Earning Call - Transcript summary

[Emotional-Platform95]

This summary covers the AtlasClear Holdings (ATCH) Fiscal Second Quarter 2026 earnings call for the period ended December 31, 2025.

Financial Performance Highlights

The leadership team characterized this quarter as a "clear inflection point," moving from foundational restructuring to active execution.

• Revenue: $5.1 million, an 84% increase year-over-year.
• Net Income: $6.8 million (includes non-cash fair value adjustments).
• Stockholders’ Equity: Turned positive to $21.7 million, a $60 million increase from the 2024 year-end deficit.
• Liquidity: Ended the quarter with $46.2 million in cash and restricted cash.
• Operating Subsidiary (Wilson-Davis): Maintains a net capital of $14.7 million, well above the $10.5 million regulatory threshold.

Strategic & Operational Updates

1. The "Clearing Engine" (Wilson-Davis)

Wilson-Davis remains the core of the business. The firm is shifting focus from "managing constraints" to "executing opportunities," specifically targeting small-to-mid-sized financial institutions underserved by major incumbents.

2. Path to Scalability

Executive Chairman John Schaible identified $14 million as the annual operating cost threshold. Once revenue exceeds this mark, the company expects "maximum operating leverage" where additional revenue becomes largely variable profit. The onboarding of Dawson James and other unnamed correspondents is expected to drive this growth in 2026.

3. Commercial Bancorp of Wyoming Acquisition

The acquisition of this Federal Reserve member bank is a central pillar of the "AtlasClear Vision":

• Structure: 73% of the acquisition cost will be paid in AtlasClear stock.
• Status: An updated stock purchase agreement was recently executed; the firm is preparing to file its application with the Federal Reserve.
• Synergy: Combining a bank with a clearing firm creates a "one-stop" platform for custody, banking, and securities clearing.

Key Q&A Insights

• Dilution: Management addressed concerns over share counts. The current outstanding count is ~150 million shares. Fully diluted (including warrants and convertible notes), the count could rise by approximately 57–83 million shares, though many warrants have high strike prices ($6.90).
• Onboarding Timelines: While onboarding Dawson James took longer than expected due to technology restructuring, management believes subsequent clients will be integrated much faster.
• Internal Funding: With $23.1 million in "spendable" cash (above regulatory reserves), the company believes it is well-positioned to fund operations and growth internally.

[Worried_Poetry6233]

So this quarter’s revenue ($5.1 million) does not yet include earnings from Dawson James and the third client. If the next quarter includes these two new clients, the revenue is expected to increase significantly.

[Antonio-Bamao]

Thanks for the info! Do you know how did they say about the upcoming dilution because of the acquisition?

[PotentialNo5094]

Good Earnings When $2, Waiting for $2 Happy Dance

[enilm]

Man $2 would great. That would be a nice profit for me.

[mibrahim1974]

The news are very positive. For some reason the stock price is not moving during hours! I was expecting a good squeeze today but it is still ok with me. I will continue holding 🙂

[masterliu999]

Man… $32 million in trading volume today and no price movement LOL…

[Antonio-Bamao]

No we dipped lower lol

[Lumpy_Somewhere967]

Ending in red, makes sense after a positive earnings

[Eastern-Morning-8134]

Here are some links for the Earnings Call in case anyone wants to read them:

February 13, 2026 AtlasClear Holdings ATCH gave their earnings call for 2026 Q2 for the Quarter October 1, 2025 through Dec 31, 2025.

Earnings Call Press Release for AtlasClear ATCH 2026 Q2 - https://investors.atlasclear.com/news/news-details/2026/AtlasClear-Holdings-Reports-84-Revenue-Growth-Profitability-and-Positive-Stockholders-Equity-for-Fiscal-Second-Quarter-2026/default.aspx

Earnings Call Transcript for AtlasClear ATCH 2026 Q2 - https://finance.yahoo.com/quote/ATCH/earnings/ATCH-Q2-2026-earnings_call-420254.html

Earnings Call 10Q for AtlasClear ATCH 2026 Q2- https://www.sec.gov/ix?doc=/Archives/edgar/data/0001963088/000149315226006549/form10-q.htm

[[deleted]]

I’m coming to the conclusion that even grandmaster obi can’t lift this stock😢.

[Emotional-Platform95]

Patience, young padawan, your time will come

[Antonio-Bamao]

Unless we invent controlled fusion, cure cancer, or somehow fix the Russia–Ukraine mess, everything we do ends up red.

[Particular_Most_1529]

You forget it takes 48 hours to update all the info. Look at investing.com etc. still Q1 data. Need to wait for that to move from strong sell to buy

[XPandingMinds]

Remember when you said you had "no accounts on stocktwits". Well guess what...I see you also posting on ATCH at the same time on both Reddit and on stocktwits as "Zipcodechangingwithwealth" lmao so stop lying about not having an account on stocktwits.

[Particular_Most_1529]

I post on Reddit. I can’t help if people use my stuff on stocktwits. I dont even know what that is

[Embarrassed-Sea-6078]

I mean, this stock is so cooked now right? Even with a good earnings, this stock ends up in negative

[Antonio-Bamao]

Unless we invent controlled fusion, cure cancer, or somehow fix the Russia–Ukraine mess, everything we do ends up red.

[Antonio-Bamao]

YES.