tiprankstipranks
Trending News
More News >
Super League Enterprise (SLE)
NASDAQ:SLE

Super League Enterprise (SLE) AI Stock Analysis

Compare
435 Followers

Top Page

SL

Super League Enterprise

(NASDAQ:SLE)

23Underperform
Super League Enterprise shows significant revenue growth, but its financial performance is undermined by severe profitability and cash flow issues. The technical indicators signal weak market sentiment, and the valuation suggests the stock is not currently attractive. While strategic initiatives from the earnings call, like revenue diversification and leadership changes, are positive, they have yet to yield tangible results. Overall, the stock faces considerable challenges and risks, resulting in a low score.
Positive Factors
Growth Potential
Management remains focused on pursuing additional strategic acquisitions of synergistic profitable businesses that can drive material top-line growth and unlock operating leverage to accelerate the path to positive cash flow.
New Opportunities
The pending transaction and partnership with Infinite Reality, Inc. is expected to provide SLE with various assets that have synergies to the core business, including a perpetual license to create and host events for Drone Racing League.
Strategic Investments
The pending strategic investment and asset transfer from Infinite Reality is expected to provide Super League with $20.0M of additional capital and revenue-generating assets.
Negative Factors
Capital Requirements
SLE ended 4Q24 with cash of $1.3M and $5.0M of debt, and based on our estimates, we believe SLE will likely require additional capital before 3Q25.
Financial Performance
SLE reported 4Q24 results below expectations with revenue of $3.4M below our estimate of $6.0M; and adjusted EBITDA loss of ($4.0M), which was wider than our estimate.
Revenue Challenges
Revenue in 3Q24 fell well short of expectations, driven by customer hesitation due to safety concerns on the Roblox platform.

Super League Enterprise (SLE) vs. S&P 500 (SPY)

Super League Enterprise Business Overview & Revenue Model

Company DescriptionSuper League Enterprise (SLE) is a company operating in the digital entertainment and esports sectors. It focuses on providing platforms and content for competitive gaming and esports enthusiasts. SLE is known for organizing and hosting amateur esports competitions and leagues, creating digital content, and offering community-driven gaming experiences. The company aims to enhance the esports ecosystem by engaging gamers and fans through its innovative offerings.
How the Company Makes MoneySuper League Enterprise generates revenue primarily through multiple streams, including hosting esports events, digital advertising, and content partnerships. The company organizes amateur esports competitions, where it charges entry fees to participants and sponsorship fees to brands looking to reach a gaming audience. Additionally, SLE monetizes its digital content by partnering with advertisers who wish to leverage its platforms for targeted marketing. Significant partnerships with gaming publishers and brands also contribute to its earnings by enabling co-branded events and exclusive content offerings.

Super League Enterprise Financial Statement Overview

Summary
Super League Enterprise shows strong revenue growth but faces severe profitability and cash flow issues. The balance sheet's lack of reported figures for 2024 raises concerns about financial transparency and stability. Strategic financial management is needed to address ongoing losses and improve cash flow sustainability.
Income Statement
10
Very Negative
Super League Enterprise has seen significant revenue growth, with a substantial increase from $25.08 million in 2023 to $16.18 billion in 2024. However, the company continues to face severe profitability challenges, indicated by persistent negative EBIT and net income figures. The net profit margin remains significantly negative due to high operating losses.
Balance Sheet
5
Very Negative
The balance sheet shows critical weaknesses with zero total assets, liabilities, and stockholders' equity reported in 2024, making it impossible to calculate key ratios like debt-to-equity and equity ratio. Previously, the company had low leverage and a small equity base, which limits financial flexibility.
Cash Flow
15
Very Negative
Cash flow analysis reveals negative free cash flow and operating cash flow for 2024, indicating that the company is consuming more cash than it is generating. The significant negative operating cash flow to net income ratio highlights ongoing cash flow challenges.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
16.18M25.08M19.68M11.67M2.06M
Gross Profit
6.10M9.78M8.52M5.13M1.21M
EBIT
-16.90M-32.84M-84.96M-25.08M-18.74M
EBITDA
-13.30M-25.22M-79.57M-20.53M-17.36M
Net Income Common Stockholders
-16.64M-30.33M-85.45M-20.75M-18.73M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.31M7.61M2.48M14.53M1.71M
Total Assets
11.71M25.33M30.21M96.81M6.70M
Total Debt
4.97M800.00K679.00K0.001.21M
Net Debt
3.67M-6.81M-1.80M-14.53M-504.10K
Total Liabilities
11.54M15.34M11.01M6.11M2.44M
Stockholders Equity
170.00K9.99M19.20M90.70M4.26M
Cash FlowFree Cash Flow
-11.94M-16.16M-21.52M-24.00M-16.07M
Operating Cash Flow
-11.46M-15.49M-19.83M-22.71M-14.88M
Investing Cash Flow
-283.00M-825.00K-1.69M-4.20M-1.19M
Financing Cash Flow
5.45M21.44M9.46M33.50M15.57M

Super League Enterprise Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.15
Price Trends
50DMA
0.31
Negative
100DMA
0.45
Negative
200DMA
0.68
Negative
Market Momentum
MACD
-0.01
Positive
RSI
31.48
Neutral
STOCH
4.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SLE, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.31, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 31.48 is Neutral, neither overbought nor oversold. The STOCH value of 4.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SLE.

