SharpLink Gaming (SBET) AI Stock Analysis

• Market Cap: $2.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): -1.18
• Shares Outstanding: 6,903,056
• 10 Day Avg. Volume: 1,495,965
• 30 Day Avg. Volume: 1,340,899
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.52
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.25
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

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 (SBET) is a company operating within the online gaming and sports betting industry. It specializes in providing advanced technologies and solutions for sports betting and online gaming sectors. The company's core offerings include a range of digital products designed to enhance user engagement and facilitate seamless integration with sports betting platforms.

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. Improvements in stockholders' equity and reduced cash burn are positive signs, but the company still struggles with profitability and cash flow stability.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.66M	4.95M	7.29M	4.15M	2.28M
	Gross Profit
906.27K	1.53M	1.13M	282.50K	423.72K
	EBIT
-4.47M	-8.89M	-10.75M	-29.48M	-1.21M
	EBITDA
-4.14M	-6.19M	-13.99M	-33.26M	-1.00M
	Net Income Common Stockholders
10.10M	-14.24M	-15.30M	-55.63M	-1.14M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.44M	2.49M	39.32M	6.76M	2.59M
	Total Assets
2.57M	71.28M	65.05M	20.56M	4.42M
	Total Debt
0.00	12.81M	8.31M	165.52K	193.09K
	Net Debt
-1.44M	10.32M	-31.01M	-6.59M	-2.39M
	Total Liabilities
488.30K	80.68M	62.06M	6.37M	3.07M
	Stockholders Equity
2.08M	-9.40M	2.99M	14.19M	1.36M
Cash Flow		Free Cash Flow
-5.86M	-57.38M	-6.10M	-6.33M	-1.07M
	Operating Cash Flow
-5.86M	-57.37M	-5.94M	-6.07M	-769.10K
	Investing Cash Flow
-18.71M	-1.03M	48.30M	-4.41M	-298.30K
	Financing Cash Flow
-17.38M	9.30M	2.68M	15.68M	1.85M

SharpLink Gaming Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBET, the sentiment is Neutral. The current price of 0.31 is above the 20-day moving average (MA) of 0.25, below the 50-day MA of 0.31, and below the 200-day MA of 0.57, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 57.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBET.

SharpLink Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GAMB	76 Outperform	$457.83M	15.44	25.34%	―	17.05%	73.00%
Sector *	61 Neutral	$6.65B	11.71	3.09%	3.98%	2.65%	-20.82%
DKNG	56 Neutral	$30.56B	―	-54.81%	―	30.07%	39.93%
GAN	46 Neutral	$82.20M	―	229.13%	―	4.31%	77.31%
SBET	40 Underperform	$2.16M	―		―	―	―

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.