Fusemachines Inc. (FUSE) AI Stock Analysis

Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions across North America, Latin America, and Asia. Its core offerings include AI Studio, an application development and deployment platform; AI Engines, which extracts information from complex documents, generates dataset summaries, and detects suspicious financial patterns; and AI Agents, an automated workflow tool featuring an interview assistant. The company also provides managed outbound services for data management and analytics, alongside the Fusemachines AI fellowship program for underserved communities. Fusemachines serves clients across consumer brands, healthcare, media, technology, and government sectors.

Fusemachines generated revenue of $6.9M in FY2022 and $7.4M in FY2023 before reporting $533.0M in FY2024. Revenue then dropped 98.6% in FY2025 to $7.7M, resulting in a 3-year revenue CAGR of 3.9% from FY2022 to FY2025. Gross margin contracted to 55.8% in FY2025 from 102.4% in FY2024. In FY2025, operating margin was -77.2% and net income was -$928,000, or -$2.79 per share. For the trailing twelve months ended June 30, 2026, revenue stood at $7.4M, with quarterly revenue falling 11.8% year-over-year and operating margin sliding to -149.9%.

As of June 30, 2026, Fusemachines held $368,000 in cash and short-term investments against total debt of $1.2M, resulting in net debt of $807,000. The company reported a current ratio of 0.11 and total assets of $14.2M. Shareholders' equity is negative at -$6.3M. In FY2025, operating cash flow was -$5.5M, free cash flow was -$5.6M, and capital expenditures totaled $53,000. Over five years, the company's share count expanded by 22.1%.

Fusemachines trades at a price-to-sales multiple of 1.6x and an enterprise value-to-revenue multiple of 2.4x, supported by a market capitalization of $11.8M and an enterprise value of $17.8M. Its price-to-sales multiple is below the 2.8x median of its US-listed Technology peers. The company's trailing operating margin of -149.9% compares to the peer median of 13.2%. Over the past year, FUSE returned -97.4%, significantly trailing the S&P 500 (SPY) return of 16.8%.

Wall Street analyst ratings and price targets are not currently available for Fusemachines. The company's next earnings report is scheduled for November 6, 2026. EPS for the trailing twelve months stands at -$0.07, following an EPS of -$2.79 recorded in FY2025. Insiders own 36.6% of outstanding shares, institutional investors hold 38.1%, and short interest accounts for 6.6% of the float.

This page is an AI-written research summary of Fusemachines Inc. (FUSE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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