Kustom Entertainment, Inc. (KUST) AI Stock Analysis

NASDAQ: KUSTAI research summary: business, growth, valuation, analysts, bull and bear case.

KUST AI stock analysis summary

AI Research

Kustom Entertainment, Inc. produces digital video imaging, evidence management systems, safety products, and operates an online ticketing marketplace. In FY2025, annual revenue fell 30.0% to $13.8M with a net loss of -$6.7M. While quarterly revenue expanded 88.2% year-over-year in the quarter ended June 30, 2026, trailing twelve month operating margin stood at -53.0%.

Market cap
$2.4M
Revenue (TTM)
$17.3M
P/E
—
fwd 16.0x
1Y return
-98.7%
S&P 500 16.8%
Avg. target
—

Bull case

  • Quarterly revenue grew 88.2% year-over-year in the latest quarter ended June 30, 2026.
  • The stock trades at a price-to-sales multiple of 0.1x compared to the peer median of 0.8x.
  • Net loss narrowed from -$19.8M in FY2024 to -$6.7M in FY2025.

Bear case

  • The stock declined 98.7% over the past year and trades 89.5% below its 200-day average.
  • Annual revenue fell for three consecutive years from $37.0M in FY2022 to $13.8M in FY2025.
  • Free cash flow remained negative at -$8.5M in FY2025 alongside a trailing twelve month operating margin of -53.0%.

What Kustom Entertainment does

Kustom Entertainment, Inc. produces and sells digital video imaging, storage, and disinfectant and related safety products for law enforcement, security, and commercial applications in the United States. Operating through Video Solutions and Entertainment segments, its offerings include in-car digital video mirror systems, event recorders for commercial fleets, body-worn cameras, the VuLink ecosystem, and cloud evidence platforms EVO Web and FleetVu. It also offers ThermoVu temperature-screening instruments and Shield cleansers. Additionally, the company provides working capital, medical documentation, coding, and collection services to healthcare organizations, and operates the online ticketing marketplace TicketSmarter.com.

Growth and profitability

Kustom Entertainment generated FY2021 revenue of $21.4M, which rose to $37.0M in FY2022 before declining to $28.2M in FY2023, $19.7M in FY2024, and $13.8M in FY2025. Annual net income shifted from $25.5M in FY2021 to net losses of -$19.3M in FY2022, -$25.7M in FY2023, -$19.8M in FY2024, and -$6.7M in FY2025. Gross margin contracted to 9.8% in FY2025 from 27.9% in FY2024, alongside an operating margin of -83.1%. Over the 5-year period from FY2020 to FY2025, revenue grew at a CAGR of 5.5%. For the latest quarter ended June 30, 2026, quarterly revenue grew 88.2% year-over-year, while trailing twelve month revenue was $17.3M with a profit margin of -97.4%.

KUST income statement →

Balance sheet and cash flow

As of June 30, 2026, Kustom Entertainment held cash and short-term investments of $830,193 against total debt of $1.9M, resulting in net debt of $1.1M. Shareholders' equity was $2.3M out of total assets of $17.5M. The company reported a current ratio of 0.80 and a debt-to-equity ratio of 0.85. Operating cash flow was -$8.3M and free cash flow was -$8.5M in FY2025, while capital expenditures totaled $258,050. The share count decreased 98.1% over the past 5 years.

KUST balance sheet →

Valuation and performance

Kustom Entertainment trades at a market capitalization of $2.4M and an enterprise value of $5.4M. Its price-to-sales ratio is 0.1x, below the 0.8x median of its US-listed Communication Services peers. Its forward price-to-earnings ratio is 16.0x, compared to the peer median of 14.1x, and its enterprise value-to-revenue multiple is 0.3x. Over the past year, KUST shares fell 98.7% and are down 96.1% year-to-date, trailing the S&P 500 benchmark return of 16.8% over the past year.

KUST key metrics →

What analysts expect

Kustom Entertainment has beat quarterly consensus earnings per share estimates 2 times over the last 4 quarters. In FY2025, the company posted diluted earnings per share of -$799013.04, following an earnings per share result of $11996.01 reported in FY2022. For the trailing twelve months ended June 30, 2026, earnings per share stood at -$726.80. The company is scheduled to report its next earnings release on November 11, 2026.

Key risks and what to watch

  • Liquidity pressure is present with cash and short-term investments of $830,193 against a current ratio of 0.80 as of June 30, 2026.
  • Operating cash flow was negative at -$8.3M in FY2025, requiring continuous capital to fund operations.
  • Gross margin compressed from 27.9% in FY2024 to 9.8% in FY2025.

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 KUST AI stock analysis

This page is an AI-written research summary of Kustom Entertainment, Inc. (KUST). 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: KUST income statement, KUST balance sheet, KUST key metrics, KUST chart. See the KUST stock overview for the latest quote and news.

KUST AI stock analysis FAQ

What is Kustom Entertainment's net debt position?

As of June 30, 2026, Kustom Entertainment had total debt of $1.9M and cash and short-term investments of $830,193, leading to net debt of $1.1M.

Does Kustom Entertainment pay a dividend?

No, Kustom Entertainment does not pay a dividend.

When is Kustom Entertainment's next earnings report?

The company is scheduled to report its next financial results on November 11, 2026.

What was KUST's revenue performance in the latest fiscal year?

In FY2025, revenue was $13.8M, representing a 30.0% decrease from $19.7M reported in FY2024.

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