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PowerCompute
(NASDAQ:PWCM)
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Rating:41Neutral
Price Target:
$1.00
▼(-7.41% Downside)
Action:Reiterated
Date:08/27/26
PWCM scores low primarily due to severe financial weakness (sharp TTM revenue contraction, negative gross profit, large losses, and deep cash burn) alongside rapidly rising leverage. Technicals reinforce the risk with a strong downtrend across all major moving averages and negative momentum, despite oversold readings. The earnings call adds some strategic upside (AI/HPC pivot, 26 MW capacity, improving mining margin) but is outweighed by near-term liquidity pressure, collateralized financing structure, and lack of formal guidance.
Positive Factors
Owned low-cost power infrastructure
The energized 26 MW platform and low blended power cost provide a durable operating base for bitcoin mining and potential AI/HPC colocation. This infrastructure can support scale and cost competitiveness if the company secures capital and customers.
Negative Factors
Severe profitability deterioration
The sharp revenue contraction, negative gross profit and very large net losses indicate that current operations lack sustainable economics. Continued losses could consume capital, restrict investment in growth initiatives and make a successful business transition harder.
Read all positive and negative factors
Positive Factors
Negative Factors
Owned low-cost power infrastructure
The energized 26 MW platform and low blended power cost provide a durable operating base for bitcoin mining and potential AI/HPC colocation. This infrastructure can support scale and cost competitiveness if the company secures capital and customers.
Read all positive factors
PowerCompute (PWCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05M
Dividend YieldN/A
Average Volume (3M)989.27K
Price to Earnings (P/E)―
Beta (1Y)2.39
Revenue Growth16.32%
EPS Growth43.76%
CountryUS
Employees16
SectorFinancial
Sector Strength70
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-58.97
Shares Outstanding1,794,135
10 Day Avg. Volume1,343,872
30 Day Avg. Volume989,270
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.13
Price to Sales (P/S)0.44
P/FCF Ratio-0.10
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 Target
$4.00Price Target Upside270.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-22
Revenue Forecast (FY)$9.50M
PowerCompute Business Overview & Revenue Model
Company Description
PowerCompute, Inc. operates as a cryptocurrency mining and specialty finance company. It operates through two segments: Specialty Finance and Mining and Treasury Operations. The company also engages in Bitcoin mining operations; and provides fundi...
How the Company Makes Money
LMFA generates revenue primarily through (1) specialty finance/assessment recovery and (2) bitcoin mining. In its specialty finance business, the company provides capital to community associations and, in return, obtains economic rights tied to th...
PowerCompute Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 13, 2026
Earnings Call Sentiment Neutral
Neutral — The call presents a credible strategic opportunity: a rebrand and pivot to AI/HPC built on owned, energized low-cost power (26 MW), early proof-of-concept activity, YoY revenue growth (+9.8%) and sequential margin improvement. However, near-term financials and liquidity are challenged: a Q2 net loss (~$4.6M), core EBITDA deterioration, a $3M fair-value loss on digital assets, low cash (~$900k), heavy bitcoin collateralization, and reliance on short-duration refinancing introduce significant execution and financing risk. The positives around infrastructure and strategy are meaningful but are balanced by material financial and liquidity headwinds, leaving the outlook uncertain.Positive Updates
Strategic Rebrand and Pivot to AI/HPC
Company rebranded to PowerCompute (ticker PWCM) and announced a strategic expansion into hosting AI infrastructure and high-performance computing to leverage owned power capacity (positioning shift from prior lending business).
Negative Updates
Quarterly Net Loss and EBITDA Decline
Net loss of approximately $4.6M in Q2 2026 versus net income of ~$0.1M in Q2 2025. Core EBITDA was a loss of $2.8M in Q2 2026 versus core EBITDA income of $2.6M in Q2 2025 — a material year-over-year deterioration.
Read all updates
Q2-2026 Updates
Positive
Negative
Strategic Rebrand and Pivot to AI/HPC
Company rebranded to PowerCompute (ticker PWCM) and announced a strategic expansion into hosting AI infrastructure and high-performance computing to leverage owned power capacity (positioning shift from prior lending business).
