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 -379 K.

Gross Margin

Gross margin was 34.8% in Q1 2026, compared to 49.4% in Q1 2025.

Net Income (Loss)

Net loss was - $2.7 million in Q1 2026, or -13.2% of revenue, compared to net income of $4.0 million, or 12.6% of revenue, in Q1 2025. Q1 2026 results were impacted by over $1 million in elevated severance charges and professional fees due to legal and restructuring actions.

Adjusted EBITDA

Adjusted EBITDA for Q1 2026 was $1.7 million, compared to $9.7 million in Q1 2025. Adjusted EBITDA margin was 8.3% in Q1 2026, compared to 30.5% in Q1 2025.

Cash

Cash increased by nearly $1 million during Q1 2026, from $10.3 million as of December 31, 2025, to $11.2 million as of March 31, 2026.

Operational Metrics

• Monetization Strategy Optimization: CPMs beat US Market OMP (open market) by 72% in Q1 2026, despite fluctuations from testing.
• Licensing Initiatives: The licensed badging business achieved 72% year-over-year growth for the quarter. Men’s Journal Spirits Shop experienced a 165% increase in average weekly sales in Q1 2026 compared to Q4 2025.
• Commerce Momentum: ShopHQ added 40 partners, supplying 44 brands, during the quarter. Orders increased by 14% in Q1 2026 over Q4 2025.

Outlook / Guidance

The Arena Group Holdings, Inc. expects to drive yields and accelerate long-term audience growth for the remainder of 2026 through aggressive AI adoption and rigorous technical tests on monetization. The company is making progress in debt refinancing efforts to strengthen financial flexibility, reduce debt servicing costs, and provide a more efficient capital structure. Momentum in commerce is anticipated to build with the recent expansion into TikTok Shop in Q2 2026, leading into peak shopping months in Q3 and Q4 2026.