BrainChip Holdings (BRN) AI Stock Analysis

• Market Cap: $433.02M
• Dividend Yield: N/A
• Average Volume (3M): 6.16M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: 503.29%
• EPS Growth: 11.46%
• Country: AU
• Employees: 63
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): >-0.01
• Shares Outstanding: 2,035,741,700
• 10 Day Avg. Volume: 4,809,822
• 30 Day Avg. Volume: 6,157,453
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 1.61K
• Enterprise Value/Gross Profit: 3.87K
• Enterprise Value/Ebitda: -13.57
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues. Technical analysis suggests a neutral to slightly bearish outlook, while valuation metrics highlight ongoing financial struggles. The absence of earnings call data and corporate events means these factors did not influence the score.

BrainChip Holdings Business Overview & Revenue Model

Company Description

BrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence (AI) and machine learning applications in North America, Oceania, Europe, the Middle East, and Asia. The company offers Akida Neuromorphic Processor to provide ultra-low power and fast AI Edge Network for vision, audio, olfactory, and smart transducer applications; and Akida Development Environment, a machine learning framework for creating, training, and testing neural networks, as well as supporting the development of systems for edge AI on its Akida event domain neural processor. The company also provides Akida Neuromorphic System-on-Chip, an integrated solution for Edge AI device and systems. Its products are used in various applications, such as automotive and cybersecurity. The company was incorporated in 2011 and is based in Sydney, Australia.

How the Company Makes Money

BrainChip Holdings makes money primarily through the licensing of its Akida technology to semiconductor manufacturers and original equipment manufacturers (OEMs) who integrate the neural processor into their products. Additionally, the company generates revenue through the sale of its proprietary chips and evaluation boards directly to customers who need advanced AI capabilities in edge devices. BrainChip also engages in strategic partnerships and collaborations with leading technology companies to expand its market presence and drive the adoption of its innovative solutions. Furthermore, the company may receive funding and investment from venture capital and technology investors to support its research and development efforts, although this is not a direct revenue stream.

BrainChip Holdings Financial Statement Overview

Summary

BrainChip Holdings shows promising revenue growth but struggles with profitability and cash flow management. The company has a low debt-to-equity ratio but relies heavily on equity financing. Negative margins and cash flow issues highlight significant financial risks.

Income Statement

BrainChip Holdings has shown a significant revenue growth of 71.5% from 2023 to 2024, indicating strong topline expansion. However, the company struggles with persistent losses, evidenced by a negative net profit margin and operating losses (EBITDA). The gross margin is also negative, suggesting cost issues at the production level.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.06, indicating conservative leverage. However, the equity ratio of 86.03% shows that most assets are financed through equity, not debt. Despite a positive cash position, the company faces challenges in generating returns, as reflected by negative ROE.

Cash Flow

The cash flow statement highlights negative free cash flow, indicating cash outflows from operations. Although there is a substantial inflow from financing activities, it may not be sustainable long-term. The company also struggles with converting operating activities into net income, as seen in the zero operating cash flow to net income ratio.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	240.00K	398.01K	232.00K	5.07M	1.59M	134.60K
Gross Profit	100.00K	-134.91K	91.44K	4.59M	1.30M	-195.72K
EBITDA	-28.51M	-23.67M	-27.99M	-21.41M	-19.79M	-11.36M
Net Income	-28.88M	-24.43M	-28.88M	-22.09M	-20.98M	-29.88M
Balance Sheet
Total Assets	20.18M	23.05M	20.18M	29.18M	23.78M	22.65M
Cash, Cash Equivalents and Short-Term Investments	14.34M	20.00M	14.34M	23.12M	19.37M	19.02M
Total Debt	1.70M	1.17M	1.70M	2.95M	1.80M	3.74M
Total Liabilities	3.35M	3.22M	3.35M	5.46M	4.84M	5.93M
Stockholders Equity	16.83M	19.83M	16.83M	23.72M	18.94M	16.72M
Cash Flow
Free Cash Flow	-17.66M	-15.96M	-17.66M	-19.88M	―	―
Operating Cash Flow	-17.53M	-15.88M	-17.53M	-19.69M	-13.69M	-11.17M
Investing Cash Flow	-132.60K	-72.65K	-132.60K	-183.52K	―	―
Financing Cash Flow	8.84M	22.60M	8.84M	25.38M	14.19M	23.92M

