Rank One Computing (ROC)
Market Price (9/7/2026): $4.27 | Market Cap: $81.5 MilSector: Information Technology | Industry: Systems Software
Rank One Computing (ROC)
Market Price (9/7/2026): $4.27Market Cap: $81.5 MilSector: Information TechnologyIndustry: Systems Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -13% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -31% Megatrend and thematic driversMegatrends include Artificial Intelligence, Autonomous Technologies, and Cybersecurity. Themes include AI Software Platforms, Show more. | Weak multi-year price returns2Y Excs Rtn is -131%, 3Y Excs Rtn is -166% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -5.6 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -34% Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -42%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -56% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -12% High stock price volatilityVol 12M is 108% |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -13% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -31% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Autonomous Technologies, and Cybersecurity. Themes include AI Software Platforms, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -131%, 3Y Excs Rtn is -166% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -5.6 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -34% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -42%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -56% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -12% |
| High stock price volatilityVol 12M is 108% |
Qualitative Assessment
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Rank One Computing (ROC) stock has lost about 15% since 5/31/2026 because of the following key factors:
1. Shift to Net Loss in Fiscal Q2 2026 Despite Revenue Growth. Rank One Computing reported a net loss of $0.8 million, or $0.04 per share, in fiscal Q2 2026 (ended June 30, 2026), contrasting with a net income of $0.6 million in the prior year period. This occurred despite the company nearly doubling its revenue sequentially to $5.1 million and expanding its gross margin to 90% from 80% year-over-year. The loss was primarily driven by a significant increase in operating expenses, which rose to $5.3 million from $3.2 million, largely due to higher Selling, General and Administrative (SG&A) and Research & Development (R&D) investments.
2. Decline in Product Revenue Year-over-Year. The company experienced a 26% year-over-year decline in product revenue, falling to $2.1 million in fiscal Q2 2026. This decrease was attributed to the completion of a large ROC Watch deployment in 2025, which was not fully offset by other product sales in the current period. While government R&D contract revenue increased by 41% to $3.0 million and core Vision AI products showed strong growth, the overall product revenue decline likely raised concerns about the consistency of certain revenue streams.
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Rank One Computing (ROC) stock has lost about 15% since 5/31/2026 because of the following key factors:
1. Shift to Net Loss in Fiscal Q2 2026 Despite Revenue Growth. Rank One Computing reported a net loss of $0.8 million, or $0.04 per share, in fiscal Q2 2026 (ended June 30, 2026), contrasting with a net income of $0.6 million in the prior year period. This occurred despite the company nearly doubling its revenue sequentially to $5.1 million and expanding its gross margin to 90% from 80% year-over-year. The loss was primarily driven by a significant increase in operating expenses, which rose to $5.3 million from $3.2 million, largely due to higher Selling, General and Administrative (SG&A) and Research & Development (R&D) investments.
2. Decline in Product Revenue Year-over-Year. The company experienced a 26% year-over-year decline in product revenue, falling to $2.1 million in fiscal Q2 2026. This decrease was attributed to the completion of a large ROC Watch deployment in 2025, which was not fully offset by other product sales in the current period. While government R&D contract revenue increased by 41% to $3.0 million and core Vision AI products showed strong growth, the overall product revenue decline likely raised concerns about the consistency of certain revenue streams.
3. Absence of Formal Profitability Guidance. Following the fiscal Q2 2026 earnings report on August 13, 2026, Rank One Computing did not provide formal guidance for future profitability. This lack of a clear outlook on when the company expects to achieve sustained net income, despite strong gross margins and sequential revenue growth, contributed to investor caution and the stock's after-hours decline.
4. Broader Market Headwinds and Macroeconomic Uncertainty. The period since May 2026 was characterized by a challenging macroeconomic environment. Concerns about elevated market valuations, the potential for rising interest rates due to sticky inflation (e.g., 3.7% PCE inflation), and geopolitical escalations pushing oil prices above $90, created a backdrop of increased market correction risk. Additionally, September is historically the weakest month for equities, adding a seasonal headwind to the already strained market sentiment.
