Core Insights - Vanda Pharmaceuticals has entered into a multi-year partnership with Monumental Sports & Entertainment (MSE), becoming a Founding Partner for the new arena in downtown Washington, D.C. [1][2] - The partnership includes the exclusive entitlement of the Vanda Pharmaceuticals Studio, which will serve as the broadcast center for MSE's sports media platform [3][4]. Partnership Details - Vanda Pharmaceuticals is the second Founding Partner of the Capital One Arena project, joining United Airlines [2]. - The partnership encompasses brand alignment with the NBA's Washington Wizards, NHL's Washington Capitals, and WNBA's Washington Mystics, enhancing MSE's regional media platform [2][4]. Studio and Media Integration - The Vanda Pharmaceuticals Studio, set to open in March 2024, will feature advanced broadcasting technology, including 24 cameras and 1,200 square feet of 4K LED displays [3]. - Vanda will be integrated into all content produced by MSE, including pre- and post-game shows and digital storytelling, reaching millions of fans [4][6]. Community and Brand Impact - Vanda aims to promote growth and community engagement in Washington, D.C., through this partnership, aligning with MSE's vision for innovative community impact [5][6]. - The partnership will enhance Vanda's visibility across various platforms, including branding at the Capital One Arena, which hosts three million guests annually [5][6]. Future Vision - MSE is focused on reimagining the fan experience with cutting-edge technology and immersive design, aiming to inspire millions of visitors over the next 25 years [7].

Group 1 - The article emphasizes the importance of identifying investment opportunities that may not be widely recognized, particularly in the context of Brazil and Latin America [1] - The analyst focuses on undercovered stocks, suggesting that these may present unique investment prospects [1] - Contributions are made to platforms like TipRanks and TheStreet, indicating a commitment to sharing insights on both regional and global large-cap stocks [1] Group 2 - There is a clear disclosure that the analyst does not hold any positions in the mentioned companies, ensuring objectivity in the analysis [2] - The article expresses personal opinions and does not represent any official stance from the associated research firm [2] - The content is intended for educational purposes, highlighting the need for individual due diligence before making investment decisions [2]

[Executive Summary & Highlights](index=1&type=section&id=1.%20Executive%20Summary%20%26%20Highlights) The Arena Group reported significant Q2 2025 financial growth, with revenue up 67% and Adjusted EBITDA up 375%, and initiated a share repurchase program [Q2 2025 Financial Highlights](index=1&type=section&id=1.1%20Q2%202025%20Financial%20Highlights) The Arena Group reported significant financial growth in Q2 2025, with revenue increasing by 67% and Adjusted EBITDA by 375% year-over-year, while income from continuing operations per share improved substantially, and a share repurchase program was authorized Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Revenue | $45,012k | $27,183k | +67% | | Income from continuing operations per share | $0.26 | -$0.24 | +$0.50 | | Adjusted EBITDA | $19M | $4M | +375% | - Trailing Twelve Months (TTM) EPS: Over **$0.60**, a five-fold increase from **$0.12** (for the prior TTM ended March 31, 2025)[5](index=5&type=chunk) - Share Repurchase Program: Board authorized repurchase of up to **3 million shares** of common stock through July 31, 2026[5](index=5&type=chunk) [Operational Highlights & Strategic Initiatives](index=1&type=section&id=1.2%20Operational%20Highlights%20%26%20Strategic%20Initiatives) The company continued to scale its competitive publishing model, driving profitable growth across key brands, expanded its portfolio by launching TravelHost, and the CEO highlighted the stock as undervalued compared to peers - Competitive Publishing Model: Successfully rolled out to Men's Journal, TheStreet, and Parade, following Athlon Sports, resulting in significant growth in revenue and earnings[4](index=4&type=chunk) - Brand Expansion: Launched the travel brand, TravelHost, to expand its portfolio and diversify content verticals, with a goal to add one new brand per quarter[4](index=4&type=chunk)[7](index=7&type=chunk) - CEO's Valuation Perspective: Believes the stock represents tremendous value, trading at approximately **10x P/E**, significantly below Russell 2000® peers (average **>30x P/E**)[4](index=4&type=chunk) [Company Overview & Brand Performance](index=2&type=section&id=2.%20Company%20Overview%20%26%20Brand%20Performance) The Arena Group, an innovative tech platform and media company, empowers creators, aggregates diverse brands, and achieved strong Q2 2025 brand traffic growth [About The Arena Group](index=2&type=section&id=2.1%20About%20The%20Arena%20Group) The Arena Group is an innovative technology platform and media company that empowers creators and publishers to monetize content through a unified platform, aggregating content across a diverse portfolio of recognizable brands, reaching over 100 million monthly users - Business Model: An innovative technology platform and media company with a proven cutting-edge playbook that transforms media brands[8](index=8&type=chunk) - Platform Functionality: Unified technology platform empowers creators and publishers with tools to publish and monetize their content[8](index=8&type=chunk) - Key Brands: Home to many recognizable media brands, including TheStreet, Parade, Men's Journal, Athlon Sports, Surfer, Powder, Bike, and Snowboarder[8](index=8&type=chunk) - Audience Reach: Aggregates content across a diverse portfolio of brands, reaching over **100 million users monthly**[8](index=8&type=chunk) [Brand Performance Metrics](index=2&type=section&id=2.2%20Brand%20Performance%20Metrics) Key brands demonstrated strong audience traffic growth in Q2 2025 compared to Q2 2024, with Men's Journal leading with a 479% increase in pageviews, and Parade also saw significant growth in non-advertising revenue Q2 2025 Brand Traffic Growth (YoY) | Brand | Pageview Growth (Q2 2025 vs Q2 2024) | Monthly Pageviews (Q2 2025) | | :---------- | :----------------------------------- | :-------------------------- | | Athlon Sports | +38% | N/A | | Men's Journal | +479% | >165 million (quarterly) | | TheStreet | +100% | 89 million (average monthly) | | Parade | +70% | >131 million (average monthly) | - Parade Non-Advertising Revenue: More than doubled (**+107%**) vs. Q2 2024, including performance marketing and syndication efforts[9](index=9&type=chunk) [Financial Statements](index=3&type=section&id=3.