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Brand Engagement Network (BNAI)
NASDAQ:BNAI
US Market

Brand Engagement Network (BNAI) AI Stock Analysis

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BNAI

Brand Engagement Network

(NASDAQ:BNAI)

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Neutral 56 (OpenAI - 5.2)
Rating:56Neutral
Price Target:
$5.00
▲(190.70% Upside)
The score is held back primarily by weak financial performance (very small revenue base, deeply negative margins, and ongoing cash burn). Offsetting this are strong technical momentum (price above all key moving averages with positive MACD) and positive corporate developments (Nasdaq compliance regained and liability reduction via debt conversions), while valuation remains unattractive/unclear due to losses and no dividend.
Positive Factors
Strategic healthcare partnership (Skye Salud)
Skye Salud positions the company in a regulated, high-barrier healthcare market with sovereign-AI capabilities and a large addressable population. Pilots and planned rollouts create durable revenue pathway via licensing and services, diversifying away from pure ad-tech cycles.
Exclusive LATAM reseller & revenue-share partnership
An exclusive reseller arrangement and meaningful revenue share accelerate market entry across Latin America and Spain while lowering BEN’s direct sales expense. This durable distribution model supports scalable recurring revenue in regulated segments and strengthens long-term go-to-market leverage.
Liability reduction via debt-to-equity conversions
Converting debt to equity meaningfully reduces near-term cash obligations and vendor liabilities, improving solvency and operational flexibility. This structural balance-sheet repair lowers refinancing risk and extends runway, enabling focus on commercialization and strategic initiatives.
Negative Factors
Deep and persistent negative margins
Severely negative gross and net margins reflect broken unit economics that undermine scalability. Without durable margin improvement—through pricing, product mix, or cost structure—revenue growth alone may not translate into profitability, threatening long-term viability.
Ongoing cash burn and negative free cash flow
Sustained negative OCF and FCF deplete liquidity and force reliance on external financing or dilutive equity raises. This constrains reinvestment in product and sales, increases financing risk, and makes long-term execution contingent on securing durable, non-dilutive cash generation.
Leverage stressed relative to weak earnings
Elevated leverage alongside persistent losses increases financial vulnerability, raising interest and covenant risk. This limits strategic optionality, amplifies dilution risk if debt continues converting to equity, and hinders long-term investment until profitability or cash flow improves.

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

Brand Engagement Network Business Overview & Revenue Model

Company DescriptionBrand Engagement Network (BNAI) is a leading marketing and advertising firm specializing in enhancing brand visibility and consumer engagement through innovative digital solutions. Operating primarily in the marketing technology sector, BNAI offers a suite of services including social media marketing, influencer partnerships, content creation, and data analytics. The company focuses on helping brands connect with their target audiences in meaningful ways, leveraging cutting-edge technology and strategic insights to drive engagement and conversion.
How the Company Makes MoneyBNAI generates revenue through multiple streams, including service fees from digital marketing campaigns, subscription models for its analytics platform, and commissions from influencer partnerships. The company charges clients based on project scope, performance metrics, and ongoing retainer agreements for long-term engagement. Additionally, BNAI has established significant partnerships with major social media platforms and marketing technology providers, allowing them to offer exclusive tools and insights that enhance their service offerings. These partnerships not only increase their service value but also create opportunities for cross-promotional efforts, further contributing to the company's earnings.

Brand Engagement Network Earnings Call Summary

Earnings Call Date:Oct 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 26, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant cost reductions and improved net income, indicating financial stabilization. However, revenue generation remains minimal, primarily driven by pilot programs, and there were administrative delays in filing. The company is focusing on strategic partnerships and market expansions, though the financial impact of these initiatives is not yet fully realized.
Q2-2025 Updates
Positive Updates
Significant Expense Reduction
Operating expenses decreased by 55.6% to $2.8 million for the quarter, down from $6.3 million in the same quarter of 2024, driven by streamlined operations and strategic cost optimization.
Positive Net Income
The company reported a net income of $900,000 in Q2 2025 compared to a net loss of $3 million in Q2 2024, indicating improved financial performance.
Stockholders' Equity Increase
Stockholders' equity increased by 126% to $5.9 million, from $2.6 million at the end of 2024, reflecting improved financial health.
Global Partnership with Swiss Life
Entered a global partnership with Swiss Life, enhancing the company's position in the international market.
Successful Entry into Emerging Markets
Strategic inroads made in emerging markets like Mexico, aligning with data sovereignty priorities and positioning for potential expansion.
Negative Updates
Delayed Q2 10-Q Filing
The Q2 10-Q filing was delayed, although it was stated as not being due to negative financial performance.
Minimal Revenue Generation
Revenue was reported at $5,000 in Q2 2025, reflecting early traction but still indicating minimal financial returns.
Pilot Program Revenue Uncertainty
The $5,000 revenue was attributed to a pilot program in Armenia, raising questions about the scalability and long-term revenue potential.
Company Guidance
During the Brand Engagement Network Inc.'s Second Quarter 2025 Earnings Conference Call, acting CEO Tyler Luck emphasized strategic initiatives to strengthen the company's foundation, including a 55.6% reduction in operating expenses to $2.8 million from $6.3 million in the same quarter of 2024. The company reported $5,000 in revenue for Q2 2025, marking a significant improvement from no revenue in Q2 2024, primarily attributed to pilot programs like the one in Armenia's hospitality sector. Additionally, Walid Khiari noted a gain on debt extinguishment of $4 million, contributing to a net income of $900,000 compared to a net loss of $3 million in the previous year. Stockholders' equity increased by 126% to $5.9 million, reflecting improved financial health. The company is focused on scaling revenue growth, particularly in regulated industries, and is leveraging strategic partnerships and AI solutions for future expansion. Upcoming events include the next earnings call on November 4, 2025, and the Annual Shareholder Meeting on November 26, 2025.

Brand Engagement Network Financial Statement Overview

Summary
Brand Engagement Network is struggling financially, with significant operational losses and cash flow issues. Despite improvements in equity, high debt levels and negative margins present substantial risks. Strategic improvements and cost management are critical for future stability.
Income Statement
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
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
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 Revenue75.12K99.79K35.21K15.64K7.41K
Gross Profit-2.77M99.79K35.21K15.64K7.41K
EBITDA-18.07M-30.78M-11.04M-1.15M-819.77K
Net Income-23.15M-33.72M-11.73M-676.04K-820.07K
Balance Sheet
Total Assets16.37M18.15M22.01M314.19M310.70M
Cash, Cash Equivalents and Short-Term Investments102.72K149.27K1.69M212.61K861.47K
Total Debt4.11M3.30M1.39M0.000.00
Total Liabilities12.92M15.51M4.31M16.44M20.15M
Stockholders Equity3.45M2.64M17.69M297.75M290.55M
Cash Flow
Free Cash Flow-8.37M-15.20M-6.27M-648.87K-1.65M
Operating Cash Flow-7.72M-14.92M-5.77M-648.87K-1.65M
Investing Cash Flow-649.89K-281.39K-1.14M0.00-309.45M
Financing Cash Flow8.40M13.67M8.59M0.00311.96M

Brand Engagement Network Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.72
Price Trends
50DMA
3.30
Positive
100DMA
3.53
Positive
200DMA
3.47
Positive
Market Momentum
MACD
0.18
Negative
RSI
58.18
Neutral
STOCH
77.86
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNAI, the sentiment is Positive. The current price of 1.72 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 3.30, and below the 200-day MA of 3.47, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 77.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
56
Neutral
$16.88M-0.66-218.30%-24.72%53.60%
49
Neutral
$10.28M-3.17-25.73%0.16%-36.86%
44
Neutral
$20.36M-0.01-415.08%16.50%
42
Neutral
$5.70M-0.11-993.23%-44.25%82.71%
42
Neutral
$18.45M-0.92-103.97%
41
Neutral
$7.29M-1.85-93.31%68.56%89.48%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BNAI
Brand Engagement Network
3.82
-3.63
-48.72%
BLIN
Bridgeline Digital
0.82
-1.03
-55.78%
CETX
Cemtrex
2.90
-43.45
-93.74%
DTSS
Datasea
0.83
-1.44
-63.44%
RVYL
Ryvyl
5.50
-41.40
-88.27%
MSAI
Multisensor AI Holdings
0.35
-1.39
-79.89%

Brand Engagement Network Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
Brand Engagement Network Regains Compliance With Nasdaq Listing
Positive
Dec 31, 2025

On December 31, 2025, Brand Engagement Network Inc. announced it had regained compliance with Nasdaq’s minimum bid price requirement for continued listing of its common stock, after previously being notified on December 30, 2024 that it was out of compliance. Nasdaq confirmed that from December 12 to December 30, 2025, the company’s shares closed at or above $1.00 for 12 consecutive business days, resolving the listing deficiency and closing the matter, which stabilizes the firm’s Nasdaq listing status and averts potential delisting risk for shareholders.

The most recent analyst rating on (BNAI) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Brand Engagement Network inks AI pharma services deal
Positive
Dec 29, 2025

On December 19, 2025, Brand Engagement Network entered into a Vendor Services Project Agreement with a leading global advertising and communications agency to develop a custom AI engagement communication solution for an established prescription drug marketed by a top-10 global pharmaceutical company, whose identity remains confidential. Under the deal, BEN expects to recognize $250,000 in development revenue in the fourth quarter of 2025 from two statements of work, with recurring license fees anticipated to begin in the first quarter of 2026 once the solution is implemented and deployed, adding a new revenue stream and deepening its presence in the healthcare vertical. The company said this agreement, when combined with its exclusive Latin American licensing partnership and its Skye Salud AI healthcare platform initiative in Mexico, is expected to bolster its fourth-quarter 2025 results and underscores growing adoption of its secure AI technology by pharma manufacturers, healthcare providers, and patients in both the U.S. and Mexico.

The most recent analyst rating on (BNAI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing
Brand Engagement Network Reduces Debt Through Equity Conversions
Positive
Dec 22, 2025

In the fourth quarter of 2025, Brand Engagement Network, Inc. moved aggressively to strengthen its balance sheet, converting multiple tranches of debt and short-term liabilities into equity and settling vendor obligations. On December 20, 2025, several long-term investors converted a total of $1,250,004 in loans and other liabilities into common stock at $2.10 per share, with certain investors also receiving short-dated warrants, and these issuances were executed under private placement exemptions. This transaction followed a previously announced December 18, 2025 conversion of $504,684 of affiliate debt into equity at the same price per share, alongside a $250,010 reduction in accounts payable and full satisfaction of more than $487,306 in vendor-related obligations. Altogether, these actions reduced Brand Engagement Network’s outstanding liabilities by approximately $2,492,004 in the quarter, a move the company says enhances its capital structure and provides greater long-term operational and strategic flexibility for stakeholders.

The most recent analyst rating on (BNAI) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Brand Engagement Network reduces liabilities via debt conversion
Positive
Dec 18, 2025

On December 17, 2025, long-term investor BEN Capital Fund One LLC converted $504,684 of matured debt into Brand Engagement Network equity at $2.10 per share, fully satisfying the related principal, accrued interest, and loan fees under certain promissory notes. In parallel, the company negotiated additional reductions in liabilities, including more than $250,010 in accounts payable and the full settlement of vendor-related obligations exceeding $487,306, bringing total liability reductions to over $1.24 million and significantly strengthening its balance sheet and financial flexibility for stakeholders.

The most recent analyst rating on (BNAI) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

Business Operations and Strategy
Brand Engagement Network Forms Strategic Healthcare Partnership
Positive
Dec 11, 2025

On December 11, 2025, Brand Engagement Network, Inc. announced the formation of Skye Salud, a strategic partnership with Skye Inteligencia LATAM and KNOBLOCH Information Group, aimed at modernizing Mexico’s healthcare system using sovereign AI. This initiative addresses critical challenges in Mexico’s healthcare, such as chronic disease management and outdated record systems, by introducing a secure, Spanish-language platform designed to enhance clinical workflows and patient safety. The partnership leverages KNOBLOCH’s extensive pharmaceutical data and BEN’s AI technology, promising significant improvements in healthcare delivery and access for over 130 million people. The project is set to begin pilot programs in Q1 2026, with a broader rollout planned, marking a significant step towards digital health modernization in Mexico.

The most recent analyst rating on (BNAI) stock is a Hold with a $0.28 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

Shareholder MeetingsStock Split
Brand Engagement Network Approves Quorum Reduction Amendment
Neutral
Nov 28, 2025

On November 26, 2025, Brand Engagement Network Inc. held its Annual Meeting of Stockholders where the Board of Directors approved an amendment to reduce the quorum requirement for stockholder meetings from a majority to one-third of the shares entitled to vote, aligning with NASDAQ and SEC regulations. During the meeting, stockholders elected two Class I directors, ratified the selection of L.J. Soldinger Associates, LLC as the independent auditor for 2025, and approved a proposal for a reverse stock split, allowing the Board to determine the exact ratio within a specified range.

The most recent analyst rating on (BNAI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

Business Operations and Strategy
Brand Engagement Network Partners with SKYE LATAM
Positive
Nov 10, 2025

On October 30, 2025, Brand Engagement Network, Inc. (BEN) finalized a strategic partnership with SKYE Inteligencia LATAM to commercialize its AI technology in Latin America and Spain. The agreement grants SKYE LATAM exclusive reseller rights in the government sector and non-exclusive rights in other industries, with BEN receiving a 35% revenue share. This partnership is expected to enhance BEN’s presence in regulated markets, leveraging its AI solutions to meet local data sovereignty mandates and drive digital transformation across the region.

The most recent analyst rating on (BNAI) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on Brand Engagement Network stock, see the BNAI Stock Forecast page.

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: Jan 07, 2026