Fusemachines (FUSE)
Market Price (3/30/2026): $1.18 | Market Cap: $31.3 MilSector: Information Technology | Industry: Application Software
Fusemachines (FUSE)
Market Price (3/30/2026): $1.18Market Cap: $31.3 MilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Megatrend and thematic driversMegatrends include Artificial Intelligence, and Autonomous Technologies. Themes include AI Software Platforms, and Machine Learning. | Weak multi-year price returns2Y Excs Rtn is -120%, 3Y Excs Rtn is -155% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -5.7 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -74% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -30%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -31% | ||
| High stock price volatilityVol 12M is 150% | ||
| Key risksFUSE key risks include [1] potential disruption and failure to realize benefits from its recent business combination, Show more. |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, and Autonomous Technologies. Themes include AI Software Platforms, and Machine Learning. |
| Weak multi-year price returns2Y Excs Rtn is -120%, 3Y Excs Rtn is -155% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -5.7 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -74% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -30%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -31% |
| High stock price volatilityVol 12M is 150% |
| Key risksFUSE key risks include [1] potential disruption and failure to realize benefits from its recent business combination, Show more. |
Qualitative Assessment
AI Analysis | Feedback
Fusemachines (FUSE) stock has lost about 35% since 11/30/2025 because of the following key factors:
1. Significant Net Losses and Underperforming Revenue Growth.
Fusemachines reported a substantial net loss of $19.8 million for the third quarter of 2025, which was announced around November 28, 2025, representing a sharp increase from the $0.1 million loss in the prior year and including a $17.6 million financing expense. Furthermore, as of Q1 2026, the company's revenue growth of 3.63% year-over-year significantly lagged the US Software - Application industry's average growth rate of 110.06%.
2. Share Dilution and Post-SPAC Volatility.
Shareholders experienced substantial dilution over the past year, with the total number of outstanding shares increasing by 373.1%. The company also entered the public markets in October 2025 via a SPAC merger, which often leads to heightened stock volatility and downward price pressure in the period following the merger.
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1. Significant Net Losses and Underperforming Revenue Growth.
Fusemachines reported a substantial net loss of $19.8 million for the third quarter of 2025, which was announced around November 28, 2025, representing a sharp increase from the $0.1 million loss in the prior year and including a $17.6 million financing expense. Furthermore, as of Q1 2026, the company's revenue growth of 3.63% year-over-year significantly lagged the US Software - Application industry's average growth rate of 110.06%.
2. Share Dilution and Post-SPAC Volatility.
Shareholders experienced substantial dilution over the past year, with the total number of outstanding shares increasing by 373.1%. The company also entered the public markets in October 2025 via a SPAC merger, which often leads to heightened stock volatility and downward price pressure in the period following the merger.
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Stock Movement Drivers
Fundamental Drivers
The -35.5% change in FUSE stock from 11/30/2025 to 3/29/2026 was primarily driven by a 0.0% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 11302025 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 1.83 | 1.18 | -35.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | � | 0.0% |
| Net Income Margin (%) | � | � | 0.0% |
| P/E Multiple | � | � | 0.0% |
| Shares Outstanding (Mil) | 27 | 27 | 0.0% |
| Cumulative Contribution | 0.0% |
Market Drivers
11/30/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| FUSE | -35.5% | |
| Market (SPY) | -5.3% | 17.1% |
| Sector (XLK) | -9.1% | 21.7% |
Fundamental Drivers
The -97.2% change in FUSE stock from 8/31/2025 to 3/29/2026 was primarily driven by a 0.0% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 8312025 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 41.55 | 1.18 | -97.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | � | 0.0% |
| Net Income Margin (%) | � | � | 0.0% |
| P/E Multiple | � | � | 0.0% |
| Shares Outstanding (Mil) | 27 | 27 | 0.0% |
| Cumulative Contribution | 0.0% |
Market Drivers
8/31/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| FUSE | -97.2% | |
| Market (SPY) | 0.6% | 19.2% |
| Sector (XLK) | -0.7% | 22.6% |
Fundamental Drivers
The -97.2% change in FUSE stock from 2/28/2025 to 3/29/2026 was primarily driven by a 0.0% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 2282025 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 41.55 | 1.18 | -97.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | � | 0.0% |
