Allied Gaming 2024 Q4 Earnings Misses Targets as Net Income Declines 1082%

Allied Gaming (AGAE) reported its fiscal 2024 Q4 earnings on June 9th, 2025. The company's performance fell short of expectations, with a significant decline in net income. Despite the disappointing results, Allied Gaming remains optimistic about future revenue growth, driven by new investments and event initiatives. The company has set ambitious goals to stabilize its financial performance and improve EPS through enhanced operational efficiencies.

Revenue

Earnings/Net Income
Allied Gaming's losses deepened to $0.16 per share in 2024 Q4 from a loss of $0.03 per share in 2023 Q4 (550.4% wider loss). Meanwhile, the company's net loss widened to $-12.83 million in 2024 Q4, representing a 1082.3% increase from the $-1.09 million loss recorded in 2023 Q4. The company has sustained losses for six years over the corresponding fiscal quarter, highlighting ongoing financial headwinds. The EPS reflects a challenging financial position for the company.

Price Action
The stock price of Allied Gaming has climbed 7.53% during the latest trading day, has surged 15.83% during the most recent full trading week, and has surged 129.36% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Allied Gaming (AGAE) shares following their revenue drop on the financial report release date and holding for 30 days has delivered strong returns over the past three years. This approach yielded an impressive overall return of 96.36%, significantly outperforming the benchmark return of 47.78% by 48.58%. Despite encountering a maximum drawdown of -63.08% and maintaining a Sharpe ratio of 0.33, which indicates moderate returns coupled with some risk, the compound annual growth rate (CAGR) stands at a robust 31.10%. This demonstrates the strategy's capability to generate consistent returns over time.

CEO Commentary
Yinghua Chen, CEO of Allied Gaming & Entertainment Inc., highlighted the company’s substantial revenue growth driven by increased engagement in casual mobile gaming and successful events at their HyperX Arena. Despite these positive indicators, he acknowledged challenges such as a notable net loss impacted by a significant settlement. Chen emphasized ongoing strategic initiatives, including the launch of the World Mahjong Tour, which aims to enhance market positioning and audience reach. He expressed an optimistic outlook, reinforcing confidence in the company’s ability to leverage its assets and capitalize on emerging opportunities in the esports and entertainment sectors.

Guidance
The company anticipates continued revenue growth, projecting an increase driven by new investments and event initiatives. For the upcoming quarters, AGAE expects to stabilize its financial performance, targeting improved EPS as operational efficiencies are realized. While specific quantitative targets beyond preliminary forecasts were not disclosed, the leadership remains committed to enhancing revenue streams and addressing cost challenges proactively.

Additional News
Recently, Allied Gaming & Entertainment faced a challenge from Knighted Pastures, LLC, which has expressed its intention to nominate candidates for the company's Board of Directors. Allied Gaming has strongly opposed this move, labeling it as a self-serving attempt to seize control without benefitting shareholders. Furthermore, the company received a deficiency notice from Nasdaq due to delayed quarterly and annual report filings. Despite these challenges, Allied Gaming celebrated the successful debut of the World Mahjong Tour at HyperX Arena, illustrating their focus on expanding their entertainment offerings.