MicroAlgo Inc. (MLGO) AI Stock Analysis
MLGO AI stock analysis summary
AI ResearchMicroAlgo Inc. (MLGO) is a developer of central processing algorithm solutions and intelligent chip services based in Shenzhen, China. The company reported trailing twelve-month revenue of $370.6M alongside a profit margin of -39.8% and EPS of -$1.98. While its balance sheet shows net cash of $303.3M, the stock has dropped 72.9% over the past year.
- Market cap
- $28.2M
- Revenue (TTM)
- $370.6M
- P/E
- —
- 1Y return
- -72.9% S&P 500 16.8%
- Avg. target
- —
Bull case
- MicroAlgo holds $307.9M in cash and short-term investments against just $4.6M in total debt, creating a substantial net cash position of $303.3M.
- The stock trades at an EV to EBITDA ratio of 2.7x and a price-to-sales ratio of 0.1x, substantially below the US-listed Technology peer medians of 16.6x and 2.8x, respectively.
- Net income expanded to $16.2M in FY2025, delivering a net margin of 27.0% compared to 7.1% in FY2024.
Bear case
- The company experienced significant shareholder dilution, with its share count increasing 6181.6% over five years.
- Annual revenue fell 19.1% in FY2025 to $60.0M, continuing a multi-year slide from $85.0M in FY2022.
- The stock has lost substantial value, posting a 1-year return of -72.9% and a 5-year return of -100.0%.
What MicroAlgo does
MicroAlgo Inc. specializes in developing and providing advanced central processing algorithm solutions tailored for clients in the internet advertisement, gaming, and intelligent chip sectors. Based in Shenzhen, China, the company operates across two primary segments: Central Processing Algorithm Services and Intelligent Chips and Services. Its offerings include algorithm optimization to enhance computing efficiency without requiring hardware upgrades, data processing, and intelligence services. In addition, the firm resells intelligent chips and related accessories, and delivers software development services. MicroAlgo Inc. operates as a subsidiary of WiMi Hologram Cloud Inc. with 71 employees.
Growth and profitability
Annual revenue contracted over several periods, declining from $85.0M in FY2022 to $81.7M in FY2023, $74.2M in FY2024, and falling 19.1% to $60.0M in FY2025. Despite lower revenue, net income rose to $16.2M in FY2025 with a net margin of 27.0%, compared to net income of $5.3M in FY2024 and -$37.8M in FY2023. Over five years from FY2020 to FY2025, revenue grew at a CAGR of 5.0%. For the trailing twelve months, revenue totaled $370.6M with an operating margin of 4.1% and a net loss driving a profit margin of -39.8%. For the latest quarter ended June 30, 2026, quarterly revenue fell 27.3% year-over-year, while quarterly earnings grew 502.4%.
Balance sheet and cash flow
As of June 30, 2026, MicroAlgo held $307.9M in cash and short-term investments against total debt of $4.6M, resulting in net cash of $303.3M. The company maintains significant liquidity with a current ratio of 16.79 and a debt-to-equity ratio of 0.02 against shareholders' equity of $299.6M. MicroAlgo generated $2.5M in operating cash flow and $2.5M in free cash flow in FY2025, while capital expenditures were limited to $1,157. Additionally, the company's share count increased 6181.6% over a five-year period.
Valuation and performance
MicroAlgo trades at a market capitalization of $28.2M and an enterprise value of -$265.6M. Its price-to-sales multiple is 0.1x, which compares to 2.8x for the median of its US-listed Technology peers. The company also trades at an EV to EBITDA multiple of 2.7x, well below the 16.6x median of its US-listed Technology peers, and has a price-to-book ratio of 0.1x. Over the past year, the stock returned -72.9%, trailing the S&P 500 (SPY) return of 16.8%, and over five years the stock returned -100.0% compared to 83.0% for SPY.
What analysts expect
Wall Street analyst recommendations, consensus price targets, and forward revenue or earnings estimates are not published for MicroAlgo. On historical performance, the company registered 3 EPS beats over the last 4 quarters. The stock closed at $2.58 on October 16, 2026, sitting 37.6% below its 200-day average, between its 52-week low of $2.52 and 52-week high of $9.99, alongside a beta of -0.94.
Key risks and what to watch
- Revenue for the quarter ended June 30, 2026, fell 27.3% year-over-year, pointing to ongoing top-line volatility.
- Trailing twelve-month operations generated an EPS of -$1.98 and a net profit margin of -39.8%.
- Insider ownership sits high at 46.9%, while institutional ownership is only 3.5%, leaving public float closely held.
- The stock is trading close to its 52-week low of $2.52, down 37.6% relative to its 200-day average.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MLGO AI stock analysis
This page is an AI-written research summary of MicroAlgo Inc. (MLGO). 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.
Related: MLGO income statement, MLGO balance sheet, MLGO key metrics, MLGO chart. See the MLGO stock overview for the latest quote and news.
MLGO AI stock analysis FAQ
What is MicroAlgo Inc.'s primary business?
MicroAlgo develops central processing algorithm solutions and provides intelligent chip services, focusing on algorithm optimization, computing efficiency, and software development. It operates from Shenzhen, China, and had 71 employees.
How much cash and debt does MicroAlgo carry?
As of June 30, 2026, MicroAlgo held $307.9M in cash and short-term investments and $4.6M in total debt, yielding net cash of $303.3M. This gives the company a current ratio of 16.79 and a debt-to-equity ratio of 0.02.
Does MicroAlgo pay a dividend?
MicroAlgo does not pay a dividend. In FY2025, the company generated $2.5M in free cash flow and spent $1,157 on capital expenditures.
What is MicroAlgo's valuation compared to peers?
MicroAlgo trades at a price-to-sales ratio of 0.1x and an EV to EBITDA ratio of 2.7x. Both multiples are lower than the median of its US-listed Technology peers, which trade at 2.8x sales and 16.6x EV to EBITDA.
How has MLGO stock performed against the broader market?
MLGO shares returned -72.9% over the past year and -41.6% year-to-date through October 16, 2026. In comparison, the S&P 500 (SPY) returned 16.8% over the trailing one-year period.