Revenue growth has turned sharply negative, with a 35.9% contraction in 2026Q1 and gross margins compressing to 30.3% from a 2025Q2 peak of 56.5%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 123.42M | 134.83M | 125.91M | 143.63M | 220.94M | 189.14M | 128.03M | 53.34M | 5.7M | 77K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.59M | 3.43M | 2.36M | 5.83M | 5.16M | 9.14M | 5.93M | 6.24M | 6.15M | 4.93M | 2.28M |
| Revenue Growth % | -4.16% | 7.09% | -12.34% | -34.99% | 16.81% | 47.73% | 140.02% | 835.81% | 7303.34% | - | - | - | - | - | - | - | - | - | - | -100% | -24.38% | 45.34% | -59.53% | 12.95% | -43.49% | 53.96% | -4.91% | 1.54% | 24.58% | 116.37% | - |
| Cost of Goods Sold | 64.55M | 66.48M | 70.19M | 88.36M | 132.92M | 110.53M | 103.06M | 47.3M | 7.64M | 1.59M | 390 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 555.2K | 657.23K | 893.68K | 3.99M | 1.79M | 3.9M | 3.49M | 3.56M | 3.41M | 2.18M | 884.15K |
| COGS % of Revenue | - | 49.31% | 55.75% | 61.52% | 60.16% | 58.44% | 80.5% | 88.67% | 134.06% | 2065.9% | - | - | - | - | - | - | - | - | - | - | 21.41% | 19.16% | 37.87% | 68.42% | 34.62% | 42.66% | 58.82% | 57.11% | 55.53% | 44.24% | 38.77% |
| Gross Profit | 58.87M | 68.35M | 55.72M | 55.27M | 88.01M | 78.61M | 24.97M | 6.04M | -1.94M | -1.51M | -390 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.04M | 2.77M | 1.47M | 1.84M | 3.38M | 5.24M | 2.44M | 2.68M | 2.73M | 2.75M | 1.4M |
| Gross Margin % | 47.7% | 50.69% | 44.25% | 38.48% | 39.84% | 41.56% | 19.5% | 11.33% | -34.06% | -1965.9% | - | - | - | - | - | - | - | - | - | - | 78.59% | 80.84% | 62.13% | 31.58% | 65.38% | 57.34% | 41.18% | 42.89% | 44.47% | 55.76% | 61.23% |
| Gross Profit Growth % | - | 22.67% | 0.81% | -37.2% | 11.96% | 214.83% | 313.25% | 411.21% | -28.27% | -388013.08% | - | - | - | - | - | - | - | - | - | -100% | -26.48% | 89.1% | -20.38% | -45.45% | -35.58% | 114.41% | -8.72% | -2.06% | -0.65% | 97.04% | - |
| Operating Expenses | 25.74M | 27.56M | 47.85M | 72.73M | 143.9M | 162.89M | 95.88M | 46.85M | 12.07M | 4.84M | 2.18M | 225.71K | 254.44K | 260.9K | 250.71K | 249.66K | 275.52K | 333.76K | 317.36K | 199.3K | 441.38K | 757.68K | 2.13M | 5.62M | 6.48M | 8.43M | 10.58M | 12.17M | 12.95M | 7.25M | 4.89M |
| OpEx % of Revenue | - | 20.44% | 38% | 50.64% | 65.13% | 86.12% | 74.88% | 87.83% | 211.79% | 6280.53% | - | - | - | - | - | - | - | - | - | - | 17.02% | 22.09% | 90.41% | 96.37% | 125.52% | 92.32% | 178.27% | 195% | 210.69% | 146.99% | 214.53% |
| Selling, General & Admin | 23.16M | 24.09M | 42.95M | 66.89M | 124.54M | 137.54M | 79.6M | 42.3M | 12.01M | 4.72M | 1.77M | 225.71K | 254.44K | 260.9K | 250.71K | 249.66K | 275.52K | 333.76K | 243.03K | -199.3K | 1.49M | 802.92K | 1.14M | 2.44M | 3.47M | 4.08M | 5.56M | 6.59M | 6.22M | 3.7M | 2.07M |
| SG&A % of Revenue | - | 17.87% | 34.11% | 46.57% | 56.37% | 72.72% | 62.17% | 79.3% | 210.65% | 6131.34% | - | - | - | - | - | - | - | - | - | - | 57.46% | 23.41% | 48.29% | 41.83% | 67.17% | 44.71% | 93.77% | 105.58% | 101.14% | 75.02% | 90.61% |
