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Enthusiast Gaming Holdings Inc (TSE:EGLX)
:EGLX
RESEARCH TOOLSreports
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Enthusiast Gaming Holdings
(OTC:EGLX)
42Neutral
Positive Factors
Financial Stability
The company’s balance sheet has been meaningfully improved after completing a C$20.0M debt financing, providing stability as the business moves forward.
Profitability Potential
The business has reached an inflection point and should generate revenue growth and quarterly profitability moving forward.
Revenue Growth
The company demonstrated its ability to grow revenue sequentially and generate positive adjusted EBITDA in the quarter, representing an important inflection point.
Negative Factors
Revenue Decline
The reported 3Q24 revenue of C$16.7M represented a 63.2% decline from year ago levels, indicating a significant drop in revenue.
Revenue Shortfall
The company reported 2Q24 revenue of C$14.7M, below the C$24.2M estimate and C$23.6M for the Street, representing a 65.5% decline from year ago levels.
Enthusiast Gaming Holdings (EGLX) vs. S&P 500 (SPY)
Market Cap
C$9.55M
Dividend YieldN/A
Average Volume (3M)104.82K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth-59.27%
EPS Growth20.85%
CountryCA
Employees130
SectorCommunication Services
Sector Strength73
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.60
Shares Outstanding159,169,000
10 Day Avg. Volume141,349
30 Day Avg. Volume104,816
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.14
Price to Cash Flow (P/CF)-0.30
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$0.36Price Target Upside492.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Enthusiast Gaming Holdings Business Overview & Revenue Model
Company DescriptionEnthusiast Gaming Holdings (EGLX) is a prominent digital media company operating in the gaming and esports sectors. The company is headquartered in Canada and focuses on building the largest platform for video game enthusiasts through a combination of news, events, esports content, and a network of gaming-related websites. Enthusiast Gaming's core products and services include online advertising, media partnerships, and live events that cater to a global audience of gaming fans.
How the Company Makes MoneyEnthusiast Gaming Holdings generates revenue through a diverse set of channels centered around its digital media platform. A primary revenue stream is online advertising, leveraging its extensive network of gaming-related websites and media properties to attract advertisers targeting the gaming demographic. The company also earns money through subscription services and premium membership models offered to its community of gamers. Additionally, Enthusiast Gaming capitalizes on live events by organizing and hosting gaming expos and esports tournaments, which provide income through ticket sales, sponsorships, and partnerships with brands interested in reaching a gaming audience. Furthermore, strategic partnerships with game publishers and tech companies enhance its ability to monetize content and expand its reach.
Enthusiast Gaming Holdings Financial Statement Overview
Summary
Enthusiast Gaming Holdings is experiencing financial challenges with declining revenues and ongoing profitability issues. Despite improvements in gross profit margins and cash flow, increased leverage and negative cash flows hinder financial stability.Income Statement
Enthusiast Gaming Holdings has seen a decline in revenue from 2022 to 2023, with a negative revenue growth rate of approximately -12.2%. Gross profit margin increased slightly to 37.8%, indicating some improvement in cost management. However, the company continues to struggle with negative net profit and EBITDA margins, reflecting ongoing profitability challenges.45
Neutral
Balance Sheet
The debt-to-equity ratio improved from 0.08 in 2022 to 0.17 in 2023, which shows increased leverage but remains manageable. The equity ratio decreased to 58.9% in 2023, indicating a reduced proportion of equity in the capital structure. Overall, the balance sheet shows moderate stability with potential risks due to increased debt.55
Neutral
Cash Flow
Operating cash flow remains negative, though it shows some improvement compared to previous years. Free cash flow is also negative, reflecting ongoing cash outflows. The company needs to enhance its cash generation abilities to improve financial health.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 130.73M | 178.18M | 202.84M | 167.36M | 72.76M | 11.76M | Gross Profit |
