Everbright Digital Holding Limited (EDHL) AI Stock Analysis
EDHL AI stock analysis summary
AI ResearchEverbright Digital Holding Limited is a Hong Kong-based provider of digital marketing and creative event solutions. The company experienced a revenue decline of 32.6% in FY2025 to $1.9M alongside a net loss of -$2.2M. Cash and short-term investments stood at $3,167 as of March 31, 2026, while the stock trades at a price-to-sales multiple of 17.9x.
- Market cap
- $33.3M
- Revenue (TTM)
- $1.9M
- P/E
- —
- 1Y return
- -69.1% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company achieved a 3-year revenue CAGR of 31.7% between FY2022 and FY2025.
- Gross margin increased to 65.4% in FY2025 from 58.9% in FY2024.
- The stock trades 47.0% above its 200-day moving average as of October 16, 2026.
Bear case
- Annual revenue fell 32.6% in FY2025 to $1.9M, accompanied by a net loss of -$2.2M.
- Free cash flow worsened to -$4.8M in FY2025, down from -$367,705 in FY2024.
- Cash and short-term investments stood at $3,167 as of March 31, 2026.
What Everbright Digital does
Everbright Digital Holding Limited, along with its subsidiaries, delivers marketing solutions in Hong Kong. The firm provides an array of digital marketing services, which include metaverse stimulation, virtual reality and augmented reality design and creation, creative event planning and management, intellectual property character creation, and social media marketing. Its customer base includes real estate developers, concert organizers, and public charitable organizations. Founded in 2021 and headquartered in Kwun Tong, Hong Kong, the business operates as a subsidiary of Everbright Digital Global Limited with 6 employees.
Growth and profitability
Revenue expanded from $815,090 in FY2022 to $2.8M in FY2023, reflecting revenue growth of 246.6%, before edging lower by 2.3% to $2.8M in FY2024. In FY2025, revenue fell 32.6% to $1.9M, producing a 3-year revenue CAGR of 31.7%. Gross margin shifted from 69.7% in FY2022 to 55.1% in FY2023, 58.9% in FY2024, and 65.4% in FY2025. Operating margin turned from positive 18.7% in FY2024 to -142.9% in FY2025. Net income fell from $379,430 in FY2024 to a net loss of -$2.2M in FY2025. For the latest quarter ended December 31, 2025, quarterly revenue growth declined 13.4% year-over-year.
Balance sheet and cash flow
As of March 31, 2026, Everbright Digital held cash and short-term investments of $3,167 against total assets of $4.8M and shareholders' equity of $4.3M. The company maintained a current ratio of 3.69. Operating cash flow dropped from -$280,109 in FY2024 to -$2.3M in FY2025, while free cash flow deteriorated to -$4.8M. For FY2025, capital expenditures totaled $2.5M, reflecting significant cash deployment despite operating outflows.
Valuation and performance
At a share price of $5.59, Everbright Digital has a market capitalization of $33.3M and an enterprise value of $8.1M. The stock trades at a price-to-sales multiple of 17.9x and an EV-to-EBITDA multiple of 21.8x, both above the median of its US-listed Communication Services peers at 0.8x and 10.0x, respectively. The company holds a price-to-book ratio of 2.0x. Over the past year, EDHL dropped 69.1%, underperforming the S&P 500 (SPY) return of 16.8%, though the stock is 47.0% above its 200-day moving average.
What analysts expect
No Wall Street analyst rating counts, earnings estimates, or consensus price targets are published for Everbright Digital Holding Limited. The company reported a trailing twelve months EPS of -$1.37 as of December 31, 2025. Insiders own 18.9% of shares, while institutional investors hold 0.4%, and short interest represents 1.0% of the float. No upcoming earnings report date has been released.
Key risks and what to watch
- Operating cash flow was -$2.3M in FY2025 while cash reserves were $3,167 as of March 31, 2026.
- Operating margin dropped to -176.9% on a trailing twelve months basis.
- The stock has fallen 69.1% over the past year compared to a 16.8% gain for the S&P 500.
- The stock trades at an elevated price-to-sales multiple of 17.9x compared to the peer median of 0.8x.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this EDHL AI stock analysis
This page is an AI-written research summary of Everbright Digital Holding Limited (EDHL). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: EDHL income statement, EDHL balance sheet, EDHL key metrics, EDHL chart. See the EDHL stock overview for the latest quote and news.
EDHL AI stock analysis FAQ
What is Everbright Digital's primary business?
Everbright Digital Holding Limited provides marketing solutions in Hong Kong, including virtual reality, augmented reality, metaverse stimulation, event planning, character creation, and social media marketing.
What was EDHL's revenue and net income in FY2025?
In FY2025, EDHL generated $1.9M in revenue, down 32.6% year-over-year, and recorded a net loss of -$2.2M.
How much cash does Everbright Digital hold?
As of March 31, 2026, the company reported $3,167 in cash and short-term investments, with total assets of $4.8M.
Does Everbright Digital pay a dividend?
No, Everbright Digital does not pay a dividend.
How has EDHL stock performed over the past year?
EDHL returned -69.1% over the past 12 months as of October 16, 2026, underperforming the S&P 500 return of 16.8%.