%20Financial%20Statements) This section details consolidated balance sheets and statements of operations, showing significant asset growth, reduced liabilities, and a Q2 2025 net income turnaround [Consolidated Balance Sheets](index=3&type=section&id=3.1%20Consolidated%20Balance%20Sheets) As of June 30, 2025, The Arena Group's total assets increased to $127.78 million from $116.35 million at December 31, 2024, while total liabilities significantly decreased, primarily due to a reduction in current liabilities from discontinued operations, leading to a substantial improvement in stockholders' deficiency Balance Sheet Snapshot (in thousands of dollars) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | Change | | :-------------------------------- | :-------------------------- | :---------------- | :----- | | Total Assets | $127,781 | $116,352 | +$11,429 | | Total Liabilities | $144,941 | $246,512 | -$101,571 | | Total Stockholders' Deficiency | $(17,328) | $(130,328) | +$113,000 | - Key Asset Changes: Cash and cash equivalents increased from **$4,362k to $6,771k**, and accounts receivables, net, increased from **$31,115k to $40,077k**[11](index=11&type=chunk) - Key Liability Changes: Current liabilities from discontinued operations decreased from **$96,159k to $0**, and Simplify loan decreased from **$10,651k to $2,651k**[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=3.2%20Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, the company reported a net income of $108.64 million, a significant turnaround from a net loss of $8.19 million in Q2 2024, driven by a 67% increase in revenue and substantial income from discontinued operations, with income from continuing operations also turning positive Q2 2025 vs Q2 2024 Performance (in thousands of dollars) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :----- | | Revenue | $45,012 | $27,183 | +67% | | Gross Profit | $25,435 | $10,718 | +137% | | Income (loss) from operations | $16,412 | $(2,578) | Turnaround | | Income (loss) from continuing operations | $12,412 | $(6,938) | Turnaround | | Income (loss) from discontinued operations, net of tax | $96,227 | $(1,249) | Turnaround | | Net income (loss) | $108,639 | $(8,187) | Turnaround | Basic Net Income (Loss) Per Common Share | Metric | Q2 2025 | Q2 2024 | | :-------------------------------- | :------ | :------ | | Continuing operations | $0.26 | $(0.24) | | Discontinued operations | $2.03 | $(0.04) | | Basic net income (loss) per common share | $2.29 | $(0.28) | [Non-GAAP Financial Measures](index=5&type=section&id=4.%20Non-GAAP%20Financial%20Measures) This section details Adjusted EBITDA reconciliation, a non-GAAP measure, highlighting its significant Q2 2025 increase and utility in assessing core operating performance [Adjusted EBITDA Reconciliation](index=5&type=section&id=4.1%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was $18.55 million, a significant increase from $3.67 million in Q2 2024, with this non-GAAP measure used by management to provide insight into underlying operating performance by excluding non-cash items and those not related to core business operations Adjusted EBITDA Performance (in thousands of dollars) | Metric | Q2 2025 | Q2 2024 | Change | | :-------------- | :-------- | :-------- | :----- | | Adjusted EBITDA | $18,552 | $3,669 | +405.6% | Reconciliation of Adjusted EBITDA to Net Income (Loss) (in thousands of dollars) | Item | Q2 2025 | Q2 2024 | | :-------------------------------- | :-------- | :-------- | | Net income (loss) | $108,639 | $(8,187) | | (Income) loss from discontinued operations | $(96,227) | $1,249 | | Income (loss) from continued operations | $12,412 | $(6,938) | | Add: Interest expense (net) | $2,945 | $4,249 | | Add: Income taxes | $979 | $35 | | Add: Depreciation and amortization | $1,989 | $2,420 | | Add: Stock-based compensation | $151 | $499 | | Add: Liquidated damages | $76 | $76 | | Add: Employee restructuring payments | $0 | $3,328 | - Purpose of Adjusted EBITDA: Provides visibility to the underlying continuing operating performance by excluding the impact of certain items that are noncash in nature or not related to core business operations[14](index=14&type=chunk) [Forward-Looking Statements](index=7&type=section&id=5.%20Forward-Looking%20Statements) This section provides a cautionary disclaimer regarding forward-looking statements, emphasizing inherent risks, uncertainties, and the company's limited obligation to update [Disclaimer](index=7&type=section&id=5.1%20Disclaimer) This section serves as a cautionary statement regarding forward-looking statements made in the press release, emphasizing that they are based on current information and assumptions, subject to known and unknown risks and uncertainties, and actual results may differ materially, with the company not undertaking to update these statements unless required by law - Nature of Statements: Relate to future events or performance, including business strategy, future revenues and income from continuing operations, cost reductions, market growth, capital requirements, product introductions, expansion plans, stock price relative to peers, and share repurchase program[19](index=19&type=chunk) - Risks and Uncertainties: Actual outcomes are affected by known and unknown risks, trends, uncertainties, and factors beyond the company's control or ability to predict, as detailed in SEC filings (Form 10-K and 10-Q)[20](index=20&type=chunk)[22](index=22&type=chunk) - No Obligation to Update: The company does not undertake any obligation to release publicly any revisions to forward-looking statements to reflect events or circumstances after the date of the press release, except as may be required by law[23](index=23&type=chunk)

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements of The Arena Group Holdings, Inc. and its subsidiaries, including balance sheets, statements of operations, stockholders' deficiency, and cash flows for the periods ended June 30, 2025 and 2024, along with detailed notes explaining significant accounting policies, discontinued operations, acquisitions, balance sheet components, debt, equity, revenue recognition, income taxes, related party transactions, commitments, contingencies, and segment reporting [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Data | Metric | June 30, 2025 (Unaudited) ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :-------------------------------------- | :------------------------------------ | | **Assets** | | | | Cash and cash equivalents | $6,771 | $4,362 | | Accounts receivables, net | $40,077 | $31,115 | | Total current assets | $51,413 | $40,234 | | Total assets | $127,781 | $116,352 | | **Liabilities** | | | | Accounts payable | $3,366 | $4,844 | | Accrued expenses and other | $15,906 | $10,990 | | Total current liabilities | $28,211 | $122,256 | | Total liabilities | $144,941 | $246,512 | | Total stockholders' deficiency | $(17,328) | $(130,328) | - The Company's **total assets increased by $11.4 million** from December 31, 2024, to June 30, 2025, while **total liabilities decreased significantly by $101.5 million**, primarily due to the resolution of liabilities from discontinued operations[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statements of Operations Data | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Revenue | $45,012 | $27,183 | $76,827 | $56,124 | | Gross profit | $25,435 | $10,718 | $41,104 | $19,651 | | Income (loss) from operations | $16,412 | $(2,578) | $23,774 | $(10,529) | | Income (loss) from continuing operations | $12,412 | $(6,938) | $16,409 | $(19,658) | | Income (loss) from discontinued operations, net of