Atari SA (ALATA) AI Stock Analysis

• Market Cap: €59.49M
• Dividend Yield: N/A
• Average Volume (3M): 210.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.24
• Revenue Growth: 63.11%
• EPS Growth: 10.97%
• Country: FR
• Employees: 1
• Sector: General
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.01
• Shares Outstanding: 559,103,450
• 10 Day Avg. Volume: 279,517
• 30 Day Avg. Volume: 210,798
• PEG Ratio: -0.15
• Price to Book (P/B): 8.08
• Price to Sales (P/S): 2.67
• P/FCF Ratio: -2.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 38 Underperform
• Price Target: €0.10 ▼(-16.67% Downside)
• Action: Reiterated Date: 11/21/25
• Date: Action: Reiterated 11/21/25

Atari SA's overall stock score is primarily impacted by its precarious financial health and bearish technical indicators. The company's strong revenue growth is overshadowed by significant profitability and financial stability concerns, including negative equity and cash flow challenges. The technical analysis further suggests a bearish trend, with the stock trading below key moving averages and indicators pointing to oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, contributing to the low overall score.

Positive Factors

Diversified Revenue Model

Atari's mix of game publishing, IP licensing, and branded consumer products creates multiple, complementary revenue streams. Licensing deals and branded merchandise tend to be lower-capex and can provide recurring royalties, reducing reliance on hit-driven game launches over the medium term.

Revenue Growth

Sustained, double-digit revenue growth indicates stronger product demand and improving monetization of Atari's catalog and partnerships. Over a 2-6 month horizon this trend supports scale benefits, better partner leverage, and the potential to convert top-line gains into more stable licensing pipelines.

Operating Cash Generation

Positive operating cash flow demonstrates the business is generating cash from core activities, providing short-to-medium term liquidity to fund working capital, licensing arrangements or selective investments. It reduces immediate dependence on external financing despite FCF weakness.

Negative Factors

Weak Balance Sheet

Negative equity and an extremely distorted debt-to-equity ratio signal structural solvency risk and a limited financial buffer. This constrains ability to access capital on favorable terms, raises refinancing risk, and reduces flexibility for strategic investments over the coming months.

Persistent Unprofitability

Deep negative EBIT and net margins show that operating costs and overhead erode gross profitability, indicating the core model is not yet delivering sustainable profits. Without meaningful margin improvement or expense control, losses may persist and impair long-term cash generation.

Negative Free Cash Flow

Negative free cash flow means cash after capex is declining, forcing reliance on external financing or asset monetization to fund operations or growth. This structural cash shortfall limits the company's ability to reinvest in content, licensing initiatives, or product development sustainably.

Atari SA Business Overview & Revenue Model

Company Description

Atari SA operates as a multi-platform, interactive entertainment, and licensing products company worldwide. The company provides video games; monetization of video games through multiple channels, multimedia production, and licensing activities; Atari VCS videogame computer system; and Atari Blockchain, which develops and markets non-fungible tokens (NFTs) and develops ecosystem around the Atari Token. It owns and manages a portfolio of approximately 200 games and franchises under the Asteroids, Centipede, Missile Command, Pong, and RollerCoaster Tycoon brands. The company was formerly known as Infogrames Entertainment SA and changed its name to Atari SA in May 2009. Atari SA was founded in 1972 and is based in Paris, France.

How the Company Makes Money

Atari SA primarily generates revenue through a mix of (1) game publishing and sales, (2) licensing and royalties from the Atari brand and intellectual property, and (3) Atari-branded products and other commercial initiatives. 1) Game publishing and sales: Atari earns money by selling and distributing video games and game-related digital content. This can include revenues from digital storefront sales on consoles and PC, mobile distribution, and monetization of its catalog of classic titles and newer releases based on Atari-owned IP. Depending on the title and distribution arrangement, revenue may be recorded net of platform fees and may include revenue share arrangements with external developers or co-publishing partners when applicable. 2) Licensing and royalties: A major component of Atari’s model is licensing its trademarks, characters, and game IP to third parties. Under these agreements, Atari typically receives upfront licensing fees, ongoing royalties based on partner sales, or a combination of both. Licensing can span video games, merchandise, consumer electronics, and other branded experiences. The size and stability of this stream are influenced by the breadth of licensing partners, the commercial performance of licensed products, contract terms (royalty rates, minimum guarantees), and the strength of the Atari brand. 3) Atari-branded products and other initiatives: Atari also monetizes its brand through the sale of Atari-branded hardware and consumer products (for example, retro-oriented devices and related accessories where applicable) and may earn revenue from direct-to-consumer sales channels. Profitability in this area depends on product mix, manufacturing and fulfillment costs, retail or distribution margins, and demand for retro-branded offerings. Key factors influencing earnings include the performance of new releases and back-catalog sales, the cadence and terms of licensing deals, platform visibility and promotion, and the overall market appetite for retro and classic gaming brands. Specific named partnerships, product line breakdowns, or segment revenue shares are null.

