Blue Hat Interactive Entertainment Technology (BHAT) AI Stock Analysis

• Market Cap: $5.44M
• Dividend Yield: N/A
• Average Volume (3M): 56.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -53.11%
• EPS Growth: 82.68%
• Country: US
• Employees: 14
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 7,243,931
• 10 Day Avg. Volume: 48,302
• 30 Day Avg. Volume: 56,943
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -9.09
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.44
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: -3.15
• 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: 44 Neutral
• Price Target: $0.77 ▼(-31.70% Downside)

The score is driven primarily by weak financial performance (ongoing losses and negative free cash flow), reinforced by bearish technicals with the stock trading below all major moving averages and negative MACD. Valuation is not a clear positive because the negative P/E reflects continued unprofitability and there is no dividend yield support.

Positive Factors

Low financial leverage

A low debt burden reduces refinancing and interest-cost risk, giving management structural flexibility to pursue strategic shifts or withstand prolonged losses. This stronger capital structure supports long-term survival and optionality when cash generation is weak.

Strategic shift to gold trading

Moving into commodity trading represents a durable business-model pivot away from solely gaming, potentially unlocking higher margins and more stable transaction economics. If sustained, diversification could materially improve revenue mix and resilience versus prior volatile game revenues.

Equity incentive plan to align management

A formal equity incentive program is a structural governance improvement that can increase retention and align management toward long-term value creation. Over months, it can improve execution, discipline on capital allocation, and focus on profitability and growth metrics.

Negative Factors

Persistent multi-year losses

Sustained large net losses erode equity and limit the firm's ability to self-fund growth or absorb setbacks. Over a multi-month horizon, ongoing losses undermine reinvestment, impair return metrics, and raise the risk that strategic pivots won't achieve profitability before capital constraints bite.

Negative operating and free cash flow

Chronic cash burn increases reliance on external financing or asset sales, constraining strategic choices and raising dilution risk. Persistently negative FCF limits the firm's ability to scale profitable initiatives or sustain new lines like commodity trading without recurring capital infusions.

Revenue volatility and recent decline

Large swings in top-line performance suggest weak product/market fit and limited recurring demand, making long-term planning harder and margins unpredictable. Structural revenue instability raises execution risk for new strategies and weakens prospects for steady margin recovery.

Blue Hat Interactive Entertainment Technology Business Overview & Revenue Model

Company Description

Fujian Blue Hat Interactive Entertainment Technology Ltd. engages in the designing, producing, promoting, and selling animated toys with mobile games features, intellectual property, and peripheral derivatives features worldwide. It offers AR Racer, a car-racing mobile game; AR Crazy Bug, a combat game played using a ladybug-shaped electronic toy; AR 3D Magic Box, which uses AR recognition technology to allow children to draw shapes or objects onto a physical card while the mobile game captures the drawings and animates them onto a set background; AR Dinosaur, an educational toy; 'Talking Tom and Friends' Bouncing Bubble, which enables children to bounce and play with bubbles; and AR Shake Bouncing Bubble, which helps children to improve concentration and reaction. The company also holds license to sell products with WUHUANGWANSHUI brand images. Its distribution channels include domestic distributors, e-commerce platforms, supermarkets, and export distributors. Fujian Blue Hat Interactive Entertainment Technology Ltd. was incorporated in 2010 and is based in Xiamen, China.

How the Company Makes Money

Blue Hat Interactive Entertainment Technology primarily generates revenue through the sale of its AR interactive products, which are marketed to both individual consumers and educational institutions. The company earns money by selling its AR toys and educational materials directly through retail and online channels. Additionally, Blue Hat monetizes its mobile games through in-app purchases and advertising. The company may also engage in strategic partnerships or collaborations with other firms to expand its reach and enhance its product offerings, contributing to its overall revenue.

Blue Hat Interactive Entertainment Technology Financial Statement Overview

Summary

Financial quality is pressured by persistent losses and weak cash generation. Income statement performance has deteriorated sharply post-2020 with ongoing losses and volatile revenue, and cash flow remains negative (operating and free cash flow). The balance sheet is a relative positive with modest leverage, but negative returns on equity reflect weak earnings power.

