Tapinator (TAPM) AI Stock Analysis

• Market Cap: $423.72K
• Dividend Yield: N/A
• Average Volume (3M): 253.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.98
• Revenue Growth: -1.44%
• EPS Growth: -1893.15%
• Country: US
• Employees: 7
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): N/A
• Shares Outstanding: 2,824,810
• 10 Day Avg. Volume: 18
• 30 Day Avg. Volume: 253
• PEG Ratio: <0.01
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 7.59
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 0.21
• Enterprise Value/Ebitda: 2.67
• 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: 47 Neutral
• Price Target: $0.16 ▼(-31.67% Downside)

The score is primarily held back by deteriorating financial performance (revenue declines and 2024 net losses) and weak technical trend/momentum (below major moving averages with negative MACD). A stronger balance sheet with lower leverage and positive 2024 free cash flow provides some offset, but negative earnings and no dividend data limit valuation support.

Positive Factors

Diversified monetization streams

Tapinator operates multiple durable revenue channels—IAP, ad monetization and publishing/acquisition—reducing reliance on a single monetization lever. This structural mix supports resilience as user behavior or ad CPMs shift and enables growth via acquisitions and optimization over time.

Manageable leverage and equity buffer

Low debt and a positive equity base give Tapinator balance-sheet flexibility to fund UA, development, or acquisitions without pressured deleveraging. This capital structure supports resilience through cyclical ad markets and allows strategic investments without immediate liquidity strain.

Healthy gross margins

A ~58% gross margin signals that core game products monetize efficiently per user, providing room to invest in user acquisition and live-ops. Sustained margins improve the path to profitability as scale or retention improves and support long-term cash generation potential.

Negative Factors

Sharply declining revenue and 2024 net losses

Steep, sustained revenue declines and a reversion to net losses undermine the company’s ability to fund operations and reinvest in games. Over months this constrains live-ops, weakens user acquisition economics, and raises risk the business cannot regain scale without external capital.

Volatile and weakened cash generation

Inconsistent cash conversion and sharply reduced FCF versus prior periods make funding predictable UA and dev cycles difficult. Persistent volatility increases likelihood of financing needs, limits ability to sustain multi-title investment, and raises execution risk over the medium term.

Very small employee base

A tiny team constrains Tapinator’s capacity to develop, operate and market multiple live titles simultaneously. Limited internal resources can slow content updates, UA optimization and scaling, increasing reliance on external partners and hindering durable growth over several months.

Tapinator Business Overview & Revenue Model

Company Description

Tapinator, Inc. develops and publishes mobile games and applications on the iOS, Google Play, and Amazon platforms in North America and Europe. The company's library includes approximately 300 titles, such as Video Poker Classic and Crypto Trillionaire. It also provides in-app purchase and subscription services. The company was founded in 2013 and is headquartered in New York, New York.

How the Company Makes Money

Tapinator generates revenue primarily through in-app purchases and advertising within its mobile games. In-app purchases allow players to buy virtual goods or enhancements that enhance gameplay or provide additional features. Additionally, Tapinator monetizes its games by integrating advertisements, which can include banner ads, interstitial ads, and rewarded video ads. The company often collaborates with advertising networks and partners to optimize ad placements and maximize ad revenue. Tapinator's earnings are significantly influenced by the popularity and engagement levels of its games, as well as its ability to attract and retain a large player base.

Tapinator Financial Statement Overview

Summary

Financial statement scores indicate weakening operating performance: sharp revenue declines and a return to net losses in 2024, with mixed/volatile cash generation despite positive 2024 free cash flow. The balance sheet is comparatively stronger with manageable leverage and positive equity, but returns turned negative in 2024.

Income Statement

Revenue has trended down over time (2024: -171% vs. prior year; 2023: -20%; 2022: -5%), and profitability has weakened meaningfully versus the 2021 peak. Gross margin remains solid (2024 ~58%), but operating performance slipped into losses in 2024 (negative operating profit and negative net margin ~-5%) after only modest profitability in 2023 (~1% net margin). Overall, the income statement shows volatile execution and a deteriorating earnings trajectory despite still-healthy gross profitability.

Balance Sheet

Leverage appears manageable with low debt relative to equity in recent years (debt-to-equity ~0.17 in 2024, down from ~0.50 in 2021 and far better than the highly levered 2020 level). Equity is positive and substantial relative to the company’s debt load, providing balance-sheet flexibility. The key weakness is returns: profitability-driven return on equity turned negative in 2024, indicating the capital base is not currently generating earnings.

Cash Flow

Cash generation is mixed. 2024 produced positive operating cash flow (~$194K) and positive free cash flow (~$190K), but both are sharply lower than prior years and free cash flow growth was deeply negative. Cash conversion also looks weaker than earlier periods (operating cash flow is modest relative to the business scale), while historical results show meaningful volatility (e.g., negative free cash flow in 2022 and 2023, and negative operating cash flow in 2019). The main positive is that 2024 free cash flow was roughly in line with net results, but consistency remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.54M	4.66M	4.44M	5.54M	5.84M	4.45M
Gross Profit	2.69M	2.72M	3.15M	3.54M	4.01M	2.60M
EBITDA	210.84K	519.31K	67.92K	743.76K	1.11M	-19.64K
Net Income	-396.56K	-225.03K	37.69K	285.27K	665.58K	-547.50K
Balance Sheet
Total Assets	2.44M	2.51M	3.15M	2.95M	3.86M	1.27M
Cash, Cash Equivalents and Short-Term Investments	19.79K	52.73K	571.34K	534.60K	1.18M	206.04K
Total Debt	173.56K	195.88K	281.46K	361.85K	430.19K	169.06K
Total Liabilities	1.35M	1.39M	1.81M	1.65M	2.99M	1.24M
Stockholders Equity	1.10M	1.12M	1.35M	1.30M	864.47K	35.63K
Cash Flow
Free Cash Flow	241.53K	190.36K	-132.01K	-300.72K	2.13M	114.82K
Operating Cash Flow	565.11K	193.88K	976.19K	332.38K	2.72M	789.24K
Investing Cash Flow	-836.91K	-712.49K	-939.45K	-882.97K	-1.62M	-674.42K
Financing Cash Flow	0.00	0.00	0.00	-90.00K	-129.97K	-75.79K

Tapinator Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.24
• 50DMA: Negative
• 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 TAPM, the sentiment is Negative. The current price of 0.24 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.23, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TAPM.

Tapinator Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSGM	65 Neutral	$21.73M	40.87	44.93%	―	11.38%	-94.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GIGM	50 Neutral	$17.02M	-13.44	-3.14%	―	10.15%	67.65%
TAPM	47 Neutral	$423.72K	-1.03	-30.66%	―	-1.44%	-1893.15%
BHAT	44 Neutral	$5.71M	-0.06	-14.99%	―	-53.11%	82.68%
TRUG	40 Underperform	$2.81M	-0.02	―	―	―	―