Read all positive updates
Company Guidance
The company gave no formal forward guidance but outlined key metrics and near-term priorities: Q2 revenue was $2.1M (flat q/q, +9.8% y/y), net loss ≈$4.6M with core EBITDA loss $2.8M (prior‑year net income $0.1M; core EBITDA +$2.6M), mined 27.9 BTC in Q2 (vs 26.1 in Q1 and 18.4 in Q2‑2025) and held 318 BTC valued at ≈$18.6M on June 30 ($58,400/BTC) with 174 BTC held as collateral by Galaxy; mining margin rose to 29% (from 24.1% q/q; 41% a year ago), supported by $145k of curtailment/energy sales; cash $0.9M, total assets ≈$37.1M, total liabilities ≈$21.6M (including $10.8M Galaxy loan and $8.5M other notes); post‑quarter they consolidated ~$18M of debt with Arch secured by 307 BTC and established a 30‑day revolving Bitcoin‑backed facility at 2% APR (replacing a blended ~13% cost), reducing interest expense but shortening tenor; operating assets include 26 MW of energized capacity (15 MW Calumet, OK; 11 MW Columbus, MS), blended power ~$0.036/kWh with ~22 MW currently mining and ~4 MW available for colo, and a single‑GPU proof‑of‑concept (listed on Vast.ai) that produced no Q2 revenue (Q3 revenue immaterial); management also cited an illustrative (not guidance) full build‑out revenue range of $20M–$50M annually, contingent on capital, contracts and multi‑year execution.PowerCompute Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
32
Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.77M | 8.84M | 11.00M | 6.19M | 6.42M | 14.02M |
| Gross Profit | -5.80M | -3.16M | 4.01M | 6.19M | 1.48M | 14.23M |
| EBITDA | -23.69M | -17.68M | -324.97K | -13.83M | -25.97M | 5.33M |
| Net Income | -36.31M | -26.92M | -7.32M | -15.94M | -29.24M | 4.76M |
Balance Sheet | ||||||
| Total Assets | 37.09M | 51.32M | 44.05M | 37.71M | 53.19M | 62.10M |
| Cash, Cash Equivalents and Short-Term Investments | 1.65M | 1.46M | 3.41M | 5.84M | 5.13M | 37.23M |
| Total Debt | 19.97M | 20.65M | 7.70M | 763.75K | 746.00K | 182.69K |
| Total Liabilities | 21.56M | 22.44M | 8.70M | 2.85M | 2.39M | 1.09M |
| Stockholders Equity | 17.26M | 30.62M | 37.03M | 36.19M | 49.19M | 60.76M |
Cash Flow | ||||||
| Free Cash Flow | -39.42M | -39.02M | -13.68M | -5.03M | -24.79M | -14.72M |
| Operating Cash Flow | -15.50M | -13.99M | -11.95M | -3.40M | -9.14M | 3.49M |
| Investing Cash Flow | -16.33M | -19.54M | 379.42K | 2.30M | -18.89M | -23.96M |
| Financing Cash Flow | 32.33M | 31.58M | 12.54M | -731.03K | -299.03K | 41.48M |
PowerCompute Technical Analysis
Negative
1.08
Price Trends
2.41
Negative
4.26
Negative
8.62
Negative
Market Momentum
-0.36
Negative
33.04
Neutral
14.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PWCM, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.41, below the 50-day MA of 2.41, and below the 200-day MA of 8.62, indicating a bearish trend. The MACD of -0.36 indicates Negative momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PWCM.
PowerCompute Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $37.94M | 10.59 | 8.70% | ― | 16.82% | -33.43% | |
51 Neutral | $539.06M | -4.50 | -75.24% | ― | -33.13% | -511.56% | |
51 Neutral | $2.06M | ― | -202.21% | ― | ― | ― | |
41 Neutral | $2.05M | -0.02 | -122.19% | ― | 16.32% | 43.76% |
* Financial Sector Average
PWCM
PowerCompute
1.08
-30.17
-96.54%
VSA
VisionSystems AI
3.30
-951.75
-99.65%
SPIR
Spire Global
12.02
2.87
31.37%
LICN
Lichen China Ltd. Class A
1.17
-3.34
-74.06%
INTJ
Intelligent Group Ltd
2.85
-8.55
-75.01%
YSXT
YSX Tech Co., Ltd Class A
1.22
-1.03
-45.78%
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.