Revenue: As of FY2026 Q1, the actual value is USD 20.41 M, missing the estimate of USD 25 M.

EPS: As of FY2026 Q1, the actual value is USD -0.06, missing the estimate of USD 0.1.

EBIT: As of FY2026 Q1, the actual value is USD 2.117 M.

Overall Financial Performance

Three Months Ended March 31, 2026 vs. 2025 (in thousands of dollars)

• Revenue: Total revenue for The Arena Group Holdings, Inc. decreased by $11,409, or -35.9%, from $31,815 in 2025 to $20,406 in 2026.
• Cost of Revenue: Decreased by $2,821, or -17.5%, from $16,146 in 2025 to $13,325 in 2026.
• Gross Profit: Decreased by $8,588, or -54.8%, from $15,669 in 2025 to $7,081 in 2026.
• Gross Margin: Was 34.7% in 2026, down from 49.3% in 2025.
• Operating Expenses:
  • Selling and marketing: Decreased by $283, or -13.3%, from $2,134 in 2025 to $1,851 in 2026.
  • General and administrative: Decreased by $642, or -12.2%, from $5,283 in 2025 to $4,641 in 2026.
  • Depreciation and amortization: Increased by $3, or 0.3%, from $890 in 2025 to $893 in 2026.
  • Total operating expenses: Decreased by $922, or -11.1%, from $8,307 in 2025 to $7,385 in 2026.
• Income (Loss) from Operations: Shifted from income of $7,362 in 2025 to a loss of - $304 in 2026, a decrease of $7,666 or -104.1%.
• Total Other Expense: Decreased by $583, or 18.9%, from - $3,079 in 2025 to - $2,496 in 2026.
• Interest Expense, Net: Decreased by $583, or -19%, from - $3,004 in 2025 to - $2,421 in 2026.
• Liquidated Damages: Remained constant at - $75 for both periods.
• Income (Loss) Before Income Taxes: Shifted from income of $4,283 in 2025 to a loss of - $2,800 in 2026, a decrease of $7,083 or -165.4%.
• Income Tax Benefit (Provision): Shifted from a provision of - $286 in 2025 to a benefit of $142 in 2026, an increase of $428 or 149.7%.
• Income (Loss) from Continuing Operations: Shifted from income of $3,997 in 2025 to a loss of - $2,658 in 2026, a decrease of $6,655 or 166.5%.
• Net Income (Loss): Shifted from net income of $4,020 in 2025 to a net loss of - $2,658 in 2026, a decrease of $6,678 or -166.1%.

Segment Revenue

Three Months Ended March 31, 2026 vs. 2025 (in thousands of dollars)

• Sports & Leisure: Revenue decreased by $6,237 from $12,463 in 2025 to $6,226 in 2026, primarily due to lower digital advertising revenue reflecting company-wide declines in organic traffic volume and monetization rates.
• Finance: Revenue decreased by $2,882 from $8,098 in 2025 to $5,216 in 2026, driven by a decline in performance marketing revenue, reduced digital advertising revenue, and a decrease in digital subscription revenue.
• Lifestyle: Revenue decreased by $1,370 from $7,879 in 2025 to $6,509 in 2026, mainly due to lower digital advertising revenue reflecting company-wide declines in organic traffic volume and monetization rates.
• Platform & Other: Revenue decreased by $920 from $3,375 in 2025 to $2,455 in 2026, primarily due to a reduction in underperforming partner sites.

Segment Gross Profit

Three Months Ended March 31, 2026 vs. 2025 (in thousands of dollars)

• Sports & Leisure: Gross profit was $3,012 in 2026, down from $7,536 in 2025.
• Finance: Gross profit was $3,301 in 2026, down from $5,224 in 2025.
• Lifestyle: Gross profit was $3,632 in 2026, down from $4,687 in 2025.
• Platform & Other: Gross profit was $457 in 2026, down from $1,105 in 2025.
• Total Segment Gross Profit: Decreased by $8,150 from $18,552 in 2025 to $10,402 in 2026, mainly due to reductions in digital advertising revenue from traffic volume headwinds and lower monetization rates.

Cash Flow

Three Months Ended March 31, 2026 vs. 2025 (in thousands of dollars)

• Net cash provided by operating activities: $1,961 in 2026 compared to $3,662 in 2025.
• Net cash used in investing activities: - $1,069 in 2026 compared to - $1,618 in 2025.
• Net cash used in financing activities: $0 in 2026 compared to - $3,504 in 2025.
• Net change in cash and cash equivalents: $892 in 2026 compared to - $1,460 in 2025.
• Cash and cash equivalents, end of period: $11,230 in 2026 compared to $2,902 in 2025.

Key Operating Metrics

Three Months Ended March 31, 2026 vs. 2025

• Revenue per page view (RPM): $18.54 in 2026 compared to $22.21 in 2025.
• Monthly average page views: 206,228,655 in 2026 compared to 327,510,084 in 2025.

Future Outlook and Strategy

The Arena Group Holdings, Inc. is implementing yield-enhancement initiatives, optimizing site architecture, and accelerating AI integration to improve monetization and audience growth, aiming to adapt to evolving search authority best practices and strengthen domain visibility. Management anticipates profitability for the remainder of 2026 and cumulative pretax income for the full fiscal year, despite a net loss in the first quarter. The acquisition of ShopHQ in October 2025 is expected to broaden commercial reach, add e-commerce and social selling capabilities, and enhance first-party data collection for improved yields.