| Research & Development | 1.11M | 0 | 0 | 8.78M | 9.46M | 0 | 8.55M | 6.19M | 1.18M | 114.87K | 411.74K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 443.76K | 317.65K | 994.03K | 1.66M | 2.51M | 3.51M | 4.18M | 5.58M | 6.6M | 3.4M | 2.47M |
| R&D % of Revenue | - | - | - | 6.11% | 4.28% | - | 6.68% | 11.61% | 20.7% | 149.2% | - | - | - | - | - | - | - | - | - | - | 17.11% | 9.26% | 42.12% | 28.54% | 48.71% | 38.42% | 70.36% | 89.42% | 107.42% | 68.82% | 108.25% |
| Other Operating Expenses | 1.47M | 3.47M | 4.9M | -2.94M | 9.9M | 25.35M | 7.73M | -1.64M | -3.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 74.33K | 398.6K | -1.49M | -362.88K | 0 | 1.52M | 497.86K | 839.04K | 839.04K | 0 | 131.35K | 155.47K | 357.25K |
| Operating Income | 33.12M | 40.79M | 7.87M | -17.46M | -55.88M | -84.28M | -70.91M | -40.81M | -14.01M | -6.35M | -2.18M | -225.71K | -254.44K | -260.9K | -250.71K | -249.66K | -275.52K | -333.76K | -99.72K | -199.3K | 1.6M | 2.01M | -667.44K | -3.78M | -3.11M | -3.2M | -8.14M | -8.82M | -10.22M | -4.39M | -3.5M |
| Operating Margin % | 26.84% | 30.25% | 6.25% | -12.16% | -25.29% | -44.56% | -55.38% | -76.5% | -245.85% | -8246.43% | - | - | - | - | - | - | - | - | - | - | 61.58% | 58.75% | -28.28% | -64.8% | -60.14% | -34.98% | -137.09% | -141.3% | -166.23% | -88.9% | -153.31% |
| Operating Income Growth % | - | 418.38% | 145.07% | 68.76% | 33.69% | -18.86% | -73.75% | -191.21% | -120.71% | -190.73% | -867.59% | 11.29% | 2.48% | -4.07% | -0.42% | 9.39% | 17.45% | -234.69% | 49.96% | -112.48% | -20.74% | 401.88% | 82.34% | -21.69% | 2.83% | 60.72% | 7.75% | 13.69% | -132.94% | -25.46% | - |
| EBITDA | 39.24M | 49.68M | 17.56M | -13.22M | -34.6M | -59.1M | -46.08M | -30.07M | -11.55M | -5.82M | -2.18M | -222.76K | -247.51K | -302.01K | -1M | -162.64K | -274.53K | -339.53K | -317.36K | -145.75K | 1.5M | 2.02M | -646.36K | -3.54M | -2.4M | -1.95M | -6.68M | -7.4M | -8.8M | -3.88M | -3.27M |
| EBITDA Margin % | 31.79% | 36.85% | 13.95% | -9.2% | -15.66% | -31.25% | -35.99% | -56.36% | -202.7% | -7564.93% | - | - | - | - | - | - | - | - | - | - | 57.91% | 58.9% | -27.39% | -60.73% | -46.46% | -21.37% | -112.59% | -118.61% | -143.14% | -78.59% | -143.61% |
| EBITDA Growth % | 20.71% | 182.89% | 232.87% | 61.8% | 41.47% | -28.28% | -53.25% | -160.22% | -98.37% | -166.75% | -880.22% | 10% | 18.05% | 69.93% | -517.51% | 40.76% | 19.15% | -6.99% | -117.75% | -109.7% | -25.66% | 412.57% | 81.75% | -47.63% | -22.86% | 70.78% | 9.74% | 15.86% | -126.9% | -18.41% | - |
| D&A (Non-Cash Add-back) | 6.11M | 8.89M | 9.69M | 4.24M | 21.29M | 25.17M | 24.83M | 10.74M | 2.46M | 524.72K | 390 | 2.95K | 6.93K | -41.11K | -753.6K | 87.02K | 992 | -5.78K | -217.64K | 0 | -95.01K | 5.41K | 21.09K | 236.99K | 706.14K | 1.24M | 1.45M | 1.42M | 1.42M | 508.47K | 221.16K |
