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SharpLink Gaming (SBET)
NASDAQ:SBET
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SharpLink Gaming (SBET) AI Stock Analysis

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SBET

SharpLink Gaming

(NASDAQ:SBET)

Rating:40Underperform
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 (SBET) vs. SPDR S&P 500 ETF (SPY)

SharpLink Gaming Business Overview & Revenue Model

Company DescriptionSharpLink 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 MoneySharpLink 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 Earnings Call Summary

Earnings Call Date:Aug 15, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 14, 2025
Earnings Call Sentiment Neutral
SharpLink has made significant progress with its Ethereum treasury strategy, raising substantial capital and forming strategic partnerships. Despite the positive outlook and institutional adoption of Ethereum, the company faced a notable noncash impairment loss and a decrease in revenue. The sentiment is balanced between the strategic advancements and the financial challenges.
Q2-2025 Updates
Positive Updates
Successful Launch of Ethereum Treasury Strategy
SharpLink has raised over $2.6 billion in investor capital since June 2, 2025, and acquired more than 700,000 units of ETH. The company has positioned itself as one of the largest public ETH treasury companies.
Strategic Partnerships and Institutional Support
SharpLink benefits from strategic relationships with Consensys, Galaxy, and ParaFi, as well as custodians like Coinbase and Anchorage Digital. These partnerships help achieve institutional-grade treasury operations and efficiency.
Significant Institutional Adoption of Ethereum
Institutional interest in Ethereum is accelerating, with Ethereum securing 60% of all stablecoin transactions, 83% of tokenized real-world assets, and 72% of high-quality liquid DeFI transactions.
Positive Outlook for Ethereum's Future
Ethereum is projected to have significant growth potential, with the ETH market cap potentially growing by $1 for every $2 of assets secured on Ethereum. The company anticipates a valuation opportunity for ETH of $15,000 to $40,000 by 2028.
Negative Updates
Noncash Impairment Loss
The company recognized a noncash impairment loss of $87.8 million on its LsETH holdings due to accounting practices, reducing the carrying value of LsETH.
Decrease in Revenue and Increased Net Loss
Revenue in the second quarter was $0.7 million compared to $1 million in Q2 of 2024. The net loss in the second quarter was $103.4 million, primarily driven by the noncash impairment and stock-based compensation expenses.
Company Guidance
During the Q2 2025 earnings call, SharpLink provided guidance on its strategy to become the world's largest and most trusted Ethereum treasury company. The company has raised over $2.6 billion in investor capital and acquired more than 700,000 units of ETH since launching its treasury strategy in June 2025. SharpLink's ETH holdings include 24,704 ETH with a net value of $61.5 million and 164,731 liquid staked ETH valued at $382.4 million. The company is focusing on increasing its ETH concentration, a key metric indicating the amount of ETH held per 1,000 diluted shares. SharpLink's strategy includes leveraging staking, restaking, and DeFi to generate yield while maintaining a risk-managed approach. The company has $6 billion in ATM capacity for continued capital raising and intends to explore equity-linked securities and preferred securities to capture ETH's volatility.

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
35
Negative
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
40
Negative
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.14M3.66M4.95M3.49M2.64M2.28M
Gross Profit679.82K906.27K1.53M1.32M-299.36K423.72K
EBITDA-106.09M-4.14M-9.98M-13.09M-33.26M-1.00M
Net Income-106.19M10.10M-14.24M-15.23M-55.64M-1.14M
Balance Sheet
Total Assets453.91M2.57M71.28M65.05M20.56M4.42M
Cash, Cash Equivalents and Short-Term Investments5.07M1.44M2.49M39.32M6.76M2.59M
Total Debt0.000.0012.81M8.31M165.52K193.09K
Total Liabilities1.39M488.30K80.68M62.06M6.37M3.07M
Stockholders Equity452.52M2.08M-9.40M2.99M14.19M1.36M
Cash Flow
Free Cash Flow-3.94M-22.82M-57.38M-6.10M-6.33M-1.07M
Operating Cash Flow-3.50M-22.81M-57.37M-5.94M-6.07M-769.10K
Investing Cash Flow-406.40M-18.71M-1.03M48.30M-4.41M-298.30K
Financing Cash Flow412.74M-17.38M9.30M2.68M15.68M1.85M

SharpLink Gaming Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price18.46
Price Trends
50DMA
19.22
Positive
100DMA
17.01
Positive
200DMA
11.68
Positive
Market Momentum
MACD
-0.60
Positive
RSI
46.60
Neutral
STOCH
27.16
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 18.46 is below the 20-day moving average (MA) of 20.58, below the 50-day MA of 19.22, and above the 200-day MA of 11.68, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 46.60 is Neutral, neither overbought nor oversold. The STOCH value of 27.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SBET.

SharpLink Gaming Risk Analysis

SharpLink Gaming disclosed 49 risk factors in its most recent earnings report. SharpLink Gaming reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

SharpLink Gaming Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$301.91M20.8310.86%27.57%-40.98%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
61
Neutral
$42.44B-26.38%25.80%27.64%
56
Neutral
$385.66M605.112.77%
51
Neutral
7.02%74.19%
40
Underperform
$3.51B-46.60%
$29.59M-93.56%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SBET
SharpLink Gaming
18.46
10.66
136.67%
SEGG
SEGG Media
0.63
-0.14
-18.18%
DKNG
DraftKings
47.80
13.91
41.04%
GAN
GAN
1.97
0.24
13.87%
CDRO
Codere Online
8.35
0.67
8.72%
GAMB
Gambling.com
8.58
-1.50
-14.88%

SharpLink Gaming Corporate Events

Delistings and Listing ChangesStock Split
SharpLink Gaming Announces Reverse Stock Split
Neutral
May 2, 2025

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.

Delistings and Listing ChangesExecutive/Board ChangesRegulatory Filings and Compliance
SharpLink Gaming Granted Nasdaq Compliance Extension
Neutral
Mar 26, 2025

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.

M&A TransactionsBusiness Operations and Strategy
SharpLink Gaming Acquires Stake in CryptoCasino.com
Positive
Feb 28, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 26, 2025