olivLaw · US equity research
Kustom Entertainment, Inc. KUST
Radio & Tv Broadcasting & Communications Equipment · SIC 3663 · Vertical: Radio & Tv Broadcasting & Communications Equipment (SIC 3663)
Kustom Entertainment, Inc. (KUST), formerly Digital Ally, has become a live entertainment company focused on ticketing after selling its law enforcement video business and its medical revenue cycle unit. The company runs TicketSmarter.com, which covers more than 125000 events, and its shift toward a single continuing Entertainment segment is the main story for 2026 for investors following the sector.
At the close of 04 Nov 2026, Kustom Entertainment, Inc. (KUST) stock was 3.48 USD (+5.45% on the day), with market capitalisation 22.6 m USD, beta 1.37, 52-week range 3.01–255.00 USD. Latest reported quarter (Q2 2026): revenue of 5.4 m USD (+88.2% YoY), net income of -4.5 m USD, diluted EPS -5.49 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)
- 38.5
- weak (30–45)
- Bollinger (20, 2)
- 2.87 – 4.25
- in the lower half of the band · %B 0.44 · band width 38.6%
- SMA 50 / 200
- 5.60 / 28.16
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.69 / -0.84
- 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 | −22.8% | −1.1% | −21.7 pp | — |
| 3 months | −75.1% | −0.5% | −74.7 pp | — |
| 6 months | −91.3% | +4.4% | −95.7 pp | — |
| Year to date | −96.3% | +12.3% | −108.6 pp | — |
| 1 year | −98.6% | +13.5% | −112.2 pp | +3.5% |
| 3 years | −100.0% | +76.4% | −176.4 pp | +58.8% |
| 5 years | −100.0% | +63.7% | −163.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.1 m | -1.7 m | 3.1 m | 2.9 m | 4.5 m | -890.3 k | 4.3 m | 5.4 m |
| Cost of revenue | 2.3 m | -1.3 m | 2.0 m | 4.4 m | 3.2 m | 101.1 k | 3.7 m | 6.6 m |
| Gross profit | 1.7 m | -379.8 k | 1.1 m | -1.6 m | 1.4 m | -991.4 k | 604.0 k | -1.2 m |
| Research & development | 210.8 k | 95.6 k | 84.4 k | 183.8 k | 137.8 k | 145.5 k | 143.1 k | — |
| SG&A | 9.1 m | -3.9 m | 2.1 m | 2.2 m | 2.5 m | 3.7 m | 1.9 m | 1.7 m |
| Operating income | -7.4 m | 3.6 m | -982.1 k | -3.8 m | -1.1 m | -4.7 m | -1.3 m | -2.9 m |
| Depreciation & amortisation | 499.2 k ≈ | 337.2 k | 394.3 k | 333.9 k ≈ | 548.3 k ≈ | 268.3 k | 63.0 k | 18.5 k ≈ |
| Interest expense | 771.8 k | 1.3 m | 792.3 k | 77.3 k | 90.7 k | 142.1 k | 67.5 k | 28.6 k |
| Pre-tax income | -5.5 m | -3.5 m | 4.3 m | -4.2 m | -963.3 k | -4.8 m | -1.5 m | -3.8 m |
| Net income | -5.5 m | -54.8 m | 4.3 m | -4.5 m | -963.3 k | -5.5 m | -5.9 m | -4.5 m |
| Diluted EPS | -1,817.02 | — | 2,109.58 | -66.46 | -0.59 | — | -13.39 | -5.49 |
| Operating cash flow | -677.3 k ≈ | -1.0 m | -5.8 m | -2.9 m ≈ | -352.3 k ≈ | — | — | — |
| Capex | -1.1 k ≈ | 5.0 k | 42.5 k | 176.0 k ≈ | 44.5 k ≈ | -4.9 k | 159.7 k | 22.4 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
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 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ⚠ 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11.3 m | 10.4 m | 10.5 m | 21.4 m | 37.0 m | 28.2 m | 13.5 m | 13.8 m |
| Revenue YoY | −22.5% | −7.5% | +0.7% | +103.6% | +72.8% | −23.7% | — | +1.7% |
| Net income | -15.5 m | -10.0 m | -2.6 m | 25.5 m | -18.9 m | -25.5 m | -19.8 m | -6.7 m |
