📊 ATDS Key Takeaways
Is Data443 Risk Mitigation, Inc. (ATDS) a Good Investment?
Data443 is in severe financial distress with negative stockholders' equity of -$13.5M, indicating liabilities exceed assets. The company is burning cash with negative free cash flow of -$76.4K despite minimal capex, and operating losses of -$932.7K on just $3.5M in revenue demonstrate unprofitable operations at scale. Critical liquidity crisis with current ratio of 0.01x and only $49.1K in cash against $18.8M in liabilities makes immediate solvency a pressing concern.
Data443 shows decent gross margins, but the core business is not producing sustainable earnings: operating margin is deeply negative and net losses consume nearly half of revenue. The balance sheet is severely distressed, with negative equity, almost no cash, extremely weak liquidity, and liabilities far exceeding assets, which outweighs the modestly positive operating cash flow.
Why Buy Data443 Risk Mitigation, Inc. Stock? ATDS Key Strengths
- Gross margin of 72.7% indicates strong unit economics on revenue generated
- Positive operating cash flow of $109.1K suggests some underlying cash generation despite net losses
- Operating in software services sector with potential for scalability
- High gross margin of 72.7% suggests the software offering can generate solid gross profit before overhead
- Operating cash flow was slightly positive, indicating some near-term cash generation from operations
- Capital intensity appears relatively low, with free cash flow only modestly negative versus revenue
ATDS Stock Risks: Data443 Risk Mitigation, Inc. Investment Risks
- Negative stockholders' equity of -$13.5M indicates technical insolvency and potential bankruptcy risk
- Critically low liquidity with current ratio of 0.01x and only $49.1K cash versus $18.8M liabilities
- Negative free cash flow and inability to fund operations or debt service from cash generation
- Operating losses consuming 26.7% of revenue with negative net margin of -45.7%
- Long-term debt of $4.5M represents significant leverage burden for distressed company
- Zero insider purchases in last 90 days suggests management lacks confidence
- Severe balance sheet stress, including negative stockholders' equity of $-13.48M and liabilities of $18.77M against just $5.29M of assets
- Extremely weak liquidity, with only $49.09K of cash and current and quick ratios of 0.01x
- Business remains unprofitable, with negative operating income, negative net income, and negative interest coverage
Key Metrics to Watch
- Quarterly revenue trends and ability to achieve profitability at operating level
- Cash position depletion rate and timeline to potential liquidity exhaustion
- Debt restructuring negotiations or refinancing outcomes with creditors
- Operating expense control and path to positive operating cash flow generation
- Sustainable revenue growth with improvement in operating margin
- Liquidity runway, including cash balance, current liabilities, and debt servicing capacity
Data443 Risk Mitigation, Inc. (ATDS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
ATDS Profit Margin, ROE & Profitability Analysis
ATDS vs Technology Sector: How Data443 Risk Mitigation, Inc. Compares
How Data443 Risk Mitigation, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Data443 Risk Mitigation, Inc. Stock Overvalued? ATDS Valuation Analysis 2026
Based on fundamental analysis, Data443 Risk Mitigation, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Data443 Risk Mitigation, Inc. Balance Sheet: ATDS Debt, Cash & Liquidity
ATDS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Data443 Risk Mitigation, Inc.'s revenue has grown significantly by 35% over the 5-year period, indicating strong business expansion. The most recent EPS of $-8.41 indicates the company is currently unprofitable.
ATDS Revenue Growth, EPS Growth & YoY Performance
ATDS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $899.1K | -$602.4K | $0.00 |
| Q2 2025 | $1.1M | -$318.0K | $0.00 |
| Q1 2025 | $1.2M | -$676.7K | $-0.01 |
| Q3 2024 | $693.8K | -$1.3M | $-3.98 |
| Q2 2024 | $619.0K | $89.5K | $1.88 |
| Q1 2024 | $1.4M | -$737.9K | $5.34 |
| Q3 2023 | $693.8K | -$1.6M | $-21.97 |
| Q2 2023 | $619.0K | $89.5K | $0.00 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Data443 Risk Mitigation, Inc. Dividends, Buybacks & Capital Allocation
ATDS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Data443 Risk Mitigation, Inc. (CIK: 0001068689)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ATDS
What is the AI rating for ATDS?
Data443 Risk Mitigation, Inc. (ATDS) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 94% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ATDS's key strengths?
Claude: Gross margin of 72.7% indicates strong unit economics on revenue generated. Positive operating cash flow of $109.1K suggests some underlying cash generation despite net losses. ChatGPT: High gross margin of 72.7% suggests the software offering can generate solid gross profit before overhead. Operating cash flow was slightly positive, indicating some near-term cash generation from operations.
What are the risks of investing in ATDS?
Claude: Negative stockholders' equity of -$13.5M indicates technical insolvency and potential bankruptcy risk. Critically low liquidity with current ratio of 0.01x and only $49.1K cash versus $18.8M liabilities. ChatGPT: Severe balance sheet stress, including negative stockholders' equity of $-13.48M and liabilities of $18.77M against just $5.29M of assets. Extremely weak liquidity, with only $49.09K of cash and current and quick ratios of 0.01x.
What is ATDS's revenue and growth?
Data443 Risk Mitigation, Inc. reported revenue of $3.5M.
Does ATDS pay dividends?
Data443 Risk Mitigation, Inc. does not currently pay dividends.
Where can I find ATDS SEC filings?
Official SEC filings for Data443 Risk Mitigation, Inc. (CIK: 0001068689) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ATDS's EPS?
Data443 Risk Mitigation, Inc. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ATDS a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Data443 Risk Mitigation, Inc. has a STRONG SELL rating with 94% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ATDS stock overvalued or undervalued?
Valuation metrics for ATDS: ROE of N/A (sector avg: 22%), net margin of -45.7% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy ATDS stock in 2026?
Our dual AI analysis gives Data443 Risk Mitigation, Inc. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ATDS's free cash flow?
Data443 Risk Mitigation, Inc.'s operating cash flow is $109.1K, with capital expenditures of $185.5K. FCF margin is -2.2%.
How does ATDS compare to other Technology stocks?
Vs Technology sector averages: Net margin -45.7% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.01 (avg: 2.5).