Esports Entertainment Group (GMBL) AI Stock Analysis

• Market Cap: $207.42K
• 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 ▼(-42.33% 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

Operating cash flow turned positive and free cash flow moved to roughly break-even, which materially reduces near-term liquidity pressure versus prior years. If sustained, this provides a more durable runway to fund operations, de-risking immediate recapitalization needs.

Healthy gross margin

A healthy gross margin indicates sound unit economics for the core offerings, giving the company leverage to achieve profitability as revenue stabilizes. Sustained gross margins can support operating expense absorption and long-term margin expansion when top-line declines are arrested.

Niche esports + iGaming model

A focused position in esports wagering and iGaming targets a younger, growing demographic and leverages structural growth in online gaming. This niche can provide competitive differentiation versus broad gambling operators and create durable market opportunities if execution and regulatory access hold.

Negative Factors

Negative shareholders' equity

Negative equity signals balance-sheet impairment and constrains financial flexibility, increasing recapitalization risk. Over the medium term this can force dilutive financing, hinder borrowing capacity, and limit the company’s ability to invest or respond to shocks without material external support.

Shrinking revenue

A 21% revenue decline reduces scale and exacerbates fixed-cost absorption, undermining operating leverage. Persistent top-line erosion can negate margin gains, shrink customer liquidity, and lengthen the time to sustainable profitability absent meaningful revenue stabilization or market-share recovery.

Ongoing unprofitability

Continued net losses, paired with only modest cash-flow improvement, leave the business reliant on further internal improvement or external funding. This structural unprofitability limits strategic options and raises the risk that shortfalls force asset sales, dilution, or curtailed investment.

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	$223.49M	-35.85	―	―	4.03%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GAMB	60 Neutral	$155.59M	-18.59	1.46%	―	24.21%	-92.49%
CDRO	56 Neutral	$364.44M	―	23.16%	―	1.79%	―
FLL	51 Neutral	$83.08M	-3.77	-121.54%	―	7.45%	5.03%
BALY	43 Neutral	$659.76M	-1.64	-114.88%	―	0.36%	47.55%
GMBL	41 Neutral	$207.42K	-0.20	―	―	―	―