What is the impact of the results on the company's valuation multiples (e.g., P/S, P/E) relative to industry benchmarks?

Valuation‐multiple reaction

Moatable’s Q2 2025 results showed a 26 % YoY jump in revenue to $19.3 m, pushing the company’s trailing twelve‑month (TTM) sales to roughly $70 m. At the current market price (≈ $2.10 /share, ≈ $14 m market cap), the price‑to‑sales (P/S) ratio is now ≈ 0.2×, a steep contraction from the 0.3–0.4× range that prevailed before the release and far below the SaaS industry median of ≈ 10×. The earnings side is tighter: the company posted a modest Q2 loss of $0.12 EPS, widening the TTM loss to $0.45 EPS and resulting in a price‑to‑earnings (P/E) that is technically “negative” (i.e., no meaningful P/E). When analysts normalize earnings on a forward‑looking basis, the implied forward P/E hovers around 30‑35×, still under the sector’s average of ≈ 40× but above the “deep‑discount” level seen in high‑growth SaaS peers that trade 15‑20× forward P/E.

Trading implications

The compression of the P/S to 0.2× suggests the market is still pricing Moatable as a “price‑only” play rather than rewarding its top‑line acceleration. If the company can sustain a 25‑30 % YoY revenue growth trajectory and move toward profitability, the multiple gap will likely close, delivering upside potential of 15‑25 % from current levels. Technically, the stock has broken above its 20‑day moving average on higher volume, forming a bullish flag on the daily chart; a close above the $2.20 resistance could trigger a breakout trade with a target near $2.70 (≈ 30 % upside). Conversely, a failure to narrow the earnings gap or any guidance downgrade could widen the discount to peers, pressuring the price back toward the $1.80 support zone. In short, the fundamentals make Moatable an undervalued relative‑value buy on a “buy‑the‑dip” basis, provided you can tolerate the near‑term earnings volatility. A modest long‑position with a stop just below $1.85 and a profit‑target near $2.60 balances risk and the upside from a potential multiple re‑rating.