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Brand Engagement Network (BNAI)
NASDAQ:BNAI
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Brand Engagement Network (BNAI) AI Stock Analysis

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BNAI

Brand Engagement Network

(NASDAQ:BNAI)

Rating:45Neutral
Price Target:
$0.50
▲(61.29% Upside)
The overall stock score reflects significant financial challenges and weak technical indicators, offset by strategic corporate events. The company's high debt and negative margins are major concerns, while recent leadership changes and financial arrangements offer some potential for improvement.
Positive Factors
Financial flexibility
BNAI has a $50M standby equity purchase agreement with Yorkville Advisors for financial flexibility.
Growth expectations
Multiple pilot programs and pending acquisition support robust growth expectations for BNAI.
Negative Factors
Stock price dilution
The price target was lowered to $4 due to dilution.

Brand Engagement Network (BNAI) vs. SPDR S&P 500 ETF (SPY)

Brand Engagement Network Business Overview & Revenue Model

Company DescriptionBrand Engagement Network, Inc. engages in the provision of conversational artificial intelligence assistants with the purpose of transforming engagement and analytics for businesses through security-focused, multimodal communication and human-like artificial intelligence assistants. The firm is also involved in delivering highly personalized, multi-modal artificial intelligence engagement with a focus on industries where there is a massive workforce gap and an opportunity to transform how consumers engage with networks, providers, and brands. The company is headquartered in Jackson, WY.
How the Company Makes MoneyBNAI generates revenue through multiple streams, including service fees for digital marketing campaigns, commissions from influencer partnerships, and subscription models for analytics tools. The company charges clients for tailored marketing solutions, which can include project-based fees or retainer agreements for ongoing services. Additionally, BNAI has established partnerships with various platforms and brands, allowing it to earn affiliate revenue through referrals and collaborative campaigns. The combination of these revenue streams, alongside a growing demand for digital marketing expertise, significantly contributes to BNAI's overall earnings.

Brand Engagement Network Earnings Call Summary

Earnings Call Date:Aug 13, 2025
(Q3-2024)
|
% Change Since: -3.13%|
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several strategic moves and financial improvements, such as new leadership appointments, significant partnerships, and a strategic acquisition. While there are concerns related to revenue generation and acquisition challenges, the overall outlook remains positive with strong progress in core verticals and enhanced financial metrics.
Q3-2024 Updates
Positive Updates
New Leadership and Strategic Vision
Paul Chang stepped into the role of CEO, and Walid Khiari will join as CFO and COO, bringing over 20 years of experience in the technology sector. This indicates a strategic vision to strengthen BEN's financial position and expand its global presence.
Significant Partnerships and Integrations
BEN announced a partnership with Cox Automotive to integrate AI assistance into their Dealer.com platform, enhancing dealership operations with interactive customer experiences.
Cantaneo Acquisition
BEN announced the acquisition of Cantaneo for $19.5 million, aiming to expand its reach in the $45 billion global media technology market. Cantaneo's Mydas platform supports over 5,000 users and handles over EUR 5 billion in annual media spending.
Financial Improvements
Quarterly revenue improved compared to Q2, with a 24% reduction in operating costs and a 28% improvement in cash flow from operations compared to the first half of 2024.
Strong Progress in Core Verticals
BEN saw strong progress in the healthcare, automotive, and financial services verticals, including a collaboration with KangarooHealth for enhanced remote patient monitoring.
Negative Updates
Pending Acquisition Challenges
The acquisition of Cantaneo is subject to closing conditions, including shareholder and regulatory approvals, and obtaining financing, which introduces uncertainty.
Revenue Concerns
Revenue from proof of concept and revenue sharing was not substantial, with reported revenue of $50,000, indicating that pilot programs have not yet converted into significant revenue streams.
Company Guidance
During the Q3 2024 earnings call for Brand Engagement Network (BEN), several key metrics and strategic developments were highlighted. CEO Paul Chang announced the impending acquisition of Cantaneo, a Munich-based media technology company, for $19.5 million, comprising $9 million in cash and 4.2 million BEN shares at $2.50 per share. This acquisition aims to expand BEN's reach in the global media technology market, valued at $45 billion, and enhance its conversational AI solutions. CFO Bill Williams reported a 24% reduction in costs compared to the first half of the year, resulting in a $1.5 million or 24% sequential operating profit improvement. Additionally, cash flow from operations improved by 28% sequentially. BEN also secured a $50 million standby equity facility to ensure liquidity and financial flexibility. The company emphasized its strong progress in health care, automotive, and financial services verticals, with significant partnerships such as the integration with Cox Automotive's Dealer.com platform. The call concluded with a vision to continue building market momentum, scaling platforms, and enhancing liquidity for the remainder of 2024 and beyond.

