The Arena Group (AREN) AI Stock Analysis

• Market Cap: $245.89M
• Dividend Yield: N/A
• Average Volume (3M): 292.71K
• Price to Earnings (P/E): 92.3
• Beta (1Y): -0.08
• Revenue Growth: -41.93%
• EPS Growth: N/A
• Country: US
• Employees: 190
• Sector: Communication Services
• Sector Strength: 85
• Industry: Internet Content & Information
• EPS (TTM): 0.08
• Shares Outstanding: 47,560,950
• 10 Day Avg. Volume: 224,774
• 30 Day Avg. Volume: 292,712
• PEG Ratio: 0.05
• Price to Book (P/B): -3.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -10.99
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 4.62
• Enterprise Value/Ebitda: 4.95
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: $5.50 ▲(6.38%Upside)

The overall stock score reflects a balance of financial recovery signs and significant risks from high leverage and negative cash flows. Positive corporate events have bolstered the company's financial standing and market position. However, the stock's high valuation and mixed technical indicators warrant cautious optimism.

The Arena Group Business Overview & Revenue Model

Company Description

The Arena Group Holdings, Inc., together with its subsidiaries, operates digital media platform the United States and internationally. The company offers the Platform, a proprietary online publishing platform comprising publishing tools, video platforms, social distribution channels, newsletter technology, machine learning content recommendations, notifications, and other technology. The company was formerly known as TheMaven, Inc. and changed its name to The Arena Group Holdings, Inc. in February 2022. The Arena Group Holdings, Inc. was incorporated in 1990 and is based in New York, New York.

How the Company Makes Money

The Arena Group makes money primarily through digital advertising, subscriptions, and partnerships. The company's revenue model is centered around selling advertising space on its network of websites and digital properties, where it reaches targeted audiences with tailored content. Additionally, The Arena Group generates revenue through subscription services, offering premium content to engaged users willing to pay for exclusive access. Significant partnerships with brands and other media companies also contribute to its earnings, enabling the company to expand its reach and enhance its content offerings.

The Arena Group Financial Statement Overview

Summary

Despite improvements in profitability and operational efficiency, high leverage, negative equity, and ongoing negative cash flows present significant risks. The company needs to reduce debt and improve cash flow stability to enhance financial health.

Income Statement

The Arena Group's income statement shows moderate improvement in profitability and revenue growth. The TTM Gross Profit Margin improved to 48.5%, indicating efficient cost management. The Net Profit Margin turned positive at 5.2%, a significant improvement from prior losses. However, the Revenue Growth Rate was a negative 48.1% compared to 2023, and the EBITDA Margin increased to 18.9%, signaling improved operational efficiency. Despite these improvements, historical volatility and prior year losses impact the overall score.

Balance Sheet

The balance sheet reflects a challenging financial position with a high Debt-to-Equity Ratio due to negative equity, indicating significant leverage. Stockholders' Equity remains negative at -$125.9 million, which is a concern for financial stability. The Equity Ratio is also negative, reflecting a high-risk financial structure. While there has been some reduction in total debt, the overall leverage and negative equity severely impact the score.

Cash Flow

The cash flow analysis shows improvement in managing negative cash flows. The Operating Cash Flow to Net Income Ratio is negative due to negative operating cash flow, indicating ongoing cash management challenges. The Free Cash Flow improved slightly but remains negative at -$14.9 million. Despite some positive trends in financing activities, the persistent negative free cash flow affects the overall cash flow score.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
128.78M	125.91M	244.20M	220.94M	189.14M	128.03M
	Gross Profit
62.45M	55.72M	101.96M	88.01M	78.16M	24.97M
	EBIT
23.18M	7.87M	-35.80M	-55.63M	-75.28M	-70.91M
	EBITDA
24.37M	16.94M	-13.88M	-29.91M	-55.98M	-47.69M
	Net Income Common Stockholders
6.67M	-100.71M	-55.58M	-67.39M	-89.94M	-89.23M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.90M	4.36M	9.28M	13.87M	9.35M	9.03M
	Total Assets
114.64M	116.35M	188.88M	203.72M	173.98M	214.20M
	Total Debt
112.75M	123.69M	131.84M	115.37M	83.26M	90.32M
	Net Debt
109.84M	119.33M	122.56M	101.50M	73.92M	81.28M
	Total Liabilities
240.59M	246.68M	247.71M	255.87M	225.66M	216.10M
	Stockholders Equity
-125.95M	-130.16M	-58.83M	-52.15M	-51.68M	-1.90M
Cash Flow		Free Cash Flow
-14.91M	-16.13M	-28.55M	-17.01M	-19.92M	-37.26M
	Operating Cash Flow
-10.45M	-16.08M	-24.77M	-11.30M	-14.73M	-32.29M
	Investing Cash Flow
-6.08M	-5.17M	-3.21M	-38.59M	-13.15M	-4.93M
	Financing Cash Flow
15.43M	16.33M	22.89M	54.87M	28.19M	37.28M

The Arena Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREN, the sentiment is Positive. The current price of 5.17 is below the 20-day moving average (MA) of 5.93, above the 50-day MA of 4.83, and above the 200-day MA of 2.12, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 28.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AREN.

The Arena Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	74 Outperform	$1.13B	91.34	1.35%	―	16.62%	―
Sector *	61 Neutral	$14.55B	5.81	-3.99%	6.41%	2.71%	-31.56%
MNY	56 Neutral	$36.29M	―	-48.12%	―	345.36%	-650.95%
AREN	54 Neutral	$245.89M	92.32	82.40%	―	-41.93%	―
BZFD	52 Neutral	$80.90M	―	-28.67%	―	-36.56%	72.58%
FENG	45 Neutral	$25.63M	―	-4.89%	―	0.38%	19.52%
SCOR	43 Neutral	$24.70M	―	-29.17%	―	-3.17%	13.15%

The Arena Group Corporate Events

The Arena Group Regains NYSE Compliance Status

On June 3, 2025, The Arena Group Holdings, Inc. received a notice from NYSE American LLC confirming its compliance with the exchange’s continued listing standards, following a period of noncompliance noted in October 2024. This compliance was achieved ahead of the April 2026 deadline, and as a result, the company was removed from the list of noncompliant issuers, with its stock continuing to trade on the NYSE American. The company attributes this achievement to market-driven stock appreciation and a strengthened financial position, having reported three consecutive profitable quarters for the first time in its history.

The Arena Group Acquires TravelHost for Expansion

On May 12, 2025, The Arena Group Holdings, Inc. acquired TravelHost, LLC, a company specializing in promoting travel and regional attractions, for $1,000,000. This acquisition, approved by the Audit Committee, includes contracts from Bridge Media Networks, and aims to enhance The Arena Group’s market position in the travel and advertising sectors.

Arena Group Settles with Authentic Brands for $93.9M

On April 28, 2025, The Arena Group Holdings, Inc. announced the resignation of four board members and the appointment of Lynn Petersmarck to its board, who will bring extensive media experience to support the company’s growth initiatives. Additionally, on April 29, 2025, Arena announced a confidential settlement with Authentic Brands Group, resulting in a $93.9 million improvement in its financial position, enhancing its ability to grow rapidly.