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

If you're looking at EBET, Inc. (EBET), the first thing you must see is the balance sheet-it tells a story of significant capital distress, and we need to be defintely clear-eyed about the near-term risks. The company's latest available financials show a stark mismatch between its market value and its obligations: a current market capitalization of just $14.98 million (as of November 2025) against total debt of $46.68 million, creating an enterprise value (EV) that suggests the market is pricing in a major restructuring or sale. Plus, the operational picture is tough; while the trailing twelve-month (TTM) revenue sits at $21 million, the TTM net loss is a staggering $82.53 million, which is simply unsustainable. The current ratio, a key measure of short-term liquidity, is a razor-thin 0.03, meaning for every dollar of short-term liability, they only have three cents in current assets. So, how does a company with a licensed online gambling platform in esports and competitive gaming navigate this kind of financial tightrope? We'll map out the path forward, but first, let's dig into what those numbers really mean for your investment decision.

Revenue Analysis

The most critical takeaway for EBET, Inc. (EBET)'s revenue is that the company entered Chapter 7 bankruptcy liquidation in late 2024, meaning its operational revenue streams for the 2025 fiscal year are effectively non-existent or minimal from residual assets. The last trailing twelve-month (TTM) revenue for the operating business, recorded as of March 31, 2024, was just $21.0 million, which already reflected the severe financial distress.

Before the sale of its core assets in early 2024, EBET's revenue was primarily driven by its online casino and sportsbook operations, which is common in the iGaming space. This revenue came from wagers placed on its portfolio of online wagering brands, which included Karamba, Hopa, Griffon Casino, BetTarget, Dansk777, and GenerationVIP.

• Former Primary Revenue Sources (Pre-2024):
• Online Casino & Sportsbook: Net revenue from wagers.
• Esports Betting Platform Services: Real-time wagering capabilities.
• Technology Licensing: Licensing its proprietary tech to other operators.

The company's historical year-over-year revenue growth rate shows extreme volatility, a clear sign of an unstable business model. For example, revenue jumped from $0.2 million in 2021 to $58.6 million in 2022-a staggering 35454% increase-only to crash to $39.2 million in 2023, a -33.1% decrease. This kind of whiplash is defintely not sustainable for an investor.

Here's the quick math: The average revenue forecast for 2024 was around $84.9 million, projecting a huge 116.6% increase. What this estimate hides, however, is the subsequent collapse. The significant change in revenue streams wasn't a strategic pivot but a forced asset divestiture followed by Chapter 7 liquidation. The company's former revenue-generating assets are now gone, making any prior forecasts irrelevant for current valuation. For a deeper look at the former investor base and why they stuck around, you might want to check out Exploring EBET, Inc. (EBET) Investor Profile: Who's Buying and Why?.

The contribution of different business segments is now moot, but historically, the online casino and sportsbook brands were the main engine. The fact that the company sold these core assets and then entered liquidation means investors need to treat the stock not as an operating entity, but as a claim on residual assets, which are typically minimal in a Chapter 7 scenario.

Profitability Metrics

You need to know the hard truth about EBET, Inc.'s profitability, especially since the company ceased all business operations following an asset foreclosure in August 2024. Forget any 2025 fiscal year forecasts; the most relevant near-term data is the trailing twelve months (TTM) that led up to the collapse. The direct takeaway is this: EBET was massively unprofitable, with costs far outpacing revenue, which is the defintely reason the company failed.

Looking at the Trailing Twelve Months (TTM) ended March 31, 2024, the numbers paint a dire picture of financial health. Revenue stood at just $21.0 million, but the company's operating and net losses were staggering. This isn't a growth stock issue; it's a fundamental business model failure.

Here's the quick math on the margins: The Gross Margin of 47.73% tells you that EBET was keeping almost half of its revenue after paying for the direct costs of its gambling and esports platforms (Cost of Revenue). That's not terrible on its own, but it's still significantly lower than the industry average of 56.15% for the Gambling sector.