| EBIT | 33.05M | 40.79M | 7.25M | -16.92M | -55.14M | -81.17M | -72.52M | -47.58M | -24.75M | -6.28M | -2.19M | -196.34K | -234.95K | -176.46K | 569.85K | -261.95K | -203.45K | -270.79K | -168.71K | -145.75K | 1.69M | 2.01M | -667.44K | -3.78M | -3.11M | -3.2M | -8.14M | -9.49M | -10.22M | -4.5M | -3.5M |
| Net Interest Income | -10.78M | -11.36M | -14.67M | -17.96M | -11.43M | -10.45M | -16.12M | -10.45M | -2.49M | 411 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -104.22K | -10.19K | 0 | 0 | 0 | 0 | -1.8K | 0 | 116.86K | 0 | 87.93K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 6.48K | 381.03K | 13.98K | 22.26K | 411 | 26.82K | 32.31K | 26.41K | 43.33K | 66.96K | 74.73K | 0 | 0 | 74.33K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 45.34K | 0 | 240.96K | 0 | 87.93K |
| Interest Expense | 10.78M | 11.36M | 14.67M | 17.96M | 11.43M | 10.45M | 16.5M | 10.46M | 2.51M | 0 | 0 | 32.31K | 26.41K | 43.33K | 66.96K | 74.73K | 73.06K | 57.19K | 74.33K | -5.16M | 104.22K | 10.19K | 0 | 0 | 0 | 118.53K | 47.14K | 1.35M | 124.09K | 42.31K | 0 |
| Other Income/Expense | -11.08M | -11.66M | -15.29M | -19.56M | -12.57M | -7.33M | -18.11M | -17.23M | -12.15M | 65.03K | -3.85K | 29.37K | 19.48K | 84.44K | 820.55K | -12.29K | 72.07K | 62.96K | 74.33K | 83.56K | -9.2K | 0 | 111.18K | 528.29K | 287.3K | -118.53K | 526.99K | -675.61K | -23.71K | 73.06K | 57.3K |
| Pretax Income | 22.05M | 29.13M | -7.42M | -37.02M | -68.45M | -91.61M | -89.02M | -58.04M | -26.16M | -6.28M | -2.19M | -196.34K | -234.96K | -176.46K | 569.85K | -261.95K | -203.45K | -270.79K | -168.71K | -115.75K | 1.69M | 0 | -556.26K | -3.25M | -2.82M | -3.31M | -7.61M | -10.17M | -10.24M | -4.43M | -3.44M |
| Pretax Margin % | 17.86% | 21.6% | -5.89% | -25.77% | -30.98% | -48.44% | -69.53% | -108.81% | -458.92% | -8161.98% | - | - | - | - | - | - | - | - | - | - | 65.24% | - | -23.57% | -55.74% | -54.58% | -36.27% | -128.21% | -162.94% | -166.61% | -89.75% | -150.79% |
| Income Tax | 92K | 520K | 249K | 197K | -1.06M | -1.67M | 210.83K | -19.54M | -91.63K | 0 | 0 | 800 | 800 | 800 | 1.48K | 800 | 800 | 800 | 800 | 30K | -95.01K | 10.19K | 0 | 0 | 0 | 0 | 0 | -13.15K | 27.23K | 49.81K | 10.27K |
| Effective Tax Rate % | 0.42% | 1.79% | -3.36% | -0.53% | 1.55% | 1.83% | -0.24% | 33.67% | 0.35% | 0% | 0% | -0.41% | -0.34% | -0.45% | 0.26% | -0.31% | -0.39% | -0.3% | -0.47% | -25.92% | -5.62% | - | 0% | 0% | 0% | 0% | 0% | 0.13% | -0.27% | -1.12% | -0.3% |
| Net Income | 118.18M | 124.86M | -100.71M | -55.58M | -70.86M | -89.94M | -89.23M | -38.5M | -26.07M | -6.28M | -2.19M | -197.14K | -235.75K | -177.26K | 568.37K | -262.75K | -204.25K | -271.59K | -174.85K | 4.93M | 1.59M | 2M | -556.26K | -3.25M | -2.82M | -3.31M | -8.9M | -10.16M | -10.27M | -4.48M | -3.45M |
| Net Margin % | 95.76% | 92.61% | -79.99% | -38.7% | -32.07% | -47.55% | -69.69% | -72.18% | -457.32% | -8161.98% | - | - | - | - | - | - | - | - | - | - | 61.22% | 58.45% | -23.57% | -55.74% | -54.58% | -36.27% | -149.93% | -162.73% | -167.05% | -90.76% | -151.24% |
