Company DescriptionESE Entertainment Inc., an entertainment and technology company, focuses on gaming and esports in Europe and internationally. It consists of multiple assets and operators in the gaming and esports industries. The company's capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, simulation racing business unit, and a growing esport team franchise, as well as K1CK Esports. It also engages in the infrastructure business that manages fan engagement for OTT and esports; and provision of gaming related infrastructure, technology, and support. In addition, the company offers out-sourced network services; operates telecommunications network; turnkey simulator packages; builds bespoke simulators; and Virtual Pitstop technology for video game developers, racing fans, and gamers to engage in motorsport related esports. It serves video game developers, publishers, and brands. The company was formerly known as Kepler Acquisition Corp. and changed its name to ESE Entertainment Inc. in August 12, 2020. ESE Entertainment Inc. was founded in 2019 and is headquartered in Vancouver, Canada.

How the Company Makes Money

ESE Entertainment Financial Statement Overview

Summary

ESE Entertainment is facing multifaceted financial challenges. Persistent losses and declining revenues have severely impacted profitability and financial stability. High leverage and negative cash flows further exacerbate financial risks, necessitating strategic adjustments to improve operational efficiency and financial health.

Income Statement

Negative

ESE Entertainment has experienced significant volatility in revenue, with a notable decline from 2022 to 2025. Gross profit margin remains extremely low at around 1% in TTM, indicating challenges in cost management. The company has been consistently operating at a loss, with negative EBIT and net profit margins, highlighting profitability concerns.

Balance Sheet

Negative

The company has a high debt-to-equity ratio, which increased notably as equity declined, suggesting elevated financial risk. The equity ratio has deteriorated over time, reflecting a weakened financial position with liabilities exceeding assets. Return on equity remains negative due to sustained losses, indicating inefficiencies in generating shareholder returns.

Cash Flow

Very Negative

Consistently negative operating cash flow and free cash flow highlight ongoing liquidity challenges. The free cash flow to net income ratio is unfavorable, indicating insufficient cash flow to support operational needs. With negative cash flow growth, the company faces difficulties in sustaining operations without external funding.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
4.53M	2.85M	19.10M	58.82M	11.38M	390.17K
	Gross Profit
43.95K	231.76K	176.92K	7.70M	1.15M	390.17K
	EBIT
-5.21M	-5.72M	-8.46M	-15.97M	-13.22M	-592.10K
	EBITDA
-5.70M	-6.50M	-7.26M	-22.40M	-18.62M	-3.80M
	Net Income Common Stockholders
-6.35M	-6.72M	-6.35M	-29.84M	-18.66M	-5.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
719.78K	909.58K	2.13M	1.11M	4.83M	550.01K
	Total Assets
7.20M	6.86M	9.11M	21.45M	15.94M	842.09K
	Total Debt
1.09M	939.10K	3.30M	6.44M	198.13K	0.00
	Net Debt
441.19K	100.16K	1.18M	5.63M	-4.63M	-550.01K
	Total Liabilities
7.86M	6.88M	6.43M	19.22M	1.43M	378.46K
	Stockholders Equity
359.76K	991.58K	3.59M	2.71M	14.54M	463.63K
Cash Flow		Free Cash Flow
-1.83M	-2.19M	-1.53M	-2.32M	-4.51M	-1.97M
	Operating Cash Flow
-1.93M	-2.19M	-1.53M	-1.75M	-4.49M	-1.97M
	Investing Cash Flow
3.46M	3.36M	3.02M	-7.22M	-2.34M	103.70K
	Financing Cash Flow
-2.14M	-2.44M	-210.93K	5.00M	11.20M	2.25M

ESE Entertainment Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENTEF		$2.85M	―	-337.09%	―	―	―
TBRD	74 Outperform	C$65.87M	10.80	9.94%	―	25.69%	―
Sector *	61 Neutral	$14.60B	5.88	-4.32%	3.68%	2.75%	-30.55%
QYOUF		$17.34M	―	-175.54%	―	―	―
EGLXF		$5.80M	―	-105.94%	―	―	―
OAM	49 Neutral	C$31.47M	255.56	0.17%	―	59.77%	―
BRMI	48 Neutral	C$51.19M	―	-49.83%	―	-58.70%	-711.28%

* Communication Services Sector Average

Performance Comparison

ENTEF

ESE Entertainment

0.02

-0.07

-77.78%

TSE:TBRD

Thunderbird Entertainment Group Inc

1.52

-0.23

-13.14%

QYOUF

QYOU Media

0.02

>-0.01

-33.33%

EGLXF

Enthusiast Gaming Holdings

0.04

-0.05

-55.56%

TSE:BRMI

Boat Rocker Media

0.93

0.17

22.37%

TSE:OAM

OverActive Media Corp

0.24

-0.03

-11.11%

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.

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