olivLaw · US equity research
Everbright Digital Holding Ltd. EDHL
Services-Advertising · SIC 7310 · Vertical: Services-Advertising (SIC 7310)
Everbright Digital Holding Ltd. (EDHL) is an integrated digital marketing solutions provider in Hong Kong focused on metaverse, virtual reality and augmented reality services. The company listed on Nasdaq in April 2025, and its revenue fell to 1.862231 mn USD in fiscal 2025 from 2.761798 mn USD in fiscal 2024, while its net loss reached 2.246178 mn USD.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 05 Nov 2026, Everbright Digital Holding Ltd. (EDHL) stock was 6.08 USD (+0.50% on the day), with market capitalisation 162.1 m USD, beta 0.80, 52-week range 2.18–17.12 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 72.3
- overbought (≥ 70)
- Bollinger (20, 2)
- 5.16 – 6.17
- in the upper half of the band · %B 0.91 · band width 18.0%
- SMA 50 / 200
- 5.09 / 3.87
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.25 / 0.25
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +16.9% | −5.9% | +22.9 pp | — |
| 3 months | +51.2% | −4.6% | +55.9 pp | — |
| 6 months | +136.6% | +0.2% | +136.3 pp | — |
| Year to date | +1.3% | +7.4% | −6.1 pp | — |
| 1 year | −62.7% | +8.2% | −70.9 pp | −59.4% |
| 3 years | unavailable | +68.4% | unavailable | −67.5% |
| 5 years | unavailable | +56.5% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | 815.1 k | 2.8 m | 2.8 m | 1.9 m |
| Revenue YoY | unavailable | +246.6% | −2.3% | −32.6% |
| Net income | 419.5 k | 925.6 k | 379.4 k | -2.2 m |
| Net income YoY | unavailable | +120.6% | −59.0% | −692.0% |
| Diluted EPS | 0.17 | 5.86 | 2.29 | -1.37 |
| Diluted EPS YoY | unavailable | +3,347.1% | −60.9% | −159.8% |
| net % | 51.5% | 32.8% | 13.7% | -120.6% |
| Free cash flow | 175.1 k | 638.7 k | -367.7 k | unavailable |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 3.2 k USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 4.3 m USD
- Total assets
- 4.8 m USD
- Debt / equity
- unavailable
- Current ratio
- 3.69x
- ROE
- -70.8%
- ROA
- -60.9%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Revenue | 815.1 k | 2.8 m | 2.8 m | 1.9 m | SEC (XBRL)· 04 May 2026verified |
| Cost of revenue | 246.8 k | 1.3 m | 1.1 m | 645.0 k | SEC (XBRL)· 04 May 2026verified |
| Gross profit | 568.3 k | 1.6 m | 1.6 m | 1.2 m | SEC (XBRL)· 04 May 2026verified |
| SG&A | — | — | — | 1.8 m | SEC (XBRL)· 04 May 2026verified |
| Depreciation & amortisation | — | 70.2 k | 83.9 k | — | SEC (XBRL)· 16 May 2025verified |
| Pre-tax income | 472.0 k | 1.1 m | 516.8 k | -2.6 m | SEC (XBRL)· 04 May 2026verified |
| Income tax | 52.5 k | 157.0 k | 137.4 k | -363.1 k | SEC (XBRL)· 04 May 2026verified |
| Net income | 419.5 k | 925.6 k | 379.4 k | -2.2 m | SEC (XBRL)· 04 May 2026verified |
| Diluted EPS | 0.17 | 5.86 | 2.29 | -1.37 | SEC (XBRL)· 04 May 2026verified |
| Weighted average diluted shares | 2.5 m | 157.8 k | 165.5 k | 1.6 m | SEC (XBRL)· 04 May 2026verified |
Balance sheet · USD
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Cash | 1.8 k | 399.3 k | 389.7 k | 3.2 k | SEC (XBRL)· 04 May 2026verified |
| Receivables | — | 637.6 k | 914.1 k | 1.2 m | SEC (XBRL)· 04 May 2026verified |
| Current assets | — | 1.4 m | 2.3 m | 1.8 m | SEC (XBRL)· 04 May 2026verified |
| Property, plant & equipment, net | — | 5.7 k | 90.3 k | 2.7 k | SEC (XBRL)· 04 May 2026verified |
| Intangibles (excl. goodwill) | — | 339.9 k | 256.0 k | 1.1 m | SEC (XBRL)· 04 May 2026verified |
| Total assets | — | 1.8 m | 2.6 m | 4.8 m | SEC (XBRL)· 04 May 2026verified |
| Accounts payable | — | 49.7 k | — | — | SEC (XBRL)· 16 May 2025verified |
| Current liabilities | — | 417.0 k | 489.4 k | 500.2 k | SEC (XBRL)· 04 May 2026verified |
| Total liabilities | — | 474.0 k | 532.6 k | 500.2 k | SEC (XBRL)· 04 May 2026verified |
| Equity | 419.1 k † | 1.3 m † | 2.1 m † | 4.3 m † | SEC (XBRL)· 04 May 2026verified |
| Shares outstanding at year end | — | — | 1.0 k | 26.7 m | SEC (XBRL)· 04 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|
| Operating cash flow | 180.5 k | 640.9 k | -280.1 k | -2.3 m | SEC (XBRL)· 04 May 2026verified |
