AI Era Corp (AERA) AI Stock Analysis

• Market Cap: $864.30K
• Dividend Yield: N/A
• Average Volume (3M): 4.87K
• Price to Earnings (P/E): 0.7
• Beta (1Y): 3.58
• Revenue Growth: 92.96%
• EPS Growth: -49.99%
• Country: US
• Employees: 8
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 3,201,107
• 10 Day Avg. Volume: 4,865
• 30 Day Avg. Volume: 4,865
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $1.50
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is held back primarily by weak and inconsistent cash flow (negative operating/free cash flow in 2025 despite reported profitability) and financial statement volatility/quality questions. Offsetting factors include strong recent price momentum and a very low P/E, while the convertible note financing helps liquidity but adds dilution risk.

Positive Factors

Return to profitability and accelerating revenue

The firm moved from multi-year losses into positive net income in 2024 with further expansion in 2025 alongside sharply accelerating revenue. Sustained profit and top-line growth support reinvestment, contracting power, and long-term viability if cash conversion stabilizes.

Improved leverage and larger equity cushion

Balance-sheet metrics improved with lower leverage and a notable increase in equity in 2025 versus 2024. A stronger capital base reduces solvency risk, supports financing optionality, and provides a cushion to absorb operational swings over the medium term.

Near-term liquidity provided by convertible note financing

The privately placed convertible notes deliver immediate runway and optionality, reducing near-term refinancing pressure. Access to additional tranches increases flexibility to fund operations, helping execution risk over the next 6–12 months if conversion or further capital is managed prudently.

Negative Factors

Weak and inconsistent cash generation

Profitability has not consistently converted to cash: operating and free cash flow were negative in 2025 and have been volatile over multiple years. Persistent cash burn elevates refinancing needs, increases execution risk, and makes organic funding of growth unreliable.

Earnings quality and statement consistency concerns

A reported zero gross profit in 2025 and large swings in ROE and margins suggest classification or accounting inconsistencies and volatile earnings quality. This complicates forecasting, raises audit/assessment risk, and undermines long-term credibility with lenders and investors.

Material dilution risk from convertible structure and future tranches

The convertible notes improve liquidity but convert at a 20% discount and permit significant additional tranches relative to company scale. If converted or drawn, equity dilution and capital structure shifts could materially affect existing shareholders and reduce per-share economic rights over time.

AI Era Corp Business Overview & Revenue Model

Company Description

AI Era Corp., through its subsidiaries, acquires and develops various intellectual property. The company operates through two segments, Copyrights and License (IP) and Cinema. It engages in the acquisition and distribution of movies and TV shows; licensing of its non-fungible token movie and music marketplace platform; and operation of Mt. Kisco movie theater. The company also provides video streaming services on its website under the ABQQ.tv brand; and technical, marketing, and consulting services in the media industry. AI Era Corp. was formerly known as AB International Group Corp. and changed its name to AI Era Corp. in December 2025. The company was incorporated in 2013 and is headquartered in Mount Kisco, New York.

How the Company Makes Money

AB International Group makes money through a combination of revenue streams, primarily centered around its entertainment and digital technology ventures. The company generates income from the production and distribution of films, as well as through partnerships and licensing agreements for its digital streaming services. These partnerships often involve collaboration with other media companies to distribute content on various platforms, thereby expanding its audience reach. Additionally, ABQQ may engage in strategic acquisitions to enhance its intellectual property portfolio, further diversifying its revenue sources.

AI Era Corp Financial Statement Overview

Summary

Income statement shows a meaningful turnaround with positive net income in 2024 and further expansion in 2025 plus sharper revenue growth, but results are volatile and the 2025 gross profit reported as zero raises consistency/quality questions. Balance sheet leverage appears improved and manageable, yet large year-to-year swings and highly volatile ROE suggest sustainability risk. Cash flow is the main drag: operating and free cash flow turned negative again in 2025 with large burn relative to net income, indicating weak and inconsistent cash conversion.

Income Statement

Profitability has improved materially versus the heavy losses in 2020–2023, with the company returning to positive net income in 2024 and expanding further in 2025 (annual report). Revenue growth also accelerated sharply in 2025 after modest growth in 2024. However, margins are volatile across the period (including deeply negative years), and the 2025 gross profit is reported as zero, which raises questions around cost classification/statement consistency and makes underlying operating efficiency harder to assess.

Balance Sheet

Leverage looks manageable in the latest year with low debt relative to equity in 2025, a clear improvement from the more pressured 2023 capital structure. Equity has also increased meaningfully versus 2024, providing a larger balance-sheet cushion. Offsetting this, returns on equity have been highly volatile (very negative in 2021–2023, then very high in 2024–2025), which suggests earnings quality and sustainability risk, and the balance sheet has swung notably year to year.

Cash Flow

Cash generation is the weakest area. Operating and free cash flow turned negative again in 2025 (annual report) after being positive in 2024, indicating profitability is not consistently converting into cash. The 2025 cash burn is large relative to the latest net income, and the multi-year pattern shows frequent negative operating cash flow, which increases funding and execution risk if this persists.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

AI Era Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

AI Era Corp Corporate Events

AI Era Corp Secures New Convertible Note Financing

On January 22, 2026, AI Era Corp. raised $100,000 in net proceeds through two privately placed convertible promissory notes with accredited investors Vanquish Funding Group Inc. and Boot Capital LLC, taken under Securities Purchase Agreements that allow for potential additional funding tranches of up to $865,000 over the next 12 months for general working capital needs. The notes, totaling $107,000 in principal, carry 10% annual interest, mature on October 15, 2026, and are convertible into common stock at a 20% discount to the lowest trading price over a specified lookback period, a structure that may lead to future equity dilution for shareholders but strengthens the company’s near-term liquidity and financing flexibility.

The most recent analyst rating on (AERA) stock is a Buy with a $1.50 price target. To see the full list of analyst forecasts on AI Era Corp stock, see the AERA Stock Forecast page.