SharpLink Gaming (SBET) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: N/A
• Average Volume (3M): 6.74M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.98
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5
• Sector: Communication Services
• Sector Strength: 97
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.62
• Shares Outstanding: 196,693,190
• 10 Day Avg. Volume: 7,516,177
• 30 Day Avg. Volume: 6,740,844
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -0.10
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 79.67
• Enterprise Value/Gross Profit: 95.62
• Enterprise Value/Ebitda: -3.67K
• 1Y Price Target: $18.80
• Price Target Upside: 165.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.37
• Revenue Forecast (FY): $87.74M

• Rating: 48 Neutral
• Price Target: $7.50 ▲(5.93% Upside)

The score is held back primarily by weak underlying financial quality (ongoing losses and significant negative free cash flow) and bearish technicals (below key moving averages with negative MACD). The earnings call was a relative bright spot due to outsized crypto-driven gains and strategic momentum, but valuation is constrained by a negative P/E and the lack of dividend support.

Positive Factors

Balance sheet strength

No debt and a large equity base provide durable financial flexibility: the company can fund operations, pursue its ETH staking strategy, and withstand volatility without near-term leverage pressure. This reduces default risk and preserves capacity for strategic investments over months.

High gross margin and revenue growth

Strong top-line growth paired with very high gross margins indicates favorable unit economics in the core affiliate/marketing assets. Durable high margins can support sustained customer acquisition and product investment, improving long-term scaling potential if conversion quality holds.

ETH treasury & institutional partnerships

The company’s shift to an ETH treasury and staking model plus institutional partnerships creates a structural new revenue/asset-income stream distinct from affiliate fees. This diversifies cash flow generation and can provide recurring yield and balance-sheet upside if governance, custody, and staking returns remain stable.

Negative Factors

Material negative operating cash flow

Persistent negative operating and free cash flow indicate the business consumes cash to run, creating reliance on external financing or asset monetization. Over several months this constrains investments in marketing and product, increases dilution or financing risk, and reduces runway absent sustained non‑operating gains.

Underlying operating profitability weakness

Core operations remain unprofitable despite revenue growth; reported net income has been driven by non‑operating crypto gains. This uneven earnings quality means long‑term investor returns depend on either durable operating margin improvement or continued non‑operating gains, a structural risk to sustainable profitability.

Declining affiliate revenue and rising SG&A

A drop in core affiliate revenue alongside a sharp rise in SG&A points to weakening returns from the legacy business while costs escalate. Structurally this pressures margins and increases cash burn, making it harder to scale the original customer-acquisition model without sustained improvement in conversion economics or cost control.

SharpLink Gaming Business Overview & Revenue Model

Company Description

SharpLink 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 Money

SharpLink 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 Financial Statement Overview

Summary

Revenue growth and very strong gross margin are positives, and the balance sheet has no debt. However, operating profitability remains negative and cash burn is material (negative operating cash flow and free cash flow), keeping financial quality below average.

Income Statement

TTM (Trailing-Twelve-Months) revenue surged to about $13.1M (very strong growth), and gross margin is exceptionally high (~83%), suggesting favorable unit economics. However, profitability remains weak: operating profit and EBITDA are still negative, and the company is also net-loss making (about -7.9% net margin). The latest annual period shows net income that is inconsistent with operating losses (likely driven by non-operating items), so underlying earnings quality appears uneven.

Balance Sheet

The latest balance sheet shows no debt and a very large equity base versus assets, indicating low balance-sheet leverage and high financial flexibility. That said, returns on equity are currently negative in TTM, and the company has shown meaningful volatility historically (including a period of negative equity in 2023), which raises questions about durability and consistency of capitalization over time.

