Breaking Down Elys Game Technology, Corp. (ELYS) Financial Health: Key Insights for Investors

You're looking for the real story inside the numbers for Elys Game Technology, Corp., and honestly, the latest financials paint a picture of a company still navigating a tough transition in the competitive US sports betting landscape. The most recent quarterly filing, released in August 2025, showed revenue dipping to just $8.46 million, a noticeable slide from the prior quarter, which tells you commercial momentum is slowing. Here's the quick math: with a net loss of $3.30 million in that same period, the trailing twelve months (TTM) net profit margin sits at a deeply negative -42.78%, meaning for every dollar of revenue, they're losing nearly 43 cents. Plus, the balance sheet shows a high total debt-to-equity ratio of 190.84%, which is a red flag for financial leverage (the amount of debt used to finance assets) and means the company is heavily reliant on debt financing. So, while the technology platform is solid, the near-term risk is clearly in the execution and path to profitability, and investors defintely need to see a concrete plan to reverse that revenue trend fast.

Revenue Analysis

You need to understand that Elys Game Technology, Corp. (ELYS) is in the middle of a major revenue transition, moving from a European-centric, business-to-consumer (B2C) betting operation to a business-to-business (B2B) software provider in the United States. The direct takeaway is that while the company's trailing twelve-month revenue as of Q3 2023 was approximately $42.7 million, the near-term trend is a revenue decline, which is a key risk to monitor.

Primary Revenue Sources and Geographic Mix

Historically, Elys Game Technology, Corp.'s revenue has been overwhelmingly generated from its betting establishments in Europe, particularly the highly regulated Italian gaming market, which has accounted for almost all of its diversified historical revenue stream. This primary source is a mix of online and land-based leisure betting. The company's core offerings include:

• Sports betting and virtual sports betting products.
• Online casino games like poker, bingo, and slot/table games.
• Betting platform software services (B2B).

To give you a concrete example of the segment contribution, in Q1 2022, the vast majority of revenue came from betting establishments at approximately $11.7 million, while betting platform and software services contributed a smaller amount, around $484,720. This shows a clear dominance of the B2C segment, but the strategy is changing, defintely.

Historical Revenue Trends and Growth Rate

The recent revenue picture shows contraction, not growth. For the third quarter of 2023, Elys Game Technology, Corp. reported total revenue of only $8.5 million, marking an 11.8% drop year-over-year. This decline is a critical data point. The total betting turnover-the total amount wagered by customers-also fell by a smaller 2.4% to $162.6 million during the same period. Here's the quick math: the revenue drop was sharper than the turnover drop, which suggests a lower hold rate (the percentage of wagers the house keeps) or other operational factors at play.

The company's executive chairman expressed confidence that the significant investments made in its North American product platform and infrastructure would begin to convert into revenues in 2024, but we haven't seen the full 2025 fiscal year results yet to confirm that conversion.

Analysis of Significant Revenue Stream Changes

The most significant change is the company's pivot to the US market, shifting its focus from being a direct-to-consumer operator in Italy to a B2B technology provider in the US. This US expansion is centered on offering its ELYS platform as a Software as a Service (SaaS) solution, which changes the revenue model to a fixed monthly fee plus a percentage of the handle (the total amount of money bet).

This strategic shift is evidenced by key operational achievements, such as securing a multi-year market access agreement with Caesars Entertainment and establishing a third sportsbook location in Washington, DC. However, the Q3 2023 revenue dip was directly attributed to two factors: higher payouts for sportsbook customers and a deliberate reduction in web-based turnover due to scaled-back online casino and poker offerings. The company is effectively trimming lower-margin or non-core European B2C operations to fund and focus on the higher-potential US B2B market. For more on the long-term view, you can review the company's strategic goals at Mission Statement, Vision, & Core Values of Elys Game Technology, Corp. (ELYS).

Profitability Metrics

You need to know the hard numbers on Elys Game Technology, Corp. (ELYS) to make a smart decision, and the latest trailing twelve months (TTM) data for 2025 shows a clear profitability challenge. The company is operating at a significant loss, with a TTM Net Profit Margin of -40.26%, which is a sharp deterioration from its 5-year average.

To put this into concrete terms for the 2025 TTM period, the company's estimated revenue of approximately $49.24 million converts into a substantial net loss. Here's the quick math, based on the TTM Earnings Per Share (EPS) of -$0.53 and the latest reported share count:

• Gross Profit: Approximately $9.10 million
• Operating Loss: Approximately -$14.81 million
• Net Loss: Approximately -$19.82 million

This is a growth-stage reality for many tech companies, but still, a $19.82 million loss on just over $49 million in revenue is a serious burn rate. You are defintely looking at a turnaround story, not a stable cash cow.

Margin Trends: The Widening Gap

The trend in profitability for Elys Game Technology, Corp. over the last five years is concerning. While the Gross Margin remains positive, the operating and net margins have worsened, indicating that the cost of doing business-selling, general, and administrative expenses (SG&A)-is growing faster than revenue. This is a critical operational efficiency issue.

For context, look at the shift from the five-year average (5YA) to the current TTM figures:

The Gross Margin has dropped from 26.39% to 18.49%, which suggests pressure on the core betting platform software and services business model (B2B) or increased gaming taxes and costs in their B2C operations. The jump in Operating Loss from -12.92% to -30.09% is the clearest signal of unchecked operational costs.

Industry Comparison and Operational Efficiency

When you stack Elys Game Technology, Corp.'s profitability against the industry average for the gambling/gaming technology sector, the contrast is stark. The company's margins are significantly underperforming their peers, which is a major risk factor.

The industry average for Net Profit Margin is around 11.35%, a profitable figure, while Elys Game Technology, Corp. is at a -40.26% loss. The gap is even more pronounced at the operating level. The industry typically converts revenue to operating profit at a 16.4% margin, but Elys Game Technology, Corp. loses 30.09% at that same line item. This isn't a small difference; it's a chasm.

The key takeaway here is operational efficiency, or the lack thereof. The Gross Margin of 18.49% is far below the industry Gross Margin average of 55.54%. This means Elys Game Technology, Corp. is spending significantly more on its cost of revenue-the direct costs to deliver its gaming services-than its competitors. You need to scrutinize the cost of goods sold (COGS) to see if this is due to unfavorable revenue-sharing agreements, higher technology infrastructure costs, or inefficient scale in their European and US market expansion, which you can read more about here: Mission Statement, Vision, & Core Values of Elys Game Technology, Corp. (ELYS).

The business model isn't yet working at scale. That's the cold truth.

Next Step: Finance/Strategy: Immediately drill down into the latest quarterly filing's SG&A line items to identify the largest cost drivers contributing to the -$14.81 million operating loss and model a path to a positive operating margin within the next four quarters.

Debt vs. Equity Structure

You're looking for a clear picture of how Elys Game Technology, Corp. (ELYS) funds its operations, and that means breaking down its debt-to-equity mix. The direct takeaway is that based on the latest available financial reports, Elys Game Technology, Corp. operates with a relatively low debt-to-equity ratio compared to the broader US corporate average, but the lack of timely 2025 filings is a major red flag for any analyst.

As of the trailing twelve months (TTM) ending September 30, 2023-the most concrete figures we have-Elys Game Technology, Corp. carried approximately $5.158 million in total debt. What this estimate hides is the critical near-term risk: we don't have a recent, detailed breakdown of that debt into short-term (due in one year) versus long-term obligations for the 2025 fiscal year. For a small-cap company, especially one that has faced compliance issues, that short-term liquidity view is defintely the most important piece of the puzzle.

• Total Debt (TTM Sep 2023): $5.158 million
• Total Equity (Sep 2023): $2.703 million
• Recent Debt-to-Equity Ratio: 0.39 (MRQ Aug 2025)

The Debt-to-Equity (D/E) ratio is your key metric here, measuring total liabilities against shareholder equity. A lower number means less reliance on borrowing. Elys Game Technology, Corp.'s most recent reported D/E ratio is around 0.39. Here's the quick math: for every dollar of shareholder equity, the company has only 39 cents of debt. This is significantly lower than the estimated collective US corporate D/E ratio of roughly 0.833. To be fair, a pure-play technology giant like Microsoft, which operates with immense cash flow, has a D/E ratio closer to 0.17. So, Elys Game Technology, Corp. is more leveraged than a top-tier tech firm, but substantially less leveraged than the average US company.

