Allied Gaming shares fall 15.49% intraday as Q3 revenue drops 15% and legal costs widen net loss to $5.4M.

Allied Gaming & Entertainment (AGAE) fell 15.49% intraday following its third-quarter 2025 earnings report, which highlighted a 15% year-over-year revenue decline to $1.8 million, driven by reduced in-person event income, and a widened net loss of $5.4 million, up from $4.0 million in the prior-year period. The results were exacerbated by a $4.4 million spike in legal and professional fees tied to disputes with a dissident stockholder, including a proxy contest and litigation. While the company announced the acquisition of Saiju School in Japan as a strategic expansion, the immediate market reaction focused on the deteriorating financials and ongoing litigation costs, overshadowing long-term growth prospects. The cash balance also declined to $56 million from $71.5 million year-over, raising concerns about liquidity.