The Arena Group Holdings, Inc. (AMEX: AREN ) shares jumped premarket on Friday after the company delivered the first quarter of positive net income .

Arena, which is home to hundreds of media brands, including TheStreet, Parade Media, Men’s Journal, Surfer, Powder and Athlon Sports, reported a net income of $4.0 million, or EPS of $0.11, in the third quarter of 2024, compared to a net loss of $11.2 million, or EPS loss of $0.47 per share a year ago quarter.

Adjusted EBITDA stood at $11.2 million compared to $3.1 million a year ago quarter. Revenue from continuing operations came in at $33.6 million, vs. $37.0 million a year ago quarter.

The company reduced quarterly operating expenses by 51% year-over-year, achieving a $13.6 million positive swing in quarterly income from continuing operations. This highlights the rapid effectiveness of its transformation plan.

The Arena Group CEO Sara Silverstein said, “We’re achieving meaningful revenue diversification, including a significant increase in e-commerce and other revenue, enabling a substantial improvement in profitability. We generated higher gross margins, returned to positive operating income, and delivered our first-ever quarter of positive net income.”

Arena’s affiliate commerce business grew 287% during the six months, driven by strong organic traffic to commerce posts and stronger partnerships with retailers who value its highly transactional audience.

The company expanded its commerce coverage while increasing revenue per post by 57% in the third quarter versus second quarter of 2024.

Arena finalized a deal to license its proprietary content management system, which also included the acquisition of multiple sites, notably the top-tier automotive platform Autoblog.

Additionally, Arena extended the maturity of its credit line with Simplify Inventions, LLC, and converted $15 million of debt into common equity.

Price Action: AREN shares are up 210% at $1.76 premarket at the last check Friday.

Photo via 761409 from Pixabay

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This article Why Is TheStreet Parent Arena Group Stock Rocketing Premarket Friday? originally appeared on Benzinga.com

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