| Net Income Margin (%) | � | � | 0.0% |
| P/E Multiple | � | � | 0.0% |
| Shares Outstanding (Mil) | 27 | 27 | 0.0% |
| Cumulative Contribution | 0.0% |
Market Drivers
2/28/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| FUSE | -97.2% | |
| Market (SPY) | 9.8% | 19.2% |
| Sector (XLK) | 15.9% | 22.6% |
Fundamental Drivers
nullnull
Market Drivers
2/28/2023 to 3/29/2026| Return | Correlation | |
|---|---|---|
| FUSE | -93.7% | |
| Market (SPY) | 69.4% | 2.2% |
| Sector (XLK) | 94.5% | 7.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| FUSE Return | 970% | -85% | 237% | -34% | -96% | -26% | -89% |
| Peers Return | 18% | -52% | 78% | 66% | -6% | -29% | 11% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -5% | 72% |
Monthly Win Rates [3] | |||||||
| FUSE Win Rate | 33% | 0% | 17% | 8% | 0% | 0% | |
| Peers Win Rate | 53% | 37% | 53% | 48% | 45% | 27% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | |
Max Drawdowns [4] | |||||||
| FUSE Max Drawdown | -14% | -85% | -20% | -36% | -96% | -26% | |
| Peers Max Drawdown | -26% | -59% | -14% | -27% | -45% | -34% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -5% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ACN, EPAM, GLOB, PLTR, AI.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 3/27/2026 (YTD)
How Low Can It Go
| Event | FUSE | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -92.7% | -25.4% |
| % Gain to Breakeven | 1271.6% | 34.1% |
| Time to Breakeven | 186 days | 464 days |
Compare to ACN, EPAM, GLOB, PLTR, AI
In The Past
Fusemachines's stock fell -92.7% during the 2022 Inflation Shock from a high on 9/30/2021. A -92.7% loss requires a 1271.6% gain to breakeven.
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About Fusemachines (FUSE)
Fusemachines Inc. develops and delivers artificial intelligence (AI) as a service and machine learning software solutions. The company offers Fuse Anna which is an AI assistant for follow ups through daily reminders; and Fuse Prospector which is an artificial intelligence sales platform. Further, the company offers managed outbound services and AI as a service for big data processing, data management, and cloud analytics. Additionally, it offers Fusemachines AI fellowship program, which provides selected scholars from underserved communities with mentorship and resources to develop advanced skills in artificial intelligence and machine learning; as well as Fusemachines Academy, a learning platform to build and enhance skills. The company serves governments, financial institutions, and e-commerce companies. The company is based in New York, New York with an additional offices in Kathmandu, Nepal; Toronto, Canada; Kochi, India; Santo Domingo, Cuba.
AI Analysis | Feedback
They are like SAP, but instead of ERP systems, they develop and deliver AI software and managed services for businesses.
They are like Salesforce, but focused purely on developing and delivering AI-powered tools and services for business operations.
AI Analysis | Feedback
- Fuse Anna: An AI assistant designed for follow-ups through daily reminders.
- Fuse Prospector: An artificial intelligence sales platform.
- Managed Outbound Services: Services providing support for outbound business operations.
- AI as a Service: Solutions for big data processing, data management, and cloud analytics.
- Fusemachines AI Fellowship Program: A program offering mentorship and resources for developing advanced AI/ML skills to selected scholars.
- Fusemachines Academy: A learning platform dedicated to building and enhancing AI and machine learning skills.
AI Analysis | Feedback
The provided company description for Fusemachines (FUSE) does not list specific names of customer companies.
However, it states that Fusemachines serves the following major categories of customers:
- Governments
- Financial institutions
- E-commerce companies
AI Analysis | Feedback
nullAI Analysis | Feedback
Sameer Maskey, Founder and CEO
Dr. Sameer Maskey is a computer scientist, educator, and entrepreneur who founded Fusemachines Inc. in 2013. He currently serves as an Adjunct Associate Professor at Columbia University, where he teaches AI and machine learning. Before establishing Fusemachines, Dr. Maskey led pioneering AI research in Natural Language and Speech processing at the IBM Watson Research Center. He possesses over 18-20 years of experience in artificial intelligence, natural language processing, machine learning, and data science. Dr. Maskey holds a PhD in Computer Science (AI/ML) from Columbia University and degrees in Math and Physics from Bates College. Fusemachines recently completed a business combination with a SPAC, CSLM Acquisition Corp., and began trading on Nasdaq on October 23, 2025.
Christine Chambers, CFO
Christine Chambers was appointed as the Chief Financial Officer of Fusemachines in August 2025. She is a seasoned CFO with more than 20 years of experience in leading financial operations and developing growth strategies. Her background includes experience with multiple publicly traded companies, such as RealNetworks and PetMed Express. She has deep experience leading finance in high-growth environments.
