Allied Gaming & Entertainment (AGAE) AI Stock Analysis

• Market Cap: $41.82M
• Dividend Yield: N/A
• Average Volume (3M): 34.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: 0.52%
• EPS Growth: -225.42%
• Country: US
• Employees: 73
• Sector: Communication Services
• Sector Strength: 95
• Industry: Entertainment
• EPS (TTM): -0.12
• Shares Outstanding: 38,018,883
• 10 Day Avg. Volume: 38,428
• 30 Day Avg. Volume: 34,072
• 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: 2.08
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 37.57
• Enterprise Value/Ebitda: -5.93
• 1Y Price Target: $1.00
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $1.00 ▼(-1.96% Downside)

The overall stock score of 44 reflects significant challenges in financial performance, with ongoing losses and negative cash flows being major concerns. Technical analysis indicates a bearish trend, and valuation metrics are weak due to a negative P/E ratio. While recent corporate events show some positive developments, they are overshadowed by legal and compliance challenges.

Allied Gaming & Entertainment Business Overview & Revenue Model

Company Description

Allied 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 Money

AGAE generates revenue through multiple streams, primarily from gaming operations, including revenue from casinos and gaming machines. The company also earns money by offering software solutions for casino management and through fees associated with hosting esports events and tournaments. Additionally, AGAE partners with various online gaming platforms to provide seamless betting experiences and share in the revenue generated from these partnerships. Advertising and sponsorship deals related to esports and gaming events further contribute to the company's earnings, leveraging its brand presence in the growing esports market.

Allied Gaming & Entertainment Financial Statement Overview

Summary

Allied Gaming & Entertainment is facing significant financial challenges. Despite some balance sheet strengths, such as liquidity and equity, the company struggles with operational inefficiencies, marked by persistent losses and negative margins. The lack of cash generation from operations poses a risk to financial sustainability. Overall, the company needs to improve its operational efficiency and revenue growth to enhance its financial health.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	9.08M	7.66M	6.35M	4.96M	3.21M
Gross Profit	2.32M	2.71M	2.86M	1.25M	880.79K	347.90K
EBITDA	-14.70M	-11.79M	-5.10M	-8.76M	-12.47M	-36.63M
Net Income	-20.90M	-16.76M	-3.44M	-10.82M	62.87M	-45.06M
Balance Sheet
Total Assets	108.58B	112.69M	112.02M	97.73M	105.80M	61.90M
Cash, Cash Equivalents and Short-Term Investments	26.08B	71.53M	72.82M	81.17M	92.89M	424.22K
Total Debt	4.82B	31.36M	16.27M	7.75M	0.00	4.91M
Total Liabilities	46.50B	35.71M	18.61M	9.83M	7.16M	28.49M
Stockholders Equity	57.55B	73.01M	82.75M	87.90M	98.65M	33.41M
Cash Flow
Free Cash Flow	-5.32B	-12.13M	-9.19M	-11.03M	-10.27M	-5.53M
Operating Cash Flow	-5.26B	-9.77M	-8.14M	-10.93M	-10.08M	-5.17M
Investing Cash Flow	-11.96M	23.81M	6.13M	-70.14M	105.86M	-5.51M
Financing Cash Flow	5.04M	23.93M	7.15M	-610.56K	-3.42M	9.16M

Allied Gaming & Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1.02 is below the 20-day moving average (MA) of 1.31, below the 50-day MA of 1.67, and below the 200-day MA of 1.41, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 27.48 is Positive, neither overbought nor oversold. The STOCH value of 15.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AGAE.

Allied Gaming & Entertainment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNVS	65 Neutral	$72.10M	28.21	9.22%	―	77.07%	―
Sector *	60 Neutral	$46.28B	4.13	-13.12%	4.13%	1.85%	-42.71%
RDI	53 Neutral	$51.95M	―	-540.12%	―	7.59%	61.22%
LVO	47 Neutral	$58.09M	―	154.70%	―	-18.76%	-21.72%
AGAE	44 Neutral	$41.82M	―	-30.92%	―	0.52%	-225.42%
TOON	43 Neutral	$39.66M	―	-57.70%	―	14.09%	67.05%
HOFV	39 Underperform	$5.59M	―	-72.74%	―	-17.54%	24.84%

Allied Gaming & Entertainment Corporate Events

Allied Gaming Secures Nasdaq Compliance After Appeal

Allied Gaming & Entertainment Inc. successfully appealed a Nasdaq delisting procedure by holding its combined 2024 and 2025 Annual Meeting of Stockholders on August 4, 2025. The Nasdaq Hearings Panel confirmed the company’s compliance with Listing Rule 5620(a) on September 2, 2025, closing the matter.

Allied Gaming Approves Proposals at Annual Meeting

On August 4, 2025, Allied Gaming & Entertainment held its combined 2024 and 2025 Annual Meeting of Stockholders, where all company-recommended proposals were approved. The stockholders voted to approve executive compensation, the frequency of future advisory votes on executive compensation, and ratified the appointment of ZH CPA, LLC as the independent registered public accounting firm for the fiscal years ending December 31, 2024, and December 31, 2025. The company expressed gratitude for the stockholders’ support and is eager to advance its strategic growth initiatives for the remainder of 2025.

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.