tax | $96,227 | $(1,249) | $96,250 | $(91,887) | | Net income (loss) | $108,639 | $(8,187) | $112,659 | $(111,545) | | Basic net income (loss) per common share | $2.29 | $(0.28) | $2.38 | $(3.97) | | Diluted net income (loss) per common share | $2.28 | $(0.28) | $2.38 | $(3.97) | - The Company reported **significant net income** for the three and six months ended June 30, 2025, primarily driven by a substantial income from discontinued operations due to the derecognition of liabilities related to the Sports Illustrated business[21](index=21&type=chunk)[49](index=49&type=chunk) [Condensed Consolidated Statements of Stockholders' Deficiency](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Deficiency) Stockholders' Deficiency Data | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Total Stockholders' Deficiency | $(17,328) | $(130,328) | | Accumulated Deficit | $(366,704) | $(479,363) | | Common Stock Shares Outstanding | 47,564,607 | 47,556,267 | - The total stockholders' deficiency **significantly improved** from **$(130,328) thousand** at December 31, 2024, to **$(17,328) thousand** at June 30, 2025, largely due to the net income reported, which reduced the accumulated deficit[18](index=18&type=chunk)[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Data | Cash Flow Activity | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------------ | :------------------------------------------- | :------------------------------------------- | | Net cash provided by (used in) operating activities | $13,970 | $(5,161) | | Net cash used in investing activities | $(3,545) | $(1,512) | | Net cash (used in) provided by financing activities | $(8,016) | $3,474 | | Net change in cash and cash equivalents | $2,409 | $(3,199) | | Cash and cash equivalents — end of period | $6,771 | $6,085 | - The Company **generated $13,970 thousand** in net cash from operating activities for the six months ended June 30, 2025, a significant improvement from the **$(5,161) thousand** used in the prior year period, primarily driven by the net income and adjustments related to discontinued operations[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. Summary of Significant Accounting Policies](index=12&type=section&id=1.%20Summary%20of%20Significant%20Accounting%20Policies) - Management concluded that conditions previously raising substantial doubt about the Company's ability to continue as a going concern **no longer exist**, citing improved financial performance, revenue growth, cost reduction, and resolution of liabilities[38](index=38&type=chunk)[39](index=39&type=chunk) - The Company operates in the media industry with **four reportable segments: Sports & Leisure, Finance, Lifestyle, and Platform**, with performance evaluated based on segment gross profit[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk) - New accounting standards **ASU 2023-09 (Income Tax Disclosures)** and **ASU 2024-03 (Expense Disaggregation Disclosures)** will require additional disclosures, effective for fiscal years beginning after December 15, 2024, and December 15, 2026, respectively[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [2. Discontinued Operations](index=15&type=section&id=2.%20Discontinued%20Operations) - The Company **discontinued the Sports Illustrated media business** on March 18, 2024, following the termination of its licensing agreement with ABG, classifying it as a discontinued operation[47](index=47&type=chunk)[122](index=122&type=chunk) - On April 29, 2025, legal matters with the ABG Group were **resolved through a confidential settlement**, releasing outstanding liabilities and forfeiting ABG Warrants[48](index=48&type=chunk)[125](index=125&type=chunk) Discontinued Operations Financials | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Revenue | $45,107 | $404 | $45,107 | $22,252 | | Net income (loss) from discontinued operations | $96,227 | $(1,249) | $96,250 | $(91,887) | - Revenue for the three and six months ended June 30, 2025, from discontinued operations includes the derecognition of **$45,107 thousand** in SI-related subscription liabilities for which the Company has no remaining obligations[49](index=49&type=chunk) [3. Acquisitions and Dispositions](index=17&type=section&id=3.%20Acquisitions%20and%20Dispositions) - On May 12, 2025, the Company **acquired 100% of TravelHost LLC** from Simplify Inventions LLC for **$1,000 thousand**, allocating the full purchase price to the intangible asset brand names[53](index=53&type=chunk) [4. Balance Sheet Components](index=17&type=section&id=4.%20Balance%20Sheet%20Components) Balance Sheet Components Data | Asset Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Accounts receivable, net | $40,077 | $31,115 | | Allowance for credit losses - end of period | $1,660 | $1,458 | | Net platform development | $9,300 | $8,115 | | Total intangible assets | $22,090 | $22,789 | | Total accrued expenses and other | $15,906 | $10,990 | - Accounts receivable, net, **increased by $8,962 thousand**, and net platform development **increased by $1,185 thousand** from December 31, 2024, to June 30, 2025[18](index=18&type=chunk)[54](index=54&type=chunk)[57](index=57&type=chunk) - Accrued expenses and other **increased by $4,916 thousand**, primarily due to increases in accrued payroll, publisher expenses, and liabilities from acquisitions[61](index=61&type=chunk) [5. Leases](index=19&type=section&id=5.%20Leases) Lease Metrics | Lease Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :----------------------------- | :----------------------------- | | Operating lease costs | $281 | $159 | | Weighted-average remaining lease term (years) | 5.67 | 6.01 | | Weighted-average discount rate | 10.90% | 10.85% | | Present value of operating lease liabilities | $2,342 (as of June 30, 2025) | N/A | - The Company has a real estate lease for office space with a **weighted-average remaining lease term of 5.67 years** and a **weighted-average discount rate of 10.90%** as of June 30, 2025[62](index=62&type=chunk)[63](index=63&type=chunk) [6. Goodwill](index=21&type=section&id=6.%20Goodwill) Goodwill Carrying Value | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :----------------------- | :---------------------------- | :---------------------------- | | Carrying value of Goodwill | $42,575 | $42,575 | - Goodwill **remained constant at $42,575 thousand** as of June 30, 2025, and December 31, 2024, with no impairment charges recorded[66](index=66&type=chunk) [7. Liquidated Damages Payable](index=21&type=section&id=7.%20Liquidated%20Damages%20Payable) - Liquidated damages arise from registration rights agreements and securities purchase agreements due to the Company's failure to meet certain filing and registration deadlines[67](index=67&type=chunk) Liquidated Damages Payable Details | Category | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :-------------------------------- | :---------------------------- | :---------------------------- | | Total Liquidated Damages Payable | $3,381 | $3,230 | | Accrued Interest | $1,542 | $1,391 | - The Company continues to accrue interest on the liquidated damages balance at **1.0% per month**, with no scheduled due date for payment[69](index=69&type=chunk) [8. Fair Value](index=22&type=section&id=8.