PowerCompute, Inc. (PWCM) AI Stock Analysis

NASDAQ: PWCMAI research summary: business, growth, valuation, analysts, bull and bear case.

PWCM AI stock analysis summary

AI Research

PowerCompute, Inc. (PWCM) is a cryptocurrency mining and specialty finance company headquartered in Tampa, Florida. In FY2025, the company generated $8.8M in revenue while posting a net income of -$26.9M and free cash flow of -$39.0M. Its stock closed at $0.68 on October 16, 2026, marking a 1-year return of -97.6%.

Market cap
$1.7M
Revenue (TTM)
$6.9M
P/E
—
1Y return
-97.6%
S&P 500 16.8%
Avg. target
$4.00
487.4% vs last close

Bull case

  • Revenue increased at a 4-year compound annual growth rate of 81.6% between FY2021 and FY2025.
  • The sole covering analyst holds a Buy rating with a mean price target of $4.00, implying 487.4% upside from the last close.
  • The stock trades at a price-to-sales ratio of 0.3x, below the US-listed Financial Services peer median of 3.2x.

Bear case

  • Free cash flow remained deeply negative at -$39.0M in FY2025 alongside -$14.0M in operating cash flow.
  • The balance sheet carries total debt of $20.0M against $1.6M in cash and short-term investments, producing a current ratio of 0.67.
  • Shareholder returns show a 1-year return of -97.6% and the stock trades 87.3% below its 200-day moving average.

What PowerCompute does

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 engages in Bitcoin mining operations and provides funding to nonprofit community associations. Founded in 2008 and headquartered in Tampa, Florida, the company was formerly known as LM Funding America, Inc. before changing its name to PowerCompute, Inc. in July 2026. It employs 16 people and has traded on the NASDAQ since its IPO in 2015.

Growth and profitability

Between FY2021 and FY2025, PowerCompute posted a 4-year revenue CAGR of 81.6%, expanding revenue from $812,384 to $8.8M. However, annual revenue fell 19.6% in FY2025 from $11.0M in FY2024. Profitability has worsened significantly, as gross margin swung from 100.0% in FY2021 to -35.7% in FY2025, and operating margin ended at -252.5%. Net income declined from $4.8M in FY2021 to -$26.9M in FY2025, leading to an EPS of -$442.35. For the trailing twelve months ending June 30, 2026, revenue was $6.9M with an operating margin of -317.9%, while quarterly revenue fell 16.0% year-over-year.

PWCM income statement →

Balance sheet and cash flow

As of June 30, 2026, PowerCompute held $1.6M in cash and short-term investments alongside total debt of $20.0M, resulting in net debt of $18.3M. The company reported a current ratio of 0.67 and a debt-to-equity ratio of 1.16 on shareholders' equity of $17.3M. In FY2025, operating cash flow stood at -$14.0M and free cash flow was -$39.0M. Capital expenditures totaled $25.0M, while $8.0M was used for share buybacks even as the 5-year share count expanded 1048.4%.

PWCM balance sheet →

Valuation and performance

PowerCompute carries a market cap of $1.7M and an enterprise value of $21.0M, trading at a price-to-sales multiple of 0.3x compared to the 3.2x median of its US-listed Financial Services peers. Its EV to EBITDA ratio is 33.0x versus the peer median of 11.7x, while its price-to-book ratio is 0.1x. The stock has lagged the broader market, recording a 1-year return of -97.6% and a 5-year return of -99.9%, compared to S&P 500 returns of 16.8% and 83.0% over the same periods.

PWCM key metrics →

What analysts expect

Wall Street analyst coverage consists of 1 Buy rating with zero Hold or Sell ratings. The mean price target is $4.00, reflecting a 487.4% premium over the last close of $0.68. For the fiscal year ending December 31, 2026, the consensus estimates revenue of $8.5M and an EPS of -$16.25. The company delivered 0 EPS beats over the trailing four quarters. Its next earnings release is scheduled for November 13, 2026.

PWCM forecast and price target →

Key risks and what to watch

  • Short-term liquidity is pressured by a current ratio of 0.67 and net debt of $18.3M as of June 30, 2026.
  • Shareholder value has experienced significant dilution, with the share count increasing 1048.4% over 5 years.
  • Operating performance has missed forecasts, recording 0 EPS beats over the last 4 quarters.
  • Operating profitability remains severely depressed, highlighted by a trailing twelve month operating margin of -317.9%.

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 PWCM AI stock analysis

This page is an AI-written research summary of PowerCompute, Inc. (PWCM). 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: PWCM income statement, PWCM balance sheet, PWCM key metrics, PWCM analyst forecast, PWCM chart. See the PWCM stock overview for the latest quote and news.

PWCM AI stock analysis FAQ

What is PowerCompute's ticker and exchange?

PowerCompute trades on the NASDAQ under the ticker symbol PWCM.

Does PowerCompute pay a dividend?

PowerCompute does not pay a dividend.

When is PowerCompute's next earnings report date?

The company's next earnings date is scheduled for November 13, 2026.

What are analysts forecasting for PowerCompute's revenue and EPS?

For the fiscal year ending December 31, 2026, analysts estimate revenue of $8.5M and an EPS of -$16.25.

How much cash and debt does PowerCompute have?

As of June 30, 2026, PowerCompute held $1.6M in cash and short-term investments against total debt of $20.0M, resulting in net debt of $18.3M.

More Financial Services AI stock analysis