The Arena Group (AREN) AI Stock Analysis

• Market Cap: $197.46M
• Dividend Yield: N/A
• Average Volume (3M): 250.70K
• Price to Earnings (P/E): 1.6
• Beta (1Y): -0.33
• Revenue Growth: -10.90%
• EPS Growth: N/A
• Country: US
• Employees: 190
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.14
• Shares Outstanding: 47,465,748
• 10 Day Avg. Volume: 337,171
• 30 Day Avg. Volume: 250,699
• PEG Ratio: -0.03
• Price to Book (P/B): -0.36
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -2.94
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 2.53
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 7.28
• 1Y Price Target: $10.00
• Price Target Upside: 130.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $4.00 ▼(-7.83% Downside)

The overall stock score of 43 reflects significant financial challenges, including high leverage and weak cash flow, which weigh heavily on the company's outlook. Technical analysis indicates bearish momentum, further impacting the score. However, the low P/E ratio suggests potential undervaluation, and the positive sentiment from the earnings call provides some optimism for future growth.

Positive Factors

Profitability and Strong Margins

The increase in net income and maintenance of strong gross margins above 50% indicate effective cost management and operational efficiency, which are crucial for long-term sustainability.

Debt Reduction and Cash Generation

Strong cash generation and debt reduction enhance financial flexibility, allowing the company to invest in growth opportunities and improve its balance sheet health over time.

Strategic Acquisitions

These acquisitions expand the company's e-commerce and sports portfolios, potentially boosting revenue and profitability as they integrate and grow these new assets.

Negative Factors

Revenue Decline

The decline in revenue indicates challenges in maintaining top-line growth, which could pressure future profitability and market position if not addressed.

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth and manage economic downturns effectively.

Traffic Volatility

Traffic volatility from algorithmic changes can impact audience engagement and advertising revenue, challenging the company's ability to sustain growth in digital content distribution.

The Arena Group Business Overview & Revenue Model

Company Description

The Arena Group (AREN) is a media company that operates in the digital publishing sector, focusing on creating and distributing premium content across various platforms. It encompasses a diverse portfolio of brands and properties that engage audiences in areas such as sports, entertainment, and lifestyle. The company is dedicated to leveraging technology and innovation to enhance user experiences and drive audience engagement.

How the Company Makes Money

The Arena Group generates revenue through multiple streams, primarily through digital advertising, subscription services, and partnerships with brands. Their advertising revenue comes from displaying ads on their digital platforms, leveraging their extensive audience reach to attract advertisers. Additionally, they offer premium content subscriptions, allowing users to access exclusive articles, videos, and other materials, which provides a steady income. Significant partnerships with brands for sponsored content and events also contribute to their earnings, allowing them to monetize their audience through branded experiences and collaborations.

The Arena Group Financial Statement Overview

Summary

The Arena Group faces significant financial challenges. Despite improvements in operational efficiency, the company struggles with declining revenue and high leverage. The balance sheet is weak, with negative equity and high debt levels. Cash flow metrics indicate poor cash generation and conversion, raising concerns about liquidity and financial sustainability.

Income Statement

The Arena Group's income statement shows a mixed performance. The TTM gross profit margin is strong at 52.64%, indicating efficient cost management. However, the net profit margin is exceptionally high at 84.23% due to a one-time gain, which is not sustainable. Revenue has declined by 2.59% in the TTM, suggesting challenges in maintaining growth. EBIT and EBITDA margins have improved significantly, reflecting better operational efficiency.

Balance Sheet

The balance sheet reveals significant financial instability. The debt-to-equity ratio is extremely high at -6.67, indicating heavy reliance on debt financing. Return on equity is negative, reflecting poor profitability relative to equity. The equity ratio is also negative, highlighting a precarious financial position with liabilities exceeding assets.