The low ratio suggests management has historically preferred equity funding or retained earnings over debt financing, or perhaps lenders are simply cautious. Still, the ratio is based on financials that are not current 2025 audited statements, which is a major caveat.

On the financing front, we haven't seen any major 2025 debt issuances or refinancing announcements. The most significant capital structure event was the company's decision to sell its Italian-based subsidiary, Multigioco Srl, which was agreed upon in May 2024. This move acts as a form of non-debt financing, providing capital through asset divestiture rather than borrowing or issuing new stock. This is a common strategy for companies looking to simplify their operations and focus on core markets, which for Elys Game Technology, Corp. is the U.S. sports betting market. The delisting from Nasdaq in late 2023 also points to a broader strategy of cost-cutting and streamlining operations, which reduces the pressure to constantly seek large-scale public debt or equity funding. For a deeper dive into the shareholder base and who is betting on this strategy, you should check out Exploring Elys Game Technology, Corp. (ELYS) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if Elys Game Technology, Corp. (ELYS) has enough short-term cash to cover its immediate bills, and honestly, the latest numbers suggest a significant challenge. The company's liquidity position, which measures its ability to meet short-term obligations, is weak based on the most recent quarter (MRQ) data.

A quick look at the core ratios tells the story.

The Current Ratio is your first line of defense-it compares Current Assets to Current Liabilities. For Elys Game Technology, Corp., this ratio is only 0.61. This means for every dollar of short-term debt, the company has just 61 cents of assets that should convert to cash within a year. A healthy ratio is typically 1.5 or higher.

Even more concerning is the Quick Ratio (or acid-test ratio), which strips out less-liquid assets like inventory. Elys Game Technology, Corp.'s Quick Ratio stands at 0.39. This is a red flag.

Here's the quick math on working capital: a Current Ratio below 1.0 translates directly to negative working capital (Current Assets minus Current Liabilities). This isn't just a theoretical issue; it means Elys Game Technology, Corp. is relying on future cash flow or external financing to cover its current obligations. You defintely want to see this trend reverse.

Cash Flow and Liquidity Concerns

The cash flow statement confirms the pressure. The Trailing Twelve Months (TTM) Cash Flow per Share is -0.14. This negative number signals a net cash outflow, or cash burn, over the last year. Sustained negative cash flow, especially from operations, forces a company to constantly seek financing, which is expensive and dilutive.

The company's reliance on external capital is further highlighted by its solvency position. The Total Debt to Equity ratio is extremely high at 190.84%. This indicates that the company is using nearly two dollars of debt for every one dollar of shareholder equity to finance its assets.

• Operating Cash Flow: Likely negative, driving the TTM Cash Flow/Share of -0.14.
• Investing Cash Flow: Typically negative for a growth-focused technology company, as they invest in capital expenditures (CapEx).
• Financing Cash Flow: Must be positive to offset the cash burn, likely through issuing new debt or equity.

The low liquidity ratios and negative cash flow are major liquidity concerns. The company's ability to execute its strategy-detailed further in its Mission Statement, Vision, & Core Values of Elys Game Technology, Corp. (ELYS).-is constrained by its current financial structure. The high debt-to-equity ratio also suggests that raising additional debt may be challenging or come at a very high cost.

Action: Before making any investment decision, demand a clear, detailed 13-week cash flow forecast from management to understand their immediate funding plan.

Valuation Analysis

The short answer is that Elys Game Technology, Corp. (ELYS) is trading at a valuation that screams distress, not undervaluation in the traditional sense. While its Price-to-Book ratio is near zero, suggesting a deep discount to assets, the underlying lack of profit and strong negative price momentum make it a high-risk speculation, not a clear value play.

