Enthusiast Gaming Holdings (EGLX) AI Stock Analysis

• Market Cap: $19.90M
• Dividend Yield: N/A
• Average Volume (3M): 237.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -61.29%
• EPS Growth: 12.95%
• Country: CA
• Employees: 130
• Sector: Communication Services
• Sector Strength: 76
• Industry: Internet Content & Information
• EPS (TTM): -0.04
• Shares Outstanding: 159,169,000
• 10 Day Avg. Volume: 432,818
• 30 Day Avg. Volume: 237,256
• PEG Ratio: <0.01
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.00
• 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: $0.37
• Price Target Upside: 206.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: C$0.00 ▼(-100.00%Downside)

The overall stock score for Enthusiast Gaming Holdings is primarily impacted by its poor financial performance, which reflects significant challenges. While technical analysis shows some positive trends, valuation remains a concern due to negative earnings. Corporate events provide a bright spot, indicating strategic moves to improve market positioning and operations.

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 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 a diversified model that includes several key streams. Advertising revenue is a major component, as the company leverages its digital media platform to serve targeted ads to its large audience. Additionally, Enthusiast Gaming earns money through subscriptions and memberships, offering premium content and experiences to its community members. Another significant revenue stream comes from esports tournaments and events, where the company monetizes through sponsorships, ticket sales, and merchandise. Partnerships with gaming organizations and brands further enhance the company's revenue potential by creating collaborative opportunities in content creation, marketing, and distribution.

Enthusiast Gaming Holdings Financial Statement Overview

Summary

Enthusiast Gaming Holdings is facing significant financial challenges, with declining revenues from $178M to $72M and persistent net losses. The net profit margin of -132.3% and a high debt-to-equity ratio of 0.77 indicate financial instability. Cash flow management is weak, with negative free cash flow growth and operating cash flow inefficiencies. Overall, the financial outlook necessitates strategic restructuring.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.57M	178.18M	202.84M	167.36M	72.76M
Gross Profit	49.13M	67.42M	63.47M	37.77M	18.46M
EBITDA	-3.20M	-32.15M	-58.55M	-40.62M	-14.60M
Net Income	-95.98M	-117.67M	-76.83M	-52.05M	-26.85M
Balance Sheet
Total Assets	128.45M	242.41M	341.44M	387.78M	222.32M
Cash, Cash Equivalents and Short-Term Investments	4.77M	6.85M	7.54M	22.79M	4.45M
Total Debt	40.01M	23.72M	19.94M	12.84M	38.89M
Total Liabilities	76.70M	93.42M	86.79M	125.01M	80.45M
Stockholders Equity	51.75M	142.72M	254.65M	262.77M	141.87M
Cash Flow
Free Cash Flow	-19.93M	-2.86M	-26.65M	-23.68M	-15.30M
Operating Cash Flow	-19.75M	-2.84M	-26.64M	-23.68M	-15.29M
Investing Cash Flow	3.85M	-767.27K	4.31M	-33.94M	-12.17M
Financing Cash Flow	13.34M	3.09M	6.50M	76.01M	18.59M

Enthusiast Gaming Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EGLX, the sentiment is Positive. The current price of 0.12 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.07, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 71.42 is Negative, neither overbought nor oversold. The STOCH value of 55.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	62 Neutral	$42.18B	-1.56	-12.06%	2.81%	2.10%	-71.01%
EGLX	49 Neutral	$19.90M	―	-105.94%	―	-61.29%	12.95%
QYOUF	―	$13.07M	―	-175.54%	―	―	―
ZMDTF	―	$104.11M	8.08	82.67%	―	―	―
EAGRF	―	$27.39M	9.73	-6.91%	―	―	―
OAM	57 Neutral	C$39.20M	344.44	0.17%	―	59.77%	―
BRMI	52 Neutral	C$52.93M	―	-49.83%	―	-58.70%	-711.28%

Enthusiast Gaming Holdings Corporate Events

Enthusiast Gaming Secures $2 Million Debt Financing

Enthusiast Gaming Holdings Inc. announced the successful closing of a $2 million debt financing transaction. This financial move, arranged with Beedie Investments Ltd. and other lenders, is part of a strategic effort to strengthen the company’s financial position, potentially impacting its operations and market positioning positively.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming’s U.GG Expands with Rematch Integration

Enthusiast Gaming’s U.GG platform has launched support for Rematch, a popular online soccer game, and has quickly surpassed 100,000 player profiles in just two weeks. This integration offers players real-time leaderboards and detailed performance metrics, enhancing their gaming experience and showcasing Enthusiast Gaming’s commitment to player-focused innovation. The successful launch highlights the company’s ability to deliver high-quality solutions that meet the needs of its user base, reinforcing its position in the gaming industry.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Unveils Innovative LookBuilder Tool for The Sims Resource

