Start here if you're new
what it is
It sells software for crypto payments, trading, and settlement.
how it gets paid
Last year Sigma made $13M in revenue. ALT5 Pay was the main engine at $6.9M, or 53% of sales.
what just happened
$19M in revenue and 41.0% gross margin kept the quarter alive.
At a glance
C++ balance sheet — some cracks in the foundation
15/100 earnings predictability — expect surprises
20.4% return on capital — every dollar works hard here
-$0.56 fy2024 eps est
$5M fy2024 rev est
xvary composite: 40/100 — below average
What they do
It sells software for crypto payments, trading, and settlement.
ALT5 Pay handles payments. ALT5 Prime handles trading and settlement. That gives you two ways into the same customer, not one. The company says it has processed more than $5B in crypto transactions since inception, so this is not a toy product. The cut it keeps is still tiny, which is why $13M of annual sales looks small next to all that activity.
How they make money
$13M
annual revenue
ALT5 Pay
$6.9M
ALT5 Prime
$4.1M
Platform and processing services
$2.0M
The products that matter
digital asset payments
ALT5 Pay
$1.2B+ processed
it processed over $1.2B for customers and fed into the company's record $3.4B of annual transaction volume. if you want proof that the platform is being used, this is part of it.
payments rail
digital asset trading
ALT5 Prime
~$2.2B volume
it drove roughly the remaining $2.2B of annual volume. that's the larger side of the platform, but the page still does not give you enough segment detail to judge margin quality or customer concentration.
execution platform
Key numbers
$5B
volume
Lifetime transaction volume is huge versus $13M in annual revenue. That gap tells you the company moves a lot of activity and keeps a small cut.
$13M
annual sales
This is the actual revenue base. It is smaller than the $17M debt load.
60.3%
op margin
Operating margin, or profit before interest and tax, was -60.3%. That means the business lost 60 cents on every dollar of sales.
$17M
long-term debt
Debt exceeds sales. That makes the balance sheet the boss.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $17M (9% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for ALTS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
$19M in revenue and 41.0% gross margin kept the quarter alive.
EDGAR shows revenue up 157% vs. prior year and EPS at $0.28. Yahoo Finance's feed shows trailing EPS of $1.16 and a last print of -$0.49, so the data vendors do not line up.
$19.0M
revenue
$0.28
eps
41.0%
gross margin
the number that mattered
Revenue was $19M, up 157% from last year. That is the number that mattered because the business is still small enough for one quarter to move the story.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the financial reporting probe that already helped drive ALTS from about $11 to $1.
med
financial reporting investigation
this is the trust problem. the stock fell roughly 80% after a potential financial reporting misconduct probe surfaced. for a company this small, credibility is not a side issue. it is the business model.
if the probe drags, the valuation can stay depressed no matter what one quarter of revenue or EPS says.
med
earnings quality that looks better than the cash
Q3 2025 showed $57M of net income on $7.58M of revenue. that is the kind of mismatch that demands explanation, not celebration. until recurring cash backs it up, you should treat headline profit with caution.
if future quarters keep showing profits without cash conversion, the market will keep discounting those profits.
med
negative operating cash flow
the company burned $5.18M in operating cash last year. in plain english, the business consumed cash while management was trying to stabilize the story.
at a $168M market cap, a recurring $5.18M annual cash drain narrows strategic flexibility fast.
med
executive churn during a cleanup
the CEO was suspended in oct 2025, and a new CFO was appointed in jan 2026. leadership change can help, but mid-crisis turnover also slows execution and extends the proof window.
you need clean reporting, cost control, and customer confidence at the same time. management instability makes all three harder.
a $168M market cap, $17M of debt, and -$5.18M of operating cash flow do not leave much room for another credibility hit. if the reporting issue stays open and cash flow stays negative, the discount stays earned.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report
scheduled for march 27, 2026. you want revenue growth, but you want cleaner cash conversion more.
metric
operating cash flow moving toward breakeven
-$5.18M last year is the number to beat. if the cash burn does not narrow, the repair story stays thin.
risk
probe resolution and boring filings
this is the overhang. a clean resolution matters more than any single quarter's optics.
trend
volume growth versus revenue conversion
$3.4B of annual volume became about $13M of revenue. if volume rises but monetization does not, scale alone will not save the story.
Analyst rankings
earnings predictability
15 / 100
analysts have very little confidence in clean, repeatable earnings here. in human-speak: expect volatility, revisions, and surprises.
risk rank
3
that sits around the middle of the pack on safety. for a stock that already fell this hard, middle-of-the-pack safety is not the same as safe.
price stability
5 / 100
the source score says this name barely trades with any calm. if you own it, you should expect violent moves in both directions.
source: institutional data
Institutional activity
institutional ownership data for ALTS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$1
current price
n/a
target midpoint · n/a from current
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