Esports Entertainment Group (GMBL) AI Stock Analysis

• Market Cap: $207.14K
• Dividend Yield: N/A
• Average Volume (3M): 1.44K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 49
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): N/A
• Shares Outstanding: 1,145,980
• 10 Day Avg. Volume: 655
• 30 Day Avg. Volume: 1,437
• PEG Ratio: <0.01
• Price to Book (P/B): -0.03
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 7.65
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.26
• Enterprise Value/Ebitda: -0.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.17 ▼(-42.67% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is held down primarily by weak financial fundamentals (declining revenue, ongoing losses, and negative equity) and bearish technical conditions (price below key moving averages with negative MACD). Improved operating/free cash flow provides some support, but valuation inputs (P/E and dividend yield) are not available to materially influence the rating.

Positive Factors

Improving cash flow

The company moved from large cash burn to positive operating cash flow and roughly break-even free cash flow. This improvement gives a more durable near-term runway and reduces immediate liquidity strain, supporting operations and strategic choices over the next several months.

Niche esports + iGaming model

A focused business model combining esports entertainment and online wagering targets a specific, engaged audience. Structural industry growth in esports and iGaming can sustain monetization opportunities and provide differentiated revenue channels versus generic gaming operators over the medium term.

Improving margins / loss reduction

Margins have improved materially and gross margin was described as healthy, indicating better cost control and operating leverage. If management sustains this discipline, improved margins make profitability easier to achieve even with modest revenue, strengthening structural earnings quality.

Negative Factors

Declining revenue

A 21% top-line contraction signals weakening demand or competitive pressure, eroding scale benefits. Sustained revenue declines make it harder to cover fixed costs, slow deleveraging of losses, and limit the durability of recent margin and cash-flow improvements across the next several quarters.

Negative shareholders' equity

Negative equity materially impairs financial flexibility, raising recapitalization and covenant risk. It constrains debt capacity, increases the likelihood of dilutive financing, and limits the company’s strategic options to invest or absorb shocks over a multi-month horizon.

Fragile cash-flow quality

Although operating cash flow improved, the cushion is limited versus ongoing losses. Break-even free cash flow is fragile and vulnerable to revenue swings; this constrains reinvestment and increases reliance on external funding if adverse conditions persist over months.

Esports Entertainment Group Business Overview & Revenue Model

Company Description

Esports Entertainment Group, Inc. operates as an iGaming and entertainment company in the United States and internationally. The company operates Vie.bet, an esports focused platform; Sportnation.bet, an online sportsbook and casino; iDefix, a casino-platform; Bethard, an online sportsbook and casino; Vie.gg, an online esports wagering website; and ggCircuit, a local area network center management software for managing mission critical functions, such as game licensing and payments. It also organizes professional and amateur esports events. The company was formerly known as VGambling, Inc. and changed its name to Esports Entertainment Group, Inc. in May 2017. Esports Entertainment Group, Inc. was incorporated in 2008 and is based in St. Julian's, Malta.

How the Company Makes Money

Esports Entertainment Group Financial Statement Overview

Summary

Financial profile is weak despite some recent stabilization. Revenue continues to contract sharply and the company remains unprofitable. Balance sheet risk is elevated with negative shareholders’ equity, limiting financial flexibility. Cash flow improved (positive operating cash flow and roughly break-even free cash flow), but durability is uncertain given the modest cushion.

Income Statement

Revenue has contracted sharply, down about 21% in the latest annual period after declines in prior years, signaling a shrinking top line. Profitability remains weak with continued net losses and negative operating profit, although the loss profile improved materially versus the prior year (margins far less negative than 2024). Gross margin is healthy in the latest year, but it has been volatile and has not translated into sustainable bottom-line performance.

Balance Sheet

The balance sheet is stressed: shareholders’ equity is negative in the latest year, which materially weakens financial flexibility and raises recapitalization risk. While total debt is not large in absolute dollars, negative equity makes leverage metrics less meaningful and highlights balance-sheet impairment. Assets have also come down versus earlier years, pointing to a smaller capital base supporting the business.

Cash Flow

Cash flow shows improvement with positive operating cash flow in the latest year versus large cash burn previously, but the level is modest relative to the company’s loss position. Free cash flow is reported at roughly break-even in the latest year after several years of deeply negative free cash flow, indicating progress but not yet consistent cash generation. Overall cash flow quality remains fragile given the limited operating cash flow cushion.

Breakdown	TTM	Jun 2025	Jun 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	8.10M	6.40M	8.10M	22.97M	58.35M	16.78M
Gross Profit	6.01M	4.01M	3.25M	14.18M	34.19M	8.92M
EBITDA	-24.10M	-727.12K	-24.10M	-23.28M	-88.95M	-25.91M
Net Income	-26.90M	-1.88M	-26.90M	-32.29M	-102.23M	-26.37M
Balance Sheet
Total Assets	3.42M	2.46M	3.42M	22.10M	64.86M	119.74M
Cash, Cash Equivalents and Short-Term Investments	176.68K	324.48K	176.68K	1.75M	2.52M	19.92M
Total Debt	1.45M	1.70M	1.45M	95.90K	36.17M	8.04M
Total Liabilities	12.95M	14.13M	12.95M	9.22M	68.68M	44.95M
Stockholders Equity	-9.53M	-11.67M	-9.53M	12.88M	-3.82M	74.79M
Cash Flow
Free Cash Flow	-6.70M	0.00	-6.63M	-15.75M	-21.14M	-18.95M
Operating Cash Flow	-6.63M	101.47K	-6.63M	-15.75M	-21.01M	-18.88M
Investing Cash Flow	-62.79K	2.40K	-62.79K	2.94M	-20.08M	-56.13M
Financing Cash Flow	4.70M	91.59K	4.70M	8.68M	23.49M	86.36M

Esports Entertainment Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INSE	69 Neutral	$217.03M	-35.85	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GAMB	60 Neutral	$156.30M	-18.59	1.46%	―	24.21%	-92.49%
CDRO	56 Neutral	$364.44M	―	23.16%	―	1.79%	―
FLL	51 Neutral	$82.00M	-2.34	-121.54%	―	7.45%	5.03%
BALY	43 Neutral	$717.77M	-1.64	-114.88%	―	0.36%	47.55%
GMBL	41 Neutral	$207.14K	-0.20	―	―	―	―