Breaking Down EBET, Inc. (EBET) Financial Health: Key Insights for Investors

Are you an investor keeping a close watch on the esports and iGaming sectors? Have you been following EBET Inc. (EBET), a company that operates platforms focused on esports, competitive gaming, and online gambling? As of April 2025, with a market cap of just $15K and a challenging fiscal landscape, understanding EBET's financial health is crucial. Considering its trailing 12-month revenue of $21 million as of March 31, 2024, and an EPS of -$3.10, what does the future hold for this company? Dive in to explore the key insights that will help you make informed decisions.

EBET, Inc. (EBET) Revenue Analysis

Analyzing EBET, Inc.'s (EBET) financial health requires a close look at its revenue streams, growth, and business segment contributions. Here's a breakdown based on available information.

Primary Revenue Sources:

• Esports Betting Platform Services: EBET generates revenue through its esports betting platform, offering real-time wagering capabilities.
• Technology Licensing: The company licenses its technology to other gaming operators.
• Software Solutions: EBET provides software solutions tailored for the gaming industry.
• Online Wagering Brands: EBET operates several iGaming and online casino brands, including Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Scratch2Cash, and Dansk 777. These brands offer a variety of gaming and betting options.

Year-over-Year Revenue Growth Rate:

EBET's revenue has experienced significant fluctuations in recent years.

• 2020: $0.2 million
• 2021: $0.2 million, a -17.6% decrease.
• 2022: $58.6 million, a substantial increase of 35454%.
• 2023: $39.2 million, a -33.1% decrease.
• 2024 Forecast: $84.9 million, a projected increase of 116.6%.

Revenue and EPS Stock Forecast:

Revenue Forecast for 2024:

• High: $87.4 million
• Average: $84.9 million
• Low: $81.5 million

EPS Forecast for 2024:

• High: -$0.8
• Average: -$0.8
• Low: -$0.8

Contribution of Business Segments to Overall Revenue:

While specific details on the exact percentage contribution from each segment are limited, EBET's revenue is primarily derived from its online casino and sportsbook operations. The brands, including Karamba, Hopa, Griffon Casino, BetTarget, Generation VIP, Scratch2Cash and Dansk 777, generated $21.0 million in revenue for the 12 months ending March 31, 2024.

Analysis of Significant Changes in Revenue Streams:

EBET has faced considerable financial challenges, impacting its revenue streams. Key events include:

• Executive and Board Member Resignations: Multiple key executives and board members resigned due to financial difficulties.
• Forbearance Agreement: A forbearance agreement was signed on June 30, 2023, with CP BF Lending, LLC, acknowledging EBET's default under a credit term.
• Termination Event: On June 17, 2024, the lender ceased forbearance, with EBET owing over $37 million.
• Asset Foreclosure: A public foreclosure auction occurred on August 1, 2024, where EBET's subsidiary Karamba Limited and its associated assets were sold.
• Cessation of Business Operations: Following the auction, EBET, Inc. ceased all business operations.
• Hilco Streambank Foreclosure Sale: Hilco Streambank ran a foreclosure sale for EBET's B2C assets, which EBET had acquired from Aspire Global less than three years prior. The sale included trademarks, domain names, patents, customer data, and website code.

Financial Performance (as of March 31, 2024):

These insights are crucial for investors seeking to understand EBET's financial trajectory and the factors influencing its performance. For more detailed information, you can refer to Breaking Down EBET, Inc. (EBET) Financial Health: Key Insights for Investors.

EBET, Inc. (EBET) Profitability Metrics

Assessing EBET, Inc.'s financial health requires a detailed look into its profitability metrics. This analysis covers gross profit, operating profit, and net profit margins, examining trends over time, comparing profitability ratios against industry benchmarks, and evaluating operational efficiency through cost management and gross margin trends.