Anish Joshi, Head of Technology
Anish Joshi serves as the Head of Technology for Fusemachines.
Parag Shrestha, Head of Strategy
Parag Shrestha is the Head of Strategy at Fusemachines.
Robert Traghetto, Head of AI Services
Robert Traghetto holds the position of Head of AI Services at Fusemachines.
AI Analysis | Feedback
The key risks to Fusemachines (FUSE) include: 1. Financial Challenges and Nasdaq Listing Compliance: Fusemachines faces significant financial challenges, as evidenced by its negative shareholders' equity, declining revenue, and substantial shareholder dilution over the past year. The company's overall financial health has been described as weak, and it has a low current ratio and negative net cash. Further, Fusemachines received a notice of non-compliance with Nasdaq Listing Requirements in January 2026. The inability to maintain its Nasdaq listing would pose a significant risk to the company's market presence, credibility, and ability to access capital. 2. Intense Competition and Pace of AI Adoption: Operating in a highly competitive artificial intelligence market, Fusemachines' success is contingent on its ability to effectively differentiate its products and services. The company also faces the risk that the pace of enterprise adoption of AI solutions may be slower than anticipated, or that it may struggle to consistently demonstrate a clear return on investment (ROI) for its customers. 3. Execution Risk of Growth Strategy: Fusemachines' future growth is heavily dependent on its ability to successfully execute its outlined multi-pillar growth strategy, which includes focused vertical product innovation, increased sales and marketing investments, strategic partnerships, and selective acquisitions. Risks include challenges in attracting, developing, and retaining partners, resellers, and talent, as well as effectively scaling its sales and delivery organizations. Failure to realize the anticipated benefits of its business combination and disruptions to current plans and operations also present execution risks.AI Analysis | Feedback
```htmlA significant emerging threat to Fusemachines (FUSE) is the rapid commoditization and integration of artificial intelligence capabilities, particularly generative AI, by major cloud providers (hyperscalers like Amazon Web Services, Microsoft Azure, and Google Cloud) and the proliferation of specialized AI tools from established software vendors and nimble startups. These entities are increasingly offering comprehensive AI as a Service platforms, pre-trained models, and purpose-built AI applications that directly compete with Fusemachines' offerings such as Fuse Anna (AI assistant), Fuse Prospector (AI sales platform), and their managed AI services for big data processing, data management, and cloud analytics. The scale, integration capabilities, and aggressive development by these larger players could make it challenging for Fusemachines to maintain a unique competitive advantage and acquire or retain clients who might find more integrated or cost-effective solutions elsewhere.
```AI Analysis | Feedback
Addressable Markets for Fusemachines' Main Products and Services (Global)
- AI as a Service (AIaaS) and Machine Learning Software Solutions: The global artificial intelligence as a service market size was valued at approximately USD 16.48 billion in 2025 and is projected to reach around USD 294.83 billion by 2034, expanding at a Compound Annual Growth Rate (CAGR) of 37.78% from 2024 to 2034.
- Fuse Anna (AI Assistant for Follow-ups): The global AI assistant software market size was estimated at USD 8.46 billion in 2024 and is projected to reach USD 35.72 billion by 2033, growing at a CAGR of 17.5% from 2025 to 2033.
- Fuse Prospector (AI Sales Platform) and Managed Outbound Services: The global sales intelligence market size was valued at USD 4.85 billion in 2025 and is expected to grow to USD 12.45 billion by 2034, with a CAGR of 11.10% over the forecast period.
- Big Data Processing: The global big data market size was worth USD 199.63 billion in 2024 and is projected to grow to USD 573.47 billion by 2033, growing at a CAGR of 12.44% from 2025 to 2033.
- Data Management: The global enterprise data management market size was estimated to have a market value of USD 115.32 billion in 2025 and is expected to rise to USD 311.95 billion by 2034, with a CAGR of 11.69%.
- Cloud Analytics: The global cloud analytics market size was calculated at USD 45.49 billion in 2025 and is predicted to increase from USD 53.79 billion in 2026 to approximately USD 233.95 billion by 2035, expanding at a CAGR of 17.79% from 2026 to 2035.
AI Analysis | Feedback
Expected Drivers of Future Revenue Growth for Fusemachines (FUSE) over the Next 2-3 Years
Fusemachines (NASDAQ: FUSE) anticipates several key drivers for its revenue growth over the next 2-3 years, primarily stemming from its strategic focus on expanding its artificial intelligence (AI) solutions and market reach. These drivers include:
- Focused Vertical Expansion and Product Innovation: Fusemachines plans to prioritize growth in the retail and real estate sectors by leveraging its AI Studio and AI Engines to develop and deploy industry-specific AI solutions. This vertical-specific approach aims to capture market share where the company has demonstrated early success and a clear ability to deliver measurable enterprise value.