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Stock Movement Drivers
Fundamental Drivers
The -16.1% change in ROC stock from 5/31/2026 to 9/6/2026 was primarily driven by a 0.0% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 5312026 | 9062026 | Change |
|---|---|---|---|
| Stock Price ($) | 5.04 | 4.23 | -16.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | � | 0.0% |
| Net Income Margin (%) | � | � | 0.0% |
| P/E Multiple | � | � | 0.0% |
| Shares Outstanding (Mil) | 19 | 19 | 0.0% |
| Cumulative Contribution | 0.0% |
Market Drivers
5/31/2026 to 9/6/2026| Return | Correlation | |
|---|---|---|
| ROC | -16.1% | |
| Market (SPY) | 1.8% | 6.2% |
| Sector (XLK) | -2.0% | 12.1% |
Fundamental Drivers
The -34.9% change in ROC stock from 2/28/2026 to 9/6/2026 was primarily driven by a 0.0% change in the company's Shares Outstanding (Mil).| (LTM values as of) | 2282026 | 9062026 | Change |
|---|---|---|---|
| Stock Price ($) | 6.50 | 4.23 | -34.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | � | � | 0.0% |
| Net Income Margin (%) | � | � | 0.0% |
| P/E Multiple | � | � | 0.0% |
| Shares Outstanding (Mil) | 19 | 19 | 0.0% |
| Cumulative Contribution | 0.0% |
Market Drivers
2/28/2026 to 9/6/2026| Return | Correlation | |
|---|---|---|
| ROC | -34.9% | |
| Market (SPY) | 12.6% | 4.1% |
| Sector (XLK) | 35.1% | 10.9% |
Fundamental Drivers
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Market Drivers
8/31/2025 to 9/6/2026| Return | Correlation | |
|---|---|---|
| ROC | -94.7% | |
| Market (SPY) | 20.4% | 8.6% |
| Sector (XLK) | 43.3% | 13.7% |
Fundamental Drivers
nullnull
Market Drivers
8/31/2023 to 9/6/2026| Return | Correlation | |
|---|---|---|
| ROC | -94.7% | |
| Market (SPY) | 77.1% | 8.6% |
| Sector (XLK) | 117.2% | 13.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| ROC Return | 0% | 0% | 0% | 0% | 0% | -95% | -95% |
| Peers Return | -27% | -55% | -11% | 2% | 15% | -14% | -71% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| ROC Win Rate | 0% | 0% | 0% | 0% | 0% | 22% | |
| Peers Win Rate | 48% | 29% | 50% | 37% | 44% | 36% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 56% | |
Max Drawdowns [4] | |||||||
| ROC Max Drawdown | 0% | 0% | 0% | 0% | 0% | -95% | |
| Peers Max Drawdown | -52% | -68% | -49% | -57% | -45% | -50% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: AWRE, MITK, IDN, BKYI.
[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 9/4/2026 (YTD)
How Low Can It Go
| Event | ROC | S&P 500 |
|---|---|---|
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -48.0% | -17.9% |
| % Gain to Breakeven | 92.3% | 21.8% |
| Time to Breakeven | 505 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -19.3% | -15.4% |
| % Gain to Breakeven | 23.9% | 18.2% |
| Time to Breakeven | 21 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -88.1% | -53.4% |
| % Gain to Breakeven | 741.4% | 114.4% |
| Time to Breakeven | 575 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -21.3% | -8.6% |
| % Gain to Breakeven | 27.0% | 9.5% |
| Time to Breakeven | 53 days | 47 days |
In The Past
Rank One Computing's stock fell 0.0% during the 2013 Taper Tantrum. Such a loss loss requires a 0.0% gain to breakeven.
