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Allied Gaming & Entertainment Inc. (AGAE)
:AGAE
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Allied Gaming & Entertainment
(NASDAQ:AGAE)
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Rating:46Neutral
Price Target:
$1.50
▲(57.89% Upside)
The overall stock score is primarily influenced by financial performance and technical analysis. Despite strong revenue growth, significant profitability and cash flow issues weigh heavily on the score. The bearish technical indicators further contribute to a cautious outlook. Valuation concerns, highlighted by a negative P/E ratio, also impact the score negatively.
Allied Gaming & Entertainment (AGAE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.13M
Dividend YieldN/A
Average Volume (3M)4.02M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth0.52%
EPS Growth-225.42%
CountryUS
Employees73
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)-0.12
Shares Outstanding38,018,883
10 Day Avg. Volume724,857
30 Day Avg. Volume4,023,871
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 Cap2.41
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit37.57
Enterprise Value/Ebitda-5.93
Forecast
1Y Price Target
$1.50Price Target Upside57.89% Upside
Rating ConsensusHold
Number of Analyst Covering0
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 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 Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
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. The balance sheet is stable with low leverage, yet negative returns and cash flow issues are concerning.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 | 1.93B | 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 | 108.58M | 112.69M | 112.02M | 97.73M | 105.80M | 61.90M |
| Cash, Cash Equivalents and Short-Term Investments | 59.98M | 71.53M | 72.82M | 81.17M | 92.89M | 424.22K |
| Total Debt | 40.80M | 31.36M | 16.27M | 7.75M | 0.00 | 4.91M |
| Total Liabilities | 46.50M | 35.71M | 18.61M | 9.83M | 7.16M | 28.49M |
| Stockholders Equity | 57.55M | 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
Negative
0.95
Price Trends
1.35
Negative
1.83
Negative
1.41
Negative
Market Momentum
-0.11
Negative
40.76
Neutral
7.64
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 0.95 is below the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.35, and below the 200-day MA of 1.41, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 40.76 is Neutral, neither overbought nor oversold. The STOCH value of 7.64 is Positive, 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 51 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | 64.09M | 25.07 | 9.30% | ― | 77.07% | ― | |
53 Neutral | 50.88M | -2.07 | 263.74% | ― | 7.59% | 61.22% | |
46 Neutral | $36.13M | ― | -30.92% | ― | 0.52% | -225.42% | |
40 Neutral | 55.63M | -2.32 | 101.40% | ― | -18.76% | -21.71% | |
39 Underperform | 35.01M | -1.57 | -72.33% | ― | 14.09% | 67.05% | |
37 Underperform | 4.36M | -0.08 | -115.11% | ― | -17.54% | 24.84% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
AGAE
Allied Gaming & Entertainment
0.95
-0.42
-30.66%
CNVS
Cineverse
3.36
2.38
242.86%
TOON
Kartoon Studios
0.73
-0.13
-15.12%
RDI
Reading International
1.54
-0.09
-5.52%
LVO
LiveOne
4.82
-4.67
-49.21%
HOFV
Hall of Fame Resort & Entertainment
0.65
-1.31
-66.84%
Allied Gaming & Entertainment Corporate Events
Delistings and Listing ChangesRegulatory Filings and ComplianceShareholder Meetings
Allied Gaming Secures Nasdaq Compliance After Appeal
Positive
Sep 4, 2025
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.
The most recent analyst rating on (AGAE) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Allied Gaming & Entertainment stock, see the AGAE Stock Forecast page.
Business Operations and StrategyShareholder Meetings
Allied Gaming Approves Proposals at Annual Meeting
Positive
Aug 7, 2025
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.
Business Operations and StrategyExecutive/Board Changes
Allied Gaming Appoints New CEO Amidst Leadership Change
Neutral
Jun 30, 2025
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.
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.