| Net income YoY | unavailable | unavailable | unavailable | unavailable | −173.9% | unavailable | — | unavailable |
| Diluted EPS | -1.93 | -0.87 | -0.12 | 10.14 | -8.50 | -9.22 | -33,488.74 | -17.23 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | unavailable | −183.8% | unavailable | — | unavailable |
| net % | -137.7% | -95.8% | -25.0% | 119.2% | -51.0% | -90.1% | -146.8% | -48.5% |
| Free cash flow | -9.1 m | -1.3 m | -13.9 m | -24.3 m | -20.6 m | unavailable | -5.1 m | unavailable |
The series breaks before 2024: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 757.4 k USD
- Financial debt
- 845.4 k USD
- Net debt
- 88.0 k USD
- Equity
- 2.4 m USD
- Total assets
- 19.3 m USD
- Debt / equity
- 0.36x
- Current ratio
- 0.86x
- ROE
- unavailable
- ROA
- -28.4%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 10.5 m | 21.4 m | 37.0 m | 28.2 m | 13.5 m | 13.8 m | SEC (XBRL)· 13 Apr 2026verified |
| Cost of revenue | 6.5 m | 15.7 m | 34.7 m | 22.5 m | 10.4 m | 12.4 m | SEC (XBRL)· 13 Apr 2026verified |
| Gross profit | 4.1 m | 5.7 m | 2.3 m | 5.8 m | 3.1 m | 1.3 m | SEC (XBRL)· 13 Apr 2026verified |
| Research & development | 1.8 m | 1.9 m | 2.3 m | 2.6 m | 1.3 m | 551.4 k | SEC (XBRL)· 13 Apr 2026verified |
| SG&A | 11.7 m | 20.4 m | 32.1 m | 28.0 m | 14.5 m | 12.2 m | SEC (XBRL)· 13 Apr 2026verified |
| Operating income | -7.7 m | -14.8 m | -29.7 m | -22.2 m | -11.4 m | -10.9 m | SEC (XBRL)· 13 Apr 2026verified |
| Depreciation & amortisation | 62.0 k | 822.5 k | 2.2 m | 2.2 m | 1.9 m | 1.5 m | SEC (XBRL)· 13 Apr 2026verified |
| EBITDA | -7.6 m ≈ | -13.9 m ≈ | -27.6 m ≈ | -20.0 m ≈ | -9.5 m ≈ | -9.3 m ≈ | SEC (XBRL)· 13 Apr 2026derived |
| Interest expense | 342.4 k | 28.6 k | 37.2 k | 3.1 m | 3.8 m | 1.1 m | SEC (XBRL)· 13 Apr 2026verified |
| Pre-tax income | -2.6 m | 25.5 m | -18.9 m | -25.5 m | -17.9 m | -6.0 m | SEC (XBRL)· 13 Apr 2026verified |
| Net income | -2.6 m | 25.5 m | -18.9 m | -25.5 m | -19.8 m | -6.7 m | SEC (XBRL)· 13 Apr 2026verified |
| Diluted EPS | -0.12 | 10.14 | -8.50 | -9.22 | -33,488.74 | -17.23 | SEC (XBRL)· 13 Apr 2026verified |
| Weighted average diluted shares | 21.6 m | 2.5 m | 2.5 m | 2.8 m | 593 | 387.1 k | SEC (XBRL)· 13 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 4.4 m | 32.0 m | 3.5 m | 680.5 k | 219.3 k | 757.4 k | SEC (XBRL)· 13 Apr 2026verified |
| Receivables | 1.7 m | 2.7 m | 2.0 m | 1.6 m | 751.7 k | 97.5 k | SEC (XBRL)· 14 Aug 2026verified |
| Inventories | 8.2 m | 9.7 m | 6.8 m | 3.8 m | 2.6 m | 201.0 k | SEC (XBRL)· 14 Aug 2026verified |
| Current assets | 17.8 m | 56.1 m | 25.0 m | 15.6 m | 10.4 m | 9.0 m | SEC (XBRL)· 13 Apr 2026verified |
| Property, plant & equipment, net | 666.8 k | 6.8 m | 7.9 m | 7.3 m | 338.6 k | 314.9 k | SEC (XBRL)· 14 Aug 2026verified |
| Intangibles (excl. goodwill) | 392.6 k | 16.9 m | 17.9 m | 16.5 m | 2.9 m | 169.4 k | SEC (XBRL)· 13 Apr 2026verified |
| Total assets | 20.8 m | 83.0 m | 56.7 m | 47.0 m | 27.7 m | 19.3 m | SEC (XBRL)· 13 Apr 2026verified |
| Accounts payable | 1.1 m | 4.6 m | 9.5 m | 10.7 m | 11.2 m | 4.0 m | SEC (XBRL)· 14 Aug 2026verified |
| Short-term debt | 11.7 k | 389.9 k | 485.4 k | 1.3 m | 5.0 m | 707.8 k | SEC (XBRL)· 13 Apr 2026verified |
| Long-term debt | 148.3 k | 727.3 k | 442.5 k | 4.9 m | 141.1 k | 137.5 k | SEC (XBRL)· 13 Apr 2026verified |