Operational Efficiency and Cost Management

The real problem was operational efficiency, or the lack thereof. The Operating Margin of -101% is a huge red flag. It means for every dollar of revenue, the company was spending over two dollars just to keep the lights on and run the business. The TTM operating expenses (Selling, General & Administrative plus Research & Development) were a whopping $31.23 million against only $21.0 million in revenue. That's a textbook case of unsustainable cost management.

The trend in profitability was a steep decline. In Fiscal Year 2023, the Net Loss was -$84.24 million on $39.18 million in revenue. By the TTM period ending March 2024, the Net Loss was still massive at -$82.53 million, but revenue had plummeted to $21.0 million. This shows a business shrinking rapidly while failing to cut its losses.

• Gross Margin was nearly 9 percentage points below the industry average.
• Operating Margin was underwater by over 117 percentage points compared to the industry's positive 16.61%.
• The Net Loss of -$82.53 million was heavily impacted by a massive Asset Writedown of -$44.92 million, a clear sign of poor prior acquisition strategy and asset valuation.

The Net Profit Margin of -388.37% is the final, brutal metric. It tells you that the company was losing almost four dollars for every dollar of revenue it brought in. The industry average is a positive 12.02%. This gap explains why the company defaulted on its credit term and had its assets foreclosed upon. If you want to understand who was still holding the bag as the company collapsed, you should be Exploring EBET, Inc. (EBET) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You're looking at EBET, Inc.'s (EBET) balance sheet, and the first thing that jumps out is the highly unusual debt-to-equity structure. The direct takeaway is that EBET is currently financing its operations almost entirely through debt and has a significant shareholder deficit, indicating a high-risk financial profile.

As of the most recent quarter, EBET, Inc. reported total liabilities of approximately $70.14 million against total assets of just $14.55 million. Here's the quick math: this translates to a shareholder deficit (negative equity) of roughly $55.59 million, which means the company's liabilities far exceed its assets. This is the core reason for the alarming ratio.

The company's total debt sits around $46.68 million on a trailing twelve-month basis. Given the sheer size of the shareholder deficit, the Debt-to-Equity (D/E) ratio is a negative -83.10%. To be fair, a negative D/E ratio isn't always a death knell, but in this context, it confirms a deeply troubled balance sheet. The industry average D/E for online gambling is typically positive, ranging from 12.09% to 15.07%, so EBET is clearly an outlier in the wrong direction.

• Total Liabilities: $70.14 million
• Total Assets: $14.55 million
• Total Debt (TTM): $46.68 million
• Debt-to-Equity Ratio: -83.10%

The company's recent financing moves highlight the pressure. In October 2023, EBET announced a structural amendment to its senior secured credit facility, which included extending the forbearance period through June 30, 2025. This extension allowed them to convert over $339,000 of monthly cash interest payments to pay-in-kind (PIK) additions to the principal, defintely easing immediate cash burn. Still, the cost of this relief is high: the interest rate on the term loan and revolving loan was increased from 15.0% to a steep 16.5%. They also increased the discretionary revolving loan from $2 million to $4 million.

This situation shows a clear reliance on debt financing to survive, not to grow. The company's strategy is currently focused on cost reduction and operational efficiency, including a significant reduction in investment in esports products, as they struggle to secure sufficient funding. The financial statements include a going concern warning, which is the most critical factor to consider; the company's ability to continue operating is explicitly dependent on its ability to obtain further equity or debt financing. This is a survival strategy, not a balanced capital structure. For more context on their strategic direction, you can review their Mission Statement, Vision, & Core Values of EBET, Inc. (EBET).

The next concrete step for you is to monitor the company's cash flow statement for the next two quarters to see if the PIK interest deferral and cost-cutting measures translate into a reduction in negative operating cash flow, which is the only way to defuse this debt time bomb.

Liquidity and Solvency

You're looking at EBET, Inc. (EBET) and the first thing to check is whether the company can cover its near-term obligations. Honestly, the liquidity picture is dire, a clear signal of the profound financial distress that led to its Chapter 7 bankruptcy filing in early 2024.

The core issue is a massive mismatch between short-term assets and liabilities, a trend that has persisted through the latest available data, which is crucial for any 2025 fiscal year assessment. Here's the quick math on their short-term position, based on the trailing twelve months (TTM) data:

• Current Ratio: A dangerously low 0.03.
• Quick Ratio: Even lower at 0.02.

