Enthusiast Gaming Holdings (EGLX) AI Stock Analysis

• Market Cap: C$7.96M
• Dividend Yield: N/A
• Average Volume (3M): 141.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.55
• Revenue Growth: -53.67%
• EPS Growth: -127.21%
• Country: CA
• Employees: 130
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.03
• Shares Outstanding: 159,169,000
• 10 Day Avg. Volume: 87,144
• 30 Day Avg. Volume: 141,889
• PEG Ratio: 0.01
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -1.02
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: C$0.05 ▼(-2.00% Downside)

Enthusiast Gaming Holdings faces considerable financial challenges, with declining revenues and persistent losses weighing heavily on its overall score. Despite this, recent corporate events suggest a positive strategic realignment, with profitability achieved in Q3 2025 and strong shareholder support. Technical indicators show a bearish trend, and valuation metrics are unattractive due to ongoing losses. The company's future growth prospects hinge on its ability to sustain operational improvements and capitalize on strategic initiatives.

Positive Factors

Business Model Diversification

The diversified revenue streams from advertising, sponsorships, and affiliate marketing provide resilience against market fluctuations, supporting long-term stability.

Market Position in Gaming

Enthusiast Gaming's strong presence in the gaming sector positions it well to capitalize on the growing interest in esports and gaming content, supporting future growth.

Gross Profit Margin

A healthy gross profit margin indicates efficient cost management in core operations, which can support profitability improvements as revenue stabilizes.

Negative Factors

Declining Revenue

The sharp decline in revenue indicates challenges in maintaining market share or monetization, potentially impacting long-term growth prospects.

Persistent Losses

Ongoing net losses reflect operational inefficiencies and may hinder investment in growth initiatives, affecting long-term viability.

High Debt Levels

High reliance on debt financing can strain financial flexibility and increase risk, especially if revenue challenges persist.

Enthusiast Gaming Holdings Business Overview & Revenue Model

Company Description

Enthusiast Gaming Holdings Inc. engages in the media, content, entertainment, and esports businesses the United States, Canada, and internationally. The company operates an online network of approximately 100 gaming related websites; owns and operates Enthusiast Gaming Live Expo, a video-gaming expo; provides management and support services to players involved in professional gaming; owns and manages esports teams for various games comprising Call of Duty, Madden NFL, Fortnite, Overwatch, Super Smash Bros., Rocket League, and Valorant; and produces and programs approximately 30 weekly shows across AVOD and OTT channels, and represents approximately 500 gaming influencers on YouTube and Twitch. It also operates Luminosity Gaming, an eSports franchise; and hosts B2B and consumer mobile gaming events. The company was incorporated in 2018 and is headquartered in Toronto, Canada.

How the Company Makes Money

Enthusiast Gaming generates revenue through multiple streams, primarily including advertising, sponsorships, and affiliate marketing. The company's extensive network of gaming-related websites and channels attracts significant traffic, allowing them to sell advertising space to brands targeting the gaming audience. Additionally, EGLX partners with game developers and publishers for sponsored content and promotions, further enhancing their revenue. The company also earns income through affiliate marketing by promoting gaming products and services, earning commissions on sales generated through their platforms. Key partnerships with gaming brands and participation in esports events bolster their market presence and contribute to their earnings.

Enthusiast Gaming Holdings Financial Statement Overview

Summary

Enthusiast Gaming Holdings faces significant financial challenges with declining revenues and persistent losses impacting its profitability and growth potential. The balance sheet shows vulnerability due to a reliance on debt and decreasing equity levels. Cash flow struggles further compound these issues, indicating a need for strategic financial restructuring and operational improvements.

Income Statement

Enthusiast Gaming Holdings has struggled with consistent revenue and profit growth. The latest annual report shows a significant decline in total revenue from $178M to $72M, indicating a negative growth trajectory. The company also reports persistent net losses, with a net profit margin of -132.3% this year. The gross profit margin remains relatively healthy at 67.7%, but negative EBIT and EBITDA margins reflect operational challenges.

Balance Sheet

The balance sheet reveals a fairly high debt-to-equity ratio of 0.77, indicating a sizable reliance on debt financing. The equity ratio stands at 40.3%, suggesting moderate financial stability. However, the declining total assets and stockholders' equity over the years raise concerns about long-term solvency.