%20Fair%20Value) - The Company's financial instruments include Level 1 assets (cash and cash equivalents) and Level 2 and Level 3 assets/liabilities, with cash and cash equivalents totaling **$6,771 thousand** as of June 30, 2025[74](index=74&type=chunk) - The Fexy Put Option, previously accounted for as a derivative liability, was fully paid during the six months ended June 30, 2024, resulting in a loss of **$379 thousand** on common stock repurchase and a **$313 thousand** loss in change in valuation of contingent consideration[75](index=75&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) [9. Simplify Loan](index=22&type=section&id=9.%20Simplify%20Loan) - The Simplify Loan, an amended promissory note with Simplify (a related party), provides up to **$50,000 thousand** at a **10.0% annual interest rate**, maturing on December 1, 2026[79](index=79&type=chunk)[80](index=80&type=chunk) Simplify Loan Financials | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :---------------- | :---------------------------- | :---------------------------- | | Simplify Loan Balance | $2,651 | $10,651 | | Cash Paid Interest | $308 (Six Months Ended June 30, 2025) | $0 (Six Months Ended June 30, 2024) | - The outstanding balance on the Simplify Loan **decreased by $8,000 thousand** from **$10,651 thousand** at December 31, 2024, to **$2,651 thousand** at June 30, 2025, with repayments during the six months ended June 30, 2025[25](index=25&type=chunk)[80](index=80&type=chunk) [10. Term Debt](index=23&type=section&id=10.%20Term%20Debt) - The Company's Term Debt includes Senior Secured Notes, Delayed Draw Term Notes, 2022 Bridge Notes, and 2023 Notes, with a total carrying value of **$110,499 thousand** as of June 30, 2025[82](index=82&type=chunk)[85](index=85&type=chunk) Term Debt Carrying Values | Debt Type | June 30, 2025 Carrying Value ($ thousands) | December 31, 2024 Carrying Value ($ thousands) | | :-------------------------- | :----------------------------------------- | :----------------------------------------- | | Senior Secured Notes | $62,555 | $62,510 | | Delayed Draw Term Notes | $3,984 | $3,979 | | 2022 Bridge Notes | $35,960 | $35,947 | | 2023 Notes | $8,000 | $8,000 | | Total Term Debt | $110,499 | $110,436 | - An event of default on the Term Debt interest payment in December 2023 was cured, and all interest was paid as of December 31, 2024, with a forbearance period extended to **September 30, 2024**[87](index=87&type=chunk) [11. Interest Expense](index=25&type=section&id=11.%20Interest%20Expense) Interest Expense Breakdown | Interest Expense Category | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Total interest expense | $2,945 | $4,249 | $5,949 | $8,588 | | Cash paid interest | $2,914 | $1,069 | $5,886 | $2,033 | | Noncash and accrued interest | $0 | $3,120 | $0 | $5,959 | | Amortization of debt costs | $31 | $60 | $63 | $596 | - Total interest expense **decreased by $1,304 thousand** for the three months and **$2,639 thousand** for the six months ended June 30, 2025, compared to 2024, primarily due to lower amortization of debt costs and reduced interest charges on the Simplify loan[89](index=89&type=chunk)[192](index=192&type=chunk)[216](index=216&type=chunk) [12. Preferred Stock](index=25&type=section&id=12.%20Preferred%20Stock) - The Company has **1,800 authorized shares** designated as Series G Convertible Preferred Stock, with **168 shares outstanding**, and **23,000 authorized shares** designated as Series H Convertible Preferred Stock, with **no shares outstanding**[91](index=91&type=chunk) [13. Stockholders' Deficiency](index=25&type=section&id=13.%20Stockholders%27%20Deficiency) - The Company has authorized **1,000,000,000 shares** of common stock, with **47,564,607 shares** issued and outstanding as of June 30, 2025[18](index=18&type=chunk)[22](index=22&type=chunk)[90](index=90&type=chunk) - Simplify, a related party, owns approximately **71.4%** of the Company's outstanding common stock following a common stock purchase agreement in August 2024 and a private placement in February 2024, resulting in a change of control[94](index=94&type=chunk)[95](index=95&type=chunk)[117](index=117&type=chunk) [14. Compensation Plans](index=26&type=section&id=14.%20Compensation%20Plans) Stock-based Compensation Data | Stock-based Compensation Category | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :---------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Total stock-based compensation | $161 | $519 | $357 | $1,640 | | Capitalized platform development | $10 | $20 | $24 | $228 | | Unrecognized compensation cost (as of June 30, 2025) | $516 | N/A | N/A | N/A | | Weighted-average period to be recognized (years) | 2.52 | N/A | N/A | N/A | - Total stock-based compensation **decreased significantly** for both the three and six months ended June 30, 2025, compared to 2024. The ABG Warrants, which vested in January 2024 due to a default, were forfeited as part of the ABG settlement[97](index=97&type=chunk)[99](index=99&type=chunk) [15. Revenue Recognition](index=28&type=section&id=15.%20Revenue%20Recognition) Revenue by Category | Revenue Category | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Total digital revenue | $44,767 | $26,430 | $76,375 | $55,098 | | Digital advertising | $31,693 | $20,718 | $53,510 | $43,466 | | Performance Marketing | $5,730 | $1,537 | $10,520 | $2,209 | | Publisher revenue | $5,621 | $2,282 | $8,725 | $4,385 | | Total revenue | $45,012 | $27,183 | $76,827 | $56,124 | | Revenue recognized from existing unearned revenue | $1,541 | $4,204 | $3,739 | $11,352 | - Total revenue **increased by 65.6%** for the three months and **36.9%** for the six months ended June 30, 2025, driven by significant growth in digital advertising, performance marketing, and publisher revenue[100](index=100&type=chunk)[175](index=175&type=chunk)[198](index=198&type=chunk) - Unearned revenue (short-term contract liabilities) **decreased from $6,349 thousand** at December 31, 2024, to **$4,793 thousand** at June 30, 2025[104](index=104&type=chunk) [16. Income Taxes](index=29&type=section&id=16.%20Income%20Taxes) Income Tax Metrics | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax provision ($ thousands) | $979 | $35 | $1,265 | $76 | | Effective Tax Rate (ETR) | 7.31% | (0.51)% | 7.16% | (0.39)% | - The effective tax rate **increased significantly** for the three and six months ended June 30, 2025, primarily due to higher federal and state income taxes resulting from pre-tax income, compared to losses in the prior year[106](index=106&type=chunk) - The ETR **remained below the U.S. federal statutory rate** due to a **full valuation allowance** against deferred tax assets, as management deemed recent profitability insufficient to overcome cumulative losses[107](index=107&type=chunk) [17. Related Party Transactions](index=29&type=section&id=17.