OverActive Media Corp (OAM) AI Stock Analysis

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OverActive Media Corp

(OAM)

51Neutral

OverActive Media Corp's overall stock score reflects strong revenue growth and strategic expansions. However, significant profitability and cash flow challenges, coupled with operational inefficiencies, weigh it down. Positive sentiment from earnings calls and corporate events provides some optimism but does not fully offset core financial issues.

OverActive Media Corp (OAM) vs. S&P 500 (SPY)

Market Cap

C$33.99M

Dividend YieldN/A

Average Volume (3M)24.59K

Price to Earnings (P/E)―

Beta (1Y)0.34

Revenue Growth71.98%

EPS Growth87.24%

CountryCA

Employees92

SectorCommunication Services

Sector Strength84

IndustryEntertainment

Share Statistics

EPS (TTM)N/A

Shares Outstanding125,887,410

10 Day Avg. Volume20,111

30 Day Avg. Volume24,586

Financial Highlights & Ratios

PEG Ratio-1.21

Price to Book (P/B)0.64

Price to Sales (P/S)0.00

P/FCF Ratio-3.30

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

OverActive Media Corp Business Overview & Revenue Model

Company DescriptionOverActive Media Corp. operates as a media, sports, and entertainment company. The company operates in two segments, Team Operations and Business Operations. It has operations in Madrid, Spain and Berlin, Germany. OverActive Media Corp. is headquartered in Toronto, Canada.

How the Company Makes MoneyOverActive Media Corp generates revenue through multiple streams, primarily centered around its esports teams and associated activities. Key revenue sources include sponsorships and advertising, where brands partner with OverActive Media to reach their audience through team branding and event sponsorships. The company also earns from media rights, selling broadcast rights of their teams' matches and events to streaming platforms and broadcasters. Merchandise sales, both online and at events, contribute to their revenue, offering fans team-branded apparel and accessories. Furthermore, OverActive Media benefits from ticket sales for live events and tournaments. Strategic partnerships and collaborations with other organizations in the gaming and entertainment sectors also play a significant role in enhancing their revenue potential and market reach.

OverActive Media Corp Financial Statement Overview

Summary

OverActive Media Corp has shown strong revenue growth and a stable balance sheet with minimal leverage, but faces significant challenges with profitability and cash flow management. The company's net income and EBIT remain negative, with ongoing issues converting earnings into cash.

Income Statement

Neutral

OverActive Media Corp has demonstrated a revenue growth from $14.16 million in 2022 to $21.37 million in TTM (Trailing-Twelve-Months), indicating a strong upward trajectory. However, profitability remains a concern with negative net income and EBIT, resulting in negative net profit and EBIT margins. The gross profit margin has improved significantly to 24.16% in TTM, but the overall financial performance is hampered by consistent net losses.

Balance Sheet

Neutral

The balance sheet is relatively strong, with a healthy equity ratio of 74.27% in TTM, indicating a stable capital structure. The debt-to-equity ratio is low at 0.04, suggesting minimal leverage. However, the company has been experiencing negative net income, impacting the return on equity, which remains negative. Overall, the balance sheet reflects stability but is affected by lack of profitability.

Cash Flow

Negative

Cash flow analysis reveals challenges, as the company has consistently reported negative free cash flows and operating cash flows. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting earnings into cash. Free cash flow growth remains negative, highlighting ongoing cash management issues that could impact long-term sustainability if not addressed.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
21.37M	15.70M	14.16M	14.20M	8.38M	0.00
	Gross Profit
5.16M	-6.46M	-10.16M	14.20M	8.38M	0.00
	EBIT
-6.95M	-6.62M	-2.64M	-13.10M	16.53M	-187.82K
	EBITDA
3.86M	-5.79M	-36.35M	-13.54M	17.61M	-187.82K
	Net Income Common Stockholders
-1.11M	-12.52M	-36.92M	-19.40M	-6.26M	-187.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
651.89K	13.93M	13.56M	29.58M	5.58M	875.22K
	Total Assets
655.18K	69.48M	87.64M	135.46M	115.29M	876.80K
	Total Debt
0.00	22.56M	1.88M	2.56M	4.01M	0.00
	Net Debt
-651.89K	8.63M	-11.68M	-27.02M	-1.57M	-875.22K
	Total Liabilities
1.88K	34.10M	40.18M	53.54M	54.01M	68.27K
	Stockholders Equity
653.31K	35.37M	47.46M	81.92M	61.28M	808.53K
Cash Flow		Free Cash Flow
-10.27M	-5.56M	-12.88M	-12.34M	-5.50M	-52.90K
	Operating Cash Flow
-9.98M	-5.38M	-11.51M	-10.77M	-4.46M	-52.90K
	Investing Cash Flow
11.17M	6.89M	-1.69M	-1.11M	-4.31M	0.00
	Financing Cash Flow
-2.20M	-1.66M	-3.11M	35.69M	4.22M	928.12K