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| Event | ROC | S&P 500 |
|---|---|---|
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -48.0% | -17.9% |
| % Gain to Breakeven | 92.3% | 21.8% |
| Time to Breakeven | 505 days | 123 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -88.1% | -53.4% |
| % Gain to Breakeven | 741.4% | 114.4% |
| Time to Breakeven | 575 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -21.3% | -8.6% |
| % Gain to Breakeven | 27.0% | 9.5% |
| Time to Breakeven | 53 days | 47 days |
In The Past
Rank One Computing's stock fell 0.0% during the 2013 Taper Tantrum. Such a loss loss requires a 0.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Rank One Computing (ROC)
Rank One Computing, trading under the symbol ROC, operates within the specialty chemicals industry. The company focuses on the development, manufacturing, and marketing of a diverse portfolio of specialty chemical products.
These specialized chemicals are designed for a wide array of industrial and commercial applications. ROC primarily serves customers and markets located across Germany, the United States, and the broader European region.
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Like a specialized version of BASF or DuPont.
An industrial chemical supplier, similar to a focused Dow Chemical.
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- Specialty Chemicals: These chemicals are developed, manufactured, and marketed for various industrial and commercial applications.
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B. Scott Swann, Chief Executive Officer and Director
B. Scott Swann was appointed CEO of Rank One Computing in January 2020. Before joining ROC, he served as President and CEO of IDEMIA National Security Solutions, where he established a Special Security Agreement subsidiary and achieved significant growth while managing critical biometric-based identity systems. Prior to IDEMIA, he spent 18 years with the FBI, fulfilling multiple executive roles focused on advancing technology.
Cody Barnes, Chief Financial Officer
Cody Barnes, a CPA, has been the Chief Financial Officer at ROC since December 2016. His prior experience includes serving as the Director of Finance & Operations at Citi from March 2011 to December 2016, where his responsibilities encompassed liquidity reporting and Basel compliance. He also worked as a Tax Accountant at Coca-Cola Refreshments from August 2008 to March 2011. He holds a Bachelor of Science degree in Accounting and Finance from the University of South Florida.
Brendan Klare, President, Chief Scientist, and Board Chairman
Brendan Klare co-founded Rank One Computing in 2015. He initially held the position of CEO since the company's inception before transitioning to his current roles as President, Chief Scientist, and Board Chairman.
Josh Klontz, Chief Technology Officer and Director
Josh Klontz is a co-founder of Rank One Computing.
Tony Brown, Chief Operating Officer
Tony Brown brings over 20 years of experience in strategic roles across innovative startups, the Department of Defense (DoD), the FBI, and the Department of Homeland Security (DHS), focusing on biometrics, identity management, and technology.
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Peer Outperformance in Systems Software
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Electronic Manufacturing Services | 9 | 56.1% | 187.5% | 289.3% | TTMI 809% · FLEX 683% · SANM 401% |
| Semiconductor Materials & Equipment | 27 | 130.8% | 73.1% | 100.8% | AEHR 837% · AXTI 538% · KLAC 470% |