Cash Flow

Cash generation is a key weakness: TTM (Trailing-Twelve-Months) operating cash flow is materially negative (about -$10.1M) and free cash flow is also negative (about -$10.1M), indicating the business is consuming cash to operate and invest. While free cash flow has improved versus the prior annual period, cash flow still does not support reported earnings and implies continued reliance on external funding or balance-sheet cash to sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.11M	3.66M	4.95M	3.49M	2.64M	2.28M
Gross Profit	10.92M	906.27K	1.53M	1.32M	-299.36K	423.72K
EBITDA	-284.43K	-4.75M	-6.19M	-13.09M	-33.26M	-1.00M
Net Income	-1.03M	10.10M	-14.24M	-15.23M	-55.64M	-1.14M
Balance Sheet
Total Assets	3.07B	2.57M	71.28M	65.05M	20.56M	4.42M
Cash, Cash Equivalents and Short-Term Investments	37.84M	1.44M	2.49M	1.38M	6.07M	2.59M
Total Debt	0.00	0.00	12.81M	2.92M	165.52K	193.09K
Total Liabilities	4.57M	488.30K	80.68M	62.06M	6.37M	1.71M
Stockholders Equity	3.07B	2.08M	-9.40M	2.99M	14.19M	2.71M
Cash Flow
Free Cash Flow	-10.11M	-22.82M	296.74K	-5.95M	-6.33M	-1.07M
Operating Cash Flow	-10.10M	-22.81M	582.89K	-5.94M	-6.07M	-769.10K
Investing Cash Flow	-3.04B	-18.71M	-1.03M	48.30M	-4.41M	-298.30K
Financing Cash Flow	3.05B	-17.38M	9.78M	2.68M	15.68M	1.85M

SharpLink Gaming Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 7.08 is below the 20-day moving average (MA) of 9.66, below the 50-day MA of 9.87, and below the 200-day MA of 15.31, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 27.98 is Positive, neither overbought nor oversold. The STOCH value of 8.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBET.

SharpLink Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSI	72 Outperform	$4.00B	69.62	29.67%	―	23.15%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GAMB	60 Neutral	$168.40M	79.23	1.46%	―	24.21%	-92.49%
CDRO	56 Neutral	$359.89M	67.41	23.16%	―	1.79%	―
SBET	48 Neutral	$1.39B	―	-0.07%	―	―	―
PENN	47 Neutral	$1.73B	-2.05	-35.97%	―	8.24%	-77.54%
BALY	43 Neutral	$724.16M	-1.86	-114.88%	―	0.36%	47.55%

SharpLink Gaming Corporate Events

SharpLink Gaming Rebrands as Sharplink to Reflect Evolution

On February 2, 2026, the company filed an amendment to its certificate of incorporation to change its corporate name from SharpLink Gaming, Inc. to Sharplink, Inc., with the name change becoming effective on February 3, 2026, when corresponding updates to its bylaws were also adopted. The move, which did not require shareholder approval and leaves shareholder rights, business operations, capitalization, board and executive leadership unchanged, is intended to reflect the company’s continued evolution and broader strategic focus, while its common stock will continue trading on Nasdaq under the SBET ticker with the same CUSIP, minimizing disruption for investors and other stakeholders.

The most recent analyst rating on (SBET) stock is a Buy with a $10.00 price target. To see the full list of analyst forecasts on SharpLink Gaming stock, see the SBET Stock Forecast page.

SharpLink Gaming Appoints Joseph Chalom as CEO

On December 15, 2025, SharpLink Gaming finalized its planned senior leadership transition, with former Co-CEO Rob Phythian stepping down and Joseph Chalom assuming the roles of sole Chief Executive Officer, President, and Board member. This change, along with updates to the company’s bylaws, reflects SharpLink’s focus on strengthening its operational framework for long-term success in Ethereum treasury management. Since launching its ETH treasury business in June 2025, the company has made significant strides by doubling its ETH holdings, maximizing staking productivity, expanding institutional ownership, and building internal risk and investment expertise, further positioning itself as a leader in institutional-grade ETH platforms.

The most recent analyst rating on (SBET) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on SharpLink Gaming stock, see the SBET Stock Forecast page.