Sharplink Gaming Ltd. (SBET)
NASDAQ:SBET
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SharpLink Gaming
(NASDAQ:SBET)
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Rating:50Neutral
Price Target:
$6.50
▼(-18.65% Downside)
Action:Reiterated
Date:05/11/26
The score is held down primarily by weak financial quality (very large losses and negative operating/free cash flow), partially offset by a currently low-debt balance sheet and strong recent revenue growth. Technicals are neutral with elevated volatility risk, and valuation is difficult to support from the provided P/E and dividend data. Earnings call commentary is mixed: clear strategic direction and partnership plans, but headline losses, higher costs, and lower cash weigh on near-term confidence.
Positive Factors
Revenue Growth from Staking
The sharp revenue increase tied to ETH staking shows the company has created a meaningful, repeatable revenue stream beyond affiliate marketing. Staking rewards and realized gains diversify cash generation, supporting a multi‑month runway to scale operations and validate the treasury-led business model.
Negative Factors
Large Non‑Cash Losses & Impairments
Heavy non‑cash impairments and unrealized losses create persistent headline volatility and can erode shareholder equity even if underlying staking economics are sound. Such accounting hits may recur with token price swings, complicating performance measurement and constraining strategic capital deployment over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth from Staking
The sharp revenue increase tied to ETH staking shows the company has created a meaningful, repeatable revenue stream beyond affiliate marketing. Staking rewards and realized gains diversify cash generation, supporting a multi‑month runway to scale operations and validate the treasury-led business model.
Read all positive factors
SharpLink Gaming (SBET) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.24B
Dividend YieldN/A
Average Volume (3M)7.62M
Price to Earnings (P/E)―
Beta (1Y)4.11
Revenue Growth1048.48%
EPS Growth-16.25%
CountryUS
Employees15
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-10.55
Shares Outstanding197,211,410
10 Day Avg. Volume6,964,198
30 Day Avg. Volume7,617,653
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.37
Price to Sales (P/S)31.78
P/FCF Ratio-51.00
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue31.27
Enterprise Value/Gross Profit32.70
Enterprise Value/Ebitda-1.68
Forecast
1Y Price Target
$16.93Price Target Upside111.87% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)-0.33
Revenue Forecast (FY)$69.15M
SharpLink Gaming Business Overview & Revenue Model
Company Description
Sharplink, Inc. engages in the digital asset treasury business in the United States and internationally. The company operates as an institutional-grade Ethereum treasury platform. It operates in two segments, Ether (ETH) Treasury Management and Af...
How the Company Makes Money
SharpLink primarily makes money through performance marketing arrangements with online sportsbook and iGaming operators. Under these agreements, SharpLink is compensated for driving customer acquisition outcomes—typically when a referred user regi...
SharpLink Gaming Earnings Call Summary
Earnings Call Date:May 11, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 14, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operational and strategic progress (large ETH treasury, very strong revenue growth from staking, a strategic Galaxy fund partnership, and favorable ecosystem/regulatory tailwinds) were offset by large accounting-driven headline losses (a $506.7M unrealized loss, $191.7M impairment and $685.6M net loss), rising operating expenses and lower cash balances. Management emphasized long-term orientation, disciplined risk controls and the thesis that short-term market/price dislocations do not alter their multi-year view of Ethereum demand.Positive Updates
Material Revenue Increase Driven by Staking
Revenue for Q1 2026 was $12.1 million versus $0.7 million in Q1 2025, an increase of approximately 1,628.6%, driven primarily by the company's ETH staking strategy (including a $200 million deployment on Linea Layer 2) and a $12.0 million net realized gain tied to LsETH/WEETH redemptions and conversions.
Negative Updates
Large Unrealized Market Loss
Sharplink recorded a $506.7 million unrealized loss at March 31, 2026 due to soft ETH market conditions during the quarter, materially affecting quarter-end financial results.
Read all updates
Q1-2026 Updates
Positive
Negative
Material Revenue Increase Driven by Staking
Revenue for Q1 2026 was $12.1 million versus $0.7 million in Q1 2025, an increase of approximately 1,628.6%, driven primarily by the company's ETH staking strategy (including a $200 million deployment on Linea Layer 2) and a $12.0 million net realized gain tied to LsETH/WEETH redemptions and conversions.