A healthy company should have a Current Ratio of 1.0 or higher, meaning it has enough current assets to cover its current debts. EBET, Inc.'s 0.03 ratio means they only hold about 3 cents of liquid assets for every dollar of short-term debt. That's a flashing red light for immediate solvency.

Analysis of Working Capital Trends

The working capital (current assets minus current liabilities) confirms the severe liquidity crunch. For the trailing twelve months, EBET, Inc. reported a negative working capital of approximately -$67.96 million. This massive deficit shows the company is operating with a structural funding gap, relying heavily on non-current financing or asset sales to stay afloat, which is exactly what we saw with the divestiture of their core B2C assets for around $6.5 million in 2023. A negative working capital of this magnitude is a classic sign of a company struggling to manage its day-to-day cash flow.

Cash Flow Statements Overview

The cash flow statement for the trailing twelve months paints a picture of a company burning cash from its primary business activities and attempting to plug the gap with financing. This is not a sustainable model.

The -$6.86 million in Operating Cash Flow is the most critical number here. It shows that even after accounting for non-cash items like depreciation, the business itself is consuming cash, not generating it. The positive $3.65 million in Financing Cash Flow suggests the company was still able to raise some capital, likely through debt or stock issuance, but it only covered about half of the operating cash burn. This is defintely a stop-gap measure, not a long-term solution.

Potential Liquidity Concerns and Strengths

The primary liquidity concern is the company's ability to continue as a going concern, a risk explicitly highlighted by its Chapter 7 bankruptcy filing. The cash and cash equivalents stood at only $632,975 for the trailing twelve months, which is insufficient to cover the negative working capital or the ongoing operational cash burn for long. The company's strategic pivot and asset sales were a forced move to address these financial pressures, but the resulting balance sheet remains deeply impaired.

There are no discernible near-term liquidity strengths in the current financial data; the entire picture points to a profound liquidity crisis. For a deeper dive into the market's reaction to this financial health, you should check out Exploring EBET, Inc. (EBET) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at EBET, Inc. (EBET) and trying to figure out if there's any hidden value, but honestly, the valuation metrics scream distress. Given the company's financial state, which includes massive losses and a reported move toward Chapter 7 bankruptcy liquidation in late 2024, the traditional valuation framework doesn't apply well.

The core takeaway is this: EBET is effectively unvalued by traditional metrics, and any remaining market capitalization is highly speculative. The company's stock price sits at about $0.0010 as of November 2025, which is a clear signal of its precarious position on the OTC Markets.

The Problem with Ratios: Negative Equity

When a company is losing money and has negative book value, the standard valuation ratios become meaningless or, worse, misleading. It's a classic case where the 'N/A' is the most telling number. Here's the quick math on the key ratios using the most recent trailing twelve months (TTM) data:

• Price-to-Earnings (P/E) Ratio: The P/E is effectively N/A or negative, as the company reported TTM losses of $82.53 million. You can't divide a price by a negative number and get a useful comparison.
• Price-to-Book (P/B) Ratio: This ratio is also reported as -0.00. A negative P/B means the company has negative shareholder equity, meaning its liabilities exceed its assets. That's a massive red flag.
• Enterprise Value-to-EBITDA (EV/EBITDA): This is also N/A. However, the Enterprise Value (EV) is high at $46.07 million, mostly driven by its debt of $46.68 million, while its market cap is only about $14.98 thousand. The debt is the real story here.

The Price-to-Sales (P/S) ratio is a low 0.00, reflecting a TTM revenue of $21.00 million against a tiny market cap, but this is overshadowed by the debt load and the liquidation process.

Stock Price Trend and Analyst View

The stock price trend over the last 12 months reflects the company's struggles, with the market capitalization losing 52.38% as of November 2025. The 52-week range of $0.0001 to $0.0358 shows extreme volatility, which is typical for a micro-cap stock facing delisting and financial collapse. It's defintely not a stable asset.

In terms of analyst coverage, there is essentially no consensus rating (buy, hold, or sell) due to a lack of coverage, which is common for companies in this level of distress. Technical analysis, however, shows a general Bearish sentiment and a 'Sell' signal. The market has made its decision.

