Newegg Commerce (NEGG) AI Stock Analysis

• Market Cap: $948.68M
• Dividend Yield: N/A
• Average Volume (3M): 158.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.00
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 762
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 19,396,400
• 10 Day Avg. Volume: 115,621
• 30 Day Avg. Volume: 158,511
• PEG Ratio: 0.13
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -34.45
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 7.03
• Enterprise Value/Ebitda: -52.80
• 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: 48 Neutral
• Price Target: $46.00 ▼(-39.86% Downside)

The score is held down primarily by weak financial performance driven by ongoing losses and negative profitability metrics, with only partial offset from improved free cash flow. Technical signals are also unfavorable, with bearish momentum and the price below key moving averages. Valuation cannot be clearly assessed due to missing P/E and dividend yield data.

Positive Factors

Free Cash Flow Improvement

A >300% TTM rise in free cash flow signals materially improved cash generation that can fund inventory, marketing, or debt reduction without relying on equity. This strengthens liquidity and gives management durable optionality to reinvest in growth or stabilize operations over months.

Diversified E‑commerce Model

Newegg's mix of direct retail, third‑party marketplace commissions and advertising creates multiple durable revenue streams. Marketplace network effects and ad monetization scale with traffic, supporting margin expansion and resilience against single-channel shocks over the medium term.

Manageable Leverage

A debt-to-equity around 0.66 suggests moderate leverage that preserves financial flexibility. With improved FCF, this level allows capacity for targeted investment or gradual deleveraging while avoiding immediate refinancing stress, supporting stability across economic cycles.

Negative Factors

Ongoing Losses

Sustained negative EBIT and net income reflect persistent inability to convert revenue into profit. Without a clear path to sustained operating profitability, the company risks eroding equity value, limiting reinvestment and making long-term capital allocation decisions more constrained.

Weak Cash Conversion

Low operating cash flow relative to net income indicates earnings aren't reliably translating into cash, suggesting working capital or noncash adjustments issues. This weak cash conversion can constrain funding for growth and increase sensitivity to supply chain or inventory shocks over months.

Governance/Control Risk

Detention and investigation of the controlling shareholder and board chair create tangible governance and execution risk. Such a structural leadership disruption can affect strategic decisions, access to capital, supplier/partner confidence, and long-term planning until resolved.

Newegg Commerce Business Overview & Revenue Model

Company Description

Newegg Commerce, Inc. operates as an electronics-focused e-retailer in North America. The company offers desktops, laptops, gaming laptops, peripherals, and accessories; CPU/processors, graphic cards, motherboards, storage devices, and computer accessories; home video, home audio, headphones, pro audio/video, cellphones, wearables, and digital cameras; Xbox, Playstation, legacy gaming, and gaming titles; and home networking, commercial networking, server and components, and smart home products. It also provides display and printing, office technology furniture, office supplies, and mailing and inventory supplies; software, digital downloads, warranty and services, 3rd party gift cards, and entertainment products; car electronics, marine and aviation, motorcycles and ATV, performance parts, tools and equipment, and wheels and tires; home improvement tools, home appliances, kitchen utensils, outdoor and garden furniture, pet supplies, and generators; and fitness, sports, and health and beauty supplies. The company operates B2C platforms, including Newegg.com, Newegg.ca, and Newegg Global, as well as mobile apps; and B2B platforms comprising NeweggBusiness.com. The company was founded in 2001 and is headquartered in City of Industry, California. Newegg Commerce, Inc. is a subsidiary of Hangzhou Liaison Interactive Information Technology Co., Ltd.

How the Company Makes Money

Newegg generates revenue primarily through the sale of products on its e-commerce platform, which includes both direct sales and marketplace transactions where third-party sellers list their products. The company's direct sales involve purchasing inventory at wholesale prices and selling them at retail prices, while marketplace sales allow third-party sellers to reach Newegg's customer base, with Newegg earning a commission on each sale. Additionally, Newegg benefits from advertising revenue through sponsored listings and promotional placements on its website. The company has established partnerships with various technology brands and manufacturers, enhancing its product offerings and driving sales. Seasonal promotions, exclusive deals, and membership programs also contribute to customer retention and revenue growth.

