AtlasClear (NYSEAMERICAN:ATCH) executives told investors the company reached what they described as an “inflection point” in the fiscal second quarter ended Dec. 31, 2025, pointing to sharply higher revenue, positive stockholders’ equity, and a strengthened liquidity position after what management characterized as two years of foundational work.
On the company’s fiscal second-quarter 2026 earnings call, Executive Chairman John Schaible said AtlasClear’s recent efforts centered on “strengthening” the company’s foundation, simplifying the balance sheet, and improving financial flexibility so the platform could be positioned for long-term execution. Schaible said those efforts are now translating into results, including 84% year-over-year revenue growth and net income of $6.8 million. He also highlighted that stockholders’ equity turned positive to $21.7 million, which he said represented an increase of nearly $60 million from year-end 2024, and that the company ended the quarter with $46.2 million in cash and restricted cash.
Management highlights revenue mix and profitability drivers
Patel said expenses rose in line with revenue growth, driven primarily by variable compensation, clearing and data processing costs, and stock-based compensation tied to new executive employment agreements. As activity scales, he said the company is “beginning to see improved operating leverage across the business.”
Patel noted that the reported net income of $6.8 million included non-cash fair value adjustments, while emphasizing that the quarter reflected a “materially stronger underlying operating and financial profile than a year ago.”
Balance sheet and capital position
Patel said total assets increased to $77.6 million from $60.9 million as of June 30, 2025. He reiterated that stockholders’ equity improved to $21.7 million compared with a deficit of $6.8 million at fiscal year-end, calling it a “meaningful inflection point.”
Liquidity also increased during the quarter, with $46.2 million in cash and restricted cash. Patel specified that the balance included $23.1 million in cash and cash equivalents, which he said provided flexibility to support operations, regulatory requirements, and continued execution.
At the company’s operating subsidiary Wilson-Davis, Patel said net capital totaled $14.7 million at quarter end, which he said supports higher levels of client activity and capacity to onboard new correspondent relationships.
Wilson-Davis described as core clearing engine; operating leverage discussion
President Craig Ridenhour said the quarter reflected increasing “momentum” and a more optimistic operating tone, as AtlasClear spent “far less time managing around constraints and far more time executing on the opportunities.” Ridenhour said Wilson-Davis continues to serve as the “core clearing engine” of the platform, citing strength across commissions, stock locate services, and clearing-related activity, which he said reflected deeper client engagement and broader utilization of services.
In response to a question about when the clearing business could generate consistent operating leverage, management pointed to a cost baseline. Schaible said operating costs last year were “in the neighborhood of $14 million,” describing that amount as what is required to provide correspondent clearing services, including risk management, trading and technology, and staff. Once those costs are covered, he said, the business can “scale tremendously,” with additional activity becoming more variable and driving leverage.
Schaible referenced a relationship with Dawson James and a third client, and said the company would make an announcement when Dawson James begins trading. He added that management believes scaling will continue through 2026, citing what he called a “very robust” customer channel.
Pipeline, onboarding timeline, and proposed bank acquisition update
Ridenhour outlined three priorities looking ahead: doubling down on Wilson-Davis and the client experience, scaling “responsibly,” and advancing the broader AtlasClear strategy, including progress toward the proposed acquisition of Commercial Bancorp of Wyoming, subject to regulatory approval and customary closing conditions.
On timing for introducing broker ramp-ups, an executive identified as Greg said the Dawson James onboarding took longer because AtlasClear needed to restructure internally and “turn on some different technology lines” to put the right correspondent clearing suite in place. He said the company is optimistic Dawson James will be trading “momentarily,” and that the next signed correspondent clearing firm—unnamed at this time—should be able to become operational “fairly quickly,” with subsequent clients coming on faster. Greg said management expects the impact to begin showing up in results “over the next few quarters.”
On liquidity versus regulatory capital, management said a key regulatory threshold is $10.5 million. Schaible said the $23.1 million in cash and cash equivalents is cash the company “could spend,” but added that the company does not want to go below the $15 million it is presently holding for net capital.
Regarding dilution and convertibles, Schaible said the company has approximately 150 million shares outstanding. He said the only remaining “viable conversions” are associated with the Oct. 8 financing, estimating that at an exercise price of $0.75 per share, warrants would represent about an additional 43 million shares and the convertible note a little over 14 million shares if converted. He also noted that original de-SPAC warrants remain outstanding for about 26 million shares, but with a strike price of $690 per share.
On the proposed Commercial Bancorp of Wyoming acquisition, management said it recently executed an updated stock purchase agreement and is preparing to file an application with the Federal Reserve. Schaible said the regulatory environment appears to be moving more quickly than it did 12 to 18 months ago, and management is optimistic the process could be shortened compared with earlier expectations of one year to 18 months, while acknowledging “things can happen.”
Schaible said that without the bank acquisition, AtlasClear plans to build Wilson-Davis as a correspondent clearing firm focused on smaller institutions, which he said could be highly profitable on its own. With the bank, he said the company would combine correspondent clearing with custody and banking services under a Federal Reserve member bank to create a broader “one-stop solution.”
In closing comments, Schaible added that under recently announced terms, sellers would accept 73% of the acquisition consideration in AtlasClear stock. He also said that in 2025, the bank had about $1.9 million in revenue and $500,000 in net income, and described it as a small but “incredibly well-run” Federal Reserve member bank that management believes could be further enhanced with technology.
About AtlasClear (NYSEAMERICAN:ATCH)
AtlasClear, Inc (NYSE American: ATCH) is a financial technology and market-services company focused on the execution and clearing of equity-linked derivatives in the United States. Through its registered broker-dealer and clearing subsidiary, Atlas Clearing, LLC, the firm operates a dedicated trading venue for covered warrants and warrant-like instruments. The platform is designed to deliver efficient trade execution, enhanced liquidity and robust price discovery for institutional investors.
The company’s core offerings include proprietary market-making strategies, electronic order matching and centralized post-trade clearing services.
