MNTN, Inc Class A (MNTN) AI Stock Analysis

• Market Cap: $673.66M
• Dividend Yield: N/A
• Average Volume (3M): 469.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: 31.28%
• EPS Growth: -22.05%
• Country: US
• Employees: 499
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): 0.08
• Shares Outstanding: 44,231,895
• 10 Day Avg. Volume: 497,652
• 30 Day Avg. Volume: 469,085
• PEG Ratio: 1.64
• Price to Book (P/B): -18.85
• Price to Sales (P/S): 8.99
• P/FCF Ratio: 62.23
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: 130.60
• 1Y Price Target: $26.08
• Price Target Upside: 178.63% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.9
• Revenue Forecast (FY): $345.49M

• Rating: 61 Neutral
• Price Target: $9.50 ▲(1.50% Upside)

The score is driven primarily by improving financial quality (debt-free balance sheet and positive free cash flow) and a notably strong, optimistic earnings update with profitability inflecting and robust guidance. These positives are tempered by weak technical momentum (below key moving averages, negative MACD) and limited valuation support given a negative P/E and no dividend.

Positive Factors

Debt-free balance sheet and positive equity

Zero total debt and restored positive equity materially lower solvency risk and provide durable financial flexibility. This enables organic investment in product, sales, and selective M&A without reliance on external financing, supporting multi-quarter resilience in ad-market cycles.

High and improving gross margins

Sustained high gross margins (~76–79%) reflect strong platform economics and scalable delivery of ad services. Durable margin advantage supports long-term operating leverage as revenue scales, improving odds of sustained profitability even with rising go-to-market spend.

Positive operating and free cash flow

Consistent positive operating cash flow and free cash flow begin to self-fund growth and reduce reliance on external capital. This structural cash-generation improvement boosts liquidity for product investment and working capital, increasing resilience over multiple quarters.

Negative Factors

Ongoing net losses and negative net margin

A persistent negative net margin (~-16% TTM) means the company has not yet converted strong top-line and gross-margin performance into durable bottom-line profitability. Continued losses can limit ROE, constrain reinvestment returns, and require sustained margin improvement to support shareholder value.

Concentration in SMB customer base

Heavy reliance on SMBs increases exposure to higher churn, shorter sales cycles, and budget sensitivity. Structurally, SMB-driven revenue can be more volatile across economic cycles, making revenue predictability and customer lifetime value less stable over multiple quarters.

Rising operating expenses and cash-flow volatility

Growing operating expenses and intermittent declines in free cash flow raise the break-even threshold and threaten margin sustainability. If expense growth outpaces durable revenue gains, the company may struggle to lock in the recent profitability inflection across future reporting periods.

MNTN, Inc Class A Business Overview & Revenue Model

Company Description

MNTN, Inc., a performance TV software company, provides performance advertising services in the United States. The company offers Performance TV software platform, enables marketers to target audiences through MNTN Matched technology and then directly attribute each view to a purchase or other action. Its platform provides segmentation tools, intelligent campaign planning, advance audience targeting, prospecting, creative ad builder, and data analytics reporting. MNTN, Inc. was formerly known as Steel House, Inc. and changed its name to MNTN, Inc. in June 2021. The company was incorporated in 2009 and is headquartered in Austin, Texas.

How the Company Makes Money

MNTN generates revenue primarily through its advertising services, where clients pay for access to its programmatic advertising platform and related solutions. The company's revenue model is built on a combination of subscription fees, usage-based billing, and performance-based pricing structures. Key revenue streams include fees from advertisers who utilize the platform to run campaigns, as well as additional revenue from analytics and reporting services that help clients measure the effectiveness of their advertising efforts. Significant partnerships with major digital platforms and data providers also enhance MNTN's capabilities, allowing the company to offer comprehensive solutions that attract a wide range of clients across various industries.

MNTN, Inc Class A Financial Statement Overview

Summary

Mixed but improving fundamentals: strong gross margin profile (~76% TTM), debt-free balance sheet with positive equity, and solid positive free cash flow (~$36M TTM). Offsetting these strengths are continued TTM net losses (TTM net margin ~-16%) and some recent volatility/decline in free cash flow.

Income Statement

Revenue has scaled meaningfully over time and is up ~5% in TTM (Trailing-Twelve-Months) versus the prior period, with a strong gross profit profile (TTM gross margin ~76%). However, profitability remains a clear weak point: TTM net margin is about -16% with continued net losses, despite improvement from deeper losses in prior years. Overall, the model shows improving operating performance, but not yet consistently profitable at the bottom line.

Balance Sheet

The balance sheet has improved materially, highlighted by zero total debt in TTM (Trailing-Twelve-Months) and a return to positive equity (about $267M) after several years of negative equity. That said, recent history shows meaningful balance-sheet strain (negative equity in 2021–2024), and returns for equity holders remain weak due to ongoing net losses (negative return on equity in TTM). Net-net: capital structure strength has improved, but profitability still needs to catch up to support sustained balance-sheet quality.

Cash Flow

Cash generation is a relative strength: TTM (Trailing-Twelve-Months) operating cash flow (~$54M) and free cash flow (~$36M) are solidly positive, a notable turnaround from negative cash flow in 2021–2023. The main drawback is volatility—TTM free cash flow declined ~22% and prior-year cash conversion metrics were weaker—suggesting cash performance may not be perfectly steady yet. Still, the business is currently funding itself with positive operating and free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.81M	225.57M	176.30M	134.19M	99.31M	52.12M
Gross Profit	206.10M	161.52M	123.41M	72.42M	65.97M	32.22M
EBITDA	3.79M	-11.83M	-25.28M	-76.18M	-15.18M	5.46M
Net Income	-44.92M	-32.88M	-53.28M	-94.47M	-12.16M	3.69M
Balance Sheet
Total Assets	335.88M	238.74M	194.80M	203.40M	249.14M	0.00
Cash, Cash Equivalents and Short-Term Investments	179.17M	82.56M	54.97M	50.91M	97.03M	0.00
Total Debt	0.00	50.25M	49.33M	53.55M	48.62M	0.00
Total Liabilities	69.14M	346.34M	300.71M	291.36M	280.67M	0.00
Stockholders Equity	266.73M	-107.60M	-105.91M	-87.97M	-31.53M	0.00
Cash Flow
Free Cash Flow	35.68M	32.60M	-3.05M	-61.02M	-5.02M	6.15M
Operating Cash Flow	53.90M	42.55M	-3.05M	-56.95M	-1.10M	6.15M
Investing Cash Flow	-21.52M	-9.95M	37.79M	-4.07M	-1.36M	-3.11M
Financing Cash Flow	88.40M	-5.00M	-34.88M	14.90M	91.71M	2.12M

MNTN, Inc Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MNTN	61 Neutral	$673.66M	-15.18	―	―	31.28%	-22.05%
AIRG	51 Neutral	$50.46M	-8.32	-19.65%	―	-1.53%	55.08%
VRAR	45 Neutral	$19.41M	-7.18	-19.02%	―	16.60%	70.20%
WLDS	41 Neutral	$6.20M	-0.12	-268.12%	―	-9.05%	77.41%