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ParadiumAI Inc
(NYSE MKT:PAAI)
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Rating:55Neutral
Price Target:
$0.91
▼(-2.98% Downside)
Action:Reiterated
Date:10/21/26
The score is driven primarily by improved profitability and positive free cash flow, but is held back by a stressed capital structure (negative equity and sizable debt) and a clear technical downtrend with weak momentum. Low P/E provides some valuation support, while the earnings call and recent strategic platform agreement add potential upside but carry significant near-term execution and closing-risk given the sharp recent revenue/EBITDA declines.
Positive Factors
Positive cash generation
Positive operating and free cash flow mark a substantial improvement from recurring cash losses in 2021–2024. Cash-backed earnings provide resources for operations and strategic investment, while stronger conversion can support debt reduction and improve financial resilience over the next several quarters.
Negative Factors
Highly levered balance sheet
Negative equity and debt that is close to the reported asset base leave limited balance-sheet flexibility. This structure makes the company more sensitive to operating setbacks, refinancing conditions, and cash-flow volatility, potentially restricting investment capacity even as operations improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Positive operating and free cash flow mark a substantial improvement from recurring cash losses in 2021–2024. Cash-backed earnings provide resources for operations and strategic investment, while stronger conversion can support debt reduction and improve financial resilience over the next several quarters.
Read all positive factors
ParadiumAI Inc (PAAI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.37M
Dividend YieldN/A
Average Volume (3M)3.91M
Price to Earnings (P/E)6.0
Beta (1Y)0.51
Revenue Growth-31.39%
EPS Growth-92.48%
CountryUS
Employees164
SectorCommunication Services
Sector Strength97
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.19
Shares Outstanding47,610,653
10 Day Avg. Volume121,553
30 Day Avg. Volume3,909,689
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-39.35
Price to Sales (P/S)1.41
P/FCF Ratio6.40
Enterprise Value/Market Cap3.02
Enterprise Value/Revenue1.27
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda5.16
Forecast
1Y Price Target
$2.00Price Target Upside112.77% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.08
Revenue Forecast (FY)$84.59M
ParadiumAI Inc Business Overview & Revenue Model
Company Description
Paradium.AI, Inc., formerly The Arena Group Holdings, Inc., is a brand, data and intellectual property company that operates a portfolio of digital media brands. The company combines technology and storytelling to create content verticals across s...
ParadiumAI Inc Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
22
Negative
Cash Flow
72
Positive
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| EBITDA |
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Balance Sheet |
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| Cash, Cash Equivalents and Short-Term Investments |
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ParadiumAI Inc Technical Analysis
Negative
0.94
Price Trends
1.09
Negative
1.11
Negative
1.84
Negative
Market Momentum
-0.11
Negative
47.09
Neutral
60.98
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAAI, the sentiment is Negative. The current price of 0.94 is above the 20-day moving average (MA) of 0.89, below the 50-day MA of 1.09, and below the 200-day MA of 1.84, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 60.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAAI.
ParadiumAI Inc Risk Analysis
ParadiumAI Inc disclosed 43 risk factors in its most recent earnings report. ParadiumAI Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ParadiumAI Inc Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $253.30M | 17.02 | 6.22% | 88.60% | 26.55% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $30.30M | 2.36 | 39.07% | ― | -32.49% | ― | |
55 Neutral | $42.37M | 6.01 | -124.11% | ― | -31.39% | -92.48% | |
48 Neutral | $50.87M | 0.50 | -9.29% | ― | -3.23% | ― | |
48 Neutral | $25.97M | -0.06 | 9301.18% | 1.68% | -25.24% | -83.32% | |
43 Neutral | $80.89M | -0.59 | -115.62% | ― | -5.48% | -660.53% |
* Communication Services Sector Average
PAAI
ParadiumAI Inc
0.89
-4.68
-84.02%
SCOR
comScore
3.35
-4.01
-54.48%
TRVG
trivago
3.59
0.37
11.49%
SEAT
Vivid Seats
2.31
-10.10
-81.39%
BODI
Beachbody Company
4.16
-0.69
-14.23%
BZFD
BuzzFeed
0.91
-0.72
-44.48%
ParadiumAI Inc Corporate Events
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
ParadiumAI Signs Major Platform Deal, Sells Minority Stake
Positive
Sep 18, 2026
On September 14, 2026, ParadiumAI Inc. signed a ten-year Strategic Platform Agreement with RTB Digital Inc., under which Paradium’s brands, revenue and traffic will shift to RTB’s AI-powered digital media and business operations platfo...
Business Operations and StrategyM&A Transactions
ParadiumAI Strikes Strategic Platform Deal with Roundtable
Positive
Sep 18, 2026
On September 17, 2026, Paradium.AI announced a 10-year strategic platform agreement with RTB Digital’s Roundtable, under which Roundtable will provide technology, monetization and operational services for Paradium’s media brands while ...
Business Operations and StrategyRegulatory Filings and Compliance
ParadiumAI Updates Investor Presentation Amid Ongoing Rebranding
Positive
Sep 10, 2026
Effective August 31, 2026, the company changed its legal name from The Arena Group Holdings, Inc. to Paradium.AI, Inc., under Delaware law via a charter amendment that did not require stockholder approval. Its common stock continues to trade on NY...
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.