Cheer Holding (CHR) AI Stock Analysis

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Cheer Holding

(NASDAQ:CHR)

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Rating:46Neutral

Price Target:$1.50▲(20.00% Upside)

Action:downgraded

Date:10/18/26

The overall score of 46 reflects a company with a fortress-like balance sheet that is overshadowed by significant operational headwinds. The most impactful factors are the persistent decline in revenue, profitability, and free cash flow, which signal a deteriorating business. This fundamental weakness is confirmed by a bearish technical trend, with the stock in a sustained downtrend below all key moving averages. The extremely low P/E ratio, rather than indicating a bargain, likely reflects the market's low confidence in future earnings. The company is financially stable but lacks positive catalysts.

Positive Factors

High ProfitabilityVery strong gross and net margins indicate that Cheer Holding’s digital content and online entertainment model can retain substantial value from revenue. If maintained, this profitability provides internal funding for product investment and resilience against moderate operating pressure.

Negative Factors

Revenue ContractionRecent revenue contraction and an uneven multi-year trajectory indicate that demand and monetization have not yet established a durable growth trend. Persistent top-line weakness could limit operating leverage, reduce investment capacity, and make future earnings more dependent on margin performance.

Cheer Holding (CHR) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $39.26M
Dividend Yield: ―
Average Volume (3M): 86.10K
Price to Earnings (P/E): 0.0
Beta (1Y): 0.35
Revenue Growth: -5.96%
EPS Growth: -94.51%
Country: US
Employees: 116
Sector: Communication Services
Sector Strength: 60
Industry: Advertising Agencies

Cheer Holding Business Overview & Revenue Model

Company Description

Headquartered in Beijing, People's Republic of China, and established in 2016, Cheer Holding, Inc. provides advertisement and content production services, primarily operating within the Chinese market. The company structures its operations across two...

Cheer Holding Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is exceptionally strong with negligible debt (D/E 0.01) and a large equity base, providing high financial stability. However, this is offset by a clear declining trend in the income statement (revenue -3.6% TTM, contracting margins) and a sharp deterioration in free cash flow, which has fallen over 50% TTM. The overall profile is of a financially secure but operationally challenged company.

Income Statement

42Neutral

Balance Sheet

78Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	138.37M	148.84M	147.20M	152.33M	157.08M	153.01M
Gross Profit	101.81M	105.63M	107.81M	112.78M	116.50M	118.07M
EBITDA	44.06M	33.29M	29.41M	33.06M	30.06M	39.36M
Net Income	25.92M	25.62M	25.97M	30.48M	26.89M	35.29M
Balance Sheet
Total Assets	419.60M	401.69M	346.59M	327.63M	205.96M	195.17M
Cash, Cash Equivalents and Short-Term Investments	213.76M	242.08M	197.66M	194.53M	70.48M	77.30M
Total Debt	4.38M	9.45M	11.32M	5.95M	5.10M	6.42M
Total Liabilities	30.31M	31.92M	41.52M	47.63M	33.46M	35.71M
Stockholders Equity	389.20M	369.68M	304.99M	279.93M	172.43M	158.91M
Cash Flow
Free Cash Flow	16.85M	17.23M	-1.99M	42.17M	-250.00K	46.38M
Operating Cash Flow	16.86M	17.94M	22.88M	42.17M	7.74M	46.45M
Investing Cash Flow	-1.43M	-709.00K	-24.86M	-3,000	-7.99M	-1.05M
Financing Cash Flow	35.21M	17.82M	10.55M	82.02M	508.00K	13.29M

Cheer Holding Technical Analysis

Technical Analysis SentimentNeutral

Last Price1.25

Price Trends

50DMA1.50Negative

100DMA1.69Negative

200DMA2.15Negative

Market Momentum

MACD-0.06Negative

RSI46.07Neutral

STOCH52.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHR, the sentiment is Neutral. The current price of 1.25 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.50, and below the 200-day MA of 2.15, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 46.07 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CHR.

Cheer Holding Risk Analysis

Cheer Holding disclosed 106 risk factors in its most recent earnings report. Cheer Holding reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

3 New Risks

1.Our Class A Ordinary Shares may be delisted from The Nasdaq Capital Market, which could negatively impact the price of our Class A Ordinary Shares and our ability to access the capital markets.Q4, 2025

2.We are a "controlled company" within the meaning of the Nasdaq Stock Market Listing Rules and, as a result, may rely on exemptions from certain corporate governance requirements that provide protection to shareholders of other companies.Q4, 2024

3.We cannot predict the effect our dual-class structure may have on the market of the Class A Ordinary Shares.Q4, 2024

Cheer Holding Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

CHR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KRKR	58Neutral	$5.31M	64.88	9.05%	―	20.48%	―
CHR	46Neutral	$3.09M	0.04	6.83%	―	-5.96%	-94.51%
IZEA	44Neutral	$37.90M	-13.96	-6.43%	―	-31.89%	11.48%
DRCT	39Underperform	$96.33K	-0.02	570.82%	―	-15.24%	61.99%

* Communication Services Sector Average

Performance Comparison

CHR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CHR	Cheer Holding, Inc.	1.25	-5.86	-82.42%
IZEA	IZEA Worldwide, Inc.	2.49	-2.53	-50.40%
KRKR	36Kr Holdings Inc Adr Class A	2.72	-2.44	-47.23%
BAOS	Baosheng Media Group Holdings Ltd	0.16	-2.44	-93.92%
DRCT	Direct Digital Holdings, Inc. Class A	0.12	-37.76	-99.68%

Cheer Holding Corporate Events

Cheer Holding Transfers Super-Voting Class B Shares to Lioness Limited, Reshaping Control Structure

Sep 17, 2026

On September 16, 2026, Cheer Holding Chairman, CEO and interim CFO Bing Zhang sold all 500,000 outstanding Class B ordinary shares to Hong Kong-based Lioness Limited for a total consideration of US$500.00. As of that date, these Class B shares repres...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 17, 2026

Cheer Holding AI Stock Analysis