Allied Gaming & Entertainment (AGAE) AI Stock Analysis

• Market Cap: $11.84M
• Dividend Yield: N/A
• Average Volume (3M): 4.15M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -14.24%
• EPS Growth: -104.12%
• Country: US
• Employees: 73
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): -0.14
• Shares Outstanding: 37,706,930
• 10 Day Avg. Volume: 292,240
• 30 Day Avg. Volume: 4,151,712
• 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: 3.04
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 22.04
• Enterprise Value/Ebitda: -1.73
• 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: 42 Neutral
• Price Target: $0.27 ▼(-28.11% Downside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is weighed down primarily by very weak fundamentals—deep losses, near-zero margins, and heavy ongoing cash burn—alongside a pronounced downtrend in the stock. Valuation is constrained by negative earnings, and corporate events add risk due to the Nasdaq delisting warning despite some supportive governance developments.

Positive Factors

Balance sheet support

Manageable leverage and positive equity provide a durable financial buffer against ongoing losses. This balance-sheet position reduces near-term refinancing risk, preserves the company’s ability to raise capital or restructure financing, and supports continued operations while management works to convert growth into profit.

Recent revenue growth

Sharp TTM revenue growth indicates improving market traction across online gaming, sports betting and licensing activities. If sustained, higher scale can support margin expansion through operating leverage and better fixed-cost absorption, strengthening longer-term earnings power once cost structure is optimized.

Shareholder governance backing

Decisive shareholder support for the board’s rights plan signals investor alignment with existing leadership and reduces the likelihood of disruptive control changes. This governance validation gives management runway to execute strategic initiatives and defend long-term value creation without immediate activist pressure.

Negative Factors

Cash burn & weak margins

Persistent negative operating and free cash flow and a large TTM cash burn threaten the company’s ability to fund operations internally. Continued cash consumption increases reliance on external financing, dilutive capital raises, or asset sales, constraining investment in product development and long‑term growth initiatives.

Listing risk (Nasdaq warning)

A formal Nasdaq compliance deadline is a structural risk: delisting would reduce liquidity, impair investor access, and make capital raises and partner negotiations harder. The fixed timeline forces management to allocate resources to remediation rather than core operations and strategic investments.

Management / legal overhang

Investigations tied to a former CEO create a lasting governance and reputational overhang. Potential legal liabilities, prolonged inquiries, and internal reviews can divert leadership attention, increase compliance costs, and slow or stall large projects like the Las Vegas esports arena, undermining execution.

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 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 Financial Statement Overview

Summary

Despite sharp TTM revenue growth, profitability remains extremely weak (near-zero gross margin and deep net losses) and cash flow is a major issue with persistent negative operating and free cash flow and large TTM cash burn. The balance sheet is comparatively better with manageable leverage and positive equity, but consistently negative ROE and ongoing losses threaten durability over time.

Income Statement

Revenue increased sharply in TTM (Trailing-Twelve-Months), but profitability is extremely weak: gross margin is near zero and net results are deeply negative in both TTM and the last several annual periods. While 2023–2024 show improving revenue versus prior years, losses remain persistent and large relative to sales, indicating the business has not yet translated growth into sustainable earnings power.

Balance Sheet

Leverage appears manageable with low debt relative to equity in TTM (Trailing-Twelve-Months), and equity remains positive. However, returns on equity are consistently negative in recent periods (including TTM), signaling ongoing value erosion from losses. Overall, the balance sheet looks more supportive than the income statement, but continued losses are a key risk to balance-sheet durability over time.

Cash Flow

Cash generation is a major weakness: operating cash flow and free cash flow are negative across all periods shown, including a very large cash burn in TTM (Trailing-Twelve-Months). Although free cash flow growth in TTM is positive versus the prior period, it is improving from a deeply negative base and the company is still consuming significant cash, which can increase reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement
Total Revenue	7.94M	9.08M	7.66M	6.35M	4.96M	3.21M
Gross Profit	1.64M	2.71M	2.86M	1.25M	880.79K	347.90K
EBITDA	-20.85M	-11.79M	-5.10M	-8.76M	-12.47M	-36.63M
Net Income	-22.24M	-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	-5.31B	-12.13M	-9.19M	-11.03M	-10.27M	-5.53M
Operating Cash Flow	-2.18B	-9.77M	-8.14M	-10.93M	-10.08M	-5.17M
Investing Cash Flow	7.54M	23.81M	6.13M	-70.14M	105.86M	-5.51M
Financing Cash Flow	-3.24M	23.93M	7.15M	-610.56K	-3.42M	9.16M

Allied Gaming & Entertainment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.37 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.34, and below the 200-day MA of 1.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 29.28 is Neutral, 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CNVS	55 Neutral	$61.31M	-5.45	-24.27%	―	77.29%	97.98%
TOON	54 Neutral	$30.85M	-1.04	-78.34%	―	22.84%	46.18%
LVO	48 Neutral	$60.56M	―	―	―	-32.17%	-135.06%
RDI	44 Neutral	$43.35M	-1.75	―	―	7.11%	69.85%
AGAE	42 Neutral	$11.84M	-0.57	-35.18%	―	-14.24%	-104.12%

Allied Gaming & Entertainment Corporate Events

Allied Gaming Shareholders Back Board’s Rights Plan Stance

On January 30, 2026, Allied Gaming & Entertainment held a special meeting where shareholders decisively endorsed, via non-binding advisory vote, the board’s conclusion that Knighted Pastures LLC, Roy Choi, and affiliates became an acquiring person under the 2024 rights agreement, triggering the plan and confirming the action was intentional; this strong mandate underscores investor support for the company’s defensive posture against perceived control efforts and signals continued vigilance in corporate governance.

The most recent analyst rating on (AGAE) stock is a Sell with a $0.27 price target. To see the full list of analyst forecasts on Allied Gaming & Entertainment stock, see the AGAE Stock Forecast page.

Allied Gaming Faces Nasdaq Delisting Warning

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.

The most recent analyst rating on (AGAE) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Allied Gaming & Entertainment stock, see the AGAE Stock Forecast page.