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Altigen Communications
(OTC:ATGN)
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Rating:64Neutral
Price Target:
$0.47
▼(-3.88% Downside)
Action:Reiterated
Date:09/23/26
ATGN’s score is supported primarily by a very strong balance sheet with minimal debt and currently positive cash generation, plus earnings-call evidence of strategic progress in cloud contracting and partnerships. The score is held back by weak technicals (below key moving averages with negative MACD), declining revenue and softer year-over-year profitability metrics, and a valuation (P/E ~20.5) that is not clearly compelling given the mixed growth profile.
Positive Factors
Very low leverage
The exceptionally conservative capital structure reduces solvency and refinancing pressure, giving AltiGen greater resilience through demand fluctuations. Minimal debt also preserves financial flexibility to fund product development, cloud execution, and customer expansion without significant interest obligations.
Negative Factors
Revenue contraction
The sustained top-line decline indicates that new business has not yet fully offset contraction in the existing customer base. Continued revenue pressure can reduce operating leverage, constrain investment capacity, and make it harder for recent cloud and enterprise initiatives to scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
The exceptionally conservative capital structure reduces solvency and refinancing pressure, giving AltiGen greater resilience through demand fluctuations. Minimal debt also preserves financial flexibility to fund product development, cloud execution, and customer expansion without significant interest obligations.
Read all positive factors
Altigen Communications (ATGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.46M
Dividend YieldN/A
Average Volume (3M)23.27K
Price to Earnings (P/E)20.5
Beta (1Y)0.63
Revenue Growth-9.52%
EPS Growth-78.42%
CountryUS
Employees51
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.02
Shares Outstanding25,879,803
10 Day Avg. Volume31,847
30 Day Avg. Volume23,265
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)1.18
Price to Sales (P/S)1.17
P/FCF Ratio15.91
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Altigen Communications Business Overview & Revenue Model
Company Description
Altigen Communications, Inc. is a global technology company focused on creating, marketing, and supporting integrated communication solutions. Its product portfolio features the MaxCS IP-PBX, a software-based telephone system catering to business ...
How the Company Makes Money
AltiGen makes money primarily by selling its communications and contact center software and related services. Key revenue streams generally include: (1) software revenue from licensing or subscription access to its contact center/unified communica...
Altigen Communications Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 10, 2026
Earnings Call Sentiment Neutral
The call presents a balanced picture: material strategic progress (inflection point where new cloud contracts now exceed legacy churn, largest cloud customer win, product launches, Fiserv certifications, SOC 2 progress, and improved liquidity) alongside near-term financial headwinds (total revenue decline, cloud revenue down 18%, margin compression, and weaker EBITDA/net income versus prior year). Management emphasizes execution and confidence in converting pipeline and enterprise opportunities into recurring revenue, but meaningful execution is still required to translate the strategic milestones into consistent top-line growth.Positive Updates
Sustained Profitability
Ninth consecutive profitable quarter with GAAP net income of $15k and non-GAAP net income of $190k, demonstrating disciplined cost management and operating control despite revenue transition.
Negative Updates
Quarterly Revenue Decline
Total revenue declined to $3.0M from $3.5M in the prior year quarter, a decrease of approximately 14.3% year-over-year, reflecting ongoing revenue transition pressures.
Read all updates
Q3-2026 Updates
Positive
Negative
Sustained Profitability
Ninth consecutive profitable quarter with GAAP net income of $15k and non-GAAP net income of $190k, demonstrating disciplined cost management and operating control despite revenue transition.
Read all positive updates
Company Guidance
Management's guidance emphasizes execution — converting pipeline into recurring revenue, deploying contracted business, expanding within enterprise customers, growing adoption of CoreEngage and CoreInteract, leveraging the Fiserv relationship, and continuing AI investments — noting the inflection that newly contracted cloud revenue now exceeds legacy cloud churn. For Q3 FY2026 they reported revenue of $3.0M (9th consecutive profitable quarter), GAAP net income $15k ($0.00/share) and non‑GAAP net income $190k ($0.01/share) versus prior‑year GAAP $110k and non‑GAAP $350k; cloud services ≈$1.4M (down 18% from $1.7M), services & other ≈$1.5M (down 8% from $1.7M), gross margin 58% (vs 63%), GAAP operating expenses $1.7M (down 18% from $2.1M), adjusted EBITDA $423k (vs $645k), cash $3.4M (up from $2.75M on 9/30/25), working capital $3.2M (vs $2.9M), an infrastructure initiative expected to cut operating costs by ~$10k/month, and participation in a Fiserv forum reaching ~4,000 banking executives.Altigen Communications Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
88
Very Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.79M | 13.87M | 13.62M | 13.68M | 11.89M | 10.99M |
| Gross Profit | 7.83M | 8.68M | 8.39M | 8.65M | 8.09M | 7.92M |
| EBITDA | 1.41M | 1.52M | -119.00K | 340.00K | 400.00K | 1.14M |
| Net Income | 571.00K | 738.00K | 1.56M | -3.32M | -698.00K | -491.00K |
Balance Sheet | ||||||
| Total Assets | 16.12M | 16.25M | 15.65M | 13.92M | 17.70M | 17.14M |
| Cash, Cash Equivalents and Short-Term Investments | 3.39M | 2.75M | 2.58M | 2.64M | 3.23M | 6.80M |
| Total Debt | 32.00K | 49.00K | 153.00K | 324.00K | 616.00K | 881.00K |
| Total Liabilities | 2.03M | 2.52M | 2.69M | 2.58M | 3.50M | 2.67M |
| Stockholders Equity | 14.09M | 13.73M | 12.96M | 11.34M | 14.20M | 14.47M |
Cash Flow | ||||||
| Free Cash Flow | 1.09M | 1.02M | 510.00K | -409.00K | -612.00K | -25.00K |
| Operating Cash Flow | 1.18M | 1.09M | 510.00K | 62.00K | -18.00K | 589.00K |
| Investing Cash Flow | -1.26M | -906.00K | -576.00K | -471.00K | -3.58M | -614.00K |
| Financing Cash Flow | 6.00K | -14.00K | 0.00 | -182.00K | 35.00K | 165.00K |
Altigen Communications Technical Analysis
Negative
0.49
Price Trends
0.48
Negative
0.48
Negative
0.47
Negative
Market Momentum
-0.01
Positive
40.09
Neutral
7.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATGN, the sentiment is Negative. The current price of 0.49 is above the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.48, and above the 200-day MA of 0.47, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.09 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATGN.
Altigen Communications Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $587.60M | 51.81 | 11.59% | ― | 17.19% | ― | |
69 Neutral | $195.20M | 42.64 | 6.23% | 1.28% | 25.49% | 27.81% | |
64 Neutral | $11.46M | 20.47 | 4.10% | ― | -9.52% | -78.42% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $430.06M | 2.66 | 34.33% | 4.01% | 2.02% | ― | |
54 Neutral | $3.68B | 7.98 | 8.65% | 30.69% | -73.81% | ― | |
47 Neutral | $627.28M | -13.85 | -4.77% | 0.98% | 5.01% | -23.53% |
* Communication Services Sector Average
ATGN
Altigen Communications
0.44
-0.18
-29.35%
ATNI
ATN International
27.82
13.37
92.46%
CXDO
Crexendo
5.88
-0.45
-7.11%
SHEN
Shenandoah Telecommunications Co
11.22
-1.83
-14.03%
OOMA
Ooma
20.43
8.62
72.99%
TDS
Telephone & Data Systems
33.92
-5.32
-13.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.