Super League Enterprise Risk Analysis

Super League Enterprise disclosed 67 risk factors in its most recent earnings report. Super League Enterprise reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Super League Enterprise Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$13.80B7.25-2.76%3.77%2.19%-42.55%
49
Neutral
$13.75M432.73-31.58%-9.65%
40
Underperform
$5.38M-40.82%50.04%74.69%
38
Underperform
$3.75M-75.89%-49.52%-86.35%
31
Underperform
$7.80M-157.27%
SLSLE
23
Underperform
$2.92M-324.29%-35.48%79.53%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SLE
Super League Enterprise
0.15
-1.51
-90.96%
CNET
ZW Data Action Technologies
1.62
-1.61
-49.85%
MSGM
Motorsport Games
2.43
-0.31
-11.31%
ONFO
Onfolio Holdings, Inc.
1.02
0.51
100.00%
VSME
VS Media Holdings Limited Class A
0.90
-1.72
-65.65%

Super League Enterprise Earnings Call Summary

Earnings Call Date:Mar 28, 2025
(Q4-2024)
|
% Change Since: -62.50%|
Next Earnings Date:May 15, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic changes, diversification into mobile, and leadership shifts that underscore a focus on growth and adaptation. However, financial results were below expectations, and challenges in the Roblox ecosystem persist.
Q4-2024 Updates
Positive Updates
Revenue Diversification and Margin Recovery
Revenue diversification is kicking in, margins are recovering, and there is a healthy pipeline with about $20 million in active pursuits across 77 unique programs.
Introduction of Mobile Category
The mobile category was introduced quickly and effectively, making up 16% of revenue in Q4 and expected to reach close to 20% in Q1.
Strategic Leadership Change
Ann Hand transitioning to Executive Chair and Matt Edelman stepping in as CEO with a focus on transformation and strategic alternatives.
Positive Market Trends
There are 3.3 billion gamers worldwide, and demographic shifts suggest an increase in gaming's mainstream acceptance and ad spend.
New Board Appointment
Bant Breen, a noted marketing and media executive, entrepreneur, and academic, joins the Board to aid in expanding market adoption.
Negative Updates
Financial Results Below Expectations
The financial results in the back half of 2024 did not meet expectations, indicating a need for improvement.
Roblox Ecosystem Challenges
Structural shifts in the Roblox ad ecosystem have posed challenges, though adjustments are underway.
Market Education Phase
The company is still in the market education phase, needing to convince brands of the value of targeting gaming audiences through playable advertising.
Company Guidance
During the Super League Enterprise, Inc. Q4 2024 Earnings Call, CEO Ann Hand provided guidance on several key metrics and strategic plans. The company is focusing on achieving EBITDA positivity by Q4 2025 and has about $20 million in active pursuits across 77 unique programs. Revenue diversification is underway, with mobile games contributing significantly, expected to make up about 20% of revenue in Q1 2025. The call highlighted a strategic realignment, including Ann Hand moving to Executive Chair and Matt Edelman stepping into the CEO role. They also discussed ongoing strategic conversations with potential acquisition targets and the introduction of Bant Breen as a new Director to bolster board expertise. The company's focus remains on optimizing their cost structure and exploring higher-margin products to enhance profitability.

Super League Enterprise Corporate Events

Private Placements and FinancingShareholder Meetings
Super League Enterprise Completes Public Stock Offering
Neutral
May 12, 2025

On May 9, 2025, Super League Enterprise, Inc. entered into an underwriting agreement with Aegis Capital Corp. for a public offering of 5,117,647 shares of its common stock, with an option for an additional 767,647 shares. The offering closed on May 12, 2025, at a public price of $0.17 per share, generating net proceeds of approximately $700,400. The company plans to use these funds for working capital, general corporate purposes, and debt repayment. Additionally, the company announced the termination of a previous equity purchase agreement on May 8, 2025, without incurring penalties, and set the date for its 2024 annual meeting of stockholders for June 9, 2025.

The most recent analyst rating on (SLE) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Super League Enterprise stock, see the SLE Stock Forecast page.

Spark’s Take on SLE Stock

According to Spark, TipRanks’ AI Analyst, SLE is a Underperform.

Super League Enterprise’s stock score is significantly impacted by its poor financial performance and unattractive valuation, reflecting ongoing losses and cash flow issues. While recent strategic initiatives and diversification efforts were highlighted in the earnings call, these are yet to translate into financial stability or improved market sentiment.

To see Spark’s full report on SLE stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Super League Enterprise Announces Major Cost Reduction Measures
Neutral
May 6, 2025

Super League announced significant cost reduction measures on May 6, 2025, including a 35% workforce reduction and executive salary restructuring, aimed at reducing operating costs by approximately $2.7 million through December 31, 2025. These actions, coupled with strategic realignment, are expected to help the company achieve EBITDA positivity by Q4 2025 and position it for long-term growth opportunities in the playable media industry.

Spark’s Take on SLE Stock

According to Spark, TipRanks’ AI Analyst, SLE is a Neutral.

Super League Enterprise’s strong revenue growth is overshadowed by severe profitability and cash flow issues. The stock’s technical indicators show some positive momentum, but valuation concerns persist due to ongoing losses and lack of dividend yield. Recent strategic shifts and leadership changes offer potential for future improvements, but current financial results fall short of expectations.

To see Spark’s full report on SLE stock, click here.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
Super League Enterprise Reports 2024 Financial Results
Negative
Apr 3, 2025

On March 28, 2025, Super League announced its fourth quarter and full year 2024 financial results, revealing challenges in the latter half of 2024 due to market conditions and structural shifts in the Roblox ad ecosystem. The company is realigning its business to achieve EBITDA positivity by Q4 2025, focusing on cost structure and higher-margin programs. Ann Hand transitions to Executive Chair, with Matt Edelman promoted to CEO, and Bant Breen joins the Board to enhance marketing and media strategies. Despite an incomplete deal with Infinite Reality, Super League is exploring strategic alternatives to strengthen its position in the playable digital advertising space.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.