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BrainChip Holdings
(Sydney:BRN)
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Rating:54Neutral
Price Target:
AU$0.14
▲(2.14% Upside)
Action:Reiterated
Date:09/12/26
The score is held back primarily by weak financial performance—negative gross profit, persistent losses, and ongoing cash burn—despite strong 2025 revenue growth and low leverage. The latest earnings call provides a meaningful offset with positive operational progress and early commercialization signals (inventory sell-through, Parsons order, roadmap execution), while technicals are mixed and valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Accelerating revenue growth
The sharp 2025 revenue increase indicates that BrainChip is making progress converting its technology into commercial activity. Although growth started from a small base, continued expansion would improve operating leverage and support broader customer adoption of Akida over the next several quarters.
Negative Factors
Persistent unprofitable operations
Negative gross profit and large recurring net losses show that current revenue is not yet sufficient to cover the cost structure. Until scale improves or costs decline, BrainChip has limited ability to compound value internally and remains exposed to prolonged operating losses.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating revenue growth
The sharp 2025 revenue increase indicates that BrainChip is making progress converting its technology into commercial activity. Although growth started from a small base, continued expansion would improve operating leverage and support broader customer adoption of Akida over the next several quarters.
Read all positive factors
BrainChip Holdings (BRN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$304.32M
Dividend YieldN/A
Average Volume (3M)2.85M
Price to Earnings (P/E)―
Beta (1Y)1.60
Revenue Growth48.88%
EPS Growth10.59%
CountryAU
Employees71
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.01
Shares Outstanding2,275,942,000
10 Day Avg. Volume3,229,467
30 Day Avg. Volume2,849,537
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)8.07
Price to Sales (P/S)126.89
P/FCF Ratio-15.47
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)>-0.01
Revenue Forecast (FY)AU$4.40M
BrainChip Holdings Business Overview & Revenue Model
Company Description
BrainChip Holdings Ltd develops software and hardware accelerated solutions for artificial intelligence and machine learning applications in North America, Asia Pacific, Europe, the Middle East, and Asia Pacific. The company primarily focuses on d...
How the Company Makes Money
BrainChip primarily makes money by commercializing its neuromorphic processor technology (Akida) as semiconductor intellectual property (IP) rather than by operating a high-volume chip manufacturing business. Key revenue streams include: (1) Licen...
BrainChip Holdings Earnings Call Summary
Earnings Call Date:Aug 26, 2026
(Q2-2026)
| Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call was predominantly positive, with management highlighting a growing quarter-over-quarter funnel, expanded IP, chip and module offerings, strong traction in defense and wearables, 25% of Akida 1500 chips already sold, several thousand chips ordered by Parsons, progress on the Akida 2500 tape-out and a road map that is on schedule. The main concerns were lower-than-expected Akida 1500 yield, the missed bookings goal, limited financial predictability, the $20 million cash position and shareholder frustration. Highlights significantly outweighed the lowlights.Positive Updates
Strong and Growing Commercial Funnel
Management said the sales funnel is 'incredibly strong' and continues to grow quarter-over-quarter, with the defense and wearables sectors, including medical and health care, showing significant traction.
Negative Updates
Akida 1500 Yield Below Expectations
Shareholders raised concerns that Akida 1500 silicon yield appears lower than expected. Management said BrainChip and its design and manufacturing partners are analyzing every element of the manufacturing process, that the investigation takes time, and that further information is expected in the third-quarter update.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong and Growing Commercial Funnel
Management said the sales funnel is 'incredibly strong' and continues to grow quarter-over-quarter, with the defense and wearables sectors, including medical and health care, showing significant traction.