Brand Engagement Network Financial Statement Overview

Summary
Brand Engagement Network is struggling financially, with significant operational losses and cash flow issues. While there are some improvements in equity, the company's high debt levels and negative margins present substantial risks. The need for strategic improvements and cost management is critical for future stability.
Income Statement
15
Very Negative
The company has shown inconsistent revenue growth, with a significant increase in revenue from 2022 to 2024, but it remains unprofitable, with persistent net losses. Margins are negative, reflecting operational inefficiencies and high costs relative to revenue.
Balance Sheet
30
Negative
The company's balance sheet shows high leverage, with a debt-to-equity ratio of 0.82 for 2024, indicating reliance on debt. Negative equity in 2022 suggests past financial distress. Although equity improved in 2024, total assets have decreased over recent years, highlighting potential risks to stability.
Cash Flow
20
Very Negative
Operating and free cash flows are negative, indicating cash burn and reliance on external financing for liquidity. The operating cash flow to net income ratio is negative, showing poor cash conversion from profits, and free cash flow has not shown consistent growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue60.00K99.79K35.21K15.64K7.41K
Gross Profit177.35K99.79K35.21K15.64K7.41K
EBITDA-26.59M-30.78M-11.04M-1.15M-820.00K
Net Income-30.44M-33.72M-11.73M-676.00K-820.00K
Balance Sheet
Total Assets17.94M18.15M22.10M626.11K735.00K
Cash, Cash Equivalents and Short-Term Investments236.23K149.27K40.17K2.01K861.47K
Total Debt2.49M3.30M1.39M0.000.00
Total Liabilities14.63M15.51M8.78M666.22K290.26K
Stockholders Equity3.31M2.64M13.32M-40.11K444.74K
Cash Flow
Free Cash Flow-20.27M-14.32M-5.94M-85.41K-170.59K
Operating Cash Flow-12.14M-14.04M-5.05M-85.41K-170.59K
Investing Cash Flow-220.60K-281.39K-1.14M-2.58K-309.45M
Financing Cash Flow9.30M12.79M7.88M90.00K170.50K

Brand Engagement Network Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.31
Price Trends
50DMA
0.34
Negative
100DMA
0.34
Negative
200DMA
0.49
Negative
Market Momentum
MACD
-0.01
Positive
RSI
42.05
Neutral
STOCH
28.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNAI, the sentiment is Negative. The current price of 0.31 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.34, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.05 is Neutral, neither overbought nor oversold. The STOCH value of 28.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNAI.

Brand Engagement Network Risk Analysis

Brand Engagement Network disclosed 56 risk factors in its most recent earnings report. Brand Engagement Network 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

Brand Engagement Network Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
¥243.52B15.346.64%2.42%9.16%-0.15%
49
Neutral
$8.58M-349.71%30.52%56.70%
48
Neutral
$15.62M-25.48%0.54%70.74%
48
Neutral
$14.47M-501.24%141.65%60.23%
45
Neutral
$13.42M-254.58%20.51%30.55%
39
Underperform
$10.16M-2201.06%-33.86%74.09%
$16.75M
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BNAI
Brand Engagement Network
0.31
-1.42
-82.08%
BLIN
Bridgeline Digital
1.34
0.45
50.56%
DTSS
Datasea
1.89
-0.24
-11.27%
APCX
AppTech
0.27
-0.57
-67.86%
RVYL
Ryvyl
0.30
-0.61
-67.03%
FAAS
DigiAsia
0.28
-0.86
-75.44%