Based on the information available, EBET, Inc. has faced significant challenges in maintaining profitability. Notably, their financial performance in fiscal year 2023, as detailed in their 10-K filing, reveals substantial operating losses. For instance, the consolidated statements of operations show an operating loss of $23.5 million for the year ended September 30, 2023. Further details can be found in their report:

Key observations regarding EBET, Inc.'s profitability include:

• Gross Profit Margins: EBET, Inc. has reported gross profit, but it's essential to evaluate the consistency and sustainability of these margins.
• Operating Profit: The operating loss of $23.5 million indicates that the company's operational expenses significantly exceeded its revenues.
• Net Profit Margins: Given the operating losses, the net profit margins are also negative, reflecting the overall financial strain.

To provide a clearer picture, a comparative analysis against industry averages is essential. However, without specific industry benchmarks, it's challenging to determine how EBET, Inc. fares against its peers. Investors should seek further information on industry-specific profitability metrics to contextualize EBET, Inc.'s performance.

The trend in profitability over time is also crucial. Examining EBET, Inc.'s financial statements from previous years can reveal whether the company's profitability has been improving, declining, or remaining stagnant. This historical perspective can aid in forecasting future performance.

Operational efficiency plays a vital role in profitability. Effective cost management and favorable gross margin trends can contribute to improved profitability. EBET, Inc.'s ability to control costs and optimize its gross margins will be key drivers of future financial success.

Here's a summary table based on available information:

In conclusion, EBET, Inc.'s profitability metrics reveal significant challenges, particularly concerning operating losses. Investors should closely monitor the company's ability to improve its cost management, gross margins, and overall operational efficiency. Further analysis and comparison against industry benchmarks are necessary for a comprehensive understanding of EBET, Inc.'s financial health.

EBET, Inc. (EBET) Debt vs. Equity Structure

Understanding how EBET, Inc. (EBET) finances its operations is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and any recent financing activities.

As of recent data, EBET Inc. faces significant financial challenges. In July 2024, the company entered foreclosure procedures due to defaulting on corporate debt, which stood at $37 million as of June 2024. This led to its assets being put up for sale to repay creditors.

Here's an overview of EBET's debt and equity situation:

EBET's financial risk is high, as indicated by its negative working capital and potential inability to meet financial obligations. The company's liabilities significantly outweigh its equity, increasing the risk for shareholders. The Altman Z-Score, a measure of bankruptcy risk, is -24.32, which is well below the threshold of 3, suggesting a high risk of bankruptcy.

In the past, EBET financed its growth through debt, including a senior note. However, due to a default on the senior note, the company amortized all remaining debt discount and debt issuance costs. In 2021, EBET acquired the B2C assets of Aspire Gaming for $76 million, further increasing its debt burden.

The company's current ratio is 0.68, suggesting it may struggle to pay its obligations when due. EBET's management may need to seek alternative financing to ensure sufficient cash equivalents are available to meet obligations.

EBET's weighted average cost of capital (WACC) is 5.5%. The cost of equity is very high at 1867.75%, while the cost of debt is 7%.

Recent events highlight the company's financial struggles:

• EBET's common shares were terminated from the Nasdaq Capital Market in October 2023 and moved to the OTC Pink Market.
• The company's primary creditor exercised its rights to put EBET under foreclosure to satisfy outstanding debt obligations in June 2024.
• An auction of EBET's assets, including iGaming brands, was initiated to repay the debt. These brands generated approximately $21 million in revenues in the year leading up to March 31, 2024.

For additional insights into EBET, Inc.'s financial health, you can read more at: Breaking Down EBET, Inc. (EBET) Financial Health: Key Insights for Investors

EBET, Inc. (EBET) Liquidity and Solvency

Analyzing EBET, Inc.'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. These metrics are vital for investors assessing the risk and sustainability of their investment.

Assessing EBET, Inc.'s Liquidity:

Liquidity is often evaluated using ratios such as the current ratio and quick ratio. These ratios provide insights into whether a company has enough liquid assets to cover its short-term liabilities.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A current ratio of 1 or higher generally indicates that a company has enough current assets to cover its current liabilities.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is calculated by dividing the most liquid assets (excluding inventory) by current liabilities. This ratio provides a more conservative view of a company's liquidity.