| Current liabilities | 3.7 m | 23.0 m | 13.5 m | 22.5 m | 29.7 m | 10.5 m | SEC (XBRL)· 13 Apr 2026verified |
| Total liabilities | 6.4 m | 27.1 m | 20.3 m | 35.6 m | 36.8 m | 17.0 m | SEC (XBRL)· 13 Apr 2026verified |
| Equity | 14.4 m | 55.9 m | 36.3 m | 11.4 m | -9.0 m | 2.4 m | SEC (XBRL)· 13 Apr 2026verified |
| Shares outstanding at year end | — | — | — | — | 5.5 m | — | SEC (XBRL)· 30 Dec 2024verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -13.3 m | -17.8 m | -18.6 m | -9.9 m | -5.1 m | — | SEC (XBRL)· 02 May 2025verified |
| Capex | 621.9 k | 6.4 m | 2.1 m | — | 28.8 k | 258.1 k | SEC (XBRL)· 13 Apr 2026verified |
| Free cash flow | -13.9 m ≈ | -24.3 m ≈ | -20.6 m ≈ | — | -5.1 m ≈ | — | SEC (XBRL)· 02 May 2025derived |
| Investing cash flow | -1.5 m | -19.1 m | -2.9 m | -240.7 k | 387.5 k | — | SEC (XBRL)· 02 May 2025verified |
| Financing cash flow | 18.8 m | 64.6 m | -7.0 m | 7.4 m | 4.4 m | — | SEC (XBRL)· 02 May 2025verified |
| Share repurchases | — | 2.0 m | 4.0 m | — | — | — | SEC (XBRL)· 31 Mar 2023verified |
≈ 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
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 15 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 22.6 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet0
- Growth12
- Valuation29
- Quality6
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.41 – 13.52 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/Sales1.41 – 13.52 (Mid 4.36)10 companies used · median multiple 2.1x · quartiles 0.7x – 6.6xAVNW, BKSY, CRNT, GILT, HLIT, MSI, QCOM, UI, VISN, WATT
- Peers: EV/EBITDAunavailable · the base of the ratio is not positive
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
Unattractive profile · Score 15/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | -1.4% | 0 (on a fixed band) | 12% |
| EBIT margin · Quality | -74.7% | 20 (vs peers) | 10% |
| FCF margin · Quality | -76.8% | 0 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -28.1% | 0 (on a fixed band) | 19% |
| Revenue growth (YoY) · Growth | 1.7% | 35 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.8x | 0 (on a fixed band) | 7% |
| EV/Sales · Valuation | 1.7x | 50 (vs peers) | 19% |
| FCF yield · Valuation | -45.3% | 0 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial0/100 · 1/2 factors with a value
- Growth12/100 · 2/2 factors with a value
- Quality6/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation29/100 · 2/2 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
Kustom Entertainment, Inc. (KUST). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 13.8 m USD in 2025; YoY growth 1.7%; net margin -126.5%; ROE -323.8%.
The estimated value range is 1.41–13.52 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 4.36 USD, the price of 3.48 USD leaves a potential of 25.3% (value / price − 1) and a margin of safety of 20.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 15/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- Gross margin: -1.4%
- EBIT margin: -74.7%
- FCF margin: -76.8%
- Revenue CAGR 3Y: -28.1%
- Current ratio: 0.8x
- FCF yield: -45.3%
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Shareholder yield (distributions).