Atari SA Financial Statement Overview

Summary

Atari SA is experiencing strong revenue growth, but profitability and financial stability are significant concerns. The company faces challenges with negative net income and high leverage, as indicated by negative equity. While operating cash flow is positive, free cash flow remains negative, suggesting difficulties in sustaining operations without external financing. Overall, the financial health of Atari SA is precarious, with potential risks due to its financial structure and cash flow issues.

Income Statement

Atari SA has shown a significant revenue growth rate of 20.43% in the latest year, indicating a positive trend in sales. However, the company struggles with profitability, as evidenced by a negative net profit margin of -37.5% and an EBIT margin of -21.13%. The gross profit margin is relatively strong at 73.51%, suggesting efficient production or service delivery, but the high operating expenses are eroding profits.

Balance Sheet

The balance sheet reveals a concerning financial structure with a negative stockholders' equity, leading to an extremely high and negative debt-to-equity ratio of -28.27. This indicates potential solvency issues. Return on equity is positive at 6.60%, but this is due to the negative equity base rather than operational efficiency. The equity ratio is not calculable due to negative equity, highlighting financial instability.

Cash Flow

Cash flow analysis shows a mixed picture. Operating cash flow is positive at $8.8 million, which is a positive sign. However, free cash flow remains negative at -$8.1 million, indicating challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 0.40, suggesting some ability to convert income into cash, but the negative free cash flow to net income ratio of -0.92 highlights ongoing cash flow challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	38.80M	33.60M	20.60M	10.10M	14.90M	18.90M
Gross Profit	28.70M	24.70M	1.10M	2.50M	7.90M	800.00K
EBITDA	5.50M	11.10M	1.00M	-3.10M	-19.20M	900.00K
Net Income	-10.70M	-12.60M	-13.50M	-9.50M	-23.80M	-11.90M
Balance Sheet
Total Assets	95.70M	77.10M	78.10M	25.20M	26.00M	40.40M
Cash, Cash Equivalents and Short-Term Investments	4.60M	3.50M	2.60M	1.70M	600.00K	2.50M
Total Debt	58.40M	54.00M	46.10M	9.30M	6.80M	1.90M
Total Liabilities	92.30M	79.01M	71.30M	17.40M	21.60M	16.20M
Stockholders Equity	4.90M	-1.91M	6.80M	7.80M	4.40M	24.20M
Cash Flow
Free Cash Flow	5.80M	-8.10M	-21.20M	-14.10M	-10.00M	-9.30M
Operating Cash Flow	5.80M	8.80M	-4.30M	-8.30M	-5.80M	-4.60M
Investing Cash Flow	-14.80M	-18.60M	-31.20M	-5.60M	-4.30M	-3.10M
Financing Cash Flow	13.10M	9.30M	36.80M	14.70M	7.50M	7.80M

Atari SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.12
• 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 FR:ALATA, the sentiment is Negative. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 25.05 is Positive, neither overbought nor oversold. The STOCH value of 15.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:ALATA.

Atari SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALPUL	62 Neutral	€115.11M	―	-0.44%	6.54%	-14.35%	―
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
GUI	52 Neutral	€64.51M	-4.94	-4.95%	―	-4.89%	-178.32%
NACON	47 Neutral	€17.35M	7.83	-0.36%	―	-4.48%	-105.25%
UBI	45 Neutral	€561.85M	-1.98	-4.52%	―	-11.78%	-28.61%
ALDNE	38 Underperform	€5.33M	-0.16	-97.87%	―	90.92%	24.05%
ALATA	38 Underperform	€59.49M	-2.54	-514.29%	―	63.11%	10.97%