| Capex | 5.4 k | 2.2 k | 87.6 k | — | SEC (XBRL)· 16 May 2025verified |
| Free cash flow | 175.1 k ≈ | 638.7 k ≈ | -367.7 k ≈ | — | SEC (XBRL)· 16 May 2025derived |
| Investing cash flow | -184.0 k | -243.4 k | -87.6 k | -2.5 m | SEC (XBRL)· 04 May 2026verified |
| Financing cash flow | — | — | 358.1 k | 4.4 m | SEC (XBRL)· 04 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 27.1% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 162.1 m USD
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · net debt missing: EV cannot be bridged to equity (missing debt is not zero)
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -120.6% | 15 (vs peers) | 23% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 31.7% | 100 (on a fixed band) | 31% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 3.7x | 100 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | -1.5% | 0 (on a fixed band) | 31% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial100/100 · 1/2 factors with a value
- Quality· partial15/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial0/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Everbright Digital Holding Ltd. (EDHL). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 1.9 m USD in 2025; YoY growth -32.6%; net margin -120.6%; ROE -70.8%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue CAGR 3Y: 31.7%
- Current ratio: 3.7x
What contradicts it
- Net margin: -120.6%
- FCF yield: -1.5%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Services-Advertising (SIC 7310) · same industry (4-digit SIC) · compared with 13 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| CCOClear Channel Outdoor Holdings, Inc. | 1.2 bn | — | — | -6.3% | +6.6% | unavailable / unavailable |
| EDHLEverbright Digital Holding Ltd. | 162.1 m | — | -70.8% | -120.6% | −32.6% | −63% / unavailable |
| NCMINational Cinemedia, Inc. | 152.4 m | — | -2.2% | -3.1% | unavailable | −62% / −60% |
| FLNTFluent, Inc. | 114.4 m | — | -170.5% | -11.5% | −18.0% | +103% / +16% |
| MNTNMNTN, Inc. | 77.3 m | 6.3 | 19.7% | 18.0% | +28.6% | −66% / unavailable |
| THRYThryv Holdings, Inc. | 52.9 m | — | -7.6% | -2.3% | −4.7% | −79% / −93% |
| TZOOTravelzoo | 51.3 m | 180.3 | — | 0.5% | +9.3% | −29% / −50% |
| IZEAIZEA Worldwide, Inc. | 38.1 m | — | -5.1% | -9.4% | −12.9% | −56% / −9% |
| TNMGTNL Mediagene | 7.3 m | — | -155.9% | -175.3% | +35.3% | −94% / −100% |
| INUVInuvo, Inc. | 6.8 m | — | -43.9% | -8.6% | +2.9% | −86% / −86% |
| STFSStar Fashion Culture Holdings Limited | 6.5 m | — | -39.9% | -13.7% | +83.7% | −5% / unavailable |
| PSQHPSQ Holdings, Inc. | 5.6 m | — | -269.3% | -132.7% | +81.1% | −92% / −98% |
| ANGIAngi Inc. | — | — | -27.3% | -23.8% | −13.0% | −36% / −67% |
| IBTAIbotta, Inc. | 0 | — | -5.7% | -4.5% | −6.8% | +142% / unavailable |
1- and 3-year price returns: for EDHL from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 May 2026; since then the company filed 6-K (01 Oct 2026), 6-K (11 Aug 2026), 6-K (03 Aug 2026), 6-K (30 Jul 2026).
In brief
Everbright Digital Holding Ltd. (EDHL) is an integrated digital marketing solutions provider in Hong Kong focused on metaverse, virtual reality and augmented reality services. The company listed on Nasdaq in April 2025, and its revenue fell to 1.862231 mn USD in fiscal 2025 from 2.761798 mn USD in fiscal 2024, while its net loss reached 2.246178 mn USD.
SWOT
Strengths
Weaknesses
- Reliance on individual contracts, with revenue from some lines disappearing entirely within a single year 1.
- A net loss in fiscal 2025 and large provisions for doubtful receivables point to collection and cost-control issues 1.
- High marketing and administrative spending without a matching rise in revenue 1.
Opportunities
Risks
- Loss of VR and AR revenuehigh
Revenue from this line fell to nil in fiscal 2025, showing exposure to shifts in client budgets 1.
- Net loss and high costshigh
The company reported a net loss in fiscal 2025, with marketing and administrative spending high relative to revenue 1.
- Difficult-to-collect receivablesmedium
Provisions for doubtful receivables rose sharply in fiscal 2025, which could affect liquidity if payments are delayed 1.
