Company Overview
T Stamp Inc. operates within the Technology sector, specifically focusing on the Software - Application industry, where it develops and markets identity authentication software solutions for government, enterprise partners, and peer-to-peer markets globally. The company leverages artificial intelligence-powered solutions that integrate computer vision, cryptography, and data technologies to secure digital interactions. As a mid-cap entity, T Stamp Inc. currently holds a market capitalization of $12.17M, which positions it as a smaller player relative to large-cap technology peers, yet it maintains a notable revenue stream of $3.73M for the trailing twelve months. The organization employs a workforce of 72 individuals, suggesting a lean operational structure typical of early-stage software development firms. The combination of a $12.17M market cap and $3.73M in annual revenue indicates that the company is in a growth phase where valuation is driven more by future potential and revenue expansion than by established profitability or massive scale. This scale allows the firm to serve niche markets requiring specialized identity authentication while managing a relatively small headcount to maintain operational efficiency.
Financial Health
For the trailing twelve months, the company reported a revenue of $3.73M, a net income of $-11,793,045, and an EBITDA of $-6,648,481. The substantial gap between the $3.73M revenue and the negative net income reveals a cost structure where operating expenses significantly exceed gross profits, a common characteristic in high-burn software development stages before achieving operational scale. The free cash flow stands at $-5,182,205, which indicates that the company is currently consuming cash to fund its operations and growth initiatives rather than generating excess liquidity. This negative cash flow suggests limited immediate financial flexibility without external capital injections or successful scaling of revenue streams. Regarding margins, the gross margin is 65.2%, reflecting a healthy cost of goods sold structure typical of software, while the operating margin is -203.0% and the profit margin is 0.0%, indicating that overhead costs are currently outpacing revenue growth to the point where the company is not generating a net profit. The total cash on hand is $5.37M, compared to total debt of $3.33M, creating a net cash position that provides a buffer against obligations. However, the debt-to-equity ratio is 53.51, which suggests a leveraged balance sheet relative to equity, though the positive net cash position mitigates immediate default risk. The current ratio is 1.98, indicating that the company possesses sufficient current assets to cover its short-term liabilities nearly twice over, pointing to adequate short-term liquidity management. Return on Equity is -200.0% and Return on Assets is -39.1%, metrics that reveal that management is currently utilizing shareholder and company assets to generate losses rather than returns, highlighting the challenges of the current operational phase.
Valuation Assessment
The trailing P/E ratio is listed as N/A due to the negative earnings, while the forward P/E is -2.49, implying that the market anticipates continued negative earnings or a turnaround that has not yet been realized in trailing figures. The price-to-book ratio is 1.52, which indicates that the market is valuing the company at 52% above its book value, suggesting a premium assigned to its intellectual property and growth potential despite current losses. The price-to-sales ratio is 3.26, and the EV/EBITDA is -1.55, meaning the company is valued at more than three times its sales, a metric often seen in high-growth firms where investors prioritize revenue expansion over immediate profitability. The 52-week high is $5.28 and the 52-week low is $1.43, placing the current trading price within a wide range that reflects high volatility and investor sentiment swings. The beta value is 0.50, which signifies that the stock is expected to be less volatile than the broader market, moving at roughly half the magnitude of market fluctuations. This low beta suggests that the stock may offer a different risk profile compared to larger technology indices, though the negative valuation multiples complicate the standard interpretation of value relative to peers.
Growth & Income
The revenue growth year-over-year is 70.7%, whereas earnings growth is N/A due to the lack of positive net income, indicating that while top-line sales are expanding rapidly, the bottom line remains negative. Since the company does not pay a dividend, the dividend yield is N/A and the payout ratio is 0.0%, meaning the company reinvests all available resources and earnings into business operations rather than distributing cash to shareholders. The absence of dividend payments aligns with the capital-intensive nature of the growth phase, where funds are retained to fuel the 70.7% revenue expansion and manage the negative free cash flow. Overall, the growth and income profile is characterized by aggressive top-line expansion without current profitability or income distribution, relying entirely on future operational success to convert the current revenue growth into sustainable earnings.