OverActive Media Corp Technical Analysis

Technical Analysis Sentiment

Positive

Last Price0.27

Price Trends

50DMA

0.27

Positive

100DMA

0.27

Positive

200DMA

0.26

Positive

Market Momentum

MACD

<0.01

Negative

RSI

50.01

Neutral

STOCH

46.30

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:OAM, the sentiment is Positive. The current price of 0.27 is above the 20-day moving average (MA) of 0.27, above the 50-day MA of 0.27, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 46.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:OAM.

OverActive Media Corp Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBRD	67 Neutral	C$59.46M	9.94	9.94%	―	25.69%	―
Sector *	60 Neutral	$14.07B	6.89	-3.35%	3.68%	2.42%	-36.25%
OAM	51 Neutral	C$33.99M	―	-1.45%	―	71.98%	87.24%
BRMI	48 Neutral	C$50.59M	―	-49.83%	―	-58.70%	-711.28%

* Communication Services Sector Average

Performance Comparison

TSE:OAM

OverActive Media Corp

0.27

-0.05

-15.62%

TSE:TBRD

Thunderbird Entertainment Group Inc

1.40

-0.40

-22.22%

QYOUF

QYOU Media

0.03

-0.01

-25.00%

EGLXF

Enthusiast Gaming Holdings

0.04

-0.08

-66.67%

ENTEF

ESE Entertainment

0.04

-0.04

-50.00%

TSE:BRMI

Boat Rocker Media

0.89

0.04

4.71%

OverActive Media Corp Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q4-2024)

% Change Since: 3.85%|

Next Earnings Date:Jun 27, 2025

Earnings Call Sentiment Positive

The earnings call reflects a transformative and growth-oriented year for OverActive Media, marked by significant revenue increases, strategic acquisitions, and market expansions. Despite experiencing some challenges like the decline in gross margin and increased operating costs, the company's strong revenue growth, improved EBITDA, and successful restructuring of league obligations showcase a positive trajectory.

Q4-2024 Updates

Positive Updates

Record Q4 and Full-Year Revenue Growth

Q4 revenue reached $9.9 million, a 134% increase from $4.2 million in the previous year. Full-year revenue grew by 72% to $27 million compared to $15.7 million in 2023.

Strategic Acquisitions and Market Expansion

Completed acquisitions of KOI and Riders, which exceeded revenue and adjusted EBITDA expectations. Expanded into Latin America and China, and launched new revenue streams.

Improved Adjusted EBITDA and Comprehensive Income

Adjusted EBITDA improved by 42% for the full year, reducing the loss to $3.6 million from $6.2 million in 2023. Achieved positive comprehensive income of $311,000 compared to a $12.2 million loss in 2023.

Innovative Partnerships and Commercial Deals

Signed the first naming rights deal in LEC history with Telefónica and renewed major partnerships, adding new partners like Monster Energy and CUPRA.

Strengthened Position in Leagues

Restructured LEC franchise agreement, eliminating future obligations and securing full ownership, which improved strategic control and balance sheet.

Negative Updates

Decline in Gross Margin

Gross margin for Q4 declined to 54% from 80% in the previous year, mainly due to integration of lower-margin business lines like influencer services and live event production.

Increased Operating Costs

Q4 operating costs rose by 54% to $6.6 million, driven by staffing, infrastructure, and content production expenses. Full-year operating costs increased by 37%, including $2.3 million in one-time restructuring and business development expenses.

Q4 Comprehensive Loss

Reported a comprehensive loss of $1.3 million in Q4 2024, compared to a loss of $768,000 in the same period last year, primarily due to foreign currency translation.

Company Guidance

During OverActive Media's Q4 2024 conference call, the company reported a record quarterly revenue of $9.9 million, contributing to a full-year revenue of $27 million, reflecting a 72% year-over-year increase. The growth was attributed to strategic acquisitions and new revenue streams, leading to a 42% improvement in adjusted EBITDA and a comprehensive net income of $311,000 for the year. The company's gross profit rose to $5.3 million in Q4, although the gross margin decreased to 54% from 80% due to the integration of lower-margin business lines. Operating costs increased by 54% to $6.6 million in Q4, driven by staffing and production expenses. Despite a comprehensive loss of $1.3 million in Q4, the company achieved a positive comprehensive income for the year, aided by an $11.5 million gain from restructuring franchise obligations. With a cash balance of $6.8 million, OverActive Media remains committed to scaling high-margin segments and achieving long-term profitability.

