SharpLink Gaming (SBET) AI Stock Analysis

• Market Cap: $548.16M
• Dividend Yield: N/A
• Average Volume (3M): 9.73M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.36
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 60,907,097
• 10 Day Avg. Volume: 17,688,585
• 30 Day Avg. Volume: 9,732,183
• PEG Ratio: <0.01
• Price to Book (P/B): 2.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.26
• Enterprise Value/Market Cap: -0.04
• Enterprise Value/Revenue: -4.46
• Enterprise Value/Gross Profit: -31.03
• Enterprise Value/Ebitda: 1.82
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: ―

SharpLink Gaming's overall score is primarily affected by its weak financial performance, characterized by declining revenues and persistent losses. Technical indicators suggest a bearish trend, while valuation metrics highlight profitability challenges. However, the strategic acquisition in the crypto gaming space offers a potential growth avenue, balancing some of the financial and operational concerns.

SharpLink Gaming Business Overview & Revenue Model

Company Description

SharpLink Gaming Ltd. operates as an online technology company that connects sports fans, leagues, and sports websites to sports betting and iGaming content. It operates through Affiliate Marketing Services – United States, Sports Gaming Client Services, Enterprise Telecom Expense Management, and Affiliate Marketing Services – International segments. The company collects information on potential U.S. domiciled sports bettors, connects them with contextual sports betting content, and converts them to paying sports betting customers, as well as offers sports betting data to sports media publishers. It also provides development, hosting, operations, maintenance, and service of free-to-play games and contests; and solutions for telecommunications expense management, enterprise mobility management, call usage, and accounting software, as well as iGaming and affiliate marketing network, which focuses on delivering quality traffic and player acquisitions, and retention and conversions to global iGaming operator partner worldwide. The company was founded in 2019 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

SharpLink Gaming makes money primarily through its suite of technology solutions that cater to the sports betting and online gaming markets. The company generates revenue by licensing its software and platforms to sports betting operators and other gaming businesses. These operators use SharpLink's technologies to improve their user engagement and betting services, which in turn helps drive traffic and betting activity. Additionally, SharpLink may earn income through revenue-sharing agreements, where it receives a percentage of the betting revenue generated through its platforms. Significant partnerships with major sports leagues, media companies, or betting operators can also contribute to its earnings by expanding its market reach and user base.

SharpLink Gaming Financial Statement Overview

Summary

SharpLink Gaming faces financial challenges with declining revenues and continuous losses. While there are improvements in stockholders' equity and reduced cash burn, the company still struggles with profitability and cash flow stability. The lack of debt suggests limited financial risk, yet it may also constrain growth opportunities.

Income Statement

SharpLink Gaming's revenue has been declining over the years, with a significant drop from $7.3 million in 2022 to $3.6 million in 2024. Despite reducing negative net income from -$15.3 million in 2022 to $10.1 million in 2024, the company still faces persistent losses. Gross profit margins have been consistently low, and the EBIT and EBITDA margins have been negative, indicating ongoing operational challenges.

Balance Sheet

The company's balance sheet shows improvement in stockholders' equity, which turned positive in 2024 at $2.08 million from a negative position in 2023. The equity ratio improved significantly, suggesting a decrease in leverage. However, the company carries no debt, which limits its risk but also suggests a lack of growth financing. Overall, the financial stability has increased, but profitability remains a concern.