| 39.97M | 67.42M | 63.46M | 37.77M | 18.46M | 4.52M | EBIT |
| -19.88M | -24.65M | -49.18M | -50.01M | -19.07M | -27.54M | EBITDA |
| -67.68M | -32.15M | -59.80M | -40.36M | -14.60M | -73.04M | Net Income Common Stockholders |
| -104.44M | -117.67M | -76.83M | -52.05M | -26.85M | -78.55M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.16M | 6.85M | 7.54M | 22.79M | 4.45M | 14.02M | Total Assets |
| 5.87M | 242.41M | 341.44M | 387.78M | 222.32M | 169.34M | Total Debt |
| 0.00 | 23.72M | 19.94M | 12.84M | 38.89M | 27.45M | Net Debt |
| -4.16M | 16.87M | 12.52M | -9.81M | 34.57M | 14.24M | Total Liabilities |
| 421.54K | 93.42M | 86.79M | 125.01M | 80.45M | 50.69M | Stockholders Equity |
| 5.44M | 142.72M | 254.65M | 262.77M | 141.87M | 118.66M |
| Cash Flow | Free Cash Flow | ||||
| -9.84M | -2.86M | -26.65M | -23.68M | -15.30M | -16.19M | Operating Cash Flow |
| -9.72M | -2.84M | -26.64M | -23.68M | -15.29M | -15.98M | Investing Cash Flow |
| 4.03M | -767.27K | 4.31M | -33.94M | -12.17M | -26.22M | Financing Cash Flow |
| 5.00M | 3.09M | 6.50M | 76.01M | 18.59M | 51.22M |
Enthusiast Gaming Holdings Technical Analysis
Negative
0.06
Price Trends
0.11
Negative
0.13
Negative
0.14
Negative
Market Momentum
>-0.01
Positive
35.03
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EGLX, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.11, and below the 200-day MA of 0.14, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EGLX.
Enthusiast Gaming Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$5.80B | 9.60 | 10.83% | 3.03% | 796.07% | -35.52% | |
74 Outperform | C$129.60M | ― | -7.16% | ― | 7.29% | -31.64% | |
58 Neutral | $25.21B | 3.07 | -13.86% | 4.29% | 2.47% | -43.03% | |
45 Neutral | C$19.60M | ― | -119.27% | ― | 0.50% | 0.06% | |
45 Neutral | $102.29M | ― | -5.03% | ― | ― | -485.07% | |
42 Neutral | C$9.55M | ― | -95.51% | ― | -59.27% | 20.85% |
* Communication Services Sector Average
Performance Comparison
TSE:EGLX
Enthusiast Gaming Holdings
0.06
-0.12
-66.67%
TSE:MGA
Mega Uranium
0.26
-0.14
-35.00%
TSE:BRAG
Bragg Gaming Group Inc
5.17
-3.45
-40.02%
TSE:SCR
Strathcona Resources
25.07
-7.83
-23.80%
TSE:TGO
TeraGo Inc.
0.95
-0.87
-47.80%
Enthusiast Gaming Holdings Earnings Call Summary
Earnings Call Date: Mar 31, 2025 | % Change Since: -36.84% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a company in transition, with significant improvements in profitability and cost management despite a notable decline in revenue. Key assets and partnerships show promising performance, but challenges such as revenue decline, program sunsetting, and debt covenant compliance issues remain. Overall, the company's strategic focus on high-margin growth and audience expansion presents a balanced outlook.Highlights
Significant Improvement in Adjusted EBITDA
Adjusted EBITDA improved meaningfully in Q4 2024, coming in at $1.9 million compared to a loss of $3 million in Q4 2023, marking a $4.9 million swing toward profitability.
Increase in Gross Margin
Gross margin increased significantly to 76% in Q4 2024, up from 40% in Q4 2023, highlighting the strength of core owned and operated assets and focused monetization strategies.
Cost Structure Improvements
Operating expenses saw a significant reduction with cash-based quarterly OpEx down by over $10 million year-over-year in Q4, reflecting disciplined cost management.
Strong Performance from Key Assets
Assets such as The Sims Resource, Icy Veins, and U.GG showed strong performance, with increased subscribers and expansion into new game titles driving growth.
Expansion of Events and Partnerships
PocketGamer Connects set new records with flagship events and is expanding to new locations in 2025. Partnership with Playwire is delivering higher yields with lower costs.
Lowlights
Revenue Decline
Revenue for Q4 2024 was $17.8 million, down from $47.1 million in Q4 2023, primarily due to the deprioritization of low-margin network revenues.
Challenges with NFL TNG Program
The company decided to sunset the NFL Tuesday Night Gaming program due to high costs and the need for significant sponsorship commitments.
Debt Covenant Compliance Issues
The company was not in compliance with certain covenants under its credit facility, requiring amendments and negotiations with lenders.