Read all positive updates
Company Guidance
Management said the roadmap is definitely on schedule, with a new IP offering coming in the next 6 months; Edge AI, its first major licensee, is on track to tape out its chip later this year, and the Akida 2500 tape-out is going incredibly well. Of the Akida 1500 inventory, 25% of the chips are already sold out, while Parsons placed an initial order of several thousand chips as the first of a multiyear partnership. With $20 million in cash at June 2026, the Board has expectations around cash flow or cash burn neutrality over a certain period of time, but BrainChip is not providing fixed targets on financial targets because the business is still, let's call it, lumpy.BrainChip Holdings Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
68
Positive
Cash Flow
30
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.08M | 1.95M | 398.01K | 232.00K | 5.07M | 1.59M |
| Gross Profit | -2.08M | -2.59M | -134.91K | 91.44K | 4.59M | 1.30M |
| EBITDA | -21.55M | -19.53M | -23.67M | -27.99M | -21.41M | -20.65M |
| Net Income | -23.16M | -21.18M | -24.43M | -28.88M | -22.09M | -20.98M |
Balance Sheet | ||||||
| Total Assets | 23.63M | 34.17M | 23.05M | 20.18M | 29.18M | 23.78M |
| Cash, Cash Equivalents and Short-Term Investments | 20.30M | 31.73M | 20.00M | 14.34M | 23.12M | 19.37M |
| Total Debt | 583.53K | 816.51K | 1.17M | 1.70M | 2.95M | 1.85M |
| Total Liabilities | 3.86M | 3.46M | 3.22M | 3.35M | 5.46M | 4.84M |
| Stockholders Equity | 19.77M | 30.71M | 19.83M | 16.83M | 23.72M | 18.94M |
Cash Flow | ||||||
| Free Cash Flow | -19.67M | -16.02M | -15.96M | -17.66M | -19.88M | -13.94M |
| Operating Cash Flow | -19.47M | -15.98M | -15.88M | -17.53M | -19.69M | -13.69M |
| Investing Cash Flow | -2.21M | -2.09M | -72.65K | -132.60K | -127.22K | -265.55K |
| Financing Cash Flow | 28.72M | 29.38M | 22.60M | 8.84M | 17.59M | 14.69M |
BrainChip Holdings Technical Analysis
Negative
0.14
Price Trends
0.13
Negative
0.15
Negative
0.15
Negative
Market Momentum
>-0.01
Negative
47.06
Neutral
68.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:BRN, the sentiment is Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.13, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:BRN.
BrainChip Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | AU$1.02B | 67.48 | 16.66% | ― | 570.70% | ― | |
54 Neutral | AU$304.32M | -9.14 | -91.74% | ― | 48.88% | 10.59% | |
51 Neutral | AU$792.05M | -12.40 | -49.37% | ― | 246.45% | -30.38% | |
50 Neutral | AU$205.02M | -7.04 | -40.61% | ― | 45.18% | -771.20% | |
46 Neutral | AU$20.59M | -4.85 | -140.01% | ― | 31.02% | 25.00% | |
41 Neutral | AU$18.55M | -11.64 | -21.82% | ― | ― | 84.62% |
* Technology Sector Average
AU:BRN
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BrainChip Holdings Corporate Events
BrainChip to Brief Investors on Q2 2026 Progress and Edge AI Strategy
Sep 10, 2026
BrainChip Holdings will host a Q2 2026 investor webinar today led by CEO Sean Hehir, offering an update on the business and responding to recent investor questions. The session, supported by a formal investor presentation and available for later r...
BrainChip Issues New Unquoted Equity Under Employee Incentive Plans
Sep 4, 2026
BrainChip Holdings Ltd, listed on the ASX under the code BRN, operates in the technology industry and uses equity-based employee incentive schemes involving performance rights, options and restricted stock units that are not quoted on the exchange...
BrainChip Schedules Q2 2026 Investor Update Webinar
Sep 2, 2026
BrainChip Holdings will host a quarterly investor webinar on 11 September 2026, during which CEO Sean Hehir will deliver a commercial update and highlight the company’s performance in the second quarter of 2026. The session will also address...
BrainChip Applies for Quotation of New Ordinary Shares on ASX
Sep 2, 2026
BrainChip Holdings Ltd, an ASX-listed technology company trading under the code BRN, continues to manage its capital structure through the issuance and quotation of ordinary fully paid shares on the Australian market. As a public entity, it relies...
BrainChip advances AKD1500 into volume production as LDA funding facility expires
Jul 26, 2026
BrainChip has moved its AKD1500 neuromorphic processor into commercial-scale manufacturing, receiving the first batch of 2,000 chips as part of an expected run of about 60,000 units despite slightly lower production yields than planned. The transi...
BrainChip closes LDA capital facility as collateral share sales wind down
Jul 24, 2026
BrainChip has allowed its flexible capital management facility with LDA Capital to lapse, with the put option agreement expiring on 30 June and all rights and obligations under the arrangement now concluded. The company emphasised that the wind...
BrainChip Announces Lapse of Options and Restricted Stock Units
Jul 6, 2026
BrainChip Holdings Ltd has notified the market of the cessation of certain equity-linked securities, including options expiring on various dates and restricted stock units, after the conditions attached to those instruments were not met or became ...
BrainChip Expands Share Base Through Conversion of Unquoted Securities
Jul 6, 2026
BrainChip Holdings Ltd has issued 4,342,414 new ordinary fully paid shares on June 30, 2026 following the conversion or exercise of previously unquoted options or other convertible securities. The issuance reflects the transition of these instrume...
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.