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Allied Gaming & Entertainment (AGAE)
NASDAQ:AGAE
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Allied Gaming & Entertainment
(NASDAQ:AGAE)
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Rating:41Neutral
Price Target:
$0.39
▼(-10.23% Downside)
The overall stock score is primarily impacted by financial performance concerns, including profitability and cash flow issues. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to negative earnings. The Nasdaq delisting warning further exacerbates the risk profile.
Positive Factors
Strategic Acquisition
The acquisition of Saiju School allows AGAE to enter Japan's education sector, leveraging technology and creativity to expand its market presence and diversify revenue streams, which can enhance long-term growth potential.
Strong Liquidity Position
A robust liquidity position with over $53M in cash and investments provides AGAE with the financial flexibility to pursue growth initiatives and withstand market volatility, supporting its strategic objectives.
Revenue Diversification
Diversified revenue streams from online gaming, sports betting, and partnerships reduce dependency on a single source, enhancing resilience against industry-specific downturns and supporting sustainable growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues, with negative margins, indicate operational inefficiencies and could hinder long-term financial health, requiring strategic adjustments to improve cost management and revenue generation.
Nasdaq Delisting Risk
The risk of Nasdaq delisting poses a significant threat to AGAE's market presence and investor confidence, potentially impacting its ability to raise capital and maintain shareholder value.
Cash Flow Issues
Negative cash flows indicate difficulties in generating sufficient cash from operations, which could limit AGAE's ability to fund growth initiatives and meet financial obligations, affecting long-term sustainability.
Allied Gaming & Entertainment (AGAE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.38M
Dividend YieldN/A
Average Volume (3M)4.15M
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-14.24%
EPS Growth-104.12%
CountryUS
Employees73
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.14
Shares Outstanding38,014,430
10 Day Avg. Volume292,240
30 Day Avg. Volume4,151,712
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.40
Price to Sales (P/S)3.20
P/FCF Ratio-2.39
Enterprise Value/Market Cap-671.10
Enterprise Value/Revenue-5.93
Enterprise Value/Gross Profit-7.14K
Enterprise Value/Ebitda1.63
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Allied Gaming & Entertainment Business Overview & Revenue Model
Company DescriptionAllied Gaming & Entertainment Inc. provides entertainment and gaming products worldwide. It operates esports properties to connect players and fans through a network of connected arenas; a flagship gaming arena located at the Luxor Hotel in Las Vegas, Nevada; a mobile esports truck that serves as a battleground and content generation hub; and a studio for recording and streaming gaming events. The company was formerly known as Allied Esports Entertainment Inc. and changed its name to Allied Gaming & Entertainment Inc. in December 2022. Allied Gaming & Entertainment Inc. was founded in 2018 and is based in Irvine, California.
How the Company Makes MoneyAGAE generates revenue through multiple streams, primarily from its online gaming platforms and sports betting operations. The company earns money by taking a percentage of the wagers placed by users, as well as through transaction fees associated with deposits and withdrawals. Additionally, AGAE benefits from partnerships with casinos and gaming operators, allowing it to share in the revenue generated from joint ventures and co-branded initiatives. In-house developed games and applications also contribute to revenue, as AGAE licenses its technology to other gaming companies. Furthermore, marketing and promotional activities are designed to attract new users and retain existing players, boosting overall earnings.
Allied Gaming & Entertainment Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant revenue growth and strategic initiatives like the World Mahjong Tour and new investments, but these were offset by increased costs and a notable net loss for the quarter. The sentiment is mixed, with both promising achievements and financial challenges.Q3-2024 Updates
Positive Updates
Strong Revenue Growth
Achieved 93% revenue growth in Q3 2024 compared to Q3 2023, driven by higher casual mobile gaming revenues and increased in-person revenues at HyperX and Oman mobile arenas.
Successful Event Hosting
HyperX Arena hosted 61 event days, including notable events like the HackerOne Live Hacking Event and a Netflix live special event, indicating high demand and successful operations.
Launch of World Mahjong Tour
Initiated the World Mahjong Tour with events planned in Los Angeles and Beijing, leading to a grand finale in Las Vegas with the largest prize pool for Mahjong in North America.
Investment by Yellow River Global Capital
Received substantial investment from Yellow River Global Capital, providing strategic resources and industry expertise to advance strategic initiatives.
Negative Updates
Increased Costs and Expenses
Total costs and expenses rose to $3.3 million from $1.8 million in the previous year, due to investments and a reduction in payroll tax expense recorded in the prior year.
Net Loss for the Quarter
Reported a net loss of $4.0 million for Q3 2024, impacted by a $3 million loss on a settlement agreement and a $1.2 million net unrealized loss on foreign currency transactions.
Settlement Agreement Impact
The settlement agreement with BPR Cumulus LLC resulted in a $3 million payout, affecting cash and working capital positions.
