American Bitcoin (ABTC) has completed its fiscal year 2025 with significant revenue growth, announcing Q4 revenue of $78.3 million. In contrast, the company reported a basic earnings per share (EPS) loss of $0.06. Across the trailing twelve months, American Bitcoin achieved total revenue of $185.2 million, with an accompanying EPS of $0.17.
Over several quarters, there has been marked revenue progression: starting from $11.6 million in Q3 2024, the company’s revenue climbed to $12.3 million in Q1 2025, surged to $30.3 million in Q2, further escalated to $64.2 million in Q3, and reached $78.3 million in Q4. Conversely, the EPS demonstrated volatility, ranging from a loss of $1.99 in Q1 2025, peaking with a profit of $0.06 in Q2, before returning to a loss by Q4. The company recorded an impressive revenue growth rate of 158.8% year-over-year, yet it continues to grapple with consistent profitability — a challenge highlighted by its Q4 net loss of $59.5 million following brief periods of profitability in previous quarters.
The bullish perspective surrounding the company emphasizes the blend of significant revenue growth and current operating losses. However, the figures raise questions regarding the sustainability of this growth. Current forecasts anticipate a revenue annual growth rate of approximately 29.3%, with earnings expected to increase by 18.29% per year, projecting a shift toward profitability within three years. This assertion supports the idea that the company is in a developmental phase, prioritizing growth over immediate profits.
ABTC’s share price has been noted at $1.02, which corresponds to a price-to-sales (P/S) ratio of 5.1x—significantly higher than the average for the U.S. software industry at 3.4x and a stark contrast to the 1.9x ratio for comparable firms. Despite this high valuation, a discounted cash flow (DCF) analysis pegs the fair value at approximately $0.45 per share, indicating potential overvaluation given the company’s significant losses totaling $153.2 million over the past year. Analysts have set a target price of $4.00, suggesting that the market price might represent an opportunity for growth, although it simultaneously raises concerns regarding possible overestimation in future performance.
A look into the EPS performance throughout FY 2025 reveals fluctuations: losses transitioned from $1.99 in Q1 to a slight profit in Q2 and approached breakeven in Q3, before hitting a loss of $0.06 again in Q4. This inconsistency underscores the struggle for stability amid rapidly increasing revenues, where net income has swayed between significant losses and marginal profits.
Finally, while American Bitcoin illustrates robust revenue growth, it faces challenges with uneven profitability and a share price that exceeds its estimated fair value. Potential investors are encouraged to weigh these dynamics against other high-quality, undervalued stocks to find a better alignment with their investment strategies. Comprehensive tracking of this evolving narrative surrounding American Bitcoin may provide valuable insights for those considering involvement in the company’s future.