%20Related%20Party%20Transactions) - The Company acquired TravelHost LLC from Simplify, a related party, for **$1,000 thousand** on May 12, 2025[110](index=110&type=chunk) - Simplify, an affiliated entity, holds approximately **71.4%** of the Company's common stock, giving it control over stockholder approvals[117](index=117&type=chunk) Related Party Transaction Details | Transaction | Three Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | | :-------------------------- | :--------------------------------------------- | :------------------------------------------- | | Interest paid to Renew (Term Debt) | $2,798 | $5,565 | | Interest paid to Simplify (Simplify Loan) | $114 | $308 | | Digital advertising revenue from Living Essentials (Simplify affiliate) | $880 | $1,830 | | Outstanding accounts receivable from Living Essentials (as of June 30, 2025) | N/A | $1,905 | [18. Commitments and Contingencies](index=30&type=section&id=18.%20Commitments%20and%20Contingencies) - The Company is involved in various legal proceedings, including a lawsuit filed by a former CEO and Chairman seeking **$20,000 thousand** in damages, which the Company intends to vigorously defend[120](index=120&type=chunk)[121](index=121&type=chunk) - Legal matters with the ABG Group related to the Sports Illustrated business termination were **resolved through a confidential settlement** on April 29, 2025, releasing previously accrued liabilities of **$48,750 thousand** and forfeiting ABG Warrants[123](index=123&type=chunk)[125](index=125&type=chunk) [19. Segment Reporting](index=32&type=section&id=19.%20Segment%20Reporting) - The Company operates in **four reportable segments: Sports & Leisure, Finance, Lifestyle, and Platform**, with performance evaluated based on segment gross profit[128](index=128&type=chunk) Segment Revenue Performance | Segment | Three Months Ended June 30, 2025 Revenue ($ thousands) | Three Months Ended June 30, 2024 Revenue ($ thousands) | Six Months Ended June 30, 2025 Revenue ($ thousands) | Six Months Ended June 30, 2024 Revenue ($ thousands) | | :---------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Sports & Leisure | $16,723 | $9,784 | $29,186 | $23,012 | | Finance | $13,097 | $5,690 | $21,195 | $11,959 | | Lifestyle | $12,275 | $8,347 | $20,154 | $14,742 | | Platform | $2,917 | $3,362 | $6,292 | $6,411 | | Total Revenue | $45,012 | $27,183 | $76,827 | $56,124 | - All segments except Platform showed **significant revenue growth** for both the three and six months ended June 30, 2025, driven by increased digital advertising, performance marketing, and publisher revenues, largely due to the competitive publishing model and network expansion[182](index=182&type=chunk)[183](index=183&type=chunk)[184](index=184&type=chunk)[206](index=206&type=chunk)[207](index=207&type=chunk)[208](index=208&type=chunk) [20. Subsequent Events](index=36&type=section&id=20.%20Subsequent%20Events) - On July 31, 2025, the Company announced a share repurchase program to buy back up to **3 million shares** of its common stock through July 31, 2026, **funded by operating cash flow**[138](index=138&type=chunk)[139](index=139&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations for the three and six months ended June 30, 2025 and 2024, covering an overview of the business, recent developments, macroeconomic impacts, key operating metrics, liquidity and capital resources, and a detailed analysis of revenue, costs, and expenses, including segment performance, non-GAAP financial measures, and critical accounting estimates [Overview](index=38&type=section&id=Overview) - The Arena Group is a media company leveraging its digital media platform to build content verticals (sports & leisure, lifestyle, finance) powered by anchor brands and over 150 independent Publisher Partners[141](index=141&type=chunk)[143](index=143&type=chunk) - The strategy focuses on maximizing audience reach, enhancing engagement, and optimizing monetization of digital publishing assets for users, advertisers, and partners, who benefit from the Platform's scale and expertise in SEO, social media, and ad monetization[141](index=141&type=chunk)[142](index=142&type=chunk) [Recent Developments](index=38&type=section&id=Recent%20Developments) - On May 12, 2025, the Company **acquired 100% of TravelHost LLC** from Simplify, a related party, for **$1.0 million**, a transaction approved by the Audit Committee[144](index=144&type=chunk) [Impact of Macroeconomic Conditions](index=38&type=section&id=Impact%20of%20Macroeconomic%20Conditions) - The Company faces significant risks from global economic uncertainty, including inflation, banking instability, geopolitical conflicts (Ukraine, Israel), and tariffs affecting print production and advertising markets[145](index=145&type=chunk) - The ultimate impact of these macroeconomic conditions on the business remains highly uncertain and depends on future developments beyond the Company's control[145](index=145&type=chunk)[146](index=146&type=chunk) [Key Operating Metrics](index=39&type=section&id=Key%20Operating%20Metrics) - Key operating metrics include Revenue per page view (RPM) and Monthly average page views, which provide insights into digital advertising revenue and overall business performance[147](index=147&type=chunk)[150](index=150&type=chunk) Key Operating Metrics Overview | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | RPM | $25.12 | $22.90 | $23.85 | $21.22 | | Monthly average page views | 423,358,110 | 295,011,396 | 375,434,097 | 347,347,690 | - RPM **increased by 10%** (3 months) and **12%** (6 months) YoY, reflecting strong traffic with premium content. Monthly average page views **increased by 44%** (3 months) and **8%** (6 months) YoY, indicating growth in traffic, demand, and audience[151](index=151&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) - Management concluded that substantial doubt about the Company's ability to continue as a going concern **no longer exists**, citing consecutive profitable quarters, revenue growth, cost reduction, and resolution of liabilities[156](index=156&type=chunk)[157](index=157&type=chunk) Liquidity and Capital Resources Summary | Metric | June 30, 2025 ($ thousands) | December 31, 2024 ($ thousands) | | :---------------- | :---------------------------- | :---------------------------- | | Cash on hand | $6,771 | $4,362 | | Working capital | $23,202 | $(82,022) | | Available under Simplify loan | $47,349 | N/A | - Working capital **improved significantly** from a deficit of **$82,022 thousand** at December 31, 2024, to a surplus of **$23,202 thousand** at June 30, 2025, primarily due to the reversal of accruals related to discontinued operations[165](index=165&type=chunk) - Net cash **generated $13,970 thousand** from operating activities for the six months ended June 30, 2025, a substantial increase from the **$5,161 thousand** used in the prior year period[166](index=166&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Three Months Financial Performance Summary | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | % Change | | :------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :------- | | Revenue | $45,012 | $27,183 | 65.6% | | Gross profit | $25,435 | $10,718 | 137.3% | | Income (loss) from operations | $16,412 | $(2,578) | -736.6% | | Net income (loss) | $108,639 | $(8,187) | -1427.0% | Six Months Financial Performance Summary | Metric | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | % Change | | :------------------------------------ | :------------------------------------------- | :------------------------------------------- | :------- | | Revenue | $76,827 | $56,124 | 36.9% | | Gross profit | $41,104 | $19,651 | 109.2% | | Income (loss) from operations | $23,774 | $(10,529) | -325.8% | | Net income (loss) | $112,659 | $(111,545) | -201.0% | - Income from continuing operations **improved significantly** for both periods, driven by increased revenues and decreased operating expenses due to headcount and consulting spend reductions[171](index=171&type=chunk)[194](index=194&type=chunk) [Three Months Ended June 30, 2025 and 2024](index=41&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) - Total revenue **increased by 65.6%** to **$45,012 thousand**, primarily driven by a **69.4%** increase in digital revenue, including digital advertising (**+53.0%**), performance marketing (**+272.8%**), and publisher revenue (**+146.3%**)[175](index=175&type=chunk)[176](index=176&type=chunk) - Gross profit **increased by 137.3%** to **$25,435 thousand**, with the gross profit percentage rising to **56.5%** from **39.4%**, attributed to the competitive publishing model and brand expansion[172](index=172&type=chunk)[173](index=173&type=chunk) - Operating expenses **decreased by 32.1%**, with selling and marketing down **48.2%** and general and administrative down **28.2%**, mainly due to reductions in direct sales workforce, payroll, and professional services[171](index=171&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=46&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) - Total revenue **increased by 36.9%** to **$76,827 thousand**, with digital revenue growing by **38.6%**, driven by digital advertising (**+23.1%**), performance marketing (**+376.2%**), and publisher revenue (**+99.0%**)[198](index=198&type=chunk)[199](index=199&type=chunk) - Gross profit **increased by 109.2%** to **$41,104 thousand**, with the gross profit percentage rising to **53.5%** from **35.0%**, due to the expansion of the competitive publishing model and affiliate partner network[196](index=196&type=chunk)[197](index=197&type=chunk) - Operating expenses **decreased by 42.6%**, with selling and marketing down **51.0%** and general and administrative down **38.8%**, primarily due to reductions in payroll, employee benefits, and professional services[194](index=194&type=chunk)[202](index=202&type=chunk)[203](index=203&type=chunk) [Use of Non-GAAP Financial Measures](index=50&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) - Adjusted EBITDA is used by management to provide supplemental information on underlying operating performance by excluding non-cash or non-core business items such as interest expense, income taxes, depreciation, amortization, stock-based compensation, and discontinued operations[218](index=218&type=chunk)[219](index=219&type=chunk)[221](index=221&type=chunk) Adjusted EBITDA Reconciliation | Metric | Three Months Ended June 30, 2025 ($ thousands) | Three Months Ended June 30, 2024 ($ thousands) | Six Months Ended June 30, 2025 ($ thousands) | Six Months Ended June 30, 2024 ($ thousands) | | :---------------- | :--------------------------------------------- | :--------------------------------------------- | :------------------------------------------- | :------------------------------------------- | | Net income (loss) | $108,639 | $(8,187) | $112,659 | $(111,545) | | Adjusted EBITDA | $18,552 | $3,669 | $28,262 | $2,821 | - Adjusted EBITDA **increased significantly** to **$18,552 thousand** for the three months and **$28,262 thousand** for the six months ended June 30, 2025, compared to **$3,669 thousand** and **$2,821 thousand** in the prior year periods, reflecting improved operational performance[220](index=220&type=chunk) [Critical Accounting Estimates](index=52&type=section&id=Critical%20Accounting%20Estimates) - The Company's financial statements rely on estimates and judgments affecting reported amounts, including allowance for credit losses, capitalization of platform development, goodwill, intangible assets, accruals for liabilities, stock-based compensation, and deferred tax assets[40](index=40&type=chunk)[222](index=222&type=chunk) - No material changes to critical accounting policies and estimates were reported compared to the Annual Report on Form 10-K for the year ended December 31, 2024, except as described in Note 1[223](index=223&type=chunk) [Recently Issued Accounting Standards Updates](index=53&type=section&id=Recently%20Issued%20Accounting%20Standards%20Updates) - This section refers to Note 1 for details on recently issued accounting standards updates, including **ASU 2023-09 (Income Tax Disclosures)** and **ASU 2024-03 (Expense Disaggregation Disclosures)**[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to the Company as it qualifies as a "smaller reporting company" under SEC Regulation S-K - The Company is exempt from providing quantitative and qualitative disclosures about market risk as it is a "**smaller reporting company**"[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=53&type=section&id=Item%204.%20Controls%20and%20Procedures) This section details the evaluation of the Company's disclosure controls and procedures and internal control over financial reporting. Management concluded that disclosure controls were not effective as of June 30, 2025, due to identified material weaknesses, and outlines a remediation plan [Evaluation of Disclosure Controls and Procedures](index=53&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management concluded that the Company's disclosure controls and procedures were **not effective** as of June 30, 2025, due to **material weaknesses** in internal control over financial reporting[228](index=228&type=chunk) [Material Weaknesses in Internal Control over Financial Reporting and Remediation Plan](index=53&type=section&id=Material%20Weaknesses%20in%20Internal%20Control%20over%20Financial%20Reporting%20and%20Remediation%20Plan) - **Material weaknesses identified include inadequate finance and accounting policies documentation and insufficient internal controls** to validate data from certain third-party service providers (print subscription, advertising, ad serving)[231](index=231&type=chunk)[232](index=232&type=chunk) - Remediation plans include hiring resources to develop comprehensive policies, obtaining and reviewing SOC 1 Type 2 reports from third-party providers, and implementing additional controls for reviewing amendments to third-party agreements[233](index=233&type=chunk) - Despite the material weaknesses, management believes the unaudited condensed consolidated financial statements fairly present the Company's financial position and results[234](index=234&type=chunk) [Changes in Internal Control over Financial Reporting](index=54&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025, other than those related to the identified material weaknesses and remediation efforts[235](index=235&type=chunk) [Inherent Limitations on the Effectiveness of Controls](index=54&type=section&id=Inherent%20Limitations%20on%20the%20Effectiveness%20of%20Controls) - The