- Dependence on external suppliersmedium
Technical execution is outsourced, which can affect project quality and timelines 1.
- Geographic concentrationlow
Activity is mainly in Hong Kong, so local regulatory or economic changes would have a direct effect on the company 1.
Investment thesis
What would need to be true (bull case)
- Hong Kong's digital marketing market is growing, and the company's integrated offering could attract clients if budgets recover.
- Strong growth in the total solutions segment shows that the complete-package strategy has worked under certain conditions 1.
- Gross margin improved in fiscal 2025, which could point to better control of delivery costs 1.
What would break the thesis
- Total revenue declined in fiscal 2025 and the company reported a significant net loss 1.
- The VR and AR line, previously the main growth driver, disappeared entirely, and a new segment has not yet offset that decline 1.
- Large receivable provisions and the reverse share split suggest collection problems and challenges in attracting investors 1.
What to watch
- Trend in total solutions revenue and any return of VR and AR projects2026
- Level of receivable provisions and collection performanceQ1 2027
- Marketing and administrative costs relative to revenuenext 10-K
- Effects of the reverse share split on liquidity and shareholder structure2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 04 May 2026; since then the company filed 6-K (01 Oct 2026), 6-K (11 Aug 2026), 6-K (03 Aug 2026), 6-K (30 Jul 2026).
The business
Everbright Digital Holding Ltd. is an integrated marketing solutions provider in Hong Kong involved in the metaverse and related technologies, offering one-stop digital marketing for the whole process of enterprise development. Its range includes metaverse simulation, VR and AR design, creative event planning, IP character creation and social media marketing. According to the 20-F, it has served over 20 corporate customers, from real estate developers to concert organizers and charitable organizations 1.
The business model relies on tailored solutions built from client briefs: the company sets the strategy and concept, defines the required features and guides outside suppliers who handle technical execution, including 3D environments and AR components 1. This allows it to sell complete packages rather than technology alone.
The company went through a corporate reorganization and capital restructuring, including a share split in January 2025 and a 1-for-16 reverse share split effective February 2026 1. Operations are concentrated in Hong Kong through its subsidiary HKUML 1.
Segments
Virtual and augmented reality
VR and AR revenue was 1.204348 mn USD in fiscal 2024 and nil in fiscal 2025, after rising from 0.634527 mn USD in 2022 to 2.233309 mn USD in 2023 1. The decline was attributed to client caution and to services being sold together with consultancy.
Consultancy and market research
Consultancy and market research revenue fell from 220588 USD in fiscal 2024 to nil in fiscal 2025, reflecting a shift in client demand 1.
Market context
The company says the market it serves could be several times larger than its current opportunity, but these estimates come from a consultant's report and the company's own assessment 1.
Trends
- Cautious client budgetsheadwind
Global economic uncertainty led clients to cut marketing spending, which removed VR and AR revenue entirely in fiscal 2025 1. If this caution persists, demand for costly projects could stay subdued.
- Growth in digital marketingtailwind
Digital marketing grew quickly after the pandemic and remains the most dynamic segment of Hong Kong's marketing market 1. This supports the case for underlying structural demand.
- Shift to integrated packagesmixed
Clients increasingly asked for complete solutions combining technology, consultancy and design, which lifted total solutions revenue 1. If this pattern holds, margins could remain elevated.
- High costs and bad-debt provisionsheadwind
VR development costs and higher provisions for doubtful receivables weighed on profit, and both contributed to the fiscal 2025 net loss 1.
Competitive position
The market is fragmented, with many small and mid-sized local firms as well as large digital marketing companies and multinational corporations 1. The company differentiates itself through its integrated offering, in-house creative team and ability to combine technology with consultancy, though it does not hold a dominant position.
Competition comes from local digital marketing agencies and from international firms offering similar services in the Hong Kong market 1. The sources do not identify competitors listed on a US exchange.
- Local digital marketing agencies in Hong Kong
Small and mid-sized firms offering digital marketing services in the same market, numerous in this category 1.
- Large digital marketing firms
Large digital companies competing in the Hong Kong market, not named in the source 1.
- Multinational marketing corporations
International companies active in the local solutions market, referred to generically in the company's report 1.
- AR and VR design and technology suppliers
External suppliers the company uses for technical execution, which could also become direct competitors 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (foreign issuer)01 Oct 2026
- Current report (foreign issuer)11 Aug 2026
- Current report (foreign issuer)03 Aug 2026
- Current report (foreign issuer)30 Jul 2026
- Annual report (foreign issuer)04 May 2026
- Current report (foreign issuer)21 Apr 2026
- Current report (foreign issuer)20 Mar 2026
- Current report (foreign issuer)05 Feb 2026
- Current report (foreign issuer)31 Dec 2025
- Current report (foreign issuer)06 Oct 2025
Sources
- [1] Form 20-F, fiscal year ended 2025-12-31 · SEC / Everbright Digital Holding Ltd. · 04 May 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.