The Arena Group HoldingsAREN -18.75%21 Gross Margin % is 34.70% as of Mar. 2026, which is 10% below its 10-year median of 38.48. GuruFocus rates AREN with a GF Score™ of 21/100 and a GF Value™ of $0.99 (Fairly Valued). The stock has 10 warning signs investors should review. Among 497 Interactive Media companies, The Arena Group Holdings ranks worse than 62.78% on this metric.
AREN's Gross Margin % is ranked worse than 62.78% of 497
companies
in the Interactive Media industry
Industry Median: 62.58
vs AREN: 48.42
The Arena Group Holdings had a gross margin of 34.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Arena Group Holdings was 15.10% per year.
The Arena Group Holdings (AMEX:AREN) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Arena Group Holdings had a gross margin of 34.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Arena Group Holdings Gross Margin % Related Terms
The Arena Group Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AREN vs IZEA, MSEZ, ELRE: Gross Margin % Comparison
For the Internet Content & Information subindustry, The Arena Group Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Arena Group Holdings Gross Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, The Arena Group Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Arena Group Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Arena Group Holdings (AREN) has a Gross Margin % of 34.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Arena Group Holdings and its competitors. This is 10% below median its historical median of 38.48. According to the industry distribution chart, The Arena Group Holdings ranks #312 out of 497 companies in the Interactive Media industry, placing it in the top 62.8%.
Is The Arena Group Holdings' Gross Margin % too high?
The Arena Group Holdings' current Gross Margin % of 34.70% is 10% below median its 10-year median of 38.48. The Interactive Media industry median Gross Margin % is 62.58. The Arena Group Holdings' value of 34.70% is 44.6% below this industry median. Based on the distribution chart, The Arena Group Holdings ranks #312 out of 497 companies in the Interactive Media industry, which is below the industry midpoint. Overall, The Arena Group Holdings has a GF Score™ of 21/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Arena Group Holdings' Gross Margin % compare to IZEA and MSEZ?
According to the Interactive Media industry distribution chart, The Arena Group Holdings ranks #312 out of 497 companies for Gross Margin %. This places The Arena Group Holdings in the lower half of its industry. The industry median Gross Margin % is 62.58. The Arena Group Holdings' value of 34.70% is 44.6% below this benchmark. While the company's 10-year median is 38.48 vs. the industry median of 62.58, The Arena Group Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Interactive Media company?
The median Gross Margin % among Interactive Media companies is 62.58, based on 497 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Arena Group Holdings's current Gross Margin % of 34.70% is 44.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on The Arena Group Holdings and its competitors. For the Interactive Media industry, the median Gross Margin % is 62.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Arena Group Holdings's current Gross Margin % is 34.70%, which is 10% below median its own 10-year median of 38.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Arena Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, The Arena Group Holdings (AREN) is currently considered Fairly Valued. The stock's GF Value™ is $0.99, compared to a current price of $0.91 — trading 8.1% below its estimated fair value. The current Gross Margin % is 34.70%, which is 10% below median its 10-year median of 38.48 and 44.6% below the Interactive Media industry median of 62.58. The Arena Group Holdings' overall GF Score™ is 21/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For The Arena Group Holdings (AREN), the current Gross Margin % is 34.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Arena Group Holdings (AREN) Overvalued in 2026?
Based on GuruFocus' analysis, The Arena Group Holdings stock appears to be undervalued.
The current stock price of $0.91 is trading 8.1% below its estimated GF Value™ of $0.99.
GuruFocus considers The Arena Group Holdings to be Fairly Valued.
Key valuation signals for AREN:
Gross Margin %: 34.70% (10% below median its 10-year median of 38.48)
GF Value™: $0.99 vs. price of $0.91 (8.1% below fair value)
Industry Position: 44.6% below the Interactive Media median (#312 of 497)
No single metric tells the full story. See the AREN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Arena Group Holdings Inc is a tech-powered media company that fuses technology, iconic brands, and marketing to deliver vibrant content and experiences that reach million users each month. The company creates robust digital destinations that delight consumers with powerful journalism, news about things such as favorite sports teams, advice on investing, the inside scoop on personal finance, and the latest on lifestyle essentials. The company has four reportable segments: Sports & Leisure, Finance, Lifestyle, and Platform & Other. The company generates revenue from Sports & Leisure. Geographically, the company operates in United States; and Others. It generates maximum revenue from United States.
21GF Score
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