Versus the vertical median
Radio & Tv Broadcasting & Communications Equipment (SIC 3663) · same industry (4-digit SIC) · compared with 20 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 | |
|---|---|---|---|---|---|---|
| QCOMQualcomm Inc | 185.3 bn | 13.6 | 52.8% | 31.6% | −2.6% | +3% / +34% |
| MSIMotorola Solutions, Inc. | 82.2 bn | 40.0 | 77.2% | 16.5% | +8.0% | +34% / +54% |
| UIUbiquiti Inc. | 34.0 bn | 35.4 | 91.1% | 29.3% | +27.2% | −4% / +400% |
| PLPlanet Labs PBC | 3.3 bn | — | -72.0% | -95.1% | +25.9% | +6% / +421% |
| ONDSOndas Inc. | 3.0 bn | 18.0 | 20.1% | 96.0% | +605.3% | −33% / +381% |
| VISNVistance Networks, Inc. | 1.5 bn | 0.2 | 22,304.0% | 247.7% | +39.7% | −67% / +286% |
| HLITHarmonic Inc. | 1.1 bn | — | -11.7% | -13.7% | −26.2% | +7% / −8% |
| BKSYBlacksky Technology Inc | 686.3 m | — | -44.8% | -61.2% | +4.4% | −5% / +59% |
| UMACUnusual Machines, Inc. | 650.9 m | — | -2.9% | -20.3% | +101.2% | +49% / unavailable |
| GILTGilat Satellite Networks Ltd. | 521.2 m | 20.8 | 5.2% | 4.6% | +47.9% | −39% / +10% |
| AVNWAviat Networks, Inc. | 254.8 m | 104.7 | 1.0% | 0.6% | +1.2% | −10% / −34% |
| BKTIBK Technologies Corp | 252.4 m | 19.7 | 30.6% | 15.0% | +12.5% | +5% / +415% |
| CRNTCeragon Networks Ltd | 176.8 m | — | -1.2% | -0.6% | −14.1% | −2% / +6% |
| VUZIVuzix Corp | 171.4 m | — | -122.7% | -519.0% | +9.1% | −25% / −3% |
| SATLSatellogic Inc. | 87.6 m | — | — | -325.6% | +37.6% | +95% / +140% |
| AIRGAirgain, Inc. | 55.4 m | — | -23.7% | -13.6% | −14.6% | +4% / +76% |
| WATTEnergous Corporation | 45.0 m | — | -32.8% | -76.4% | +633.1% | +30% / −87% |
| CMTLComtech Telecommunications Corp | 37.4 m | — | -50.5% | -14.5% | −17.0% | −59% / −90% |
| KUSTKustom Entertainment, Inc. | 22.6 m | — | -323.8% | -126.5% | +1.7% | −99% / −100% |
| ERICEricsson Lm Telephone Co | — | — | 27.9% | 12.0% | −4.5% | +15% / +126% |
| NOKNokia Corporation | — | — | 3.1% | 3.3% | +3.5% | +36% / +137% |
1- and 3-year price returns: for KUST 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.
In brief
Kustom Entertainment, Inc. (KUST), formerly Digital Ally, has become a live entertainment company focused on ticketing after selling its law enforcement video business and its medical revenue cycle unit. The company runs TicketSmarter.com, which covers more than 125000 events, and its shift toward a single continuing Entertainment segment is the main story for 2026 for investors following the sector.
SWOT
Strengths
- Broad ticketing reach, a brand recognized through trade press awards, and an annual festival with strong audience loyalty.
- A portfolio cleaned of loss-making activities after the 2026 transactions, which simplifies financial analysis.
- Access to capital through a committed equity facility, which gives funding flexibility.
Weaknesses
- Large operating losses in recent years and significant doubt about going-concern status, according to the company itself.
- Heavy dependence on a single festival and on the seasonality of live events.
- Shares with limited liquidity, high volatility and a history of reverse stock splits.
Opportunities
- Growth in volume on TicketSmarter.com could support fee revenue if the number of covered events rises.
- Expanding festival production to new cities could diversify revenue sources.
- Collecting the Cycurion promissory note could bring additional liquidity if payments proceed as planned.
Threats
- Larger competitors with greater resources could reduce the platform's market share.
- Repeated share issuances could dilute shareholders and weigh on the share price.
- Nasdaq listing risk, following a low share price, remains a compliance issue.
Risks
- Going concernhigh
Management has flagged significant uncertainty about the company's ability to continue as a going concern, which could limit financing options.
- Festival dependencehigh
Annual results depend heavily on the Country Stampede festival, and a disruption to the event could seriously affect revenue.
- Dilution from committed equitymedium
Share sales under the committed equity facility could reduce the stake of existing shareholders.
- Collection of transaction receivablesmedium
The promissory notes and earn-out clauses from the Cycurion sale and the Nobility Healthcare disposal could be collected late or only partly.
- Ticket inventory riskmedium
Tickets bought for resale could sell below cost or become unsellable after the event date.
Investment thesis
What would need to be true (bull case)
- If TicketSmarter continues to grow and the festival keeps its audience, the company could turn the pivot into a steadier revenue model.
- Cleaning up the portfolio could reduce costs and make results easier for investors to follow.
- Advance sales for the 2027 festival show that demand for the company's events still exists.
What would break the thesis
- If losses persist and funding keeps depending on dilution, the company could remain vulnerable to market conditions.
- Competition in ticketing from larger players could limit market share and margins.
- Dependence on one festival and on weather makes results hard to predict from year to year.
