Cash flow generation remains highly erratic, with free cash flow margins oscillating from a peak of 77.8% in 2024Q2 to a low of -83.3% in 2026Q1.
| Cash from Operations | -1.87M | -189.75K | 1.57M | -1.82M | -1.08M | -1.07M | -25.31K |
| Operating CF Margin % | - | -1.3% | 14.48% | -45.48% | -11.93% | -8.05% | - |
| Operating CF Growth % | -1044.58% | -112.07% | 186.38% | -67.84% | -1.13% | -4135.4% | - |
| Net Income | 2.74M | -4.81M | 5.75M | 794.95K | 11.05M | 1.48M | -5.42K |
| Depreciation & Amortization | 1.41M | 1.42M | 1.38M | 0 | 28.53K | 37.23K | 0 |
| Stock-Based Compensation | 2.75M | 2.79M | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -196.01K | 108.2K | 0 | 0 | 0 | -12.5K | 0 |
| Other Non-Cash Items | -2.24M | -447.92K | -8.34M | -3.41M | -14.64M | -4.9M | 0 |
| Working Capital Changes | 237.58K | 756.24K | 2.79M | 792.03K | 2.48M | 2.32M | -19.89K |
| Change in Receivables | -10.13M | -9.86M | -2.72M | -58.83K | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 5.82M | 5.97M | 3.78M | 628.16K | 0 | 0 | 0 |
| Cash from Investing | -85K | -85K | -145K | 152.34M | 351.47K | -201.25M | 0 |
| Capital Expenditures | -65K | -65K | -125K | 0 | 0 | -13.81K | 0 |
| CapEx % of Revenue | 0.4% | 0.44% | 1.15% | 0% | - | 0.1% | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -20K | -20K | -20K | 152.81M | 353.58K | 13.81K | 0 |
| Cash from Financing | 16.89M | 18.78M | 1.62M | -150.03M | 799.17K | 202.36M | 47.18K |
| Debt Issued (Net) | 9.81M | 9.8M | -246.07K | -70.5K | 480K | -130.1K | 130.1K |
| Equity Issued (Net) | 1.87M | 1.87M | 1.87M | -152.81M | 0 | 202.49M | -82.92K |
| Dividends Paid | 0 | 0 | 0 | 0 | -41K | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | -152.81M | 0 | 0 | 0 |
| Other Financing | 5.21M | 7.11M | 0 | 2.86M | 360.17K | 0 | 0 |
| Net Change in Cash | 13.68M | 17.76M | 28.99M | 489.99K | 66.38K | 41.31K | 21.87K |
| Free Cash Flow | -1.87M | -189.76K | 1.57M | -1.82M | -1.08M | -1.09M | -25.31K |
| FCF Margin % | -11.66% | -1.3% | 14.48% | -45.48% | -11.93% | -8.16% | - |
| FCF Growth % | -286.24% | -112.07% | 186.38% | -67.84% | 0.15% | -4189.97% | - |
| FCF per Share | -0.01 | -0.00 | 0.26 | -0.15 | -2.59 | -0.05 | -0.00 |
| FCF Conversion (FCF/Net Income) | -0.68x | -0.11x | 0.27x | 0.02x | -8.26x | -0.73x | 1.17x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 537K | 277.96K | 1.21M | 0 |
Regulatory capital and scale
As reported in recent financial statements, ATCH exhibits a volatile relationship between net income and operating cash flow, with the OCF/NI ratio swinging from 3.97 in 2025Q3 to -1.12 in 2025Q2, indicating that reported earnings are frequently decoupled from actual cash generation capabilities.
The significant variance between net income and operating cash flow suggests that non-cash adjustments and working capital fluctuations are the primary drivers of reported bottom-line results. Investors should monitor this divergence closely, as it implies that the company's profitability metrics may not accurately reflect its underlying ability to self-fund operations.
Based on historical cash flow data, ATCH's free cash flow trajectory remains highly erratic, oscillating between a peak margin of 77.8% in 2024Q2 and a low of -83.3% in 2026Q1, reflecting the company's ongoing struggle to achieve consistent operational self-sufficiency in its current growth phase.
The lack of a stable FCF trend suggests that the business model is highly sensitive to lumpy transaction volumes and timing differences in settlement. This volatility makes it difficult to project when the company might reach a sustainable cash-flow-positive state without further external financing.
According to quarterly cash flow filings, working capital changes have been a major source of instability, with swings ranging from a $3.5M inflow in 2025Q4 to a $4.2M outflow in 2024Q1, highlighting the inherent difficulty in managing liquidity within a clearing and settlement business model.
These fluctuations appear to be tied to the timing of client clearing activities and the associated collateral requirements. Such variability in working capital suggests that the company's cash position is susceptible to rapid shifts based on market activity, which may necessitate higher-than-expected cash buffers.
As evidenced by the 2024Q1 data, where the company utilized $53.9M for share repurchases despite significant operational cash outflows, ATCH's capital deployment strategy appears aggressive and potentially misaligned with its current need to preserve liquidity for regulatory capital requirements and infrastructure development.
The decision to prioritize share repurchases during a period of negative cash flow warrants further investigation into management's capital allocation priorities. This approach may limit the company's financial flexibility, especially if the core business requires additional capital to meet evolving regulatory standards.
Quick answers to the most common questions about buying ATCH stock.
AtlasClear Holdings, Inc. (ATCH) generated $-0.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
AtlasClear Holdings, Inc. (ATCH) reported negative free cash flow of $0.2M in 2025, indicating capital requirements exceeded cash from operations.
AtlasClear Holdings, Inc. (ATCH) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.