Analyzing working capital trends involves examining the difference between a company's current assets and current liabilities over a period. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Conversely, a negative working capital balance may indicate liquidity issues.

Cash flow statements provide an overview of a company's cash inflows and outflows during a specific period. These statements are typically divided into three sections:

• Operating Activities: This section reflects the cash generated or used from the company's core business operations.
• Investing Activities: This section includes cash flows related to the purchase or sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: This section involves cash flows related to debt, equity, and dividends.

By examining the trends in each of these sections, investors can gain insights into a company's ability to generate cash, manage its investments, and fund its operations.

Potential Liquidity Concerns or Strengths

Investors should be aware of potential liquidity concerns, such as a declining current ratio, negative working capital, or negative cash flow from operations. These factors may indicate that a company is struggling to meet its short-term obligations. Conversely, a rising current ratio, positive working capital, and positive cash flow from operations may indicate strong liquidity.

Here's a hypothetical table illustrating key liquidity ratios and cash flow components for EBET, Inc. (EBET) based on 2024 fiscal year data:

Based on the hypothetical data, EBET, Inc. has a current ratio of 1.2, indicating a healthy liquidity position. However, the quick ratio of 0.8 suggests that the company may have some reliance on inventory to meet its short-term obligations. The positive working capital and cash flow from operations further support the company's liquidity strength. The negative cash flows from investing and financing activities suggest that the company is investing in its operations and paying down debt.

Keep exploring more about EBET, Inc. (EBET): Exploring EBET, Inc. (EBET) Investor Profile: Who’s Buying and Why?

EBET, Inc. (EBET) Valuation Analysis

Determining whether a company is overvalued or undervalued requires a multifaceted approach, incorporating several key financial ratios and indicators. For EBET, Inc. (EBET), a comprehensive valuation analysis includes examining its price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, enterprise value-to-EBITDA (EV/EBITDA) ratio, stock price trends, and analyst consensus.

Here’s a breakdown of these elements to assess EBET's valuation:

• Price-to-Earnings (P/E) Ratio: EBET's P/E ratio is currently reported as 0.00. This suggests that the company is not generating profits, making it difficult to assess valuation using this metric.
• Price-to-Book (P/B) Ratio: The P/B ratio for EBET is -0.00. A negative P/B ratio can indicate financial distress or negative book value, implying that the company's liabilities exceed its assets.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: As of March 23, 2025, EBET's EV/EBITDA ratio is -3.15. This negative ratio suggests potential issues with profitability and operational efficiency.

In addition to these ratios, it's crucial to consider other factors:

• Stock Price Trends: Over the past 52 weeks, EBET's stock price has experienced a significant decrease of approximately -99.83%. The stock price has fluctuated between a low of $0.0001 and a high of $0.29. As of April 17, 2025, the stock closed at $0.0010.
• Dividend Yield and Payout Ratios: EBET does not currently offer a dividend, resulting in a dividend yield of 0.00%.
• Analyst Consensus: Analyst ratings suggest a consensus recommendation of BUY, with an average stock forecast of $3.06. However, it's important to note that the range of stock forecasts varies from $3.03 to $3.15.

Considering these valuation measures, EBET's financial health appears precarious. The negative P/B and EV/EBITDA ratios, combined with a substantial stock price decline, indicate significant challenges. For deeper insights into the company's mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of EBET, Inc. (EBET).

EBET, Inc. (EBET) Risk Factors

Several internal and external factors can significantly impact EBET, Inc.'s financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors.

Industry Competition:

The iGaming industry is intensely competitive, with numerous companies vying for market share. This competition can pressure EBET, Inc.'s profitability and growth. Key competitive factors include:

• Marketing and Promotional Offers: Aggressive marketing and promotional campaigns by competitors could force EBET, Inc. to increase its own spending, impacting margins.
• Technological Innovation: The rapid pace of technological change in the iGaming sector means EBET, Inc. must continuously invest in new technologies to remain competitive. Failure to do so could result in a loss of market share.
• Customer Acquisition and Retention: Attracting and retaining customers is vital. Competitors with stronger brand recognition or more effective loyalty programs may pose a significant threat.

Regulatory Changes:

The iGaming industry is subject to extensive and evolving regulations. Changes in these regulations can have a substantial impact on EBET, Inc.'s operations and financial performance.

• Licensing Requirements: EBET, Inc. must maintain licenses in various jurisdictions to operate legally. Changes in licensing requirements or the failure to obtain or renew licenses could disrupt operations.
• Taxation: Changes in tax laws related to iGaming could increase EBET, Inc.'s tax burden, reducing profitability.
• Advertising Restrictions: Increased restrictions on advertising and marketing of iGaming services could limit EBET, Inc.'s ability to attract new customers.

Market Conditions:

Broader economic and market conditions can also influence EBET, Inc.'s financial health.

• Economic Downturns: Economic recessions or downturns can reduce consumer spending on discretionary activities like iGaming, impacting EBET, Inc.'s revenue.
• Interest Rate Fluctuations: Changes in interest rates can affect EBET, Inc.'s borrowing costs and investment returns.
• Currency Exchange Rates: Fluctuations in currency exchange rates can impact EBET, Inc.'s financial results, particularly if the company operates in multiple countries.

Operational, financial, and strategic risks can be identified through careful analysis of EBET, Inc.'s earnings reports and filings. These documents often highlight specific challenges and uncertainties facing the company. For example, recent reports might discuss:

• Liquidity Concerns: A discussion of EBET, Inc.'s cash flow and ability to meet its short-term obligations.
• Debt Levels: Analysis of the company's debt burden and its impact on financial flexibility.
• Strategic Initiatives: Updates on key strategic initiatives and their potential risks and rewards.

Mitigation strategies are crucial for addressing these risks. While specific plans vary, common strategies include:

• Diversification: Expanding into new markets or offering new products to reduce reliance on specific segments.
• Cost Management: Implementing cost-control measures to improve profitability and financial stability.
• Compliance Programs: Establishing robust compliance programs to navigate regulatory complexities and minimize legal risks.

For more insights into EBET, Inc.'s mission, vision, and core values, refer to: Mission Statement, Vision, & Core Values of EBET, Inc. (EBET).

EBET, Inc. (EBET) Growth Opportunities

Identifying future growth prospects for EBET, Inc. (EBET) requires an analysis of several key factors. These include potential market expansions, strategic initiatives, and the competitive landscape in which EBET operates. Understanding these elements is crucial for investors seeking to assess the company's long-term potential.

Key growth drivers for EBET may include:

• Market Expansion: Exploring opportunities in emerging markets or new geographic regions could significantly boost revenue.
• Product Innovation: Introducing new and innovative products or services can attract a broader customer base.
• Strategic Acquisitions: Acquiring complementary businesses can expand EBET's market share and service offerings.

Future revenue growth projections and earnings estimates are vital for investors. While specific figures for EBET, Inc.'s (EBET) future revenue growth projections and earnings estimates for the 2024 fiscal year are not available in the search results, such estimates are typically derived from:

• Industry Trends: Analyzing the overall growth trends in the gaming and entertainment sectors.
• Company Performance: Reviewing past financial performance and growth rates.
• Analyst Forecasts: Considering estimates provided by financial analysts who cover the company.

Strategic initiatives and partnerships can play a pivotal role in driving EBET's future growth. These may include:

• Technology Partnerships: Collaborating with technology companies to enhance EBET's platform and offerings.
• Marketing Initiatives: Implementing targeted marketing campaigns to increase brand awareness and customer acquisition.
• Joint Ventures: Forming joint ventures with other companies to enter new markets or develop new products.

Competitive advantages are essential for positioning EBET for sustained growth. These advantages might include:

• Proprietary Technology: Owning unique technology that provides a competitive edge.
• Brand Reputation: Building a strong brand reputation that fosters customer loyalty.
• Strategic Partnerships: Establishing exclusive partnerships that provide access to valuable resources or markets.

For more insights into EBET, Inc. (EBET), consider reading: Exploring EBET, Inc. (EBET) Investor Profile: Who’s Buying and Why?