What to watch
- Completion of the accounting for the gain on the Video Solutions saleQ3 2026
- Collection progress on the promissory notes and earn-out provisionsnext 10-K
- Pace of committed equity facility use and the dilution that followsQ3 2026
- Results and advance sales for the 2027 Country Stampede festival2027
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.
The business
Through 2026, Kustom Entertainment, Inc. reported two segments: Video Solutions, with in-car and body-worn cameras for law enforcement and commercial fleets, and Entertainment, which includes the secondary ticketing platform TicketSmarter.com and live event production. Total net revenues for fiscal 2025 were 13754155 USD, of which the Entertainment segment contributed 8653398 USD and Video Solutions 5100757 USD 1. The company changed its name from Digital Ally on January 8, 2026, and its shares trade on Nasdaq as KUST 12.
The ticketing revenue model combines service charges, usually calculated as a percentage of the ticket face value, with sales of inventory tickets recognized when sold 1. In 2025, service and other revenues rose while product revenues fell 1. The annual Country Stampede festival, held in June, is the anchor event and strongly shapes the financial calendar 23.
Through 2026 transactions, the company exited RCM by selling 51% of Nobility Healthcare, and sold its Video Solutions business to Cycurion, completed on August 3, 2026 2. Managing this transition, including collection of the promissory note and earn-out provisions, remains a central part of the company profile 2.
Segments
Entertainment (TicketSmarter and Country Stampede)
The Entertainment segment is the only continuing segment after the 2026 transactions. It includes TicketSmarter.com, which covers more than 125000 events, and production of the Country Stampede festival 12. Festival revenue is partly recognized when the event ends, which makes the quarterly calendar uneven 2.
Market context
The company positions itself in the global live entertainment market, which it describes as a 100 billion USD market 3. In this market it competes with larger and better-funded companies, and a small resale platform's share depends on sourcing inventory on favorable terms and attracting buyers 2. Live events are sensitive to seasonality, weather and artist availability 2.
In parallel, the law enforcement camera market, where the company built its reputation, is now a niche for Kustom, whose exposure has been reduced 12. This changes the nature of the company's risk and growth potential if the ticketing ecosystem does not keep pace 2.
Trends
- Pivot to live entertainmentmixed
The company exited legacy businesses and focused resources on ticketing and events, a strategy that could improve margins if transaction volume grows 3. The change of name and symbol from DGLY to KUST marks this direction 2.
- Recovery of ticketing revenuetailwind
Entertainment segment revenue grew in 2025, and advance sales for the 2027 festival were already visible at June 30, 2026 12. If this trend holds, it could support receipts over the medium term.
- Concentration on one eventheadwind
Reliance on the Country Stampede festival means results depend on a single annual event, and a weak year could weigh heavily on performance 2.
- Equity-based fundingmixed
The company has issued shares under its committed equity facility, which brings liquidity but also potential dilution for shareholders 2. The net effect depends on how the funds are used.
Competitive position
In ticketing and live entertainment, Kustom competes with larger, better-resourced companies that hold bigger inventory and exclusive arrangements with promoters 2. The TicketSmarter platform differentiates itself through price transparency and a ticket guarantee, points recognized in a Forbes Advisor review 3.
In law enforcement video, the company exited the market through the sale to Cycurion, so direct competition there is now less relevant to the company's current profile 2.
- Cycurion, Inc.CYCU
Buyer of the Video Solutions business, which received cash, a promissory note and preferred stock as consideration 23.
- Large ticketing and live production companies
Larger, better-resourced competitors named in the company's risk factors without individual names in the sources 2.
- Ticket resale platforms
Competition in ticket resale is mentioned in general terms, with no other names in the supplied sources 2.
- Law enforcement camera suppliers
The divested segment faced competitors in in-car and body-worn cameras, but the sources do not name them 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.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report23 Oct 2026Amendments to articles or bylaws · Financial statements and exhibits
- Current report05 Oct 2026Amendments to articles or bylaws · Shareholder vote · Other events · Financial statements and exhibits
- Proxy statement22 Sept 2026
- Current report01 Sept 2026Material agreement · Item 3.02 · Other events · Financial statements and exhibits
- Quarterly report14 Aug 2026
- Current report13 Aug 2026Item 3.02
- Current report04 Aug 2026Material agreement · Acquisition or disposition of assets · Other events · Financial statements and exhibits
- Current report27 Jul 2026Material agreement · Other events · Financial statements and exhibits
- Current report25 Jun 2026Material agreement · Other events · Financial statements and exhibits
- Quarterly report15 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Kustom Entertainment, Inc. · 13 Apr 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Kustom Entertainment, Inc. · 14 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Kustom Entertainment, Inc. · 13 Apr 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.