Paradium AI, Inc. (PAAI) AI Stock Analysis
PAAI AI stock analysis summary
AI ResearchParadium AI, Inc. (PAAI) operates an artificial intelligence technology platform for digital media, content creation, and monetization. In FY2025, revenue grew 7.1% to $134.8M and net income reached $124.9M, but revenue fell 50.7% year-over-year in the quarter ended June 30, 2026. The company trades at a market capitalization of $40.8M while holding $97.6M in total debt and negative shareholders' equity of -$7.5M.
- Market cap
- $40.8M
- Revenue (TTM)
- $100.6M
- P/E
- 4.5x fwd 13.4x
- 1Y return
- -81.4% S&P 500 16.8%
- Avg. target
- $2.00 132.6% vs last close
Bull case
- In FY2025, Paradium AI achieved positive free cash flow of $29.7M and operating cash flow of $39.2M.
- The stock trades at a trailing P/E of 4.5x, lower than the 16.2x median of its US-listed Communication Services peers.
- The analyst mean price target of $2.00 implies 132.6% upside relative to the last close of $0.86.
Bear case
- Quarterly revenue fell 50.7% year-over-year in the latest quarter ending June 30, 2026.
- The company carries total debt of $97.6M against $11.2M in cash, leading to negative shareholders' equity of -$7.5M.
- Paradium AI has recorded 0 EPS beats over the last 4 quarters.
What Paradium AI does
Paradium AI, Inc. operates an artificial intelligence technology platform across four segments: Sports & Leisure, Finance, Lifestyle, and Platform & Other. The Sports & Leisure segment produces content through brands such as Athlon Sports and Adventure Sports Network titles including Surfer, Powder, and Bike Magazine. Its Finance segment operates TheStreet, while Lifestyle includes Parade, Men's Journal, and ShopHQ. The Platform & Other segment provides technology infrastructure including the Infosentience language engine, the Encore monetization engine, video and social production tools, and Cutter Studios. It also runs a creator co-ownership platform and generates revenue through digital advertising, subscriptions, performance marketing, publisher services, and print.
Growth and profitability
Revenue declined from $220.9M in FY2022 to $143.6M in FY2023 and $125.9M in FY2024, resulting in a three-year revenue CAGR of -15.2% through FY2025. In FY2025, revenue increased 7.1% to $134.8M, supported by a gross margin of 50.7% and an operating margin of 30.3%. Net income shifted to $124.9M in FY2025 following net losses of -$70.9M in FY2022, -$55.6M in FY2023, and -$100.7M in FY2024. Over the trailing twelve months ended June 30, 2026, revenue stood at $100.6M with a profit margin of 9.3% and EPS of $0.19, although quarterly revenue fell 50.7% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Paradium AI held $11.2M in cash and short-term investments alongside total debt of $97.6M, resulting in net debt of $86.4M. Total assets were $106.1M, and shareholders' equity stood at -$7.5M. The company reported a current ratio of 2.37. In FY2025, operating cash flow turned positive to $39.2M and free cash flow reached $29.7M, while capital expenditures totaled $9.6M.
Valuation and performance
At a last close of $0.86, Paradium AI trades at a market capitalization of $40.8M and an enterprise value of $150.6M. Its trailing P/E of 4.5x, forward P/E of 13.4x, and EV/EBITDA of 5.9x compare to the median of its US-listed Communication Services peers of 16.2x trailing P/E, 14.1x forward P/E, and 10.0x EV/EBITDA. Over the past year, the stock fell 81.4%, trailing the S&P 500 return of 16.8%.
What analysts expect
One analyst covers the company for the next fiscal year. The mean price target is $2.00, which is 132.6% above the last close of $0.86. For the fiscal year ending December 31, 2026, estimates project an EPS of -$0.08 on revenue of $84.6M. For the next fiscal year, estimates project EPS of $0.03 on revenue of $88.8M. The company recorded 0 EPS beats over the last 4 quarters, and its next earnings date is November 12, 2026.
Key risks and what to watch
- Revenue contracted at a three-year CAGR of -15.2% from FY2022 to FY2025.
- Net debt of $86.4M significantly exceeds the company's market capitalization of $40.8M.
- The stock has dropped 78.5% year-to-date and sits 57.2% below its 200-day average.
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 PAAI AI stock analysis
This page is an AI-written research summary of Paradium AI, Inc. (PAAI). 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: PAAI income statement, PAAI balance sheet, PAAI key metrics, PAAI analyst forecast, PAAI chart. See the PAAI stock overview for the latest quote and news.
PAAI AI stock analysis FAQ
What does Paradium AI do?
Paradium AI operates an artificial intelligence platform for digital media across Sports & Leisure, Finance, Lifestyle, and Platform & Other segments. It monetizes brands such as Athlon Sports, TheStreet, and Parade through advertising, subscriptions, performance marketing, and technology services.
What is Paradium AI's market cap and debt position?
As of October 16, 2026, Paradium AI has a market capitalization of $40.8M and an enterprise value of $150.6M. As of June 30, 2026, it held $11.2M in cash and short-term investments against $97.6M in total debt, leaving net debt of $86.4M.
What is the analyst price target for PAAI stock?
The analyst mean price target is $2.00, which is 132.6% above the last close of $0.86. Current fiscal year revenue is estimated at $84.6M with an EPS of -$0.08.
When is Paradium AI's next earnings report?
The next earnings date is scheduled for November 12, 2026.