Enthusiast Gaming Holdings (EGLX) AI Stock Analysis

• Market Cap: C$7.16M
• Dividend Yield: N/A
• Average Volume (3M): 141.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: C$0.04 ▲(7.50% Upside)

The score is primarily constrained by weak financial performance: shrinking revenue, very large losses, negative free cash flow, and higher leverage from reduced equity. Technicals also remain soft with a negative MACD and the stock trading below longer-term moving averages. Valuation support is limited because the company is unprofitable and no dividend yield is provided.

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

Weak fundamentals driven by falling revenue (~-16.7% TTM), very large operating/net losses (EBIT margin ~-203%, net margin ~-258%), negative operating cash flow and free cash flow (about -$4.3M), and sharply higher leverage (debt-to-equity ~5.34) as equity has compressed. The main offset is a high and improving gross margin (~71% TTM), but it is not translating into profitability or cash generation.

Income Statement

TTM (Trailing-Twelve-Months) results show meaningful top-line pressure (revenue down ~16.7%) and deep losses, with net margin around -258% and EBIT margin near -203%, indicating the cost structure is not scaling with revenue. A clear positive is the very high gross margin (~71% TTM), improving versus prior years, which suggests the core economics of revenue are stronger than before. However, recurring net losses across all periods and a sharp deterioration in profitability in the latest TTM outweigh the gross margin improvement.

Balance Sheet

Leverage has increased sharply in the latest TTM (debt-to-equity ~5.34) as equity has compressed materially versus prior annual periods, leaving a thinner capital cushion. Total debt is moderate in absolute terms, but the combination of heavy losses and reduced equity meaningfully raises balance-sheet risk. Earlier years showed much lower leverage (sub-1x debt-to-equity), so the recent shift points to weakening financial flexibility.

Cash Flow

Cash generation remains weak, with TTM operating cash flow and free cash flow both negative (roughly -$4.3M), and free cash flow declining steeply versus the prior period (down ~68.5%). While cash burn is smaller than some earlier annual periods (when operating cash flow was much more negative), the business is still not self-funding. Negative operating cash flow alongside very large net losses signals continued execution risk and potential need for external capital over time.

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: 0.04
• 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 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.05, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.78 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 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
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
FORA	49 Neutral	C$61.52M	-8.29	-6.82%	―	-4.04%	-297.93%
OAM	48 Neutral	C$31.83M	-2.73	-22.90%	―	45.36%	-200.67%
AIC	46 Neutral	C$6.49M	-8.84	―	―	-100.00%	90.84%
VRTS	43 Neutral	C$19.11M	-2.38	―	―	-3.78%	88.40%
EGLX	41 Neutral	C$7.16M	-0.06	-183.15%	―	-53.67%	-127.21%

Enthusiast Gaming Holdings Corporate Events

Enthusiast Gaming Marks Record Pocket Gamer Connects London as Global B2B Reach Expands

Enthusiast Gaming has staged its largest-ever Pocket Gamer Connects London conference, reinforcing its position as a major organiser of B2B events for the global games industry. The 2026 London edition, marking the 20th anniversary of Pocket Gamer, drew more than 3,000 industry professionals from over 60 countries, featured 310 speakers across mobile, PC, console, AI and transmedia tracks, and attracted prominent brands such as Supercell, Epic Games and CD Projekt Red, as well as a visit from the UK Minister of State for Trade Policy, underscoring the event’s growing policy and industry relevance. With more than 6,000 pre-arranged meetings, dedicated summits on apps and transmedia, and diversity initiatives like The Aurora: Celebrating Women in Games, the event showcased Enthusiast Gaming’s ability to convene high-level dealmaking and thought leadership, while setting the stage for a busy 2026 calendar with upcoming Pocket Gamer Connects events in San Francisco, Dubai and Barcelona.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.04 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

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.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.10 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.