to-date revenue reached $13.5 million, up 67% from $8.1 million.

• Securities lending and stock locate revenue totaled $1.4 million in the quarter and $3.0 million year-to-date, becoming the largest contributor to year-over-year revenue growth.

• Operating loss for the quarter was $2.9 million; net loss narrowed to $1.9 million from $2.9 million in the prior year quarter.

• Year-to-date net income was $4.4 million ($0.05 per diluted share), compared to a $0.02 loss per share in the prior year nine-month period.

• Cash and cash equivalents at quarter end were $16.7 million; total cash including reserves was $41.2 million.

Outlook and guidance

• Management expects execution and a growing correspondent pipeline to drive results in coming quarters, with progressive revenue contribution from new relationships.

• Securities lending business anticipated to continue growing as inventory and client relationships expand.

• Strengthened balance sheet and liquidity are expected to support continued operational and strategic growth.

• Focused on converting pipeline into revenue, advancing acquisitions, and scaling high-potential business lines.

• Management expects recent financing and projected cash flows to provide sufficient liquidity for at least 12 months.