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The Arena Group (AREN)
:AREN
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The Arena Group (AREN) AI Stock Analysis

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AREN

The Arena Group

(NYSE MKT:AREN)

Rating:60Neutral
Price Target:
$7.00
▲(5.90%Upside)
The Arena Group's overall score is bolstered by positive technical indicators and strategic corporate actions such as regaining NYSE compliance and expanding via acquisition. However, financial risks due to high leverage and negative equity, coupled with a high P/E ratio indicating potential overvaluation, temper the score.

The Arena Group (AREN) vs. SPDR S&P 500 ETF (SPY)

The Arena Group Business Overview & Revenue Model

Company DescriptionThe Arena Group Holdings, Inc., together with its subsidiaries, operates digital media platform the United States and internationally. The company offers the Platform, a proprietary online publishing platform comprising publishing tools, video platforms, social distribution channels, newsletter technology, machine learning content recommendations, notifications, and other technology. The company was formerly known as TheMaven, Inc. and changed its name to The Arena Group Holdings, Inc. in February 2022. The Arena Group Holdings, Inc. was incorporated in 1990 and is based in New York, New York.
How the Company Makes MoneyThe Arena Group makes money primarily through digital advertising, subscription services, and commerce. The company's revenue model relies on generating advertising income by leveraging the digital traffic of its media properties, attracting advertisers seeking to reach targeted audiences. Additionally, The Arena Group offers subscription-based content to provide premium services to its audience. Partnerships with other media and technology companies, as well as strategic acquisitions, also play a significant role in expanding its reach and monetization capabilities.

The Arena Group Financial Statement Overview

Summary
The Arena Group shows signs of financial recovery with improved profitability margins and a positive net income in the TTM. However, high leverage, negative equity, and ongoing negative cash flows present significant risks.
Income Statement
45
Neutral
The Arena Group's income statement shows moderate improvement in profitability and revenue growth. The TTM Gross Profit Margin improved to 48.5%, indicating efficient cost management. The Net Profit Margin turned positive at 5.2%, a significant improvement from prior losses. However, the Revenue Growth Rate was a negative 48.1% compared to 2023, and the EBITDA Margin increased to 18.9%, signaling improved operational efficiency. Despite these improvements, historical volatility and prior year losses impact the overall score.
Balance Sheet
30
Negative
The balance sheet reflects a challenging financial position with a high Debt-to-Equity Ratio due to negative equity, indicating significant leverage. Stockholders' Equity remains negative at -$125.9 million, which is a concern for financial stability. The Equity Ratio is also negative, reflecting a high-risk financial structure. While there has been some reduction in total debt, the overall leverage and negative equity severely impact the score.
Cash Flow
40
Negative
The cash flow analysis shows improvement in managing negative cash flows. The Operating Cash Flow to Net Income Ratio is negative due to negative operating cash flow, indicating ongoing cash management challenges. The Free Cash Flow improved slightly but remains negative at -$14.9 million. Despite some positive trends in financing activities, the persistent negative free cash flow affects the overall cash flow score.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue128.78M125.91M244.20M220.94M189.14M128.03M
Gross Profit62.45M55.72M101.96M88.01M78.16M24.97M
EBITDA24.37M16.94M-13.88M-29.91M-55.98M-47.69M
Net Income6.67M-100.71M-55.58M-67.39M-89.94M-89.23M
Balance Sheet
Total Assets114.64M116.35M188.88M203.72M173.98M214.20M
Cash, Cash Equivalents and Short-Term Investments2.90M4.36M9.28M13.87M9.35M9.03M
Total Debt112.75M123.69M131.84M115.37M83.26M90.32M
Total Liabilities240.59M246.68M247.71M255.87M225.66M216.10M
Stockholders Equity-125.95M-130.16M-58.83M-52.15M-51.68M-1.90M
Cash Flow
Free Cash Flow-14.91M-16.13M-28.55M-17.01M-19.92M-37.26M
Operating Cash Flow-10.45M-16.08M-24.77M-11.30M-14.73M-32.29M
Investing Cash Flow-6.08M-5.17M-3.21M-38.59M-13.15M-4.93M
Financing Cash Flow15.43M16.33M22.89M54.87M28.19M37.28M

The Arena Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price6.61
Price Trends
50DMA
5.79
Positive
100DMA
4.67
Positive
200DMA
2.97
Positive
Market Momentum
MACD
0.12
Negative
RSI
57.90
Neutral
STOCH
71.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREN, the sentiment is Positive. The current price of 6.61 is above the 20-day moving average (MA) of 6.00, above the 50-day MA of 5.79, and above the 200-day MA of 2.97, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 71.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AREN.

The Arena Group Risk Analysis

The Arena Group disclosed 42 risk factors in its most recent earnings report. The Arena Group 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

The Arena Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$1.03B83.461.35%16.62%
64
Neutral
£1.84B9.95-15.74%3.62%2.47%-68.24%
60
Neutral
$314.38M118.0482.40%-41.93%
56
Neutral
$72.15M-48.12%4.11%78.58%
55
Neutral
$80.52M-28.67%-36.56%72.58%
45
Neutral
$27.31M-29.17%-3.17%13.15%
44
Neutral
$25.46M-4.89%0.38%19.52%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AREN
The Arena Group
6.61
5.75
668.60%
SCOR
comScore
5.52
-7.43
-57.37%
FENG
Phoenix New Media
2.12
-1.04
-32.91%
MNY
MoneyHero Limited
1.67
0.29
21.01%
TBLA
Taboola.com
3.18
0.23
7.80%
BZFD
BuzzFeed
2.09
-0.13
-5.86%

The Arena Group Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
The Arena Group Regains NYSE Compliance Status
Positive
Jun 6, 2025

On June 3, 2025, The Arena Group Holdings, Inc. received a notice from NYSE American LLC confirming its compliance with the exchange’s continued listing standards, following a period of noncompliance noted in October 2024. This compliance was achieved ahead of the April 2026 deadline, and as a result, the company was removed from the list of noncompliant issuers, with its stock continuing to trade on the NYSE American. The company attributes this achievement to market-driven stock appreciation and a strengthened financial position, having reported three consecutive profitable quarters for the first time in its history.

M&A TransactionsBusiness Operations and Strategy
The Arena Group Acquires TravelHost for Expansion
Positive
May 16, 2025

On May 12, 2025, The Arena Group Holdings, Inc. acquired TravelHost, LLC, a company specializing in promoting travel and regional attractions, for $1,000,000. This acquisition, approved by the Audit Committee, includes contracts from Bridge Media Networks, and aims to enhance The Arena Group’s market position in the travel and advertising sectors.

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.Date of analysis: Aug 02, 2025