| Technology Distributors | 9 | 30.2% | 70.1% | 86.0% | CLMB 351% · AVT 167% · SNX 119% |
| Communications Equipment | 36 | 19.3% | 84.5% | 69.1% | AAOI 1251% · LITE 902% · ANET 763% |
| Electronic Components | 26 | 49.9% | 61.9% | 63.2% | CLS 3269% · BELFA 1265% · COHR 356% |
| Semiconductors | 55 | 21.1% | 25.4% | 18.1% | POET 1845% · MU 1316% · NVDA 920% |
| Technology Hardware, Storage & Peripherals | 21 | 37.2% | 82.6% | 16.8% | DELL 1093% · STX 1020% · SMCI 978% |
| Internet Services & Infrastructure | 6 | 19.8% | 39.3% | 14.1% | DOCN 60% · VRSN 35% · GDDY 35% |
| Electronic Equipment & Instruments | 27 | -7.3% | 10.7% | -7.7% | PI 198% · OSIS 109% · NSSC 101% |
| IT Consulting & Other Services | 28 | -23.8% | -11.6% | -28.7% | CHRN 533058% · APLD 1381% · TSSI 665% |
| Application Software | 123 | -23.9% | -14.2% | -46.2% | VIDA 199900% · INLX 4861% · PLTR 553% |
| Systems Software ← | 67 | -5.4% | 2.4% | -55.4% | PAYS 445% · QNC 436% · ZETA 347% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 2.81 |
| Mkt Cap | 0.1 |
| Rev LTM | 16 |
| Op Inc LTM | -3 |
| FCF LTM | -4 |
| FCF 3Y Avg | -1 |
| CFO LTM | -4 |
| CFO 3Y Avg | -1 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 6.4% |
| Rev Chg 3Y Avg | 5.3% |
| Rev Chg Q | 13.1% |
| QoQ Delta Rev Chg LTM | 3.4% |
| Op Inc Chg LTM | 40.0% |
| Op Inc Chg 3Y Avg | 71.1% |
| Op Mgn LTM | -34.0% |
| Op Mgn 3Y Avg | -19.6% |
| QoQ Delta Op Mgn LTM | 3.3% |
| CFO/Rev LTM | -41.1% |
| CFO/Rev 3Y Avg | -5.9% |
| FCF/Rev LTM | -41.8% |
| FCF/Rev 3Y Avg | -8.5% |
Price Behavior
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 3.20 | 0.89 | 0.30 | 0.21 | -0.07 | -0.02 |
| Up Beta | 5.32 | 3.84 | 1.10 | 0.75 | 0.37 | 0.06 |
| Down Beta | 0.80 | -2.35 | -0.10 | -2.23 | -0.94 | -0.22 |
| Up Capture | 132% | -47% | -29% | 18% | -66% | -6% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 9 | 19 | 26 | 51 | 54 | 54 |
| Down Capture | 360% | 160% | 62% | 137% | 100% | 56% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 12 | 23 | 38 | 71 | 74 | 74 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ROC | |
|---|---|---|---|---|
| ROC | -31.4% | 77.5% | -0.57 | - |
| Sector ETF (XLK) | 43.4% | 26.2% | 1.34 | 13.7% |
| Equity (SPY) | 19.7% | 12.8% | 1.13 | 8.6% |
| Gold (GLD) | 24.6% | 29.2% | 0.75 | -3.4% |
| Commodities (DBC) | 43.8% | 20.3% | 1.67 | -8.4% |
| Real Estate (VNQ) | 9.1% | 13.6% | 0.39 | -3.1% |
| Bitcoin (BTCUSD) | -28.1% | 43.8% | -0.63 | 8.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ROC | |
|---|---|---|---|---|
| ROC | -7.2% | 77.5% | -0.57 | - |
| Sector ETF (XLK) | 19.7% | 25.9% | 0.68 | 13.7% |
| Equity (SPY) | 12.8% | 17.2% | 0.57 | 8.6% |
| Gold (GLD) | 19.1% | 18.8% | 0.82 | -3.4% |
| Commodities (DBC) | 10.7% | 19.5% | 0.43 | -8.4% |
| Real Estate (VNQ) | 1.7% | 18.9% | -0.01 | -3.1% |
| Bitcoin (BTCUSD) | 10.2% | 52.6% | 0.38 | 8.1% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with ROC | |
|---|---|---|---|---|
| ROC | -3.7% | 77.5% | -0.57 | - |
| Sector ETF (XLK) | 24.4% | 25.0% | 0.88 | 13.7% |
| Equity (SPY) | 15.3% | 17.9% | 0.72 | 8.6% |
| Gold (GLD) | 12.4% | 16.3% | 0.62 | -3.4% |
| Commodities (DBC) | 7.9% | 18.1% | 0.35 | -8.4% |
| Real Estate (VNQ) | 4.8% | 20.7% | 0.19 | -3.1% |
| Bitcoin (BTCUSD) | 63.7% | 66.2% | 1.03 | 8.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Systems Software Resources |
| CNET |
| ZDNet |
| Gartner |
| Software Development Times |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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