Income Statement

Profitability has deteriorated sharply versus the pre-2021 period. After strong profitability in 2019–2020 (healthy gross margin and positive net income), the company moved into persistent losses from 2021–2024, with 2024 showing a ~51% net loss margin and negative operating profitability. Revenue has also been volatile—surging in 2023 but declining meaningfully in 2024—suggesting an unstable revenue base and limited operating leverage, despite some improvement in gross margin in 2024 versus 2023.

Balance Sheet

Leverage appears modest, with debt-to-equity staying low in recent years (around ~0.09 in 2023–2024), which reduces refinancing risk. However, returns on equity are consistently negative from 2021–2024 due to ongoing losses, and equity has not translated into profitability. Overall balance sheet risk looks contained, but the core issue is weak earnings power rather than capital structure strain.

Cash Flow

Cash generation is weak: operating cash flow and free cash flow are negative across 2021–2024, including 2024, indicating the business is not currently self-funding. The large cash burn in 2021 stands out, and while outflows are smaller more recently, the company has not returned to sustained positive cash flow like it achieved in 2019–2020. Continued negative free cash flow increases dependence on external funding or asset monetization over time.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.15M	18.72M	73.69M	2.20M	12.14M	24.60M
Gross Profit	5.10M	1.55M	1.15M	1.24M	6.48M	13.42M
EBITDA	-2.28M	-9.13M	-28.40M	-7.54M	-57.08M	11.25M
Net Income	-4.97M	-9.53M	-19.30M	-9.37M	-58.63M	8.17M
Balance Sheet
Total Assets	87.41M	75.23M	49.26M	34.28M	36.51M	75.69M
Cash, Cash Equivalents and Short-Term Investments	1.07M	14.30K	409.18K	70.40K	135.56K	15.75M
Total Debt	2.53M	2.75M	3.49M	2.82M	1.54M	6.15M
Total Liabilities	5.95M	43.09M	8.64M	19.75M	18.86M	16.74M
Stockholders Equity	81.47M	32.14M	40.62M	12.11M	15.19M	58.84M
Cash Flow
Free Cash Flow	-10.16M	-885.00K	-2.11M	-1.19M	-36.64M	2.84M
Operating Cash Flow	-10.16M	-885.00K	-2.11M	-1.19M	-20.11M	5.04M
Investing Cash Flow	0.00	0.00	-15.38K	6.34K	-4.52M	-10.76M
Financing Cash Flow	11.21M	484.86K	2.25M	2.53M	7.57M	2.49M

Blue Hat Interactive Entertainment Technology Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.12
• 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 BHAT, the sentiment is Negative. The current price of 1.12 is above the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.20, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 32.24 is Neutral, neither overbought nor oversold. The STOCH value of 27.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHAT.

Blue Hat Interactive Entertainment Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSGM	65 Neutral	$23.58M	43.26	44.93%	―	11.38%	-94.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GIGM	50 Neutral	$17.35M	-13.39	-3.14%	―	10.15%	67.65%
BHAT	44 Neutral	$5.44M	-0.06	-14.99%	―	-53.11%	82.68%
TRUG	40 Underperform	$3.22M	―	―	―	―	―

Blue Hat Interactive Entertainment Technology Corporate Events

Blue Hat Interactive to Issue 19.5 Million Shares for $24 Million Gold Purchase

At the end of November 2025, Blue Hat Interactive Entertainment Technology entered into a Gold Purchase Agreement and supplementary agreement with Global Prima Trade Limited to acquire 200 kilograms of gold for an aggregate purchase price of approximately $24.19 million, payable entirely in the company’s ordinary shares. Under the terms disclosed on December 23, 2025, Blue Hat will issue 19,506,452 ordinary shares at an average price of $1.24 per share, in an offshore, Regulation S–exempt transaction to designees of the seller, a move that effectively swaps equity for a substantial physical gold position and may alter the company’s capital structure while diversifying its asset base.

Blue Hat Reports Revenue Growth Amid Strategic Shift to Gold Trading

On December 2, 2025, Blue Hat Interactive Entertainment Technology announced its unaudited financial results for the first half of 2025, revealing a 1.90% increase in revenues to $13.33 million. The company completed a strategic transition from diamond to gold trading, which significantly increased its gross profit by 351.02% to $4.87 million. This shift allowed Blue Hat to capitalize on the rising gold prices and position itself in the gold industry with enhanced transaction flexibility and higher margins. The company also reported a decrease in net loss by 33.95% to $0.86 million, reflecting improved operational efficiency.