As of November 2025, the stock's market capitalization is a mere $7.76 thousand, reflecting its status as a micro-cap stock trading on the OTC Markets. This low valuation is a direct result of operational challenges and a massive erosion of shareholder value over the past year.

Key Valuation Multiples: What the Numbers Say

When we look at the core valuation multiples for Elys Game Technology, Corp., the picture is complex, largely because the company is not profitable. This is why you need to dig deeper than just the headline numbers.

• Price-to-Earnings (P/E) Ratio: The P/E ratio is effectively -0.00. This is not a helpful metric because the company has reported negative earnings (losses) over the last 12 trailing months. You cannot use P/E to argue for undervaluation when there are no earnings.
• Price-to-Book (P/B) Ratio: This ratio stands at approximately 0.0x. Price-to-Book compares the stock price to the company's net asset value per share. A P/B of 0.0x suggests the stock is trading for virtually nothing compared to its book value, but this is often a red flag for companies where investors expect assets to be severely impaired or liquidated at a loss.
• Enterprise Value-to-EBITDA (EV/EBITDA): As of November 2025, the TTM (Trailing Twelve Months) EV/EBITDA is a low 0.45. Enterprise Value (EV) is market cap plus debt minus cash, and EBITDA is a proxy for operating cash flow. A ratio this low-well below the industry average-can signal deep undervaluation, but only if the market believes the current EBITDA is sustainable and will grow. Here, it likely signals extreme risk and uncertainty about future cash flow generation.

The low EV/EBITDA is defintely a point of interest, but you must factor in the high volatility and the operating environment.

Stock Performance and Analyst Sentiment

The stock price trend over the last 12 months tells a story of severe capital destruction. The 52-week range has been from a low of $0.000001 to a high of $0.50. Over the past year, Elys Game Technology, Corp. has delivered a staggering loss of -98.280%. That is a catastrophic loss of value for long-term holders.

This kind of performance maps directly to the lack of analyst support. There are not many analysts providing consensus earnings estimates for the current fiscal year. What technical analysis is available points to a 'Strong Sell' signal. You are essentially on your own here, as the institutional research community has largely stepped away.

Here's the quick math on dividends: The company does not currently pay a dividend, and its dividend yield is listed as N/A. Given the negative earnings and the need to conserve cash for operations and growth, a dividend payout is not a factor in this investment thesis. Simply put, you are buying for capital appreciation, not income.

To get a full picture of the operational risks that drive this valuation, you should review the full analysis in the main post: Breaking Down Elys Game Technology, Corp. (ELYS) Financial Health: Key Insights for Investors.

Risk Factors

You need to understand that investing in Elys Game Technology, Corp. (ELYS) right now means accepting a profile defined by extreme financial and operational risk. The direct takeaway is that the company is navigating a severe liquidity crisis and a major competitive disadvantage, which is clearly reflected in its valuation and trading status.

The most immediate financial risk is the company's recent delisting from the Nasdaq Stock Market, effective October 17, 2023, because it failed to maintain the $1.00 minimum bid price. This move to the over-the-counter (OTC) markets has a material adverse effect on liquidity and the trading price of the common shares, which, as of November 20, 2025, were trading at just $0.0002 per share. That's a huge red flag. The market capitalization is a tiny $7.489K, indicating a micro-cap with very high volatility, which the market has priced as a 'very high risk' security.

Operational and strategic risks are twofold: the financial burn and the intense competition in the gaming sector. The company's latest reported net loss was $3.2 million for the third quarter of 2023, and the Trailing Twelve Months (TTM) Earnings Per Share (EPS) is -$0.53. This signals a persistent challenge in achieving profitability despite reporting revenue of $8.5 million for Q3 2023. Plus, they are up against giants like DraftKings, FanDuel, and BetMGM, who are spending hundreds of millions to dominate the national market.