Cash Flow

Cash flow analysis shows concerning trends. Free cash flow growth is negative, indicating declining cash generation. The operating cash flow to net income ratio is low at 0.11, suggesting weak cash conversion. The free cash flow to net income ratio is negative, pointing to insufficient cash flow to cover net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	142.81M	125.91M	143.63M	220.94M	189.14M	128.03M
Gross Profit	75.11M	55.72M	55.27M	88.01M	78.61M	24.97M
EBITDA	49.66M	16.94M	-12.67M	-33.86M	-55.99M	-47.69M
Net Income	126.40M	-100.71M	-55.58M	-70.86M	-89.94M	-89.23M
Balance Sheet
Total Assets	121.36M	116.35M	188.88M	203.72M	173.98M	214.20M
Cash, Cash Equivalents and Short-Term Investments	12.52M	4.36M	9.28M	13.87M	9.35M	9.03M
Total Debt	112.94M	123.69M	131.49M	116.85M	83.26M	90.32M
Total Liabilities	131.75M	246.68M	247.87M	255.87M	225.66M	216.10M
Stockholders Equity	-10.39M	-130.33M	-58.99M	-52.15M	-51.68M	-1.90M
Cash Flow
Free Cash Flow	7.92M	-21.25M	-28.55M	-17.01M	-19.93M	-37.26M
Operating Cash Flow	17.56M	-16.08M	-24.77M	-11.30M	-14.73M	-32.29M
Investing Cash Flow	-9.65M	-5.17M	-3.21M	-38.59M	-13.15M	-4.93M
Financing Cash Flow	-1.17M	16.33M	22.89M	54.42M	28.19M	37.28M

The Arena Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREN, the sentiment is Negative. The current price of 4.34 is below the 20-day moving average (MA) of 4.47, below the 50-day MA of 4.96, and below the 200-day MA of 4.73, indicating a bearish trend. The MACD of -0.34 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 49.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AREN.

The Arena Group 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%
TRVG	55 Neutral	$206.09M	75.65	1.22%	―	17.38%	―
BODI	54 Neutral	$32.51M	-0.54	-102.66%	―	-37.41%	60.58%
SCOR	47 Neutral	$37.11M	-0.42	-5.12%	―	0.77%	74.60%
AREN	43 Neutral	$197.46M	1.57	―	―	-10.90%	―
SEAT	43 Neutral	$105.68M	―	-51.54%	―	-16.83%	-485.31%
BZFD	37 Underperform	$34.92M	―	―	―	―	―

The Arena Group Corporate Events

The Arena Group’s Earnings Call Highlights Resilience and Growth

The Arena Group Holdings Inc. recently held its earnings call, showcasing a positive outlook amidst industry challenges. The company demonstrated resilience through strategic growth initiatives, achieving profitability with strong margins, reducing debt, and strengthening its balance sheet. Strategic acquisitions and an innovative business model were highlighted as key drivers of growth, with achievements outweighing the challenges faced.

The Arena Group Holdings Inc. Reports Strong Q3 2025 Earnings

The Arena Group Holdings Inc. is a media company that operates in the digital content industry, focusing on creating and distributing content across various verticals such as sports, finance, lifestyle, and platform. The company leverages its publishing platform to build content verticals powered by anchor brands, aiming to monetize editorially focused online content through advertisements.

The Arena Group Acquires ShopHQ to Expand Portfolio

On October 14, 2025, The Arena Group announced the acquisition of the digital assets of Lindy’s Sports, a historic sports publication, to expand its Sports & Leisure vertical. This acquisition strengthens The Arena Group’s position in the sports media market and aligns with its growth strategy of transforming established media brands with a modern digital approach. On October 17, 2025, the company also announced the acquisition of ShopHQ, further enhancing its portfolio.

The most recent analyst rating on (AREN) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on The Arena Group stock, see the AREN Stock Forecast page.

The Arena Group Updates Investor Presentation

On September 11, 2025, The Arena Group Holdings, Inc. released an updated investor presentation. The presentation is available on the company’s website but is not considered filed under the Securities Exchange Act of 1934.

The most recent analyst rating on (AREN) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on The Arena Group stock, see the AREN Stock Forecast page.

The Arena Group Holdings Inc. Reports Strong Financial Turnaround

The Arena Group Holdings Inc. is a media company that operates in the digital content industry, focusing on key subject matter verticals such as Sports & Leisure, Finance, Lifestyle, and Platform. The company leverages its publishing platform to build content verticals powered by anchor brands, monetizing editorially focused online content through various advertisements.