OverActive Media Corp Corporate Events

Product-Related AnnouncementsBusiness Operations and Strategy

OverActive Media’s LEC Roadtrip Success and Fénix Club Launch

Positive

Apr 30, 2025

OverActive Media Corp. and its franchise Movistar KOI successfully hosted the inaugural LEC Roadtrip event in Madrid, attracting 18,000 attendees and reaching a peak online viewership of 348,000. This event set new benchmarks for live esports events in the region and reinforced the company’s strategy of delivering large-scale, fan-driven events to deepen engagement in key markets. Additionally, the launch of the Fénix Club Gaming platform introduced a new subscription-based revenue stream, offering fans exclusive benefits and supporting long-term growth through enhanced direct-to-consumer engagement.

Spark’s Take on TSE:OAM Stock

According to Spark, TipRanks’ AI Analyst, TSE:OAM is a Neutral.

OverActive Media Corp’s overall stock score reflects its strong revenue growth and strategic acquisitions, but is significantly weighed down by negative profitability, cash flow challenges, and a bearish technical outlook. The company’s progress in restructuring and reducing liabilities is promising, yet ongoing operational inefficiencies and lack of profitability limit its attractiveness.

To see Spark’s full report on TSE:OAM stock, click here.

Business Operations and StrategyFinancial Disclosures

OverActive Media Achieves Record Growth in 2024, Eyes Sustainable Expansion in 2025

Positive

Apr 25, 2025

OverActive Media Corp reported a record financial performance for Q4 and FY 2024, with Q4 revenue up 134% and FY revenue up 72%, driven by strategic acquisitions and expansion into new games and regions. The company achieved a comprehensive income of $311,000, marking a significant improvement from the previous year’s loss, and is positioned for sustainable growth in 2025, with a focus on improving margins and building lasting value in the growing global esports industry.

Spark’s Take on TSE:OAM Stock

According to Spark, TipRanks’ AI Analyst, TSE:OAM is a Neutral.

To see Spark’s full report on TSE:OAM stock, click here.

Financial Disclosures

OverActive Media to Announce Q4 2024 Financial Results

Neutral

Apr 14, 2025

OverActive Media Corp. will announce its fourth quarter 2024 financial results on April 24, 2025, followed by a conference call on April 25, 2025. This event is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, impacting its position in the competitive esports and entertainment industry.

Spark’s Take on TSE:OAM Stock

According to Spark, TipRanks’ AI Analyst, TSE:OAM is a Neutral.

To see Spark’s full report on TSE:OAM stock, click here.

Business Operations and Strategy

OverActive Media Enters Chinese Esports Market with Movistar KOI

Positive

Mar 28, 2025

OverActive Media Corp. is expanding into the Chinese esports market through its brand Movistar KOI, marking its entry into the world’s largest esports ecosystem. This strategic move aims to capitalize on China’s significant market potential, with over 500 million esports fans and a projected revenue of $26.7 billion in 2024. By launching on major Chinese social media and streaming platforms like Weibo and Bilibili, OverActive Media plans to engage directly with local audiences and leverage key events like the 2025 League of Legends World Championship to establish a lasting presence and strengthen its global strategy.

Business Operations and Strategy

OverActive Media to Host 2025 Call of Duty League Championship in Canada

Positive

Mar 20, 2025

OverActive Media Corp announced that it will host the 2025 Call of Duty League Championship Weekend in the Waterloo Region, marking the first time the event will be held outside the United States. This premier esports event, powered by Bell, is expected to attract 20,000 fans and generate significant economic impact for the region, showcasing Canada’s growing role in the global esports industry. The event will feature a unique 360-degree center stage setup, enhancing the live experience for fans and reinforcing OverActive’s leadership in hosting major esports events.

Business Operations and Strategy

OverActive Media Expands into Latin America’s Esports Market

Positive

Mar 13, 2025

OverActive Media Corp. is expanding its operations into Latin America by entering the Free Fire League through its Movistar KOI team, in partnership with Telefónica. This strategic move enhances OverActive’s presence in one of the fastest-growing esports markets, leveraging Telefónica’s brand to engage with Mexico’s mobile gaming community and creating new commercial opportunities.

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.