GAN (GAN) AI Stock Analysis

• Market Cap: $87.81M
• Dividend Yield: N/A
• Average Volume (3M): 159.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 7.02%
• EPS Growth: 74.19%
• Country: US
• Employees: 621
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -0.15
• Shares Outstanding: 46,460,423
• 10 Day Avg. Volume: 146,373
• 30 Day Avg. Volume: 159,910
• PEG Ratio: -0.27
• Price to Book (P/B): -7.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.40
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: -4.09
• 1Y Price Target: $1.97
• Price Target Upside: 5.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

GAN is currently facing substantial financial difficulties, with negative profit margins and a high debt burden. Technical analysis offers mixed signals with potential resistance levels. Despite improvements in cash flow, the financial instability and lack of profitability significantly weigh down the stock's potential, leading to a cautious overall score.

GAN Business Overview & Revenue Model

Company Description

GAN Limited is a leading provider of enterprise-level B2B internet gaming software solutions, primarily serving the online casino gaming and sports betting industries. Founded to leverage the growing trend of online gambling, GAN offers a comprehensive platform that supports real money and simulated gaming experiences. Their technology powers both online and retail operators, providing a seamless integration of gaming content and player management tools, ensuring compliance with regulatory standards across various jurisdictions.

How the Company Makes Money

GAN Limited generates revenue through a combination of software licensing fees, revenue-sharing agreements, and professional services. The company licenses its proprietary GameSTACK internet gaming system to online and land-based casino operators, enabling them to offer real money and simulated gaming options. Revenue-sharing models are a significant part of GAN's income, where the company receives a percentage of the gaming revenue generated by its platform users. Additionally, GAN offers managed services, including customer support and marketing, which provide incremental revenue streams. The company also benefits from partnerships with casino operators and content providers, enhancing its gaming library and expanding its market reach.

GAN Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues and negative profit margins. The balance sheet shows financial instability with negative equity and high leverage. Cash flow has seen improvements, transitioning to positive, yet remains volatile.

Income Statement

The company has faced declining revenue in recent years with a negative revenue growth rate in the latest period. Gross profit margin has been relatively stable, but the net profit margin remains negative due to persistent losses. EBIT and EBITDA margins are also negative, indicating challenges in managing operating expenses efficiently.

Balance Sheet

The balance sheet reveals significant financial instability with negative stockholders' equity and a high debt-to-equity ratio. The equity ratio is also negative, highlighting potential solvency issues. The company needs to improve its capital structure to enhance financial stability.

Cash Flow

There has been an improvement in free cash flow, transitioning from negative to positive, indicating better cash management. The operating cash flow to net income ratio is positive, suggesting cash generation despite net losses. However, the volatility in cash flow metrics indicates ongoing financial challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
135.00M	129.42M	141.53M	125.43M	35.16M
	Gross Profit
94.57M	90.72M	99.89M	84.06M	24.69M
	EBIT
-3.60M	-30.31M	143.05M	-25.52M	-19.47M
	EBITDA
4.09M	-13.15M	-7.62M	-10.90M	-16.21M
	Net Income Common Stockholders
-7.96M	-34.44M	-197.50M	-24.90M	-20.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.74M	38.58M	45.92M	39.48M	152.65M
	Total Assets
77.15M	87.50M	103.08M	260.91M	173.25M
	Total Debt
50.31M	46.57M	28.16M	472.00K	575.00K
	Net Debt
11.57M	7.99M	-17.76M	-39.01M	-152.08M
	Total Liabilities
88.29M	92.11M	82.31M	36.87M	17.68M
	Stockholders Equity
-11.14M	-4.60M	20.77M	224.04M	155.56M
Cash Flow		Free Cash Flow
5.28M	-10.38M	-20.35M	-18.95M	-12.27M
	Operating Cash Flow
5.81M	-3.56M	-1.25M	-5.00M	-6.35M
	Investing Cash Flow
-3.13M	-6.82M	-19.10M	-106.67M	-5.92M
	Financing Cash Flow
2.00K	1.35M	27.45M	169.00K	154.71M

GAN Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAN, the sentiment is Positive. The current price of 1.86 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.77, and above the 200-day MA of 1.78, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 64.79 is Neutral, neither overbought nor oversold. The STOCH value of 84.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GAN.

GAN Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGS	73 Outperform	$503.46M	10.59	49.64%	―	6.60%	778.46%
Sector *	61 Neutral	$7.00B	11.55	3.07%	3.89%	2.60%	-21.53%
FLL	52 Neutral	$120.16M	―	-79.70%	―	13.92%	-54.82%
GAN	46 Neutral	$87.81M	―	229.13%	―	7.02%	74.19%
SBET	40 Underperform	$2.18M	―		―	―	―