T Stamp, Inc. Class A (IDAI) AI Stock Analysis

• Market Cap: $5.75M
• Dividend Yield: N/A
• Average Volume (3M): 60.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -34.68%
• EPS Growth: -357.03%
• Country: US
• Employees: 72
• Sector: Technology
• Sector Strength: 80
• Industry: Software - Application
• EPS (TTM): -3.52
• Shares Outstanding: 2,487,052
• 10 Day Avg. Volume: 31,232
• 30 Day Avg. Volume: 60,378
• PEG Ratio: <0.01
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.63
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.32
• Enterprise Value/Ebitda: -0.23
• 1Y Price Target: $8.00
• Price Target Upside: 229.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

T Stamp, Inc. Class A's overall stock score reflects significant financial challenges, marked by negative profitability and cash flow constraints. While technical analysis suggests some short-term momentum, the fundamental financial issues and poor valuation metrics weigh heavily on the stock's prospects. The absence of earnings call data and notable corporate events leaves these factors unaddressed.

Positive Factors

Earnings

T Stamp Inc. reported 4Q24 results with revenue of $1.5M, beating estimates and showing significant year-over-year growth.

Product Innovation

Trust Stamp's new product initiatives, targeting the government sector and leveraging age-estimation technology, are viewed as potential growth catalysts.

Strategic Partnerships

Trust Stamp has entered into a strategic partnership with Qenta, which is expected to generate up to $4.3M in revenue for 2025, including a $1M one-time license fee and monthly service fees capped at $3.6M annually.

Negative Factors

Financial Constraints

The company ended September with $0.6M in cash and $1.7M in debt, indicating financial constraints.

Financial Performance

The company reported 3Q24 results with revenue of $0.5M, down 83% year-over-year.

Price Target and Valuation

The price target for T Stamp Inc. was lowered due to dilution and multiple compression in the peer group.

T Stamp, Inc. Class A Business Overview & Revenue Model

Company Description

T Stamp Inc. develops and markets identity authentication software solutions for government, enterprise partners, and peer-to-peer markets in the United States, the United Kingdom, and Malta. The company's artificial intelligence powered solutions include researching and leveraging biometric science, cryptography, and data mining to deliver insightful identity & trust predictions while identifying and defending against fraudulent identity attacks. Its solution converts biometric and other identifying data into an Irreversibly Transformed Identity Token that serves as a secure tokenized identity. The company also offers solutions for privacy and data protection, document validation, identity verification, duplicate detection, and biometric capture. It serves banking/fintech; humanitarian and development services; biometrically secured email; KYC/AML compliance; government and law enforcement; P2P transactions, social media, and sharing economy; and real estate, travel, and healthcare industries. The company was incorporated in 2016 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

T Stamp, Inc. generates revenue through a combination of licensing fees, software subscriptions, and service contracts. Key revenue streams include fees from the deployment of its identity verification platforms and solutions to clients in various industries. The company partners with organizations requiring robust identity verification processes, often on a subscription basis, which provides a steady income stream. Additionally, T Stamp, Inc. may engage in strategic partnerships and collaborations that enhance its market reach and contribute to its financial performance.

T Stamp, Inc. Class A Financial Statement Overview

Summary

T Stamp, Inc. Class A exhibits significant financial challenges, with declining revenues, consistent net losses, and a high dependency on debt financing. The negative cash flows and profitability margins suggest a pressing need for strategic realignment to enhance operational efficiencies and stabilize the financial position. Addressing these issues is crucial to ensuring sustainable growth and financial health.

Income Statement

T Stamp, Inc. Class A has shown a declining revenue trend, with a negative revenue growth rate from the previous year. The company faces significant profitability challenges, evidenced by negative EBIT and EBITDA margins, as well as a negative net profit margin. Despite achieving gross profit, the severe net losses indicate operational inefficiencies and highlight the need for cost management or revenue growth strategies.

