Allied Gaming & Entertainment (AGAE) AI Stock Analysis

• Market Cap: $73.00M
• Dividend Yield: N/A
• Average Volume (3M): 104.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 1.52%
• EPS Growth: -439.93%
• Country: US
• Employees: 73
• Sector: Communication Services
• Sector Strength: 76
• Industry: Entertainment
• EPS (TTM): N/A
• Shares Outstanding: 38,018,883
• 10 Day Avg. Volume: 65,579
• 30 Day Avg. Volume: 104,556
• PEG Ratio: <0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.02
• Enterprise Value/Market Cap: -194.78
• Enterprise Value/Revenue: -400.23
• Enterprise Value/Gross Profit: -5.20K
• Enterprise Value/Ebitda: 322.38
• 1Y Price Target: $3.00
• Price Target Upside: 54.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: $1.50 ▼(-22.68%Downside)

Allied Gaming & Entertainment's overall stock score is primarily impacted by its poor financial performance and valuation, both of which are critical concerns. Technical analysis shows bearish trends, and recent corporate events have further strained the company's outlook, contributing to a low overall score. Immediate strategic and operational improvements are necessary to enhance the stock's prospects.

Allied Gaming & Entertainment Business Overview & Revenue Model

Company Description

Allied Gaming & Entertainment (AGAE) is a company focused on the rapidly growing gaming and entertainment sectors. The company operates in various segments including esports, live events, and digital entertainment. Its core products and services revolve around facilitating and promoting gaming experiences through events, online content, and community engagement, positioning itself as a key player in the gaming and esports industry.

How the Company Makes Money

Allied Gaming & Entertainment generates revenue through multiple streams, primarily by organizing and hosting esports events and tournaments, which attract sponsorships and partnerships from major brands looking to reach the gaming demographic. The company also earns money through ticket sales for live events, online streaming of competitions, and advertising revenue from digital content. Additionally, Allied Gaming & Entertainment leverages partnerships with gaming companies and sponsors to create collaborative events and digital content, further expanding its revenue opportunities. These partnerships often include revenue-sharing agreements, enhancing the company's financial performance.

Allied Gaming & Entertainment Financial Statement Overview

Summary

Allied Gaming & Entertainment faces significant financial challenges. Persistent losses, negative margins, and poor cash generation highlight operational inefficiencies. Despite some liquidity strengths, the high debt-to-equity ratio and negative cash flow indicate financial instability.

Income Statement

The company shows a troubling trend in profitability with consistent losses across all periods. The TTM data highlights a negative net income of $19.89 million, and declining revenue indicates a struggling revenue growth trajectory. Furthermore, both EBIT and EBITDA margins are negative, signaling operational inefficiencies. The company’s financial health is at risk due to these factors.

Balance Sheet

The balance sheet presents a mixed picture with a strong equity base and a negative net debt position, suggesting high liquidity. However, the company exhibits a high debt-to-equity ratio, indicating potential leverage concerns. The equity ratio remains stable, but the overall financial stability could be strained by the company's operational losses.

Cash Flow

Cash flow analysis reveals consistent negative operating cash flow, indicating poor cash generation from core business activities. The free cash flow is also negative, with minimal growth, suggesting insufficient funds to cover investments. The operating cash flow to net income ratio is concerning, highlighting inefficiencies in converting net income into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.08M	7.66M	6.35M	4.96M	3.21M
Gross Profit	2.71M	2.86M	1.25M	880.79K	347.90K
EBITDA	-11.79M	-5.10M	-9.63M	-12.47M	-36.63M
Net Income	-16.76M	-3.60M	-10.82M	62.87M	-45.06M
Balance Sheet
Total Assets	112.69M	112.02M	97.73M	105.80M	61.90M
Cash, Cash Equivalents and Short-Term Investments	71.53M	72.82M	81.17M	92.89M	424.22K
Total Debt	31.36M	16.27M	7.75M	0.00	4.91M
Total Liabilities	35.71M	18.61M	9.83M	7.16M	28.49M
Stockholders Equity	73.01M	82.75M	87.90M	98.65M	33.41M
Cash Flow
Free Cash Flow	-12.13M	-9.19M	-11.03M	-10.27M	-5.53M
Operating Cash Flow	-9.77M	-8.14M	-10.93M	-10.08M	-5.17M
Investing Cash Flow	23.81M	6.13M	-70.14M	105.86M	-5.51M
Financing Cash Flow	23.93M	7.15M	-610.56K	-3.42M	9.16M

Allied Gaming & Entertainment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.94
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AGAE, the sentiment is Positive. The current price of 1.94 is above the 20-day moving average (MA) of 1.88, below the 50-day MA of 2.36, and above the 200-day MA of 1.38, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 47.33 is Neutral, neither overbought nor oversold. The STOCH value of 66.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AGAE.

Allied Gaming & Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	75 Outperform	$102.14M	39.42	10.01%	―	59.13%	―
Sector *	59 Neutral	kr14.52B	11.04	19.17%	3.60%	-8.53%	5.66%
LVO	48 Neutral	$84.74M	―	154.70%	―	-3.41%	-18.54%
RDI	44 Neutral	$46.11M	―	-540.12%	―	-7.36%	18.52%
TOON	42 Neutral	$36.42M	―	-55.07%	―	1.15%	71.71%
HOFV	40 Underperform	$5.70M	―	-65.28%	―	-20.80%	19.16%
AGAE	39 Underperform	$73.00M	―	-26.23%	―	1.52%	-439.93%

Allied Gaming & Entertainment Corporate Events

Allied Gaming Appoints New CEO Amidst Leadership Change

On June 24, 2025, Allied Gaming & Entertainment announced a leadership transition with Ms. Yinghua Chen resigning as CEO to focus on the company’s subsidiary, Allied Esports International. Mr. Yangyang (James) Li was appointed as the new CEO, maintaining his roles as President and Chairman. This transition aims to enhance the company’s strategic growth in gaming and immersive entertainment, with a focus on integrating cryptocurrency and blockchain technologies. The company faces challenges from dissident shareholders, but remains committed to innovation and long-term value creation.

Allied Gaming Faces Nasdaq Delisting Notice Amid Challenges

On June 18, 2025, Allied Gaming & Entertainment Inc. received a notice from Nasdaq regarding non-compliance with listing rules, specifically for not holding an annual meeting of shareholders within the required timeframe and failing to file Form 10-Q for the period ended March 31, 2025. The company has requested a hearing to appeal the delisting decision, attributing the delays to actions by activist shareholder Knighted Pastures LLC, which led to lawsuits disrupting operations. Despite these challenges, Allied remains committed to compliance and shareholder value, having made operational progress and scheduled its annual meeting for August 4, 2025.

Allied Gaming Sues Over Board Influence Scheme

On June 11, 2025, Allied Gaming & Entertainment filed a lawsuit against Knighted Pastures, LLC, Roy Choi, Naomi Choi, and Yiu-Ting So, alleging a coordinated effort to amass shares and influence the board of directors without proper disclosure, violating Section 13(d) of the Securities Exchange Act of 1934. This legal action highlights a year-long scheme by the defendants to gain control of Allied’s board, impacting shareholder transparency and potentially altering the company’s governance structure.

Allied Gaming Amends Stockholder Rights Agreement

On May 30, 2025, Allied Gaming & Entertainment Inc. announced that its Board of Directors approved an amendment to the Stockholder Rights Agreement initially established in February 2024. This amendment clarifies that the Rights Agreement does not alter the fiduciary duties of the Board to the company and its stockholders, nor does it limit the directors’ liability for breaches of these duties under applicable law.

Allied Gaming Faces Nasdaq Compliance Deadline

On May 22, 2025, Allied Gaming & Entertainment received a deficiency letter from Nasdaq for not complying with listing requirements due to delayed filing of its quarterly and annual reports. The company has until June 16, 2025, to submit a compliance plan, with potential for a 180-day extension if accepted, but there is no assurance of acceptance.

Allied Gaming & Entertainment Ends Agreement with Blue Planet

On April 25, 2025, Allied Gaming & Entertainment, Inc. and Blue Planet New Energy Technology Limited mutually agreed to terminate their Securities Purchase Agreement, resulting in Blue Planet transferring back shares and the Company refunding the purchase price. Additionally, Mr. Zongmin Ding resigned as a director, and the Board approved resolutions to maintain the current Board structure and governance until the 2024 and 2025 Annual Meeting of Stockholders.