Brand Engagement Network Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Brand Engagement Network Postpones 2025 Shareholder Meeting
Neutral
Jul 21, 2025

Brand Engagement Network has decided to postpone its 2025 Annual Meeting of Shareholders, which was initially set for July 22, 2025. The decision to reschedule is aimed at aligning the meeting with the company’s current strategic priorities, with shareholders to be informed of the new date and record date for voting rights in due course.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Brand Engagement Network Appoints Janine Grasso as Interim CEO
Positive
Jul 15, 2025

On July 14, 2025, Brand Engagement Network Inc. appointed Janine Grasso as Interim Chief Executive Officer, succeeding Paul Chang. Ms. Grasso, who has been on the Board of Directors since February 2024, brings extensive experience from her previous roles at DocuSign, Verizon, and IBM, with expertise in technology-driven growth, mergers and acquisitions, and digital transformation. Her leadership is expected to guide the company’s next phase of growth. Additionally, the company reported a reduction in total liabilities by $4.25 million in the second quarter.

Delistings and Listing ChangesStock SplitRegulatory Filings and Compliance
Brand Engagement Network Granted Nasdaq Compliance Extension
Neutral
Jul 2, 2025

On December 30, 2024, Brand Engagement Network Inc. received a notification from Nasdaq indicating non-compliance with the Minimum Bid Price Requirement, as its stock price had fallen below $1.00 for 30 consecutive business days. The company was initially given until June 30, 2025, to regain compliance, but on July 1, 2025, it was granted an additional 180-day extension until December 29, 2025. The company is considering a reverse stock split to meet the requirement, but failure to comply could result in delisting, with the option to appeal the decision.

Shareholder Meetings
Brand Engagement Network Announces 2025 Shareholders Meeting
Neutral
Jun 24, 2025

Brand Engagement Network, Inc. has announced its 2025 Annual Meeting of Shareholders, scheduled for July 22, 2025. The meeting will be held virtually via Zoom Webinar, and shareholders must register in advance to attend. The meeting will address the election of directors and the ratification of the appointment of the Company’s independent registered public accounting firm.

Private Placements and FinancingBusiness Operations and Strategy
Brand Engagement Network Secures $3.5 Million Credit Line
Positive
Jun 10, 2025

On June 5, 2025, Brand Engagement Network Inc. (BEN) secured a $3.5 million line of credit from Corps Capital Advisors, LLC, with a maturity date of December 5, 2025. This financial arrangement provides BEN with additional resources to support its operations and strategic initiatives. In its first quarter of 2025, BEN launched the iSKYE platform, expanded partnerships, and advocated for AI privacy standards, positioning itself as a leader in AI-driven customer engagement solutions. These developments highlight BEN’s strategic growth and commitment to secure, scalable AI solutions, potentially enhancing its market presence and stakeholder value.

M&A Transactions
Brand Engagement Network Extends Acquisition Timeline Again
Neutral
May 30, 2025

On October 29, 2024, Brand Engagement Network Inc. entered into a Share Purchase and Transfer Agreement to acquire all outstanding equity interests of Cataneo GmbH from Christian Unterseer, CUTV GmbH, and CUNEO AG for $19.5 million. The acquisition includes $9 million in cash and 4.2 million shares of the company’s common stock. The agreement has been amended twice to extend the timeline for closing the acquisition, with the latest amendment on May 26, 2025, allowing temporary suspensions of the sellers’ withdrawal rights until June 30, 2025. As of May 30, 2025, the company has paid $550,000 towards the cash consideration. The acquisition’s completion is subject to various conditions and risks, including obtaining necessary financing and regulatory approvals.

Delistings and Listing ChangesRegulatory Filings and Compliance
Brand Engagement Network Faces Nasdaq Non-Compliance Notice
Negative
May 23, 2025

On May 21, 2025, Brand Engagement Network Inc. (BEN) received a notification from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to the late filing of its Quarterly Report for the quarter ended March 31, 2025. BEN has until July 20, 2025, to regain compliance by filing the report or submitting a compliance plan. The company is working to file the report promptly but may submit a plan if unable to meet the deadline, with potential extensions granted by Nasdaq if accepted.

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 21, 2025