- Increased Sales and Marketing Investment: The company intends to drive organic growth by significantly increasing its investment in sales and marketing efforts. This strategy is aimed at expanding its client base and deepening existing customer relationships for its enterprise AI products and services.
- Strategic Partnerships and Global Reseller Network Expansion: Fusemachines is actively pursuing strategic partnerships, including expanding its global reseller network with entities like Genese Solution and ModulAIre. This initiative is designed to broaden the distribution and adoption of its AI Studio and AI Engines across various markets worldwide, allowing for scalable growth opportunities.
- Selective Acquisitions: To complement its existing platform and accelerate its scale, Fusemachines plans to undertake selective acquisitions. This inorganic growth strategy will enable the company to enhance its capabilities and market presence more rapidly.
- Continued Development and Enhancement of AI Studio and AI Engines: The core of Fusemachines' offerings, its proprietary AI Studio and portfolio of AI Engines, are central to its growth strategy. Ongoing product innovation and the introduction of new AI-powered solutions, such as the Interview AI Agent in AI Studio, are expected to attract new clients and deliver greater value to existing ones.
AI Analysis | Feedback
Share Issuance
- Fusemachines completed a business combination with CSLM Acquisition Corp., resulting in the company becoming publicly traded on Nasdaq under the ticker "FUSE" on October 23, 2025. This transaction valued the combined company at $200 million, with $200,000,000 of stock consideration issued at $10.00 per share.
- The company registered for the potential issuance of up to 9,487,500 shares of common stock upon the exercise of public warrants in December 2025.
- In December 2025, Fusemachines issued 588,235 shares of common stock at $1.70 per share through a private placement to Consilium Frontier Equity Fund LP.
Inbound Investments
- In December 2025, Fusemachines received a $1 million follow-on equity investment from Consilium Investment Management, structured as a private investment in public equity (PIPE).
- In February 2025, an affiliate of CSLM's sponsor provided $2,160,000 in financing to Fusemachines in exchange for a convertible note.
Outbound Investments
- As part of its 2026 growth strategy, Fusemachines plans to pursue strategic acquisitions to enhance its platform capabilities and accelerate market expansion.
Capital Expenditures
- Capital expenditures for the last 12 months (prior to March 2026) were reported as $28,000.
- Proceeds from the October 2025 business combination are intended to strengthen the balance sheet and strategically invest in product innovation, customer expansion, and sales and marketing to drive growth.
- For 2026, the company plans to focus capital on advancing product innovation, particularly in the retail and real estate sectors, and increasing investment in sales and marketing.
Trade Ideas
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| 02282026 | BMI | Badger Meter | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 02282026 | VRNS | Varonis Systems | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 0.0% | 0.0% | 0.0% |
| 02272026 | ITRI | Itron | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
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Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 89.86 |
| Mkt Cap | 4.7 |
| Rev LTM | 3,465 |
| Op Inc LTM | 376 |
| FCF LTM | 412 |
| FCF 3Y Avg | 558 |
| CFO LTM | 478 |
| CFO 3Y Avg | 592 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.3% |
| Rev Chg 3Y Avg | 6.2% |
| Rev Chg Q | 8.3% |
| QoQ Delta Rev Chg LTM | 2.0% |
| Op Mgn LTM | 9.5% |
| Op Mgn 3Y Avg | 10.8% |
| QoQ Delta Op Mgn LTM | 0.0% |
| CFO/Rev LTM | 12.1% |
| CFO/Rev 3Y Avg | 13.3% |
| FCF/Rev LTM | 9.9% |
| FCF/Rev 3Y Avg | 11.3% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 4.7 |
| P/S | 1.6 |
| P/EBIT | 11.1 |
| P/E | 18.8 |
| P/CFO | 9.1 |
| Total Yield | 2.8% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 3.5% |
| D/E | 0.0 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -5.9% |
| 3M Rtn | -35.0% |
| 6M Rtn | -21.3% |
| 12M Rtn | -48.9% |
| 3Y Rtn | -62.9% |
| 1M Excs Rtn | 1.7% |
| 3M Excs Rtn | -26.8% |
| 6M Excs Rtn | -16.7% |
| 12M Excs Rtn | -62.4% |
| 3Y Excs Rtn | -120.1% |
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
External Quote Links
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