effectiveness of any internal control system is subject to inherent limitations, including judgment in design and operation, resource constraints, and the inability to eliminate misconduct completely[236](index=236&type=chunk) [PART II - OTHER INFORMATION](index=55&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 18 for details on legal proceedings, stating that the Company is not currently subject to any pending or threatened legal proceedings expected to have a material adverse effect on its business, financial condition, results of operations, or cash flows, beyond what is already disclosed - The Company is **not currently involved in any legal proceedings expected to have a material adverse effect** on its business, beyond those disclosed in Note 18[239](index=239&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) This section supplements and, where inconsistent, supersedes the risk factors from the Company's 2024 Form 10-K, highlighting new risks related to the share repurchase program, including potential volatility, impact on cash reserves, and no assurance of long-term shareholder value enhancement - The Company's share repurchase program, announced on July 31, 2025, carries risks such as **increased stock price volatility, diminished cash reserves, and no guarantee of enhancing long-term shareholder value**[241](index=241&type=chunk) - The Company is not obligated to repurchase any specific number of shares and may suspend, modify, or terminate the program at any time[241](index=241&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item indicates that there were no unregistered sales of equity securities or use of proceeds to report during the period - **No unregistered sales of equity securities or use of proceeds occurred** during the reporting period[242](index=242&type=chunk) [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item states that there were no defaults upon senior securities to report during the period - There were no defaults upon senior securities during the reporting period[243](index=243&type=chunk) [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company's operations - Mine safety disclosures are not applicable to the Company[244](index=244&type=chunk) [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) This item indicates that there is no other information to report during the period - **No other information is required to be reported** under this item[245](index=245&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of this Quarterly Report, including various agreements, certificates of incorporation, bylaws, warrants, and certifications required by the Sarbanes-Oxley Act - The report includes various exhibits such as merger agreements, asset purchase agreements, certificates of incorporation, bylaws, common stock purchase warrants, and Sarbanes-Oxley Act certifications[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) This section contains the required signatures of the Company's authorized officers, including the Chief Executive Officer and Principal Financial Officer, certifying the report's submission - The report is signed by **Paul Edmondson, Chief Executive Officer, and Geoffrey Wait, Principal Financial Officer, on August 14, 2025**[254](index=254&type=chunk)

Core Insights - The global apparel industry is highly competitive, with Levi Strauss & Co. (LEVI) and Abercrombie & Fitch Co. (ANF) as notable players leveraging brand heritage and strategic transformation to capture market share [1][2] Company Overview - Levi has a legacy of over 170 years, primarily in denim, while Abercrombie has reinvented itself to appeal to young consumers [2] - Levi operates in casualwear and denim, selling through Direct-to-Consumer (DTC) and wholesale channels, while Abercrombie focuses on specialty retail with its Abercrombie and Hollister brands [3] Strategic Approaches - Levi is transitioning into a DTC-first organization, enhancing its digital experience and expanding its product portfolio beyond jeans [6][7] - Abercrombie emphasizes agility and trend responsiveness, utilizing a "Read & React" model to quickly adapt to market trends [11][13] Market Performance - Levi's stock rose 21.7% in six months, while Abercrombie's stock fell 28.1%, indicating investor preference for Levi's strategy [8][20] - Levi's forward P/E ratio is 15.65X, reflecting strong market confidence, while Abercrombie's is 8.90X, indicating investor caution [18][19] Financial Estimates - Levi's fiscal 2025 sales estimate implies a decline of 4.04%, but EPS indicates growth of 2.4% [16] - Abercrombie's fiscal 2025 EPS estimate implies a decline of 4.9%, while sales are expected to grow by 4.7% [17] Conclusion - Levi is positioned as a stronger long-term investment due to its global scale, brand strength, and strategic transformation into a diversified lifestyle brand [23]

Core Insights - SEGG Media Corporation has signed a binding Letter of Intent to acquire the rights to David Lloyd's All-Sports Arena in Boca Raton, FL, valued at $14 million, marking the brand's entry into the U.S. market [2][3] Company Overview - SEGG Media is a technology company focused on the intersection of sports, entertainment, and gaming, operating under the NASDAQ ticker SEGG [2][11] - David Lloyd is a prominent figure in British and European sports, known for founding David Lloyd Leisure, which operates 130 health and fitness clubs serving over 710,000 members [4][12] Facility Details - The All-Sports Arena will be a 100,000 square-foot facility in Boca Raton, designed to combine sports infrastructure with co-working and business amenities, branded as "Sports.com All-Sports Arena, designed by David Lloyd" [3][8] - Key features of the facility include indoor padel, basketball, and pickleball courts, climbing walls, AI-driven golf simulators, and a luxury co-working space of approximately 10,000 square feet [8][10] Financial Projections - The Boca facility is projected to generate over $6 million in EBITDA in its first year of operations, with plans for additional facilities to be developed [10] Strategic Expansion - The Boca Raton launch is part of a broader international rollout strategy, with plans for expansion across major U.S. cities and the Middle East, leveraging Sports.com's digital audience and David Lloyd's operational expertise [7][9]

Group 1 - The most successful investment strategy involves buying companies that have significantly improved but have not yet been recognized by the market, referred to as turnarounds [1] - The average stock returns from the articles published have been over 30% over a one-year period [2] - A significant portion of the investment portfolio, approximately 50-75%, consists of deep value stocks, primarily in the small-cap category [2] Group 2 - There is a beneficial long position in the shares of AREN, indicating a vested interest in the company's performance [3] - The article expresses personal opinions and is not influenced by compensation from any company mentioned [3] - The past performance of investments does not guarantee future results, highlighting the inherent uncertainty in stock market investments [4]