Here's a quick snapshot of the core risks and the company's counter-strategy:

• Liquidity Risk: Trading on OTC markets post-delisting severely limits investor access and price stability.
• Financial Health: Continued net losses and an 11.8% year-over-year revenue drop in Q3 2023.
• Competitive Pressure: Battling established, well-capitalized industry leaders.
• Regulatory Costs: Ongoing compliance with SEC public reporting requirements, plus the expected rising costs of Sarbanes-Oxley (SOX) and ESG initiatives.

The company's mitigation strategy centers on two key actions. First, they are pursuing cost savings from delisting, which they estimate will save them approximately $1.6 million annually in listing-related expenses. Second, they are focusing on a differentiated U.S. expansion model. They are targeting small businesses with a cost-effective sportsbook platform and a 'best odds' approach to build long-term customer loyalty, not just short-term market share. For example, one successful Washington D.C. location averaged $67,500 per month in Gross Gaming Revenue (GGR) for the operator, which is a defintely positive data point in their niche strategy.

Still, the high-risk profile means any investment in Elys Game Technology, Corp. is speculative. You need to weigh the potential of their niche B2B strategy against the reality of their current $0.0002 stock price and minimal market cap. For a deeper dive into the company's full financial picture, you can check out Breaking Down Elys Game Technology, Corp. (ELYS) Financial Health: Key Insights for Investors.

Finance: draft a clear risk-adjusted return model for any micro-cap investment by Monday.

Growth Opportunities

You're looking for a clear path forward for Elys Game Technology, Corp. (ELYS), and the takeaway is simple: their future hinges on successfully pivoting from their historical European B2C operations toward a capital-light, B2B technology model in the rapidly expanding North American market. The company is defintely focused on two major growth engines: US sports betting expansion and their high-margin Virtual Gaming (VG) product line.

The biggest growth driver is their US market expansion, especially through their new online and mobile sportsbook brand, SportBet.com. This is a direct play for the multi-billion dollar US sports betting market, which is still in its early stages of regulatory expansion. Plus, their B2B strategy involves deploying their proprietary betting platform, ELYS™, to retail partners in states like Washington, D.C., as seen with their second location partnership with Grand Central Sportsbook.

Future Revenue and Earnings Outlook

Honestly, you won't find a clean analyst consensus for the 2025 fiscal year revenue or earnings per share (EPS). Most financial data sources show no current analyst estimates. The company's trailing 12-month (TTM) revenue as of Q3 2023 was approximately $42.7 million, and the TTM EPS sits at a loss of -$0.53.

Here's the quick math on their core growth segment: Management has stated an objective to generate approximately $5 million to $7 million in accretive organic incremental revenue annually from their Virtual Generation (VG) suite of products. If we conservatively add this lower-end $5 million target to the last reported TTM revenue, you get a potential revenue base of around $47.7 million for 2025, before factoring in significant growth from new US B2B contracts or SportBet.com. What this estimate hides is the ongoing net loss, which means the focus remains on achieving profitability, not just top-line growth.

The next earnings report is expected on November 23, 2025, which will provide the first real look at their Q3 2025 performance and any updated guidance.

Competitive Advantages and Strategic Moves

Elys Game Technology, Corp. is positioning itself as the technology partner for smaller, local operators, which is a smart niche. Their core competitive advantage is their proprietary, fully integrated, end-to-end sportsbook solution.

• Turnkey Platform: They offer a complete, plug-and-play solution that includes both the betting platform and crucial risk management services, which is a major selling point for operators who don't want to build their own infrastructure.
• Risk Management: Their data-driven Sportsbook Risk Management Services and Adaptive Business Intelligence dashboards are differentiators, helping partners manage risk and improve business performance.
• Virtual Sports Niche: Their Virtual Generation (VG) product, with its certified random number generator, is a versatile offering that can be quickly deployed in over 110 global markets, providing a reliable, year-round revenue stream.

For more on the capital structure and who is betting on this strategy, you should look at Exploring Elys Game Technology, Corp. (ELYS) Investor Profile: Who's Buying and Why?

The key action for you is to watch the next earnings report for any updated 2025 guidance on US B2B contract wins. Finance: track Q4 2024 and Q1 2025 B2B revenue contribution by the end of November.