Enthusiast Gaming has launched LookBuilder, a pioneering virtual fitting room for The Sims Resource, the largest platform for Sims custom content. This tool allows users to preview and customize outfits in a browser, enhancing user experience and engagement by enabling real-time, 3D-rendered outfit visualization. The innovation is expected to strengthen the company’s subscription offerings and open new product opportunities beyond The Sims Resource.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Initiates Strategic Review and Debt Financing

Enthusiast Gaming Holdings Inc. has announced a debt financing and forbearance transaction to support its recapitalization and long-term business objectives. The company is also undergoing a strategic review process to explore opportunities for strengthening its balance sheet and enhancing shareholder value. A Special Committee has been formed to oversee this process, with the assistance of Oakvale Capital Partners LLP as a financial advisor. The transaction includes a non-revolving term loan of $2 million and private placement of common share purchase warrants, aimed at addressing current financial defaults and providing working capital.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Announces CEO Transition and Strategic Divestment

Enthusiast Gaming Holdings Inc. has announced a leadership transition with Alex Macdonald appointed as the new CEO, succeeding Adrian Montgomery. The company is also strategically divesting its direct sales business, including Omnia Media Inc. and GameCo Esports Canada Inc., to an entity controlled by Montgomery. This move allows Enthusiast Gaming to concentrate on its profitable owned and operated content channels, aiming for significant cost savings and operational improvements. The transaction is expected to enhance business continuity and ensure uninterrupted service for clients through transition and commercial agreements.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Schedules Virtual Annual General Meeting for September 2025

Enthusiast Gaming Holdings Inc. announced that its annual general meeting will be held virtually on September 16, 2025, following an extension granted by the Toronto Stock Exchange. This meeting is significant for the company as it continues to expand its influence in the gaming and media industry, reflecting its commitment to engaging with stakeholders and maintaining transparency in its operations.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming’s Pocket Gamer Connects Barcelona Event Sets New Records

Enthusiast Gaming’s Pocket Gamer Connects Barcelona event marked a successful expansion of its flagship B2B gaming conference series, attracting over 1,000 attendees and featuring major gaming brands like Epic Games and Ubisoft. The event, which was immediately profitable, highlighted Barcelona’s strategic importance in the gaming industry and set the stage for future events in Shanghai, Bangkok, and Helsinki.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Expands Global Reach Through Partnership with Mediacube

Enthusiast Gaming has announced a strategic partnership with Mediacube, a global leader in content monetization, to expand its advertising reach across a vast network of YouTube creators. This collaboration significantly increases Enthusiast Gaming’s media inventory, allowing it to offer brands enhanced access to Gen Z and Millennial audiences through premium, brand-safe advertising opportunities. The partnership also provides Enthusiast Gaming’s creator network with access to Mediacube’s advanced monetization tools, further amplifying the company’s market presence and operational capabilities.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Reports Strategic Growth Amidst Q1 2025 Financial Results

Enthusiast Gaming Holdings Inc. reported its Q1 2025 financial results, highlighting strategic expansions and product innovations that have expanded its reach. Despite a decrease in revenue to $12.2 million due to the deprioritization of low-margin video platform revenue, the company achieved a gross margin of 74.3%, up from 60.3% in the previous year. The company has focused on a leaner structure, reducing operating expenses and enhancing profitability through strategic ad tech optimizations and subscriber growth. The company’s platforms, such as Icy Veins and The Sims Resource, have shown significant engagement and subscriber growth, while direct sales have been rebuilt to support future growth.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.15 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming to Release Q1 2025 Financial Results

Enthusiast Gaming Holdings Inc. is set to announce its first quarter 2025 financial and operating results on May 15, 2025. The announcement is expected to provide insights into the company’s performance and its continued growth in the gaming and esports industry, potentially impacting stakeholders and market positioning.

The most recent analyst rating on (TSE:EGLX) stock is a Hold with a C$0.1500 price target. To see the full list of analyst forecasts on Enthusiast Gaming Holdings stock, see the TSE:EGLX Stock Forecast page.

Enthusiast Gaming Expands U.GG to Rainbow Six Siege

Enthusiast Gaming has expanded its U.GG analytics platform to support Rainbow Six Siege, aligning with the game’s upcoming Siege X platform update. This strategic move enhances Enthusiast’s presence in the gaming industry by providing high-quality tools and insights to a revitalized player base, while Luminosity Gaming continues to compete in the Rainbow Six North American Pro League, reinforcing the company’s commitment to competitive gaming.