FreeCast Inc.
(NASDAQ:CAST) stock fell about 16% on Monday after short seller Fugazi Research published a bearish report questioning the streaming company's valuation, financial health, and corporate governance.
Report Questions Valuation Fugazi Research said FreeCast's recent stock rally is disconnected from the company's financial condition, arguing that CAST is "extremely overvalued" and "fundamentally of ZERO value" despite investor enthusiasm around its Starlink reseller announcement.
The report said FreeCast generated $92,909 in revenue in the quarter ended March 31, 2026, while incurring a loss of more than $4.5 million.
For the first nine months of fiscal 2026, revenue totaled $350,859, while net loss reached $10.18 million, meaning the company lost about $29 for every $1 it earned.