| Net Income Growth % | 1672.35% | 223.98% | -81.19% | 21.56% | 21.22% | -0.79% | -131.76% | -47.7% | -314.81% | -187.25% | -1009.76% | 16.38% | -33% | -131.19% | 316.31% | -28.64% | 24.8% | -55.33% | -103.55% | 210.28% | -20.8% | 460.39% | 82.89% | -15.35% | 14.97% | 62.75% | 12.39% | 1.1% | -129.29% | -29.84% | - |
| Net Income (Continuing) | 21.95M | 28.61M | -7.67M | -37.22M | -67.39M | -89.94M | -89.23M | -38.5M | -26.07M | -6.28M | -2.19M | -197.14K | -235.75K | -177.26K | 568.37K | -262.75K | -204.25K | -271.59K | -169.51K | -145.75K | 1.59M | 2M | -556.26K | -3.25M | -2.82M | -3.31M | -7.61M | -10.16M | -10.27M | -4.48M | -3.45M |
| Discontinued Operations | 1000K | 96.25M | -93.04M | -18.37M | -3.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.49 | 2.62 | -2.85 | -2.49 | -4.02 | -7.87 | -50.18 | -22.84 | -21.95 | -9.27 | -5.08 | -0.47 | -0.59 | -0.45 | 1.33 | -0.73 | -0.58 | -0.79 | -0.59 | 20.52 | 4.40 | 6.60 | -2.72 | -13.40 | -16.04 | -20.29 | -107.99 | -282.94 | -404.50 | -263.62 | -173.47 |
| EPS Growth % | 4433.82% | 191.93% | -14.46% | 38.06% | 48.92% | 84.32% | -119.7% | -4.05% | -136.79% | -82.48% | -980.85% | 20.34% | -31.11% | -133.83% | 282.19% | -25.86% | 26.58% | -33.9% | -102.88% | 366.36% | -33.33% | 342.65% | 79.7% | 16.46% | 20.95% | 81.21% | 61.83% | 30.05% | -53.44% | -51.97% | - |
| EPS (Basic) | - | 2.63 | -2.85 | -2.49 | -4.02 | -7.87 | -50.18 | -22.84 | -21.95 | -9.27 | -14.35 | -0.47 | -0.59 | -0.45 | 1.53 | -0.73 | -0.58 | -0.79 | -0.59 | 23.67 | 8.80 | 8.80 | -2.72 | -16.62 | -16.04 | -20.29 | -107.99 | -282.94 | -404.50 | -263.62 | -173.47 |
| Diluted Shares Outstanding | 47.49M | 47.67M | 35.41M | 22.32M | 17.63M | 11.43M | 2.09M | 1.69M | 1.19M | 678.15K | 430.81K | 415.87K | 401.23K | 393.2K | 428.58K | 360.89K | 353.08K | 343.24K | 298.04K | 240.03K | 289.99K | 222.11K | 204.37K | 242.5K | 175.67K | 163.31K | 82.39K | 35.89K | 25.38K | 16.99K | 19.88K |
| Basic Shares Outstanding | 47.49M | 47.47M | 35.41M | 22.32M | 17.63M | 11.43M | 2.09M | 1.69M | 1.19M | 678.15K | 152.42K | 415.86K | 401.23K | 393.2K | 372.26K | 360.89K | 353.08K | 343.24K | 298.04K | 208.12K | 206.01K | 204.93K | 204.37K | 195.53K | 175.67K | 163.31K | 82.39K | 35.89K | 25.38K | 16.99K | 19.88K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 317.37% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and licensing instability
As reported in recent financial statements, AREN experienced a significant revenue decline of 35.9% in 2026Q1 compared to prior periods, signaling a persistent inability to stabilize its top-line performance amidst ongoing challenges in maintaining its digital advertising inventory and core brand partnerships across its publishing portfolio.
The consistent year-over-year revenue erosion suggests that the company's platform-as-a-service model is struggling to offset the secular decline in legacy print and the volatility of programmatic ad spend. Investors should monitor whether the company can achieve any organic growth, as current figures indicate a reliance on shrinking assets that may not be replaceable.
