The Arena Group (AREN) AI Stock Analysis

• Market Cap: $199.83M
• Dividend Yield: N/A
• Average Volume (3M): 193.96K
• Price to Earnings (P/E): 1.6
• Beta (1Y): -0.21
• 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: 94,834
• 30 Day Avg. Volume: 193,958
• 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: 1.81
• 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: 50 Neutral
• Price Target: $4.00 ▼(-7.83% Downside)

The Arena Group's overall stock score reflects significant financial challenges, including high leverage and weak cash flow. However, strategic initiatives and positive earnings call sentiment provide some optimism. The stock's undervaluation offers potential upside, but technical indicators suggest caution.

Positive Factors

Profitability and Strong Margins

The Arena Group's ability to maintain strong margins and increase profitability despite revenue declines indicates effective cost management and operational efficiency, which are crucial for long-term sustainability.

Debt Reduction and Cash Generation

Reducing debt and generating cash from operations strengthens the balance sheet, enhancing financial flexibility and reducing risk, which supports long-term growth and stability.

Strategic Acquisitions

Strategic acquisitions expand The Arena Group's market presence and diversify revenue streams, positioning the company for future growth and profitability in new segments.

Negative Factors

Revenue Decline

The decline in revenue highlights challenges in maintaining top-line growth, which could impact the company's ability to invest in growth initiatives and sustain long-term profitability.

High Leverage

High leverage indicates heavy reliance on debt, which can strain financial resources and limit the company's ability to respond to market changes or invest in growth opportunities.

Cash Flow Challenges

Negative free cash flow growth suggests difficulties in generating sufficient cash, which may hinder the company's ability to fund operations, pay down debt, or invest in strategic initiatives.

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: Neutral
• Last Price: 4.34
• 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 AREN, the sentiment is Neutral. The current price of 4.34 is above the 20-day moving average (MA) of 4.13, below the 50-day MA of 4.49, and below the 200-day MA of 4.94, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 48.65 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$204.68M	75.13	1.22%	―	17.38%	―
SCOR	52 Neutral	$35.81M	-1.29	-5.12%	―	0.77%	74.60%
BODI	52 Neutral	$80.09M	-1.82	-102.66%	―	-37.41%	60.58%
AREN	50 Neutral	$199.83M	1.59	―	―	-10.90%	―
SEAT	45 Neutral	$89.98M	-0.25	-51.54%	―	-16.83%	-485.31%
BZFD	39 Underperform	$34.03M	-0.64	―	―	―	―

The Arena Group Corporate Events

Arena Group Shareholders Back Directors and Auditor Slate

On December 17, 2025, The Arena Group Holdings, Inc. held its Annual Meeting, at which stockholders elected three directors—H. Hunt Allred, Cavitt Randall and Lynn Petersmarck—each receiving a strong majority of votes cast, despite a modest number of withheld votes and broker non-votes. Shareholders also overwhelmingly ratified the appointment of BDO USA, P.C. as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, reinforcing continuity in the group’s board leadership and external audit oversight for the coming year.

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.