Read all positive updates
Company Guidance
The call's guidance centered on Sharplink's North Star of compounding ETH per share through disciplined, risk‑managed yield generation—staking nearly 100% of ETH from day one and benchmarking new deployments against the Ethereum staking rate—while selectively scaling external partnerships and in‑house strategies over time; key metrics cited include Q1 holdings of 589,305 native ETH (fair value $1.2B) plus 189,327 LsETH and 66,102 wETH (combined net cost $487M), subsequent total position of 590,824 native / 209,788 as‑converted LsETH / 72,372 as‑converted wETH for 872,984 ETH as of May 4, 2026, revenue of $12.1M (Q1 2026 vs $0.7M a year ago), a $12M net realized gain, a $506.7M unrealized loss and $191.7M impairment on LsETH/wETH driving a Q1 net loss of $685.6M, SG&A of $9.9M, cash of $16.9M (down from $28.5M at 12/31/25), a $200M Linea deployment this quarter, and the announced Galaxy Sharplink on‑chain yield fund (target ~$125M, with Sharplink contributing ~80%); management reiterated it will measure success by incremental ETH acquired above staking returns, expects additional ETH allocations over time, and noted near‑term catalysts such as continued protocol upgrades (Pectra, Fusaka shipped; Glamsterdam targeted H1 2026) and potential FASB accounting alignment.SharpLink Gaming Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.37M | 28.05M | 3.66M | 4.95M | 3.49M | 2.64M |
| Gross Profit | 37.65M | 26.15M | 906.27K | 1.53M | 1.32M | -299.36K |
| EBITDA | -730.80M | -733.46M | -4.75M | -6.19M | -13.09M | -33.26M |
| Net Income | -1.42B | -734.59M | 10.10M | -14.24M | -15.23M | -55.64M |
Balance Sheet | ||||||
| Total Assets | 1.74B | 2.43B | 2.57M | 71.28M | 65.05M | 20.56M |
| Cash, Cash Equivalents and Short-Term Investments | 16.88M | 30.42M | 1.44M | 2.49M | 1.38M | 6.07M |
| Total Debt | 0.00 | 0.00 | 0.00 | 12.81M | 2.92M | 165.52K |
| Total Liabilities | 5.44M | 12.75M | 488.30K | 80.68M | 62.06M | 6.37M |
| Stockholders Equity | 1.74B | 2.42B | 2.08M | -9.40M | 2.99M | 14.19M |
Cash Flow | ||||||
| Free Cash Flow | -28.71M | -17.48M | -22.82M | 296.74K | -5.95M | -6.33M |
| Operating Cash Flow | -28.70M | -17.48M | -22.81M | 582.89K | -5.94M | -6.07M |
| Investing Cash Flow | -3.13B | -2.95B | -18.71M | -1.03M | 48.30M | -4.41M |
| Financing Cash Flow | 3.17B | 3.00B | -17.38M | 9.78M | 2.68M | 15.68M |
SharpLink Gaming Technical Analysis
Negative
7.99
Price Trends
7.16
Negative
7.80
Negative
11.39
Negative
Market Momentum
-0.15
Positive
37.02
Neutral
5.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBET, the sentiment is Negative. The current price of 7.99 is above the 20-day moving average (MA) of 7.23, above the 50-day MA of 7.16, and below the 200-day MA of 11.39, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 37.02 is Neutral, neither overbought nor oversold. The STOCH value of 5.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBET.
SharpLink Gaming Risk Analysis
SharpLink Gaming disclosed 60 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.44B | 61.26 | 26.36% | ― | 28.20% | 310.24% | |
70 Outperform | $418.96M | ― | 7.85% | ― | 6.33% | -150.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $2.21B | -217.94 | -44.48% | ― | 6.38% | -1099.20% | |
50 Neutral | $1.24B | -0.50 | -73.93% | ― | 1048.48% | -16.25% | |
46 Neutral | $82.13M | -29.08 | -37.13% | ― | 19.23% | -232.12% | |
44 Neutral | $575.17M | -0.90 | -116.69% | ― | 16.60% | -75.69% |
* Financial Sector Average
SBET
SharpLink Gaming
6.22
3.43
122.94%
PENN
PENN Entertainment
16.12
1.92
13.52%
RSI
Rush Street Interactive
28.00
16.39
141.17%
CDRO
Codere Online
9.30
2.00
27.40%
GAMB
Gambling.com
2.32
-9.77
-80.81%
BALY
Bally's Corporation
10.68
0.13
1.23%
SharpLink Gaming Corporate Events
Business Operations and StrategyFinancial Disclosures
SharpLink Gaming Reports Q1 Surge and ETH Fund Plan
Negative
May 11, 2026
Sharplink, one of the largest corporate holders of Ether, reported first-quarter 2026 results on May 11, 2026, highlighting a sharp jump in revenue to $12.1 million from $0.7 million a year earlier, driven by its actively managed ETH treasury stra...
Executive/Board ChangesShareholder Meetings
SharpLink Gaming Stockholders Back Board, Auditor and Pay
Positive
Apr 14, 2026
Sharplink, Inc. held its 2026 Annual Meeting of Stockholders virtually on April 10, 2026, with holders of 109,754,580 shares, or about 55.66% of voting power, present in person or by proxy, constituting a quorum. Stockholders voted on the election...
Business Operations and Strategy
SharpLink Gaming Ends Crypto Asset Management Agreements
Neutral
Apr 3, 2026
On April 3, 2026, Sharplink, Inc. entered into mutual termination agreements with Galaxy Digital Capital Management LP and ParaFi Capital LP to end asset management arrangements, originally signed on May 30, 2025, covering discretionary investment...
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.