Brand Engagement Network Inc. Common Stock (BNAI)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable economics and a margin of safety, and BNAI does not yet show either. It is a 29-employee conversational AI vendor. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $56,562, net loss was $3.4M, and diluted EPS was -$0.49. For FY2025, revenue was $275,120, but net loss was $8.6M; FY2024 revenue was $99,790 with a net loss of $33.7M. The top line is growing from a tiny base, but the business is still burning cash. Trailing free cash flow is -$5.5M, and the FairStock FCF yield calculation is -14.3%. At the 2026-10-13 close of $5.14, the market cap is $38.5M. FairStock also calculates P/B 1.96, P/E -2.27, ROE -98.11%, ROCE -31.39%, Piotroski 3/9, and Altman Z-Score -1.41. The low reported D/E of 0.10 is helpful, but it does not offset negative earnings and weak financial scores. The Lynch category is TURNAROUND — Loss in latest year after earlier profits, which fits a speculative story rather than a proven compounder. I see no clear moat in these figures: revenue is minuscule, losses are large, and free cash flow is negative. Revenue from FY2024 to FY2025 rose from $99,790 to $275,120, but without profits or cash generation, that growth is not yet valuable. Valuation at 1.96 times book may not be demanding if a turnaround succeeds, but Graham would demand evidence and a margin of safety. Here, the evidence is thin and the risk is high.

In plain English: Brand Engagement Network sells conversational AI tools that help companies interact with customers. The business looks weak right now: it is very small, loses money, and uses cash. At the close on 2026-10-13, the $5.14 price does not look supported by profits or cash flow, so it appears speculative rather than clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer