SharpLink Gaming (SBET) AI Stock Analysis

• Market Cap: $1.94B
• Dividend Yield: N/A
• Average Volume (3M): 11.91M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 5
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 0.62
• Shares Outstanding: 196,693,190
• 10 Day Avg. Volume: 10,914,600
• 30 Day Avg. Volume: 11,905,597
• 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: 1.45
• Enterprise Value/Revenue: 214.08
• Enterprise Value/Gross Profit: 256.93
• Enterprise Value/Ebitda: -9.86K
• 1Y Price Target: $35.25
• Price Target Upside: 257.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): -1.82
• Revenue Forecast (FY): $16.35M

• Rating: 40 Underperform
• 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.

Positive Factors

Strategic Acquisition

This strategic move into the high-growth crypto gaming market could drive long-term growth and shareholder value, leveraging blockchain technology's increasing adoption.

Stock Buyback Program

The stock buyback program reflects confidence in the company's valuation and provides flexibility to enhance shareholder value, potentially improving stock performance.

Improved Equity Position

Improvement in stockholders' equity indicates better financial stability and reduced leverage, enhancing the company's long-term financial health.

Negative Factors

Declining Revenues

Consistent revenue decline indicates challenges in market competitiveness and product adoption, potentially impacting long-term growth prospects.

Persistent Losses

Ongoing losses suggest operational inefficiencies and profitability challenges, which may hinder the company's ability to invest in growth initiatives.

Negative Cash Flow

Negative cash flow indicates cash burn from operations, limiting financial flexibility and the ability to fund strategic initiatives without external financing.

SharpLink Gaming Business Overview & Revenue Model

Company Description

SharpLink Gaming (SBET) is a company operating within the online gaming and sports betting industry. It specializes in providing advanced technologies and solutions for sports betting and online gaming sectors. The company's core offerings include a range of digital products designed to enhance user engagement and facilitate seamless integration with sports betting platforms.

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

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

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

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

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.

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: 9.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 9.87 is below the 20-day moving average (MA) of 12.17, below the 50-day MA of 14.79, and below the 200-day MA of 13.91, indicating a bearish trend. The MACD of -1.33 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of 9.72 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	67 Neutral	$3.95B	68.78	29.67%	―	23.15%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GAMB	60 Neutral	$170.54M	80.23	1.46%	―	24.21%	-92.49%
BALY	54 Neutral	$823.96M	―	-114.88%	―	0.36%	47.55%
CDRO	49 Neutral	$259.70M	415.33	2.77%	―	―	―
PENN	45 Neutral	$1.85B	―	-35.97%	―	8.24%	-77.54%
SBET	40 Underperform	$1.94B	-1.22	-0.07%	―	―	―

SharpLink Gaming Corporate Events

SharpLink Gaming Announces Reverse Stock Split

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.

SharpLink Gaming Granted Nasdaq Compliance Extension

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.

SharpLink Gaming Acquires Stake in CryptoCasino.com

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.