Cash Flow

Cash flow analysis shows negative free cash flow growth, and the company continues to experience challenges in generating positive operating cash flow. The operating cash flow to net income ratio is negative, highlighting cash flow inefficiencies. Despite positive financing cash flow, overall cash flow management appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.24M	72.57M	178.18M	202.84M	167.36M	72.76M
Gross Profit	33.68M	49.13M	67.42M	63.47M	37.77M	18.46M
EBITDA	-93.90M	-3.20M	-32.15M	-58.55M	-40.62M	-14.60M
Net Income	-121.74M	-95.98M	-117.67M	-76.83M	-52.05M	-26.85M
Balance Sheet
Total Assets	71.49M	128.45M	242.41M	341.44M	387.78M	222.32M
Cash, Cash Equivalents and Short-Term Investments	2.14M	4.77M	6.85M	7.54M	22.79M	4.45M
Total Debt	42.48M	40.01M	23.72M	19.94M	12.84M	38.89M
Total Liabilities	63.54M	76.70M	99.69M	86.79M	125.01M	80.45M
Stockholders Equity	7.95M	51.75M	142.72M	254.65M	262.77M	141.87M
Cash Flow
Free Cash Flow	-4.26M	-19.93M	-2.86M	-26.65M	-23.68M	-15.30M
Operating Cash Flow	-4.26M	-19.75M	-2.84M	-26.64M	-23.68M	-15.29M
Investing Cash Flow	945.52K	3.85M	-767.27K	4.31M	-33.94M	-12.17M
Financing Cash Flow	-1.70M	13.34M	3.09M	6.50M	76.01M	18.19M

Enthusiast Gaming Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 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 TSE:EGLX, the sentiment is Negative. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.69 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZOMD	72 Outperform	C$128.01M	5.24	81.28%	―	50.79%	213.45%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BAMI	54 Neutral	C$775.20M	-0.23	-38.53%	―	-59.51%	-545.36%
EAGR	48 Neutral	C$23.87M	-2.05	-26.04%	―	-6.22%	-439.10%
EGLX	46 Neutral	C$7.96M	-0.07	-183.15%	―	-53.67%	-127.21%
OAM	44 Neutral	C$34.85M	-3.07	-22.90%	―	45.36%	-200.67%

Enthusiast Gaming Holdings Corporate Events

Enthusiast Gaming Achieves Profitability and Strategic Realignment in Q3 2025

Enthusiast Gaming Holdings reported a significant financial turnaround in Q3 2025, achieving an adjusted EBITDA of $1.2 million for the nine months ended September 30, 2025, compared to a loss in the previous year. The company completed the sale of its Direct Sales Media Business, resulting in a $5.5 million gain, and reported a gross margin increase to 86.9%. The strategic shift to focus on its core products and platforms has resulted in substantial audience growth, improved cash flow, and a strong market position as a product-led business. The company is poised for future growth with a pipeline of new products and feature expansions, aiming to capitalize on upcoming major gaming title releases.

Enthusiast Gaming Reports Strong Shareholder Support at Annual Meeting

Enthusiast Gaming Holdings Inc. announced the results of its Annual General and Special Meeting of Shareholders, where all nominated directors were elected to the Board. The shareholders also approved setting the number of directors at six, appointed RSM Canada LLP as the auditor, and passed the Issuance Resolution. These decisions reflect strong shareholder support and are expected to positively impact the company’s governance and operational strategies.

Enthusiast Gaming Updates Shareholders Amid Postal Strike Disruptions

Enthusiast Gaming Holdings Inc. has updated shareholders on the impact of the Canadian Union of Postal Workers strike on the delivery of proxy-related materials for its upcoming virtual annual general and special meeting. Despite partial resumption of mail delivery, the company has advised shareholders to access electronic copies of meeting materials and vote using available online methods due to potential delays. The meeting will address several key matters, including financial statements, director elections, and share issuance resolutions, with shareholders encouraged to participate virtually.

Enthusiast Gaming Hosts Successful Pocket Gamer Connects Helsinki Event

Enthusiast Gaming hosted its 12th annual Pocket Gamer Connects Helsinki, the largest B2B games event in the Nordics, attracting over 1,350 industry professionals from 44 countries. The event provided significant networking and business development opportunities, featuring 172 speakers across 22 content tracks and three summits, including new additions focusing on AI and transmedia. The conference series, owned by Enthusiast Gaming, continues to be a pivotal platform for the global games industry, fostering innovation and collaboration among key stakeholders.

Enthusiast Gaming Addresses Potential Postal Strike Disruptions for Shareholder Meeting

Enthusiast Gaming Holdings Inc. has informed its shareholders about potential disruptions in the delivery of meeting materials due to an ongoing Canada Post strike. The company has made these materials available online to ensure accessibility ahead of its annual general and special meeting scheduled for October 28, 2025. This proactive approach aims to mitigate any impact on shareholder participation and maintain transparency, reflecting the company’s commitment to effective stakeholder communication despite logistical challenges.

Enthusiast Gaming Sets Date for Virtual Annual General Meeting

Enthusiast Gaming Holdings Inc. announced that its annual general meeting will be held virtually on October 28, 2025, following an extension granted by the Toronto Stock Exchange. This meeting is significant for stakeholders as it reflects the company’s ongoing compliance with regulatory requirements and provides an opportunity for shareholders to engage with the company’s strategic direction and performance.