Company Guidance
During the third quarter of 2024, Allied Gaming & Entertainment, Inc. achieved significant progress, marked by a 93% increase in revenue compared to the same quarter in 2023, totaling $2.2 million. This growth was driven by higher revenues from casual mobile gaming and increased demand at their HyperX and Oman mobile arenas. Despite the revenue boost, the company reported a net loss of $4.0 million, largely due to a $3 million settlement loss with BPR Cumulus LLC and a $1.2 million unrealized foreign currency transaction loss, although some of this was later reversed. The adjusted EBITDA loss improved to $0.1 million from $0.3 million in the prior year. Cash and short-term investments reached $80.2 million as of September 30, 2024, with a working capital surplus of $62.8 million, reflecting the financial impact of the settlement agreement. The company is optimistic about future growth with initiatives like the World Mahjong Tour and strategic investments in mobile gaming.Allied Gaming & Entertainment Financial Statement Overview
Summary
Allied Gaming & Entertainment shows strong revenue growth but struggles with profitability and cash flow issues. The balance sheet is stable with low leverage, yet negative returns and cash flow challenges highlight financial health concerns.Income Statement
Allied Gaming & Entertainment has shown significant revenue growth, particularly in the TTM period, indicating strong top-line expansion. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins across all periods. The gross profit margin is extremely low in the TTM period, suggesting high cost of goods sold relative to revenue. Overall, while revenue growth is a positive sign, the lack of profitability and high operating losses are concerning.45
Neutral
Balance Sheet
The company's balance sheet shows a relatively low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE highlights the need for improved profitability.55
Neutral
Cash Flow
Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. The free cash flow to net income ratio is slightly above 1, indicating that cash flows are not significantly worse than accounting profits. However, the operating cash flow to net income ratio is negative, highlighting cash flow issues. Despite some growth in free cash flow, the overall cash flow position remains weak.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.85B | 9.08M | 7.66M | 6.35M | 4.96M | 3.21M |
| Gross Profit | 1.54M | 2.71M | 2.86M | 1.25M | 880.79K | 347.90K |
| EBITDA | -6.73B | -11.79M | -5.10M | -8.76M | -12.47M | -36.63M |
| Net Income | -5.38B | -16.76M | -3.44M | -10.82M | 62.87M | -45.06M |
Balance Sheet | ||||||
| Total Assets | 106.77M | 113.24M | 112.02M | 97.73M | 105.80M | 61.90M |
| Cash, Cash Equivalents and Short-Term Investments | 55.95M | 71.53M | 72.82M | 81.17M | 92.89M | 424.22K |
| Total Debt | 39.56M | 31.36M | 16.27M | 7.75M | 0.00 | 4.91M |
| Total Liabilities | 49.87M | 35.71M | 18.61M | 9.83M | 7.16M | 28.49M |
| Stockholders Equity | 52.38M | 73.01M | 82.75M | 87.90M | 98.65M | 33.41M |
Cash Flow | ||||||
| Free Cash Flow | -9.05B | -12.13M | -9.19M | -11.03M | -10.27M | -5.53M |
| Operating Cash Flow | -5.87B | -9.77M | -8.14M | -10.93M | -10.08M | -5.17M |
| Investing Cash Flow | -40.98B | 23.81M | 6.13M | -70.14M | 105.86M | -5.51M |
| Financing Cash Flow | 849.77M | 23.93M | 7.15M | -610.56K | -3.42M | 9.16M |
Allied Gaming & Entertainment Technical Analysis
Negative
0.43
Price Trends
0.49
Negative
0.80
Negative
1.29
Negative
Market Momentum
-0.02
Negative
52.69
Neutral
89.07
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGAE, the sentiment is Negative. The current price of 0.43 is above the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.49, and below the 200-day MA of 1.29, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 89.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGAE.
Allied Gaming & Entertainment Risk Analysis
Allied Gaming & Entertainment disclosed 49 risk factors in its most recent earnings report. Allied Gaming & Entertainment 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
Allied Gaming & 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% | |
54 Neutral | $40.15M | -1.36 | -78.34% | ― | 22.84% | 46.18% | |
46 Neutral | $41.17M | -24.91 | -3.49% | ― | 77.29% | 97.98% | |
44 Neutral | $41.24M | -1.70 | ― | ― | 7.11% | 69.85% | |
43 Neutral | $51.28M | -1.87 | ― | ― | -32.17% | -135.06% | |
41 Neutral | $16.38M | -0.78 | -35.18% | ― | -14.24% | -104.12% | |
38 Underperform | $2.18M | -0.03 | -99.56% | ― | -24.08% | -11.16% |
* Communication Services Sector Average
AGAE
Allied Gaming & Entertainment
0.43
-0.36
-45.57%
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Allied Gaming & Entertainment Corporate Events
Delistings and Listing Changes
Allied Gaming Faces Nasdaq Delisting Warning
Negative
Nov 10, 2025
On November 4, 2025, Allied Gaming & Entertainment Inc. was notified by Nasdaq that its stock price had been below the required $1.00 per share for 30 consecutive business days, risking its listing status. The company has until May 4, 2026, to comply with the Nasdaq rule by raising its stock price, and it is considering options to meet this requirement.
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.