Azerion Group N.V (AZRN) AI Stock Analysis

• Market Cap: €126.30M
• Dividend Yield: N/A
• Average Volume (3M): 20.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -0.63%
• EPS Growth: 74.14%
• Country: US
• Employees: 1,000
• Sector: Services
• Sector Strength: N/A
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.07
• Shares Outstanding: 122,870,790
• 10 Day Avg. Volume: 12,673
• 30 Day Avg. Volume: 20,950
• PEG Ratio: <0.01
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 0.26
• P/FCF Ratio: -10.83
• 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: 41 Neutral
• Price Target: €1.00 ▼(-20.63% Downside)

Azerion Group N.V faces significant financial challenges with declining profitability, high leverage, and negative cash flow. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and showing oversold conditions. Valuation is poor, with a negative P/E ratio and no dividend yield, reflecting significant financial distress. These factors collectively result in a low overall stock score.

Positive Factors

Diversified revenue streams (advertising and gaming)

The company’s two-pronged model—digital advertising across owned/third-party inventory plus monetized gaming/content—provides structural diversification. This reduces reliance on a single demand source, enables cross-selling between ad tech and content, and supports resilience across advertising cycles.

Sustained top-line expansion

Positive revenue growth despite broader profitability issues indicates underlying customer demand and distribution traction. Sustained top-line expansion provides a base for margin recovery if costs are controlled, and supports longer-term strategic investments in platform and content monetization.

Operational cash generation signal

A positive operating-cash-to-net-income ratio implies core operations produce cash even with accounting losses, which supports ongoing operations and provides partial runway. Over months, this operational cash capability can be critical to funding product development or restructuring without immediate external financing.

Negative Factors

Very high financial leverage

Extremely elevated leverage materially increases interest, refinancing and solvency risk. With equity a small portion of the capital base, adverse cash flow swings or weaker ad demand can rapidly erode flexibility, constrain strategic options, and force dilutive or costly financing interventions.

Negative and declining free cash flow

Persistently negative free cash flow limits the firm’s ability to reinvest, pay down debt, or absorb shocks without external funding. Over a multi-month horizon this weakens operational independence, increases reliance on capital markets, and raises the probability of balance-sheet restructurings if trends persist.

Deteriorating margins and profitability

Falling gross margins and a substantial net loss indicate structural cost pressures or pricing challenges. If margin compression persists, the business will struggle to generate sustainable returns even with revenue growth, impairing long-term competitiveness and making it harder to service high leverage.

Azerion Group N.V Business Overview & Revenue Model

Company Description

Azerion Group N.V. is a leading digital entertainment and media company that operates within the interactive gaming and advertising sectors. The company provides a wide array of services including online gaming platforms, ad tech solutions, and content monetization tools, primarily targeting audiences in Europe. Azerion's core products encompass casual games, social gaming experiences, and a comprehensive advertising network that connects advertisers with a diverse range of digital content.

How the Company Makes Money

Azerion makes money through multiple revenue streams, primarily by monetizing its gaming platforms and digital advertising services. The company generates income from in-game purchases, subscription fees, and advertising revenues, where advertisers pay to promote their products across Azerion's network of games and websites. Additionally, Azerion benefits from partnerships with content developers and publishers, which allow for revenue sharing and increased exposure. The company also capitalizes on data analytics to optimize ad placements and enhance user engagement, further driving its financial performance.

Azerion Group N.V Financial Statement Overview

Summary

Azerion Group N.V demonstrates a challenging financial situation with declining profitability, high leverage, and negative cash flow. The income statement shows revenue growth but deteriorating margins and profitability. High debt levels on the balance sheet pose financial risks, alongside diminishing equity. Cash flow is under pressure, with negative free cash flow highlighting operational struggles.

Income Statement

The company shows a volatile income statement with fluctuating profitability. The gross profit margin has decreased to 31.5% in the most recent period from 35.5% in the previous year, indicating possible cost pressures. The net profit margin is negative, with a significant net loss of €57.9 million for the latest period, showing a declining trend from a positive net income in the prior year. This is a critical weakness. Revenue grew by 7% from 2023 to 2024, but the EBIT margin turned negative, indicating operational challenges.

Balance Sheet

The balance sheet reveals a concerning debt position with a debt-to-equity ratio of 5.83, highlighting high leverage which poses a risk. Stockholders' equity decreased significantly, reflecting financial deterioration. The equity ratio stands at only 7.42%, indicating low equity compared to assets. Return on equity is negative due to losses, emphasizing weak shareholder returns.

Cash Flow

Cash flow analysis shows a declining trend in free cash flow, turning negative in the most recent period. The operating cash flow to net income ratio is positive, suggesting some ability to generate cash despite net losses. However, free cash flow to net income is negative, reflecting cash flow challenges. The free cash flow growth rate is negative compared to the previous year, showing worsening cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	590.60M	551.20M	515.00M	452.60M	308.10M
Gross Profit	185.30M	173.80M	182.70M	166.30M	120.90M
EBITDA	40.40M	17.80M	118.20M	-79.50M	33.40M
Net Income	-31.00M	-57.90M	23.70M	-134.30M	-19.60M
Balance Sheet
Total Assets	607.60M	679.10M	652.00M	638.50M	382.48M
Cash, Cash Equivalents and Short-Term Investments	88.70M	90.60M	40.30M	50.90M	1.45M
Total Debt	271.00M	293.60M	184.60M	228.60M	224.80M
Total Liabilities	563.70M	621.90M	542.40M	542.30M	404.69M
Stockholders Equity	35.70M	50.40M	104.30M	93.80M	-22.20M
Cash Flow
Free Cash Flow	-27.90M	-13.00M	25.10M	23.20M	5.90M
Operating Cash Flow	-6.30M	7.80M	49.90M	44.90M	24.00M
Investing Cash Flow	3.80M	-36.80M	-5.30M	-75.80M	-83.10M
Financing Cash Flow	25.10M	80.10M	-55.40M	47.40M	84.00M

Azerion Group N.V Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:AZRN, the sentiment is Negative. The current price of 1.26 is above the 20-day moving average (MA) of 1.11, above the 50-day MA of 1.16, and below the 200-day MA of 1.28, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 29.66 is Positive, neither overbought nor oversold. The STOCH value of 25.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NL:AZRN.

Azerion Group N.V Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LVIDE	46 Neutral	€4.15M	―	―	―	―	―
FAST	46 Neutral	€430.60M	-12.59	―	―	48.95%	-64.87%
AZRN	41 Neutral	€126.30M	-13.22	―	―	-0.63%	74.14%