The Arena Group (AREN) AI Stock Analysis

• Market Cap: $120.33M
• Dividend Yield: N/A
• Average Volume (3M): 97.17K
• Price to Earnings (P/E): ―
• Beta (1Y): -1.06
• Revenue Growth: -48.44%
• EPS Growth: -49.87%
• Country: US
• Employees: 190
• Sector: Communication Services
• Sector Strength: 76
• Industry: Internet Content & Information
• EPS (TTM): -3.94
• Shares Outstanding: 47,560,950
• 10 Day Avg. Volume: 200,853
• 30 Day Avg. Volume: 97,168
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.47
• Price to Cash Flow (P/CF): -8.10
• P/FCF Ratio: 86.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The overall stock score of Arena Group is 51.5, reflecting significant financial challenges with declining profits and high leverage. Despite positive technical momentum, the financial instability and lack of profitability heavily weigh down the score. The valuation also suggests potential overvaluation given the negative earnings.

The Arena Group Business Overview & Revenue Model

Company Description

The Arena Group Holdings, Inc., together with its subsidiaries, operates digital media platform the United States and internationally. The company offers the Platform, a proprietary online publishing platform comprising publishing tools, video platforms, social distribution channels, newsletter technology, machine learning content recommendations, notifications, and other technology. The company was formerly known as TheMaven, Inc. and changed its name to The Arena Group Holdings, Inc. in February 2022. The Arena Group Holdings, Inc. was incorporated in 1990 and is based in New York, New York.

How the Company Makes Money

The Arena Group makes money primarily through digital advertising, subscriptions, and partnerships. The company's revenue model is centered around selling advertising space on its network of websites and digital properties, where it reaches targeted audiences with tailored content. Additionally, The Arena Group generates revenue through subscription services, offering premium content to engaged users willing to pay for exclusive access. Significant partnerships with brands and other media companies also contribute to its earnings, enabling the company to expand its reach and enhance its content offerings.

The Arena Group Financial Statement Overview

Summary

The Arena Group is experiencing revenue growth, but faces significant financial challenges including negative profitability, high leverage, and cash flow difficulties. The company needs to address these issues to improve financial health and sustainability.

Income Statement

The Arena Group has shown some revenue growth, with a notable increase in total revenue from past years, which indicates positive traction. However, the company struggles with profitability, as evidenced by negative net income, EBIT, and EBITDA margins. The gross profit margin stands at 38.5% for TTM, which is decent but overshadowed by persistent operational losses.

Balance Sheet

The balance sheet presents a challenging picture with negative stockholders' equity, indicating financial distress. The debt-to-equity ratio is not calculable due to negative equity, but the high level of total debt relative to assets suggests significant leverage. The equity ratio is negative, highlighting potential solvency issues.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating potential liquidity issues. The operating cash flow to net income ratio is not favorable, and the free cash flow growth is negative, showcasing ongoing challenges in generating cash. However, the company has managed to secure financing, which provides some short-term relief.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
160.28M	244.20M	220.94M	189.14M	128.03M	53.34M
	Gross Profit
61.74M	101.96M	88.01M	78.16M	24.97M	6.04M
	EBIT
-1.04M	-35.80M	-55.63M	-75.28M	-70.91M	-40.81M
	EBITDA
12.55M	-9.69M	-29.91M	-55.98M	-47.69M	-36.84M
	Net Income Common Stockholders
-113.14M	-55.58M	-67.39M	-89.94M	-89.23M	-38.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.54M	9.28M	13.87M	9.35M	9.03M	8.85M
	Total Assets
209.11M	188.88M	203.72M	173.98M	214.20M	196.99M
	Total Debt
94.03M	131.84M	115.37M	83.26M	90.32M	62.39M
	Net Debt
86.50M	122.56M	101.50M	73.92M	81.28M	53.54M
	Total Liabilities
246.65M	247.71M	255.87M	225.66M	216.10M	216.01M
	Stockholders Equity
-37.54M	-58.83M	-52.15M	-51.68M	-1.90M	-19.02M
Cash Flow		Free Cash Flow
-14.10M	-28.55M	-17.01M	-19.92M	-37.26M	-59.64M
	Operating Cash Flow
-10.47M	-24.77M	-11.30M	-14.73M	-32.29M	-56.95M
	Investing Cash Flow
-2.56M	-3.21M	-38.59M	-13.15M	-4.93M	-19.02M
	Financing Cash Flow
11.26M	22.89M	54.87M	28.19M	37.28M	82.92M

The Arena Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AREN, the sentiment is Positive. The current price of 2.53 is above the 20-day moving average (MA) of 2.01, above the 50-day MA of 1.71, and above the 200-day MA of 1.22, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 75.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AREN.

The Arena Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TBLA	60 Neutral	$969.62M	―	-0.36%	―	22.68%	95.70%
Sector *	58 Neutral	$13.14B	6.83	-2.45%	3.85%	2.36%	-36.75%
MNY	56 Neutral	$31.54M	―	-218.25%	―	345.36%	-650.95%
AREN	52 Neutral	$120.33M	―	82.40%	―	-48.44%	-49.87%
SCOR	45 Neutral	$24.57M	―	-27.19%	―	-4.12%	22.94%
BZFD	41 Neutral	$66.26M	―	-28.67%	―	-34.37%	72.58%
FENG	37 Underperform	$17.98M	―	-4.47%	―	0.22%	49.14%

The Arena Group Corporate Events

The Arena Group Appoints Paul Edmondson as Interim CEO

On February 12, 2025, The Arena Group Holdings Inc. terminated the employment of CEO Sara Silverstein without cause, and she is entitled to certain benefits per her employment agreement. Paul Edmondson, previously the company’s President, Platform, has been appointed as interim CEO, bringing extensive experience from his previous roles within the company.