Balance Sheet

The balance sheet of T Stamp, Inc. Class A shows relatively high leverage, with a debt-to-equity ratio reflecting considerable reliance on debt financing. The equity ratio suggests a moderate level of equity in the asset structure, but the return on equity remains negative due to substantial net losses. This indicates potential financial instability and the need for capital restructuring or performance improvement.

Cash Flow

The cash flow statements reveal negative operating and free cash flows, indicating that the company is not generating sufficient cash from its operations to support its capital expenditures. The free cash flow to net income ratio is unfavorable, pointing to liquidity constraints. The company relies on external financing to sustain its operations, which poses a risk if such funding sources diminish.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.08M	4.56M	5.39M	3.68M	2.65M
	Gross Profit
2.01M	3.65M	3.60M	2.53M	1.13M
	EBIT
-9.37M	-7.89M	-12.08M	-8.83M	-8.21M
	EBITDA
-9.36M	-7.63M	-11.03M	-8.45M	-10.09M
	Net Income Common Stockholders
-10.61M	-7.64M	-12.09M	-8.91M	-10.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.78M	3.14M	1.25M	3.48M	1.47M
	Total Assets
8.60M	7.89M	6.41M	8.66M	4.81M
	Total Debt
4.13M	1.09M	1.17M	856.26K	344.22K
	Net Debt
1.35M	-2.05M	-87.83K	-2.62M	-1.13M
	Total Liabilities
5.41M	3.98M	5.79M	3.63M	2.74M
	Stockholders Equity
3.03M	3.75M	463.70K	4.87M	1.91M
Cash Flow		Free Cash Flow
-9.73M	-7.86M	-7.32M	-7.48M	-4.99M
	Operating Cash Flow
-8.92M	-7.85M	-6.34M	-6.71M	-4.48M
	Investing Cash Flow
-906.67K	-401.68K	-998.19K	-768.35K	-512.16K
	Financing Cash Flow
9.49M	10.21M	5.10M	9.35M	6.09M

T Stamp, Inc. Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDAI, the sentiment is Neutral. The current price of 2.43 is above the 20-day moving average (MA) of 2.13, above the 50-day MA of 1.99, and below the 200-day MA of 3.99, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 60.51 is Neutral, neither overbought nor oversold. The STOCH value of 56.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IDAI.

T Stamp, Inc. Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
VERB	54 Neutral	$9.03M	―	-66.08%	―	3125.00%	98.06%
IDAI	47 Neutral	$5.75M	―	-369.03%	―	-34.68%	-357.03%
SOPA	42 Neutral	$5.24M	―	-601.50%	―	-13.05%	62.51%
TGL	38 Underperform	$5.58M	―	-8.88%	―	-96.03%	52.30%

T Stamp, Inc. Class A Corporate Events

T Stamp Faces Delay in Special Stockholder Meeting

On March 18, 2025, T Stamp, Inc. announced that it was unable to hold a Special Meeting of Stockholders scheduled for May 15, 2025, due to insufficient votes for a quorum. This meeting was intended to ratify the issuance of warrants under a Securities Purchase Agreement with an institutional investor. As per the agreement, the company must call another meeting every ninety days until ratification is achieved or the warrants are no longer outstanding. T Stamp plans to hold another special meeting by August 13, 2025, to secure the necessary stockholder approval.

The most recent analyst rating on (IDAI) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on T Stamp, Inc. Class A stock, see the IDAI Stock Forecast page.

Spark’s Take on IDAI Stock

According to Spark, TipRanks’ AI Analyst, IDAI is a Neutral.

T Stamp, Inc. Class A faces significant financial difficulties, including declining revenues and heavy reliance on debt, resulting in a low financial performance score. Despite short-term technical bullish signals, the stock remains unattractive due to its negative earnings and lack of dividend yield, leading to an overall score that reflects these substantial challenges.

To see Spark’s full report on IDAI stock, click here.