Decrease in Paid Subscribers
Paid subscribers were down to 238,000 as of December 31, 2024, from 268,000 as of December 31, 2023, primarily due to the sale of legacy assets.
Company Guidance
During the Enthusiast Gaming Holdings Fourth Quarter 2024 Financial Results Conference Call, the company reported several key metrics. Enthusiast Gaming achieved an adjusted EBITDA of $1.9 million in Q4 2024, marking a $4.9 million improvement from a $3 million loss in Q4 2023. Revenue for Q4 2024 was reported at $17.8 million, down from $47.1 million in the same quarter of 2023, largely due to the strategic deprioritization of low-margin video network segments. However, gross margins significantly increased to 76% from 40% in Q4 2023, indicating a more profitable revenue mix. Operating expenses were sharply reduced, with cash-based quarterly OpEx down by over $10 million year-over-year in Q4. On a full-year basis, revenue for 2024 was $73 million, down from $178 million in 2023, but adjusted EBITDA improved significantly, reducing the loss from $13 million in 2023 to just $153,000 in 2024. Looking forward to 2025, the company expects gross margins to remain strong and is focusing on audience expansion and efficient monetization strategies, leveraging partnerships and increased yields from programmatic revenue streams.Enthusiast Gaming Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Enthusiast Gaming Achieves Financial Milestones and Subscriber Growth in 2024
Positive
Mar 31, 2025
Enthusiast Gaming reported significant financial improvements in Q4 and FY 2024, with a notable increase in adjusted EBITDA and gross margins due to strategic realignment towards high-margin revenue streams. The company emphasized audience expansion and engagement, achieving record subscriber growth and increased platform engagement, driven by popular gaming properties and strategic sales initiatives.
Financial Disclosures
Enthusiast Gaming to Release Q4 and Year-End 2024 Results
Neutral
Mar 26, 2025
Enthusiast Gaming Holdings Inc. is set to announce its financial and operating results for the fourth quarter and year-end 2024 on March 31, 2025. The announcement will be followed by a conference call and webcast, providing stakeholders with insights into the company’s performance and strategic direction.
Product-Related AnnouncementsBusiness Operations and Strategy
Enthusiast Gaming’s Addicting Games Enhances Developer Analytics with ByteBrew Partnership
Positive
Mar 20, 2025
Enthusiast Gaming’s Addicting Games has partnered with ByteBrew to enhance analytics for web game developers. This collaboration aims to provide developers with real-time analytics, monetization tracking, and user acquisition insights, thereby supporting indie and web-based developers in improving game success and exploring new revenue streams.
Business Operations and Strategy
Enthusiast Gaming’s Pocket Gamer Connects to Host 50th Conference in San Francisco
Positive
Mar 13, 2025
Enthusiast Gaming Holdings Inc. announced that its Pocket Gamer Connects (PGC) will host its 50th conference in San Francisco on March 17-18, 2025, coinciding with the Game Developers Conference week. This milestone event will feature a diverse lineup of speakers from major gaming companies and cover cutting-edge topics like AI and web3 technology. Following the success of PGC London, which set attendance records, the San Francisco event aims to provide unparalleled networking and learning opportunities for industry professionals, further solidifying PGC’s position as a premier global gaming conference series.
Business Operations and Strategy
Enthusiast Gaming Expands Pocket Gamer Connects Series Globally
Positive
Feb 20, 2025
Enthusiast Gaming Holdings announced the global expansion of its Pocket Gamer Connects (PGC) conference series, with new events planned for Barcelona and Shanghai in 2025. The expansion reflects the company’s efforts to extend its reach and influence in the gaming industry, leveraging Barcelona’s growing reputation as a gaming hub. The PGC series, known for its networking and business opportunities, has hosted numerous conferences worldwide, significantly impacting the industry by facilitating business meetings and deals.
Business Operations and Strategy
Enthusiast Gaming Expands Global Reach with New Conferences in Barcelona and Shanghai
Positive
Feb 20, 2025
Enthusiast Gaming announced a significant global expansion of its Pocket Gamer Connects series, launching new conferences in Barcelona and Shanghai in 2025. This expansion reflects the company’s strategy to extend its reach into growing markets, leveraging Barcelona’s burgeoning gaming hub status and tapping into Shanghai’s influential gaming scene. The upcoming events aim to foster networking, deal-making, and industry insights, underlining Enthusiast Gaming’s commitment to strengthening its industry position and expanding its influence across multiple continents.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.