Group 1 - The Arena Group Holdings (NYSE: AREN) has seen a significant recovery in its stock price after a prolonged decline, with shares trading for under $2 two months ago [1] - The stock experienced a notable rally starting from late last year, indicating a potential turnaround for the company [1]

Financial Performance - Quarterly revenue from continuing operations was $36.2 million, up 8% sequentially compared to Q3 2024[4] - Income from continuing operations was $7.2 million, or $0.15 per diluted share for Q4 2024, compared to $4.8 million, or $0.13 per diluted share in Q3 2024[4] - Adjusted EBITDA for Q4 2024 was $13.0 million compared to $11.1 million for Q3 2024[4] - Loss from continuing operations was $7.7 million in FY 2024 compared to $37.2 million in FY 2023[4] - Adjusted EBITDA for FY 2024 was $27.0 million compared to $13.2 million for FY 2023[4] - The total net income (loss) for the year ended December 31, 2024, was $(5,555) thousand, compared to $(100,710) thousand for the year ended December 31, 2023, indicating a substantial reduction in losses[12] Audience and Traffic Growth - Athlon Sports' audience traffic increased to 284 million page views in Q4 2024, up 20% vs Q3 2024 and 325% vs Q4 2023[5] - Parade achieved over 53 million average monthly users and 74 million average monthly page views in Q4 2024, up 6% vs Q3 2024[5] - The Street delivered 36 million average monthly page views in Q4 2024, up 1% vs Q3 2024[5] Future Outlook - The company expects to be profitable in every quarter of 2025 following the launch of the 'competitive publishing' model[2] - The company anticipates future revenues and profitability improvements as part of its business strategy, although specific figures were not disclosed[14] - The company is focused on cost reductions and market growth as part of its future outlook[14] - The company plans to introduce new products and expand its market presence, although details on specific products were not provided[14] Operational Challenges - For Q1 2024, the net loss from continued operations was $(12,720) thousand, compared to $(14,524) thousand in Q1 2023, showing an improvement of 12.4%[12] - Adjusted EBITDA for Q1 2024 was $(848) thousand, a significant improvement from $(2,103) thousand in Q1 2023[12] - Interest expense (net) decreased to $4,339 thousand in Q1 2024 from $4,182 thousand in Q1 2023, reflecting a 3.7% reduction[12] - The company reported a net loss from discontinued operations of $90,638 thousand in Q1 2024, compared to $4,853 thousand in Q1 2023, highlighting a significant increase in losses from this segment[12] - The company has incurred professional and vendor fees related to non-operational events, which may impact future financial results[13] - The company cautions that actual future results may differ materially from forward-looking statements due to various risks and uncertainties[15] Asset Management - Total assets decreased to $116.4 million in 2024 from $188.9 million in 2023[10]

Financial Performance - For the three months ended March 31, 2025, total revenue increased by $2,874, or 9.9%, to $31,815 compared to $28,941 in the same period of 2024[148]. - Net income for the three months ended March 31, 2025, was $4,020 million, compared to a net loss of $103,358 million for the same period in 2024[168]. - Net income from continuing operations improved by $16,717 to $3,997, compared to a net loss of $12,720 in the prior period[147]. - Adjusted EBITDA for the three months ended March 31, 2025, was $9,710 million, a significant improvement from a loss of $848 million in the same period of 2024[168]. - Income from continuing operations was $3,997 million for the three months ended March 31, 2025, compared to a loss of $12,720 million in the same period of 2024[168]. Revenue and Profitability - Digital revenue increased by 10.3% to $31,608, driven by a $4,118 increase in performance marketing revenue and a $1,001 increase in publisher revenue[151]. - Gross profit for the same period was $15,669, an increase of $6,736, representing a 75.4% increase from $8,933 in 2024, with a gross profit percentage of 49.3% compared to 30.9% in 2024[148][149]. - The segment revenue for Finance increased by $1,829, primarily driven by an increase in performance marketing revenues[156]. - The segment gross profit increased to $18,552, up $3,661 from $14,891 in 2024, with notable increases in all segments[158]. Expenses and Costs - Operating expenses decreased by $8,577, or 50.8%, to $8,307, primarily due to reductions in headcount and consulting spend[148]. - Selling and marketing expenses decreased by $2,430, or 53.2%, to $2,134, representing 7% of revenues compared to 16% in 2024[153]. - General and administrative expenses decreased by $4,852, or 47.9%, to $5,283, representing 17% of revenues compared to 35% in 2024[154]. - Interest expense decreased by $1,335, or 30.8%, to $3,004, primarily due to lower amortization of debt costs and lower interest charges[164]. - Depreciation and amortization expenses were $2,166 million for the three months ended March 31, 2025, compared to $2,536 million for the same period in 2024[168]. - Stock-based compensation costs were $182 million for the three months ended March 31, 2025, down from $913 million in the same period of 2024[168]. Cash Flow and Working Capital - Net cash provided by operating activities for the three months ended March 31, 2025, was $3,662, compared to a net cash used of $1,965 in the same period of 2024[144]. - Cash and cash equivalents at the end of the period for March 31, 2025, were $2,902, down from $4,003 at the end of March 31, 2024[144]. - As of March 31, 2025, the working capital deficit was $80,622, a slight improvement from $82,022 as of December 31, 2024[143]. Discontinued Operations and Impairments - Total liabilities from discontinued operations were $96,056 as of March 31, 2025, following the discontinuance of the Sports Illustrated media business[140]. - The company recorded a loss on impairment of assets of $1,198 million for the three months ended March 31, 2024, with no such loss reported for the same period in 2025[168]. Strategic Developments - The company entered into a Membership Purchase Agreement to acquire 100% of TravelHost LLC for $1.0 million on May 12, 2025[125]. - The company is closely monitoring macroeconomic conditions, including inflation and geopolitical factors, which may adversely affect its business[126]. Taxation - The provision for income taxes increased to $286 million for the three months ended March 31, 2025, compared to $41 million for the same period in 2024, reflecting an increase of $245 million due to improved operating results[166]. Digital Advertising - For the three months ended March 31, 2025, digital advertising revenue decreased by approximately 4% compared to the same period in fiscal 2024[127]. - RPM increased by 20% to $22.21 for the three months ended March 31, 2025, up from $18.56 in the same period of 2024, driven by higher video advertising sales[131]. - Monthly average pageviews rose by 15% to 327,510,084 for the three months ended March 31, 2025, compared to 286,009,299 in the same period of 2024[131].