Newegg Commerce Financial Statement Overview

Summary

Core profitability remains weak (negative EBIT and net income), despite modest TTM revenue growth and a slight improvement in gross margin. Leverage appears moderate (debt-to-equity 0.66), and free cash flow improved sharply, but negative ROE and ongoing losses keep the financial profile below average.

Income Statement

Newegg Commerce's income statement shows a challenging financial position with negative net profit margins and EBIT margins in the TTM period. Despite a slight revenue growth of 3.04% in the TTM, the company has struggled with profitability, as indicated by negative EBIT and net income. The gross profit margin has improved slightly compared to the previous year, but overall profitability remains a concern.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.66 in the TTM. The equity ratio is stable, but the return on equity is negative, reflecting ongoing losses. The company's financial stability is moderate, but the negative ROE highlights profitability challenges.

Cash Flow

Newegg's cash flow statement shows significant improvement in free cash flow, with a growth rate of 304.89% in the TTM. The operating cash flow to net income ratio is low, indicating limited cash generation from operations relative to net income. However, the positive free cash flow growth is a positive sign amidst other financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.31B	1.24B	1.50B	1.72B	2.38B	2.11B
Gross Profit	148.16M	120.78M	167.56M	216.63M	325.98M	273.63M
EBITDA	-19.73M	-32.95M	-45.69M	-31.62M	41.88M	38.93M
Net Income	-22.55M	-43.33M	-58.99M	-57.43M	36.26M	30.43M
Balance Sheet
Total Assets	372.74M	407.32M	499.05M	542.10M	626.58M	557.47M
Cash, Cash Equivalents and Short-Term Investments	59.06M	99.74M	102.51M	122.56M	99.99M	156.63M
Total Debt	75.45M	73.00M	90.56M	96.83M	107.23M	56.38M
Total Liabilities	258.64M	301.23M	369.65M	386.87M	444.30M	429.97M
Stockholders Equity	114.10M	106.09M	129.39M	155.22M	182.28M	127.50M
Cash Flow
Free Cash Flow	8.77M	-4.44M	-34.10M	11.29M	-67.13M	78.36M
Operating Cash Flow	12.42M	-821.00K	-3.84M	20.48M	-53.29M	84.51M
Investing Cash Flow	3.04M	2.44M	-14.25M	-3.77M	-13.84M	-5.24M
Financing Cash Flow	-7.74M	-6.05M	1.56M	1.55M	12.74M	-1.73M

Newegg Commerce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NEGG, the sentiment is Negative. The current price of 76.49 is above the 20-day moving average (MA) of 51.22, above the 50-day MA of 58.39, and above the 200-day MA of 44.30, indicating a neutral trend. The MACD of -1.73 indicates Negative momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 37.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NEGG.

Newegg Commerce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	70 Outperform	$38.80B	20.10	42.43%	1.38%	4.89%	17.30%
GPC	69 Neutral	$20.58B	24.61	17.05%	3.33%	3.26%	-25.41%
BBY	62 Neutral	$14.35B	21.65	22.49%	5.46%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CHWY	61 Neutral	$11.44B	56.91	59.58%	―	9.80%	-46.84%
W	58 Neutral	$11.85B	-35.52	―	―	3.35%	42.99%
NEGG	48 Neutral	$948.68M	―	―	―	―	―

Newegg Commerce Corporate Events

Newegg Says Chairman’s Detention Not Disrupting Operations

On January 20, 2026, Newegg Commerce, Inc. disclosed that the chief executive officer of its largest stockholder, Hangzhou Lianluo Interactive Information Technology Co., Ltd., and Newegg’s board chairman, Zhitao He, has been detained, according to a public announcement made by Lianluo. The company emphasized that He’s detention has not affected Newegg’s current business or day-to-day operations and that its board of directors continues to function in the ordinary course, signaling management’s intent to reassure investors and stakeholders about operational stability despite the governance uncertainty surrounding a key shareholder and board leader.

The most recent analyst rating on (NEGG) stock is a Sell with a $50.00 price target. To see the full list of analyst forecasts on Newegg Commerce stock, see the NEGG Stock Forecast page.