According to the company's income statement data, gross margins have fluctuated significantly, dropping to 30.3% in 2026Q1 from a peak of 56.5% in 2025Q2, reflecting the high sensitivity of the cost structure to revenue volume and the lack of operating leverage in the current business model.
The inability to maintain gross margins above the 50% threshold suggests that direct costs, such as content licensing and traffic acquisition, are not scaling efficiently with revenue. This volatility implies that the company lacks the pricing power necessary to protect its bottom line during periods of top-line contraction.
Based on reported figures, the company's net income has been subject to extreme swings, including a 92.61% net margin in 2025Q2, which appears to be driven by non-operating accounting events rather than sustainable core business performance, warranting significant caution for investors evaluating the company's true earnings power.
The massive discrepancy between operating income and net income in specific quarters suggests that one-time gains, such as debt extinguishment or asset sales, are masking underlying operational losses. Analysts should strip out these non-recurring items to reveal a business that appears to be consistently struggling to generate positive net income from its primary activities.
Analysis of the income statement reveals that SG&A expenses remain a significant drag on profitability, with the company failing to demonstrate consistent expense discipline as revenue declines, as evidenced by the 2026Q1 operating margin falling into negative territory at -1.5% despite ongoing efforts to manage overhead.
The company's cost structure appears heavily weighted toward fixed obligations that do not adjust downward in tandem with revenue, creating a dangerous operating leverage profile. This lack of flexibility suggests that any further revenue weakness will likely lead to immediate and material deterioration in operating cash flow.
Quick answers to the most common questions about buying AREN stock.
For fiscal year 2025, The Arena Group Holdings, Inc. (AREN) reported total revenue of $134.8M. This represents a 5812.7% increase compared to $2.3M in 1996.
The Arena Group Holdings, Inc. (AREN) is profitable, generating $124.9M in net income for the fiscal year ending 2025 with a net profit margin of 92.6%.
The Arena Group Holdings, Inc. (AREN) reported an operating income of $40.8M, resulting in an operating profit margin of 30.3%. This margin reflects the operational efficiency of the business before interest and taxes.
The Arena Group Holdings, Inc. (AREN) generated $68.3M in gross profit for the year, representing a gross profit margin of 50.7%. This demonstrates the company's core pricing power and production efficiency.