Huddled Group (HUD) AI Stock Analysis

• Market Cap: £8.22M
• Dividend Yield: N/A
• Average Volume (3M): 789.14K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.20
• Revenue Growth: 141.40%
• EPS Growth: -41.57%
• Country: UK
• Employees: 93
• Sector: Communication Services
• Sector Strength: 97
• Industry: Entertainment
• EPS (TTM): >-0.01
• Shares Outstanding: 391,561,280
• 10 Day Avg. Volume: 408,814
• 30 Day Avg. Volume: 789,142
• PEG Ratio: 0.02
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -2.53
• 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: 46 Neutral
• Price Target: 2.00p ▲(2.56% Upside)

The score is primarily held down by weak financial performance—ongoing losses, thin/negative margins, and negative free cash flow—despite strong revenue growth and a low-debt balance sheet. Technicals are mixed with only modest short-term strength, and valuation is constrained by negative earnings and no dividend support.

Positive Factors

Rapid Revenue Growth

Sustained, high revenue growth demonstrates strong product-market fit for its subscription offerings and expansion across education, non-profit and corporate segments. Over 2–6 months this supports recurring revenue scale, network effects and the ability to invest in product and sales capacity.

Strong Balance Sheet Position

Very low leverage and a high equity ratio provide financial resilience and flexibility to fund growth initiatives without heavy interest burdens. This durable strength reduces insolvency risk and gives management optionality to pursue partnerships or capex over the medium term.

Strategic Partnership & Fundraising

A major partnership and fresh fundraising enhance distribution, credibility and resources to scale enterprise and education deployments. Structurally, this can accelerate customer acquisition, enable bulk licensing and improve unit economics if integrated into long-term go-to-market execution.

Negative Factors

Persistent Unprofitability

Ongoing operating losses and weak gross margins indicate the company has not achieved sustainable unit economics. Over months this threatens equity value and requires either material margin improvement or continued capital raises to avoid dilution and preserve long-term viability.

Negative and Worsening Cash Flow

Worsening free cash flow and negative operating cash conversion reduce internal funding for growth and increase reliance on external financing. Structurally, persistent cash burn constrains strategic options, risks dilution, and limits investment in product and sales until operating cash improves.

Margin & Operational Efficiency Risk

Revenue scale without margin improvement points to structural inefficiencies—pricing, cost base, or high customer acquisition costs. Without sustained margin expansion, top-line growth may not translate to lasting profitability, challenging long-term returns and capital efficiency.

Huddled Group Business Overview & Revenue Model

Company Description

Huddled Group Plc provides virtual reality headsets under the Vodiac brand name in the United Kingdom. The company engages in the direct-to-consumer e-commerce business, which focuses on the sale of dry groceries and beverages, surplus, short-dated, end of line, and mispackaged items under the Discount Dragon name. It offers in home virtual reality (VR) equipment and experiences; protein bars under the Nutricircle brand; and VR headsets and movies under the Let's Explore band name. The company was formerly known as Let's Explore Group PLC and changed its name to Huddled Group Plc in October 2023. Huddled Group Plc was founded in 1996 and is based in Nottingham, the United Kingdom.

How the Company Makes Money

Huddled Group generates revenue through a subscription-based model, offering tiered pricing plans for its software products that cater to different user needs and organizational sizes. Additional revenue streams include premium service offerings, such as personalized training sessions, consulting services, and custom software development for enterprise clients. Strategic partnerships with educational institutions and corporate entities also contribute to its earnings, facilitating bulk licensing agreements and joint initiatives that expand its user base and market reach.

Huddled Group Financial Statement Overview

Summary

Strong revenue growth (2023 to 2024), but persistent negative EBIT and net income and weak margins weigh heavily. Balance sheet leverage is low with a high equity ratio, yet negative returns and worsening negative free cash flow indicate ongoing operational and cash-generation strain.

Income Statement

The company's revenue has shown significant growth from 2023 to 2024, increasing from 2.42 million to 14.22 million, which is a positive indicator. However, the company has consistently reported negative EBIT and net income, indicating ongoing operational challenges and profitability issues. The gross profit margin is very low, and the net profit margin is negative, reflecting difficulties in managing costs relative to revenue.

Balance Sheet

The company maintains a strong equity position with a high equity ratio of 74.7% in 2024, indicating financial stability. The debt-to-equity ratio is low at 0.01, suggesting minimal reliance on debt financing. However, the return on equity is negative due to net losses, which impacts overall shareholder value.

