The Arena Group Authorizes $3 Million Share Repurchase Program

The Arena Group has authorized a share repurchase program for up to 3 million shares, citing undervaluation with shares trading at less than 11x earnings compared to the Russell 2000 Index average of over 30x. The repurchase will be funded through operating cash flow, reflecting confidence in future growth. CEO Paul Edmondson believes the share repurchase program is the company's best investment, despite the program being subject to suspension, modification, or termination based on market conditions.

The Arena Group Holdings, Inc. (NYSE American: AREN) has authorized a share repurchase program under which the company may repurchase up to 3 million shares of its common stock over the next 12 months. The decision, announced by the company's Board of Directors, reflects the management's belief that the current share price does not fully reflect the company's operational improvements and future growth prospects.

According to Paul Edmondson, the Chief Executive Officer of The Arena Group, the operational performance of the company continues to improve, and the business is delivering the targeted outcomes. However, these improvements have not been fully reflected in the current share price, especially when compared with the peers in the Russell 2000® Index. The share repurchase program is seen as the best investment by the company, aiming to capitalize on the perceived undervaluation of its stock.

The Arena Group's shares currently trade at less than 11x earnings based on management's previously issued second quarter guidance, while the trailing price-to-earnings ratio of companies traded in the Russell 2000® Index exceeds 30x. If the stock traded at the same ratio as other companies in the index, it could trade at prices around $18 instead of the current price of around $6.

The share repurchase program will be funded through operating cash flow and may be suspended, modified, or terminated at any time at the Board of Directors' discretion. The company may repurchase shares through open-market transactions, privately negotiated transactions, or otherwise, including under Rule 10b5-1 trading plans, subject to market conditions, share price, and other factors.

About The Arena Group
The Arena Group is an innovative technology platform and media company with a proven cutting-edge playbook that transforms media brands. The company's unified technology platform empowers creators and publishers with tools to publish and monetize their content while leveraging quality journalism of anchor brands like TheStreet, Parade, Men’s Journal, Athlon Sports, Surfer, Powder, and more to build their businesses. The company aggregates content across a diverse portfolio of brands, reaching over 100 million users monthly.

The share repurchase program underscores The Arena Group's confidence in its future growth and operational performance. However, it is essential to note that the program is subject to various factors and market conditions, and investors should exercise caution when interpreting forward-looking statements.

References:
[1] https://www.morningstar.com/news/business-wire/20250731835213/the-arena-group-authorizes-share-repurchase-program
[2] https://seekingalpha.com/news/4476046-arena-group-authorizes-share-repurchase-program
[3] https://investors.thearenagroup.net/news-releases/news-release-details/arena-group-authorizes-share-repurchase-program