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Kustom Entertainment
(NASDAQ:KUST)
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Rating:40Underperform
Price Target:
$1.00
▲(21.95% Upside)
Action:Downgraded
Date:07/04/26
The score is primarily constrained by weak financial fundamentals (large losses, steep revenue decline, and continued negative operating/free cash flow), reinforced by bearish technicals (price well below key moving averages and negative MACD). Valuation metrics provide little support due to a negative P/E and no dividend yield data.
Positive Factors
Strategic pivot to live events
The sale of legacy video and prior medical-billing divestiture concentrate management and capital on live events and ticketing. That structural refocus reduces operational complexity, allocates resources toward core strengths, and supports a clearer growth strategy in a large global entertainment market.
Negative Factors
Persistent negative cash flow
Sustained negative operating and free cash flow imply ongoing external funding needs. Unless core operations turn cash-positive, the company faces refinancing risk or dilution pressure that can constrain investment in festivals and ticketing and impair long-term execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Strategic pivot to live events
The sale of legacy video and prior medical-billing divestiture concentrate management and capital on live events and ticketing. That structural refocus reduces operational complexity, allocates resources toward core strengths, and supports a clearer growth strategy in a large global entertainment market.
Read all positive factors
Kustom Entertainment (KUST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$677.01K
Dividend YieldN/A
Average Volume (3M)47.86K
Price to Earnings (P/E)―
Beta (1Y)2.70
Revenue Growth-26.91%
EPS Growth99.87%
CountryUS
Employees31
SectorCommunication Services
Sector Strength97
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)-18.36
Shares Outstanding626,860
10 Day Avg. Volume99,163
30 Day Avg. Volume47,863
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)4.28
Price to Sales (P/S)1.32
P/FCF Ratio-2.13
Enterprise Value/Market Cap4.30
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit8.28
Enterprise Value/Ebitda-0.23
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-91.65
Revenue Forecast (FY)$19.30M
Kustom Entertainment Business Overview & Revenue Model
Company Description
Kustom Entertainment, Inc. is dedicated to the creation, production, and sale of digital audio, video capture, and speed measurement devices. Its business activities are structured into three principal divisions: Video Solutions, Revenue Cycle Man...
Kustom Entertainment Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
38
Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Dec 2023 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.59M | 13.75M | 19.65M | 28.25M | 37.01M | 21.41M |
| Gross Profit | 351.60K | 1.35M | 5.49M | 5.76M | 2.32M | 5.66M |
| EBITDA | -12.88M | -5.96M | -15.88M | -20.11M | -16.66M | 26.38M |
| Net Income | -16.82M | -6.67M | -19.84M | -25.69M | -19.28M | 25.47M |
Balance Sheet | ||||||
| Total Assets | 19.13M | 19.33M | 27.74M | 47.03M | 56.67M | 82.99M |
| Cash, Cash Equivalents and Short-Term Investments | 1.22M | 757.37K | 454.31K | 680.55K | 3.53M | 32.01M |
| Total Debt | 2.09M | 2.27M | 8.66M | 9.92M | 1.78M | 2.18M |
| Total Liabilities | 14.84M | 16.96M | 36.75M | 35.58M | 20.33M | 27.13M |
| Stockholders Equity | 4.29M | 4.26M | -7.82M | 10.78M | 35.89M | 55.81M |
Cash Flow | ||||||
| Free Cash Flow | -4.04M | -8.53M | -5.28M | -10.13M | -20.77M | -25.44M |
| Operating Cash Flow | -3.69M | -8.27M | -5.11M | -9.89M | -18.58M | -17.83M |
| Investing Cash Flow | -359.76K | -367.48K | 387.55K | -240.71K | -2.94M | -19.12M |
| Financing Cash Flow | 1.87M | 9.30M | 4.40M | 7.38M | -6.95M | 64.60M |
Kustom Entertainment Technical Analysis
Negative
0.82
Price Trends
2.59
Negative
3.63
Negative
11.84
Negative
Market Momentum
-0.42
Negative
33.06
Neutral
18.60
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KUST, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 1.48, below the 50-day MA of 2.59, and below the 200-day MA of 11.84, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 33.06 is Neutral, neither overbought nor oversold. The STOCH value of 18.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KUST.
Kustom Entertainment Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $50.44M | 40.50 | 2.03% | ― | 2.26% | -86.02% | |
47 Neutral | $4.45M | -0.65 | -57.42% | ― | 4.37% | 73.29% | |
44 Neutral | $12.18M | -1.08 | -18.85% | ― | -3.07% | 31.46% | |
42 Neutral | $8.20M | -1.61 | -37.45% | ― | -40.12% | -9.90% | |
40 Underperform | $677.01K | -0.06 | -233.66% | ― | -26.91% | 99.87% |
* Communication Services Sector Average
KUST
Kustom Entertainment
1.08
-32.52
-96.79%
SPCB
SuperCom
11.34
1.26
12.50%
BKYI
BIO-key International
4.10
-3.85
-48.43%
IVDA
Iveda Solutions
0.34
-2.02
-85.42%
VRME
VerifyMe
0.63
-0.11
-15.08%
GFAI
Guardforce AI Co
0.39
-0.85
-68.63%
Kustom Entertainment Corporate Events
Business Operations and StrategyM&A Transactions
Kustom Entertainment Divests Video Unit to Refocus on Live Events
Positive
Jun 25, 2026
On June 24, 2026, Kustom Entertainment, Inc. agreed to sell all assets of its legacy video solutions division to Cycurion, Inc. for consideration valued at up to $5.5 million in cash and secured debt, plus 2,000,000 warrants to purchase Cycurion c...
Business Operations and StrategyDelistings and Listing ChangesStock Split
Kustom Entertainment Enacts Reverse Stock Split to Maintain Listing
Neutral
Apr 22, 2026
Effective April 22, 2026, Kustom Entertainment, Inc. implemented a 1-for-5 reverse stock split of its common stock and a proportional reduction in authorized share capital, after its board approved the move on April 5 and set April 7 as the record...
Business Operations and StrategyM&A Transactions
Kustom Entertainment Advances Legacy Video Segment Divestiture Plan
Positive
Apr 17, 2026
On April 17, 2026, Kustom Entertainment, Inc. and Cycurion, Inc. announced a revised, non-binding Memorandum of Understanding setting updated terms for the sale of Kustom’s legacy video solutions segment to Cycurion. The parties said they ha...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Kustom Entertainment Reports Improved 2025 Results, Advances Pivot
Positive
Apr 13, 2026
On April 13, 2026, Kustom Entertainment, Inc. reported fiscal 2025 results showing modest revenue growth from continuing operations to about $13.8 million and a sharply reduced net loss from continuing operations of $5.96 million, an $11.9 million...
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.