Cash Flow

The company has negative free cash flow, which has slightly worsened from 2023 to 2024. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net losses. The free cash flow to net income ratio is also negative, reflecting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.43M	14.22M	2.42M	796.00K	2.53M	2.85M
Gross Profit	-127.00K	118.00K	-45.00K	-238.00K	95.00K	-2.00M
EBITDA	-3.52M	-3.53M	-1.80M	-1.75M	-1.77M	-2.27M
Net Income	-4.06M	-3.85M	12.98M	-661.00K	-2.00M	-4.73M
Balance Sheet
Total Assets	6.82M	8.68M	11.05M	7.49M	7.56M	8.62M
Cash, Cash Equivalents and Short-Term Investments	552.00K	1.64M	4.27M	51.00K	1.10M	1.66M
Total Debt	661.00K	63.00K	28.00K	73.00K	460.00K	742.00K
Total Liabilities	2.32M	2.20M	748.00K	2.16M	1.84M	1.91M
Stockholders Equity	4.54M	6.49M	10.30M	5.32M	5.72M	6.71M
Cash Flow
Free Cash Flow	-4.02M	-3.67M	-3.64M	-739.00K	-609.00K	-3.71M
Operating Cash Flow	-3.69M	-3.23M	-3.20M	1.57M	220.00K	-2.09M
Investing Cash Flow	375.00K	510.00K	19.07M	-2.28M	-788.00K	-1.39M
Financing Cash Flow	583.00K	89.00K	-11.93M	-55.00K	3.00K	4.67M

Huddled Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HUD, the sentiment is Positive. The current price of 1.95 is below the 20-day moving average (MA) of 1.98, above the 50-day MA of 1.92, and below the 200-day MA of 2.78, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 62.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HUD.

Huddled Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEBB	73 Outperform	£75.61M	13.75	7.09%	4.25%	1.24%	7.54%
BBSN	70 Outperform	£80.44M	42.66	5.43%	0.60%	1.92%	-75.53%
DBOX	65 Neutral	£5.19M	-20.95	-3.35%	―	20.71%	96.18%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZIN	53 Neutral	£11.96M	-8.04	―	―	-19.68%	-72.15%
OMIP	48 Neutral	£8.34M	-125.00	6.49%	―	-14.03%	-142.86%
HUD	46 Neutral	£8.22M	-1.67	-59.40%	―	141.40%	-41.57%

Huddled Group Corporate Events

Huddled Group Lifts Revenue 47% and Targets Marketplace-Led Growth

Huddled Group reported unaudited 2025 revenue of about £19 million, a year-on-year increase of roughly 47% in line with market expectations, alongside an adjusted EBITDA loss of approximately £2.5 million, as it improved product ranges at Discount Dragon and Nutricircle and completed migration of all brands to logistics partner THG Fulfil. The company is aggressively broadening its sales channels by launching on Temu, expanding to Amazon and OnBuy, and signing promotional agreements with major UK deal communities LatestDeals and HotUKDeals after successful trials, while also exploring TikTok commerce; management says these variable-commission, high-traffic platforms, underpinned by strengthened fulfilment and longer order cut-off times for next-day delivery, create scalable, higher-margin growth opportunities that can enhance brand visibility and drive significant future revenue for the Group.

The most recent analyst rating on (GB:HUD) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Huddled Group stock, see the GB:HUD Stock Forecast page.

Huddled Group Lifts Revenue 47% as It Bets on Robotic Fulfilment and Surplus Marketplace

Huddled Group reported an estimated 47% rise in full-year 2025 revenue to about £19m, driven by operational restructuring, the migration of all brands to THG Fulfil’s robotic logistics platform and disciplined focus on basket margin and average order value. Discount Dragon and Nutricircle both achieved recent divisional adjusted EBITDA profitability after range and pricing optimisation, improved fulfilment and the opening of new sales channels, while Boop Beauty’s growth in its customer base to around 50,000 was offset by supply issues and the fulfilment transition, delaying profitability until at least 2026. The company has strengthened its leadership team, including the appointment of retail specialist Michael Ashley as Group CEO, and is expanding its multi-channel strategy through marketplaces like Amazon and TikTok and the soft launch of its own surplus marketplace, KwikSales.com, which aims to deepen relationships with suppliers seeking efficient stock clearance and could materially enhance Huddled’s scale and operational leverage.

The most recent analyst rating on (GB:HUD) stock is a Hold with a £2.00 price target. To see the full list of analyst forecasts on Huddled Group stock, see the GB:HUD Stock Forecast page.

Huddled Group to Feature in Channel 4 Docuseries on Discount Shopping

Huddled Group plc will be featured in Channel 4’s docuseries ‘Secrets of Supercheap Shopping’, highlighting its role as a leading discount disruptor through its brand, Discount Dragon. The series comes at a time when the cost of living is rising, and more consumers are turning to discount retailers to manage their budgets. By redistributing surplus goods, Huddled not only aids in tackling food insecurity and climate change but also provides a business model that benefits both consumers and the environment.

The most recent analyst rating on (GB:HUD) stock is a Hold with a £2.50 price target. To see the full list of analyst forecasts on Huddled Group stock, see the GB:HUD Stock Forecast page.