Fusemachines Inc. Common stock (FUSE)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn money and can defend themselves. Fusemachines does not yet meet that bar. In fiscal 2025, the year ended 2025-12-31, it reported revenue of $7.7M and a net loss of $928,000. In fiscal 2024, the year ended 2024-12-31, revenue was $8.8M and the net loss was $15.4M, so the reported annual loss narrowed even as sales fell. The interim figures are volatile: in fiscal Q3 2025, the quarter ended 2025-09-30, the company reported a net loss of $19.8M; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.8M and net loss was $2.8M; in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $1.9M and net loss was $872,000. Revenue is not growing—fiscal Q2 2026 revenue of $1.8M was below fiscal Q2 2025 revenue of $2.0M—and the latest quarter's margin was -158.81%. Cash is going out the door: trailing free cash flow was -$3.8M, a FCF yield of -33.9%, per FairStock. The Piotroski F-Score is 3/9, Altman Z-Score is -25.43, ROCE is -96.22%, and FairStock Score is 25/100. At the 2026-10-13 close of $0.39, market cap is $11.3M and P/E is -5.57. A low price is not the same as a bargain when earnings and cash flow are negative. The AI software field is competitive, and I see no evidence of a durable moat or pricing power. Until revenue stabilizes and cash burn reverses, this is speculation, not value.

In plain English: Fusemachines sells artificial intelligence software to businesses. The business looks weak: revenue has been shrinking and it loses money, with cash going out the door. At 39 cents a share, the stock is not obviously cheap because there are no profits to support it; it looks speculative.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer