Cheer Holding (CHR) AI Stock Analysis

• Market Cap: $4.68M
• Dividend Yield: N/A
• Average Volume (3M): 23.36M
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.36
• Revenue Growth: -5.65%
• EPS Growth: -41.43%
• Country: US
• Employees: 122
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): N/A
• Shares Outstanding: 4,686,248
• 10 Day Avg. Volume: 23,338,138
• 30 Day Avg. Volume: 23,364,198
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00915
• P/FCF Ratio: 0.08
• Enterprise Value/Market Cap: -32.54
• Enterprise Value/Revenue: -0.98
• Enterprise Value/Gross Profit: -1.33
• Enterprise Value/Ebitda: -4.08
• 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: 59 Neutral
• Price Target: $0.92 ▼(-48.89% Downside)
• Action: Downgraded Date: 03/22/26
• Date: Action: Downgraded 03/22/26

The score is held up by solid underlying financial quality—especially a strong, low-leverage balance sheet and historically healthy profitability—but pressured by weakening operating momentum (multi-year revenue declines and inconsistent free cash flow) and very weak technicals (broad downtrend with negative MACD despite oversold readings).

Positive Factors

Balance sheet strength

Cheer’s very low leverage and materially expanded equity base provide durable financial flexibility. A conservative balance sheet reduces refinancing risk, supports investment in platform development or M&A, and helps the company withstand cyclicality in advertising and consumer spend over the medium term.

High margin profile

Consistently high gross and healthy net margins reflect the economics of a digital content and livestreaming platform with low variable costs. Margin strength supports internal funding for product, marketing and platform improvements, helping preserve profitability even if top-line growth is uneven.

Underlying cash generation

Operating cash flow positive annually indicates an underlying cash-generative core to the business. Recent rebounds in free cash flow show the company can convert profits into spendable cash in favorable periods, supporting operations and selective reinvestment without constant external funding.

Negative Factors

Multi-year revenue decline

Three consecutive years of revenue decline weaken the platform’s growth trajectory. For a model dependent on user engagement and commerce, sustained top-line erosion undermines network effects, limits scalability, pressures long-term reinvestment capacity, and raises the bar for management to restore growth.

Volatile free cash flow

Intermittent negative free cash flow and uneven cash conversion reduce predictability of internal funding. That volatility complicates budgeting for capex, product development and potential shareholder returns, and increases the risk the company must tap external financing or dilute equity during weaker periods.

Concentrated governance & capital actions

A dual-class structure concentrating voting power with insiders limits minority shareholder influence and can entrench management. Repeated share consolidations to address listing compliance and share count underscore structural liquidity and governance frictions that may constrain minority protections and long-term investor confidence.

Cheer Holding Business Overview & Revenue Model

Company Description

Cheer Holding, Inc., through its subsidiaries, provides advertisement and content production services in the People's Republic of China. It operates through Cheers APP Internet Business and Traditional Media Businesses segments. The company also engages in mobile and online advertising, and media and entertainment businesses. In addition, it operates CHEERS app, an integrated e-commerce service with professionally produced content; CHEERS Video app, a media platform that engages users with content and develops lifestyle short videos and interactive live-broadcasting; and CHEERS e-Mall, an e-Mall app that offers products to the users through third party merchants through live streaming, online short videos, and online games. Further, the company provides CHEERS Telepathy, a multimodal artificial intelligence content creation platform; CHEERS API, a platform that provides industry digital transformation solutions and data integration; CheerCar, an interactive entertainment app; CheerReal, a digital collection NFT app; CheerChat App, an AI social app; and CHEERS Metaverse, a platform to provide immersive digital experiences. It also produces short videos, online variety shows, drama, live streams, and Cheers series. The company was formerly known as Glory Star New Media Group Holdings Limited and changed its name to Cheer Holding, Inc. in November 2023. Cheer Holding, Inc. was founded in 2016 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Cheer Holding’s revenue model is based on monetizing user activity and commerce on its platforms. Key monetization mechanisms have historically included: (1) virtual-item and gifting revenues tied to livestreaming/social entertainment, where users purchase virtual goods and spend them during interactions, with the platform retaining a portion of the proceeds; (2) advertising and marketing-related income generated from traffic and user engagement on its apps/platforms, where advertisers pay for exposure or performance-based placements; and (3) e-commerce-related revenues, where the company earns fees/commissions and related service income connected to transactions facilitated through its ecosystem. The mix and significance of these streams can vary by period, and any specific segment-level revenue breakdowns or named major partnerships are null unless explicitly disclosed in the company’s filings for the relevant period.

Cheer Holding Financial Statement Overview

Summary

Financials are stable overall: a strong, conservatively financed balance sheet (very low leverage and expanded equity) supports resilience, and profitability has been solid. Offsetting this, revenue has declined for three straight years and cash-flow conversion has been uneven with periods of negative free cash flow, reducing confidence in consistency.

Income Statement

Profitability is solid for the sector, with consistently high gross margin (~69%–77%) and healthy net margin (~17%–40%) across 2020–2024, supported by positive EBIT performance each year. However, growth has clearly cooled: revenue has declined slightly for three straight years (2023–2025), and margins have trended down from the unusually strong 2020–2021 period, pointing to a less favorable operating trajectory.

Balance Sheet

The balance sheet looks strong and conservatively financed, with very low leverage (debt-to-equity roughly ~2%–11% in 2020–2024) and a large equity base that has expanded materially over time. Returns on equity have moderated (from very high levels in 2020–2021 to mid-single/low-double digits in 2023–2024), suggesting profitability is still good but not as outsized as earlier years.

Cash Flow

Cash generation is mixed. Operating cash flow is positive each year, and free cash flow rebounded strongly in 2023 and appears positive again in 2025 (annual), but 2022 and 2024 show negative free cash flow and weaker conversion of profits into operating cash (notably in 2022–2024). This volatility reduces confidence in the consistency of cash earnings despite reported profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	155.95M	148.84M	147.20M	152.33M	157.08M	153.01M
Gross Profit	114.46M	105.63M	107.81M	112.78M	116.50M	118.07M
EBITDA	37.30M	33.29M	29.41M	33.06M	30.06M	39.36M
Net Income	34.15M	25.62M	25.97M	30.48M	26.89M	35.29M
Balance Sheet
Total Assets	333.24M	401.69M	346.59M	327.63M	205.96M	195.17M
Cash, Cash Equivalents and Short-Term Investments	186.38M	242.08M	197.66M	194.53M	70.48M	77.30M
Total Debt	8.64M	9.45M	11.32M	5.95M	5.10M	6.42M
Total Liabilities	47.09M	31.92M	41.52M	47.63M	33.46M	35.71M
Stockholders Equity	286.07M	369.68M	304.99M	279.93M	172.43M	158.91M
Cash Flow
Free Cash Flow	8.26M	17.94M	-1.99M	42.17M	-250.00K	43.66M
Operating Cash Flow	8.25M	17.94M	22.88M	42.17M	7.74M	46.45M
Investing Cash Flow	59.00K	-709.00K	-24.86M	-3.00K	-7.99M	-1.05M
Financing Cash Flow	24.98M	17.82M	10.55M	82.02M	508.00K	13.29M

Cheer Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHR, the sentiment is Negative. The current price of 1.8 is above the 20-day moving average (MA) of 1.13, above the 50-day MA of 1.33, and below the 200-day MA of 28.16, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 25.20 is Positive, neither overbought nor oversold. The STOCH value of 19.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHR.

Cheer Holding 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%
CHR	59 Neutral	$4.68M	0.05	7.01%	―	-5.65%	-41.43%
WIMI	56 Neutral	$40.78M	2.19	13.73%	―	-27.98%	―
FLNT	53 Neutral	$115.58M	-2.29	-127.41%	―	-18.94%	37.05%
SWAG	52 Neutral	$31.09M	-6.15	-5.04%	―	44.40%	48.49%
DRCT	43 Neutral	$1.83M	-6.52	―	―	-62.46%	-12.90%
HHS	41 Neutral	$19.06M	-27.44	-26.62%	―	-11.07%	82.06%

Cheer Holding Corporate Events

Cheer Holding Shareholders Approve Class A Share Consolidation and Capital Reduction

On March 16, 2026, Cheer Holding, Inc. held an Extraordinary General Meeting in Beijing at which shareholders approved, as a special resolution subject to conditions, a restructuring of the company’s authorised share capital. The move consolidates every three Class A ordinary shares of US$0.05 par value into one Class A ordinary share of US$0.15 par value, reduces the total authorised Class A count from 10,000,000 to 3,333,333, and cancels one authorised but unissued Class A share, while leaving Class B and preferred share authorisations unchanged.

The board retains discretion over the timing and implementation of the share consolidation and reduction, signaling flexibility in how Cheer Holding manages its capital structure and exchange listing considerations. The adjustment marginally reduces total authorised capital from US$500,700 to US$500,699.95 and is expected to streamline the company’s share base, with potential implications for liquidity, trading dynamics and compliance with market listing standards once implemented.

The most recent analyst rating on (CHR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

Cheer Holding Sets March 16, 2026 Vote on Share Consolidation and Capital Reduction

Cheer Holding, Inc., a Cayman Islands exempted company headquartered in Beijing and listed in the U.S. as a foreign private issuer, has called an extraordinary general meeting for March 16, 2026, in Beijing for holders of its Class A and Class B ordinary shares of record as of February 24, 2026. Shareholders will vote on a special resolution to restructure the company’s authorized share capital by cancelling one unissued Class A share and consolidating every three Class A ordinary shares into one share with a higher par value, a move that could affect share count, trading dynamics and capital structure flexibility, with implementation timing left to the board’s discretion.

The company has circulated a proxy statement and proxy card dated February 27, 2026, outlining voting procedures, including internet and mail options, and confirming that each Class A share carries one vote while each Class B share carries 100 votes. The outcome of the March 16 vote will determine whether the proposed share consolidation and capital reduction proceed, potentially influencing Cheer Holding’s equity profile and governance balance for existing shareholders.

The most recent analyst rating on (CHR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.

Cheer Holding Retains Nasdaq Listing After Share Consolidation Restores Bid Price Compliance

On November 19, 2025, Cheer Holding, Inc. was notified by Nasdaq that it was out of compliance with the $1.00 minimum bid price requirement and, because its shares had traded at $0.10 or less for ten consecutive days as of November 18, 2025, was also subject to Nasdaq’s low-priced stocks rule, prompting a determination to delist its securities unless the company successfully appealed. The board and shareholders approved a 50‑for‑1 share consolidation, which took effect on December 22, 2025 and began trading on a post-consolidation basis on December 23, 2025, and after the company presented its compliance plan at a Nasdaq Hearings Panel meeting on January 13, 2026, the panel notified Cheer Holding on January 27, 2026 that it had regained compliance with Nasdaq’s minimum bid price rule and would be allowed to continue its listing, stabilizing its market position and preserving access to U.S. capital markets.

The most recent analyst rating on (CHR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Cheer Holding stock, see the CHR Stock Forecast page.