BrainChip Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BRN, the sentiment is Positive. The current price of 0.22 is above the 20-day moving average (MA) of 0.20, above the 50-day MA of 0.20, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:BRN.

BrainChip Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COS	69 Neutral	115.56M	14.50	10.27%	3.76%	14.59%	-11.13%
WBT	55 Neutral	692.95M	-17.01	-42.56%	―	333.23%	10.83%
RUL	53 Neutral	1.02B	157.29	51.39%	―	9.76%	-28.92%
4DS	50 Neutral	20.61M	-1.92	―	―	―	-67.74%
BRN	41 Neutral	$433.02M	―	-149.70%	―	503.29%	11.46%
AKP	23 Underperform	181.10M	-22.17	73.61%	―	-100.00%	44.26%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

BrainChip Holdings Corporate Events

BrainChip Issues 10 Million Shares to Equity Plan Trust

BrainChip Holdings Ltd announced the issuance of 10,000,000 fully paid ordinary shares to the Trustee of the BrainChip Equity Plan Trust to administer the Equity Plan. This move aligns with the company’s compliance with the Corporations Act, ensuring transparency and adherence to regulatory requirements. The issuance of shares without disclosure to investors reflects BrainChip’s strategic approach to managing its equity and supporting its growth initiatives.

BrainChip Holdings Issues Shares for Equity Incentive Plan

BrainChip Holdings Ltd has announced the issuance of 10,000,000 ordinary fully paid shares to the trustee of the company’s Equity Incentive Plan. This move is part of the company’s strategy to manage its equity incentive plan, potentially impacting its market positioning by aligning the interests of stakeholders and employees with the company’s growth objectives.

BrainChip Holdings Strengthens Position with Strategic Collaborations and ASX Commitment

BrainChip Holdings Ltd reported a strong financial position for the June 2025 quarter, with a cash balance of US$13.5 million, indicating robust potential for growth and investment in research and development. The company decided to remain listed on the ASX after evaluating a potential redomicile, emphasizing its commitment to shareholder value. Notable collaborations were formed with companies like Arquimea, Andes Technology, and Chelpis Quantum Corp, showcasing the commercial viability and application of BrainChip’s Akida technology in diverse sectors such as water safety, AI computation, and industrial robotics. These partnerships highlight BrainChip’s strategic positioning in the AI industry and its ongoing expansion of its intellectual property portfolio, which now includes 55 patents.

BrainChip Holdings Issues New Employee Incentives

BrainChip Holdings Ltd announced the issuance of 580,000 options and 1,000,000 restricted stock units as part of an employee incentive scheme, which are not intended to be quoted on the ASX. This move is likely aimed at enhancing employee retention and motivation, potentially strengthening the company’s operational capabilities and market position in the competitive AI and technology sector.

BrainChip Holdings Issues Over 2 Million New Securities

BrainChip Holdings Ltd announced the issuance of 2,236,485 ordinary fully paid securities as part of their latest financial activities. This move reflects the company’s ongoing efforts to manage its equity and potentially strengthen its financial position, which could have implications for its market strategy and stakeholder interests.

BrainChip Holdings Issues New Restricted Stock Units to Employees

BrainChip Holdings Ltd has announced the issuance of 4,688,000 restricted stock units as part of an employee incentive scheme. This move is expected to enhance employee engagement and align their interests with the company’s long-term growth objectives, potentially strengthening BrainChip’s position in the competitive AI technology market.