AtlasClear (NYSEAMERICAN:ATCH) reported fiscal 2026 revenue of $20.1 million, up 85% from $10.9 million a year earlier, as stock locate fees expanded sharply and the company continued to build its correspondent clearing business. Including interest income, the company said it generated $21.9 million during the year ended June 30, 2026.
Executive Chairman John Schaible called fiscal 2026 a “breakout year,” citing growth in newer revenue lines, improved liquidity and higher broker-dealer net capital. AtlasClear reported GAAP net income of approximately $2 million, or $0.02 per diluted share, for the year, compared with net income of $5.8 million, or $0.96 per share, in fiscal 2025.
Stock Locate Business Drives Revenue Mix Shift
President Craig Ridenhour said AtlasClearing’s stock locate business was a primary contributor to the year’s growth. Stock locate revenue rose to $6.8 million from about $300,000 in fiscal 2025. As a result, approximately 54% of total revenue came from sources other than commissions, compared with 45% in the previous year.
Commission revenue increased 56% to $9.3 million, while clearing fees declined to $2.1 million from $3.2 million. Chief Financial Officer and General Counsel Sandip Patel said the prior-year clearing-fee result had benefited from two unusually large months of customer account service-fee revenue.
Revenue from AtlasClear’s existing correspondent increased about 67% to $1.4 million. The company signed five new broker-dealers during fiscal 2026 and a sixth after year-end, though those firms made no meaningful contribution to fiscal 2026 revenue.
During the question-and-answer session, Schaible said three of the six newly signed correspondents were fully integrated and beginning to move business to AtlasClear. The remaining three are expected to complete integration before the end of the year, he said. However, he declined to provide revenue forecasts, noting that the size and business models of the correspondent relationships vary significantly.
Schaible attributed stock locate growth to previously underdeveloped business, additional personnel and the company’s partnership with Lockbox, which he described as having proprietary stock locate technology. He said management expects the business to continue expanding, particularly as correspondent assets are onboarded.
Costs Rise Alongside Activity
Total expenses rose to $29.8 million from $15.8 million in fiscal 2025. Compensation, payroll taxes and benefits increased 91% to $11.7 million, primarily because of higher variable compensation tied to revenue growth. AtlasClear also recorded $3.6 million of non-cash stock-based compensation associated with executive employment agreements entered into in September 2025.
Data processing and clearing costs increased 98% to $4.2 million. The company also reported $800,000 in stock locate expense and $700,000 in loan net expense, both new categories associated with the expansion of its stock locate operations. Regulatory, professional and related expenses increased 17% to $4.9 million, reflecting professional fees tied to Commercial Bancorp negotiations and additional consulting support.
Below the operating line, AtlasClear recorded total other income of $11.5 million. Patel said this included an $11.1 million non-cash gain from the change in fair value of an earn-out liability, a $1.8 million gain related to the Winston & Strawn agreement, a $1.7 million warrant-liability fair-value gain, and a $400,000 gain tied to a convertible-note derivative. These gains were partly offset by $5.1 million in interest expense and a $570,000 loss on settlement of the Winston & Strawn agreement.
Cash, Capital and Strategic Transactions
AtlasClear ended fiscal 2026 with $15.4 million in cash and cash equivalents, up from $7.5 million a year earlier. Total assets increased to $71.2 million from $60.9 million, while stockholders’ equity improved to $21.1 million from a $6.8 million deficit. Total liabilities declined by approximately $17.6 million.
AtlasClearing’s net capital increased to $14.4 million. The company’s $10 million revolving credit facility with BMO Harris Bank remained undrawn, and Patel said AtlasClear was in compliance with applicable financial covenants as of June 30. Management concluded that capital raised and its operating cash-flow forecasts alleviated substantial doubt about the company’s ability to continue as a going concern. The company also said it remediated a previously reported material weakness in internal control over financial reporting.
Cash used in operating activities was $6.2 million, compared with $800,000 of operating cash provided in fiscal 2025. Cash provided by financing activities totaled $16.5 million, driven primarily by financing transactions completed during the year.
Management said it did not use an at-the-market program or an equity line during fiscal 2026. Ridenhour said the company remains mindful of dilution while considering potential capital partners and evaluating financing needs associated with its growth plans and proposed acquisitions.
Acquisition and Banking Plans Remain Subject to Conditions
AtlasClear said it continues to evaluate strategic opportunities involving Ark Financial, the holding company of Dawson James, and a previously announced institutional digital asset transaction. Schaible said the Dawson James transaction could close “very soon,” but noted that the proposed transaction remains subject to definitive agreements and other closing conditions.
Regarding Commercial Bancorp of Wyoming, Ridenhour said the parties withdrew pending regulatory applications and intend to refile at an appropriate time. He said the company is expanding its business plan to address the potential role of digital assets, including policies, procedures, technology and personnel, before resubmitting the application.
Management identified several milestones for investors to watch in the coming year: the onboarding and revenue contribution of newly signed correspondents, progress on the Dawson James and Commercial Bancorp transactions, developments related to the digital asset opportunity, and continued expansion of AtlasClearing’s core revenue lines.
About AtlasClear (NYSEAMERICAN:ATCH)
AtlasClear Holdings, Inc is a financial technology and services company that provides infrastructure for community banks, broker-dealers, investment firms and other financial institutions. Through its platform and operating subsidiaries, the company focuses on connecting financial institutions with clearing, settlement, custody and banking capabilities.
AtlasClear’s services are designed to support the processing and administration of securities and other financial transactions. Its offerings may include broker-dealer clearing and settlement, custody services, banking solutions and technology intended to streamline back-office operations and improve access to financial markets.
The company was formed through a business combination involving AtlasClear and began trading on the NYSE American under the symbol ATCH.
