AtlasClear Holdings, Inc. (NYSE American: ATCH) announced financial results for its fiscal second quarter ended December 31, 2025, revealing substantial growth and improved financial health. The technology-enabled financial services platform reported revenue of $5.1 million, representing an 84% increase compared to $2.7 million in the prior-year quarter. Net income totaled $6.8 million, driven by operating growth and non-cash fair value adjustments.
Perhaps most significantly, the company turned stockholders' equity positive to $21.7 million, compared to a deficit of $(6.8) million as of June 30, 2025. This represents an improvement of approximately $59.8 million compared to fiscal year-end June 30, 2024. The company also strengthened its liquidity position with $46.2 million in cash and restricted cash at quarter end, enhancing financial flexibility for ongoing operations and strategic initiatives.
This financial turnaround matters because it demonstrates AtlasClear's successful transition from a company with negative equity to one with substantial positive equity in just six months. For investors and the financial services industry, this rapid improvement suggests effective capital management and operational execution. The company's subsidiary, Wilson-Davis & Co., Inc., ended the quarter with net capital of $14.7 million, exceeding regulatory requirements by $14.4 million, which underscores the platform's stability and compliance strength in a heavily regulated industry.
Revenue growth was driven primarily by increased commission activity, expanded stock locate and fully paid lending services, and Wilson-Davis serving as a selling agent in at-the-market offerings. These drivers reflect higher client activity and broader utilization of the platform's service offerings. Expenses increased in line with revenue growth, reflecting higher variable compensation, clearing and data processing costs associated with expanded services, and stock-based compensation related to new executive employment agreements.
During the quarter, AtlasClear completed a $20 million financing, consisting of a $10 million secured convertible note and a $10 million equity unit offering. Management believes these proceeds, together with anticipated cash flows from operations, provide sufficient liquidity to support operations for at least the next twelve months. The company continued to expand correspondent clearing relationships, stock loan and margin-related services, and ancillary clearing offerings during the quarter.
Strategic progress includes ongoing development of the AtlasClear technology platform and progress toward the proposed acquisition of Commercial Bancorp of Wyoming, subject to regulatory approvals. This acquisition would further the company's goal of delivering a vertically integrated suite of brokerage, clearing, risk management, regulatory, and commercial banking solutions. For more information about the company's financial technology platform, visit www.atlasclear.com.
John Schaible, Executive Chairman of AtlasClear Holdings, described the quarter as "a clear turning point for the Company" and noted that "AtlasClear is now operating from a position of strength as we continue to scale initiatives already underway and further establish our role as a modern financial infrastructure provider." Craig Ridenhour, President of AtlasClear Holdings, added that efforts to strengthen operational infrastructure, improve efficiency, and reinforce capital position "are now translating into measurable financial results, including top-line revenue growth and broader utilization of our platform."
The company will host an earnings conference call on February 13, 2026, at 8:30 AM Eastern Time, accessible via webcast at https://viavid.webcasts.com/starthere.jsp?ei=1752655&tp_key=3ac483b8a5. The latest news and updates relating to AtlasClear Holdings are available in the company's newsroom at https://tinyurl.com/atchnewsroom.
