Lichen China Limited (LICN) AI Stock Analysis

Lichen China Limited operates as an investment holding company offering financial and taxation management consultation, internal control management, and advisory services. Founded in 2004, the firm provides specialized training programs and consultancy designed to enhance client operational efficiency and regulatory compliance. In the education sector, it delivers integrated support services, including marketing strategies, operational guidance, and teaching materials. Lichen China has also developed proprietary software solutions, such as the Lichen Education Accounting Practice System V1.0 and an academic affairs management system, complemented by installation, training, maintenance, and after-sales technical support for partnered educational institutions.

Revenue contracted sharply in recent periods, posting a 5-year CAGR of -4.4% from FY2020 to FY2025. After peaking at $41.5M in FY2024, revenue dropped 40.9% to $24.5M in FY2025. Margins eroded considerably, with gross margin dropping from 61.9% in FY2024 to 37.3% in FY2025, while operating margin fell from -11.0% to -58.8%. Net income deteriorated from -$6.1M in FY2024 to -$22.0M in FY2025. Contraction continued into the trailing twelve months ending June 30, 2026, where revenue reached $20.5M with an operating margin of -85.0%. For the latest quarter ended June 30, 2026, quarterly revenue fell 28.0% year-over-year, and earnings declined 51.3%.

As of June 30, 2026, Lichen China held $19.6M in cash and short-term investments against $304,000 in total debt, yielding net cash of $19.3M. The company shows a solid short-term liquidity profile with a current ratio of 5.81 and a debt-to-equity ratio of 0.00. However, cash generation has weakened severely, with operating cash flow and free cash flow both standing at -$17.8M in FY2025. Over the last five years, the company's share count decreased by 27.4%. Total shareholders' equity stood at $60.9M against total assets of $65.3M.

At a share price of $0.86, Lichen China has a market capitalization of $14.0M and an enterprise value of -$8.9M. The stock trades at a price-to-sales multiple of 0.7x, below the 1.5x median of its US-listed Industrials peers. Its price-to-book ratio is 0.2x, while EV/EBITDA is 3.0x compared to the peer median of 13.9x. The stock has underperformed broader benchmarks substantially, falling 80.3% over the past year and 69.6% year-to-date, compared to a 16.8% one-year gain for the S&P 500 benchmark SPY.

Lichen China has limited formal analyst coverage, with no consensus price targets or rating breakdowns reported. Historical performance records show that the company beat earnings per share estimates in 2 of the trailing 4 quarters. Diluted EPS for the trailing twelve months ended June 30, 2026, was reported at $27.64. Market trading activity reflects high volatility, with the shares trading 67.2% below their 200-day moving average and holding a beta of -1.03.

This page is an AI-written research summary of Lichen China Limited (LICN). 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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