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PowerCompute
(NASDAQ:PWCM)
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Rating:44Neutral
Price Target:
$0.57
▼(-54.56% Downside)
Action:Reiterated
Date:10/15/26
PWCM scores low primarily due to very weak financial performance (sharp TTM revenue contraction, negative gross profit, heavy losses, and substantial cash burn) alongside increased balance-sheet leverage. Technicals add risk given a persistent downtrend (price below all major moving averages), despite oversold signals. Earnings call and corporate updates provide some strategic and operational positives (low-cost power footprint, margin improvement, debt actions, and capacity/hashrate expansion), but near-term liquidity and execution risks keep the overall score depressed.
Positive Factors
Low-Cost Power Expansion
The expanded, long-term Columbus power contract increases energized capacity while avoiding substantial TVA-related charges and requiring no company share of capital costs. This strengthens the economics of future mining and HPC deployment and supports infrastructure growth without equivalent utility investment.
Negative Factors
Severe Profitability Weakness
The recent deterioration in revenue, gross profit, and net income indicates that the current operating model is not yet producing sustainable economics. Negative gross margin and exceptionally deep net losses can constrain reinvestment, weaken resilience, and make improvement dependent on successful execution of planned initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-Cost Power Expansion
The expanded, long-term Columbus power contract increases energized capacity while avoiding substantial TVA-related charges and requiring no company share of capital costs. This strengthens the economics of future mining and HPC deployment and supports infrastructure growth without equivalent utility investment.
Read all positive factors
PowerCompute (PWCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.70M
Dividend YieldN/A
Average Volume (3M)379.02K
Price to Earnings (P/E)―
Beta (1Y)2.42
Revenue Growth16.32%
EPS Growth43.76%
CountryUS
Employees16
SectorFinancial
Sector Strength70
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)-58.97
Shares Outstanding2,535,061
10 Day Avg. Volume72,331
30 Day Avg. Volume379,018
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 Cap11.65
Enterprise Value/Revenue2.26
Enterprise Value/Gross Profit-3.42
Enterprise Value/Ebitda-0.84
Forecast
1Y Price Target
$4.00Price Target Upside220.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-22
Revenue Forecast (FY)$8.50M
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...
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 | -547.99K | 6.19M | 1.48M | 14.23M |
| EBITDA | -23.69M | -17.68M | 562.43K | -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 | 12.43M | 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 | -14.16M | -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
1.25
Price Trends
0.96
Negative
1.96
Negative
4.85
Negative
Market Momentum
-0.12
Negative
38.60
Neutral
63.65
Neutral
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 1.25 is above the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.96, and below the 200-day MA of 4.85, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 38.60 is Neutral, neither overbought nor oversold. The STOCH value of 63.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PWCM.
PowerCompute Risk Analysis
PowerCompute disclosed 66 risk factors in its most recent earnings report. PowerCompute reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our operating losses and indebtedness may currently and in the future raise substantial doubt as to our ability to continue as a going concern. Q2, 2026
2.
Our indebtedness under our Bitcoin-secured loan facility is substantial, and we may be unable to roll over or refinance this indebtedness on commercially reasonable terms, or at all. Q2, 2026
3.
Our diversification into HPC and AI services may divert management attention and resources from our existing operations. Q2, 2026
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% | |
58 Neutral | $41.93M | 11.42 | 8.70% | ― | 16.82% | -33.43% | |
51 Neutral | $4.87M | ― | -202.21% | 373.33% | ― | ― | |
48 Neutral | $393.22M | -3.63 | -75.24% | ― | -33.13% | -511.56% | |
44 Neutral | $1.70M | -0.01 | -122.19% | ― | 16.32% | 43.76% |
* Financial Sector Average
PWCM
PowerCompute
0.66
-26.09
-97.52%
VSA
VisionSystems AI
1.67
-1,078.34
-99.85%
SPIR
Spire Global
8.87
-2.01
-18.47%
LICN
Lichen China Ltd. Class A
0.57
-3.33
-85.44%
INTJ
Intelligent Group Ltd
3.12
-7.75
-71.30%
YSXT
YSX Tech Co., Ltd Class A
1.33
-1.61
-54.76%
PowerCompute Corporate Events
Business Operations and Strategy
PowerCompute Expands Columbus Data Center Power Capacity
Positive
Oct 6, 2026
On September 30, 2026, PowerCompute’s subsidiary US Digital Mining Mississippi LLC signed a new industrial power contract with Columbus Light and Water that increases contracted power at its Columbus, Mississippi data center from 8.5 megawat...
Business Operations and StrategyPrivate Placements and Financing
PowerCompute Repays Bitcoin Debt and Expands Mining Capacity
Positive
Sep 30, 2026
On September 24, 2026, PowerCompute fully repaid and terminated its non‑recourse, Bitcoin‑backed credit facility with ChainFi’s Arch Lending unit, settling about $22.45 million of obligations as Arch sold roughly 267.3 of the 307...
Business Operations and Strategy
PowerCompute expands hashrate with new Antminer deployments
Positive
Sep 23, 2026
On September 23, 2026, PowerCompute announced progress in its fleet efficiency upgrade program, centered on replacing older Bitcoin mining rigs with Bitmain Antminer S19 XP units at its Oklahoma and Mississippi sites. By installing 1,000 new miner...
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.