Cash Flow

SharpLink Gaming's cash flow statement reveals significant negative free cash flow, which has improved slightly from -$57.4 million in 2023 to -$5.9 million in 2024. Operating cash flow remains negative, suggesting cash burn from operations. The company also recorded substantial negative investing cash flow, indicating high capital outlays or investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43M	3.66M	4.95M	7.29M	4.15M	2.28M
Gross Profit	750.86K	906.27K	1.53M	1.13M	282.50K	423.72K
EBITDA	-3.63M	-4.14M	-6.19M	-13.99M	-33.26M	-1.00M
Net Income	-3.23M	10.10M	-14.24M	-15.30M	-55.63M	-1.14M
Balance Sheet
Total Assets	2.78M	2.57M	71.28M	65.05M	20.56M	4.42M
Cash, Cash Equivalents and Short-Term Investments	1.37M	1.44M	2.49M	39.32M	6.76M	2.59M
Total Debt	0.00	0.00	12.81M	8.31M	165.52K	193.09K
Total Liabilities	693.11K	488.30K	80.68M	62.06M	6.37M	3.07M
Stockholders Equity	2.08M	2.08M	-9.40M	2.99M	14.19M	1.36M
Cash Flow
Free Cash Flow	-3.97M	-22.82M	-57.38M	-6.10M	-6.33M	-1.07M
Operating Cash Flow	-3.96M	-22.81M	-57.37M	-5.94M	-6.07M	-769.10K
Investing Cash Flow	-651.37K	-18.71M	-1.03M	48.30M	-4.41M	-298.30K
Financing Cash Flow	1.70M	-17.38M	9.30M	2.68M	15.68M	1.85M

SharpLink Gaming Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBET, the sentiment is Negative. The current price of 9.66 is below the 20-day moving average (MA) of 33.79, below the 50-day MA of 15.48, and above the 200-day MA of 9.11, indicating a neutral trend. The MACD of -2.77 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 1.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBET.

SharpLink Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMB	74 Outperform	$418.69M	12.31	25.73%	―	24.67%	91.06%
DKNG	65 Neutral	$38.07B	―	-46.78%	―	22.86%	30.40%
Sector *	62 Neutral	$16.37B	10.93	-5.94%	3.16%	1.63%	-24.73%
GAN	51 Neutral	$91.53M	―	229.13%	―	7.02%	74.19%
SBET	40 Underperform	$548.16M	―	-147.04%	―	―	―
LTRY		$35.51M	―	-98.11%	―	―	―
CDRO		$350.98M	―		―	―	―

SharpLink Gaming Corporate Events

SharpLink Gaming Announces Reverse Stock Split

On May 2, 2025, SharpLink Gaming, Inc. announced a 1-for-12 reverse stock split of its common stock, effective May 5, 2025, to meet Nasdaq’s $1.00 minimum bid price requirement. This move aims to consolidate shares and maintain the company’s listing on The Nasdaq Capital Market, with trading on a post-split basis starting May 6, 2025.

Spark’s Take on SBET Stock

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

SharpLink Gaming’s overall score is primarily affected by its weak financial performance, characterized by declining revenues and persistent losses. Technical indicators suggest a bearish trend, while valuation metrics highlight profitability challenges. However, the strategic acquisition in the crypto gaming space offers a potential growth avenue, balancing some of the financial and operational concerns.

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

SharpLink Gaming Granted Nasdaq Compliance Extension

On March 21, 2025, SharpLink Gaming received an extension from the Nasdaq Hearings Panel to comply with Nasdaq’s listing rules, specifically the minimum bid price and stockholders’ equity requirements, by May 23, 2025. The extension allows SharpLink to maintain its Nasdaq listing while working on compliance, with plans to update on fundraising and income projections. Additionally, the company’s 2025 Executive Compensation Plan was approved, including salary increases and bonuses for executives, contingent on compliance with Nasdaq requirements.

SharpLink Gaming Acquires Stake in CryptoCasino.com

On February 24, 2025, SharpLink Gaming, Inc. announced its acquisition of a 10% equity stake in Armchair Enterprises Limited, the owner of CryptoCasino.com, for $500,000. This strategic investment includes a right of first refusal to acquire a controlling interest in Armchair, positioning SharpLink as a potential leader in the growing crypto gaming market. The acquisition aligns with SharpLink’s strategy to leverage its marketing platform and industry relationships to expand into the high-growth global crypto gaming market, which is expected to see significant growth due to the increasing adoption of blockchain technology. CryptoCasino.com, launched in October 2024, offers a wide range of gaming options and accepts various cryptocurrencies, catering to a global audience with enhanced security and transparency features. This move is part of SharpLink’s broader strategy to capitalize on the rapid growth of blockchain-based gaming and deliver long-term value to its shareholders.