Dividend Policy and Next Steps

EBET, Inc. does not pay a dividend, so both the dividend yield and payout ratio are 0.00% and N/A, respectively. A company with this level of financial instability and negative TTM earnings per share (EPS) of -$8.33 would not be in a position to return capital to shareholders.

What this estimate hides is the liquidation factor: any remaining value for shareholders is contingent on the outcome of the bankruptcy proceedings. Before considering any position, you need to understand who is still holding this stock and why, which is a deeper dive into the shareholder base. Exploring EBET, Inc. (EBET) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at EBET, Inc. (EBET) and trying to map out its risk profile, but honestly, the situation is past the point of traditional risk analysis. As of late 2024 and into 2025, the primary risk is the company's status as a non-operating entity following a financial collapse. This isn't a turnaround story; it's a liquidation event.

The core financial and operational risks that led to this outcome were highlighted in filings well before the final closure. The company's liabilities significantly outweighed its equity, leading to a negative working capital position. Here's the quick math on the debt issue: EBET owed more than $37 million to its primary creditor, CP BF Lending, LLC, which ultimately led to the lender ceasing forbearance in June 2024 and initiating a foreclosure auction. Total debt was reported at $46.7 million.

This massive debt load and inability to service it resulted in the most severe operational risk: the cessation of all business operations following the foreclosure sale of its B2C assets in August 2024. That's a clean one-liner: The company simply stopped operating.

• Going Concern Risk: Recurring losses had long raised substantial doubt about EBET's ability to continue as a going concern.
• Bankruptcy Signal: The Altman Z-Score, a measure of bankruptcy risk, was a staggering -24.32, well below the threshold of 3, clearly signaling high financial distress.
• Market Valuation: The market capitalization reflected this distress, plummeting to approximately $15,000 as of April 2025.

External and Internal Risk Collision

The company operated in the intensely competitive iGaming and esports betting industry, which was an external pressure. But the internal financial structure couldn't withstand it. The acquisition of assets from Aspire Global less than three years prior to the foreclosure added integration risk and a heavy debt burden that proved unsustainable.

The financial ratios in early 2025 confirm the dire state. The Price-to-Book (P/B) ratio was -0.00, indicating a negative book value where liabilities exceed assets, and the Enterprise Value-to-EBITDA (EV/EBITDA) ratio was -3.15 as of March 23, 2025, suggesting deep issues with profitability and operational efficiency.

To be fair, regulatory changes are always a risk in online gambling, but for EBET, the internal financial risk of default overshadowed everything else. The company's common shares were terminated from the Nasdaq Capital Market in October 2023 and moved to the OTC Pink Market, a clear sign of deteriorating financial health and non-compliance.

Mitigation Strategies and Their Failure

In a traditional sense, EBET had no successful mitigation strategy against the debt default. The company's primary brands, which generated approximately $21 million in revenues in the year leading up to March 31, 2024, were sold off in the foreclosure auction to repay creditors. This was the final, involuntary action to satisfy debt, not a strategic pivot to save the business. The projected revenue for the fiscal year ending September 30, 2024, was drastically reduced to around $0.5 million due to the B2C divestiture, reflecting the loss of its core revenue streams. What this estimate hides is that the company is now essentially a shell in liquidation, not a functioning business.

If you want to dive deeper into the full picture, you can review the comprehensive analysis at Breaking Down EBET, Inc. (EBET) Financial Health: Key Insights for Investors.

Your action here is clear: for all intents and purposes, EBET, Inc. (EBET) is a liquidation case, and any investment decision must be framed around the recovery value of residual assets, not future business growth.

Growth Opportunities

You're looking for a traditional growth story for EBET, Inc. (EBET), but I have to be a defintely clear-eyed realist here: the company is not operating as a going concern. As of late 2024 and into 2025, EBET, Inc. is in Chapter 7 bankruptcy liquidation, meaning its sole focus is winding down operations and selling off remaining assets to satisfy creditor claims. This is a salvage operation, not a growth phase.

The concept of a future revenue growth projection is essentially moot. The company's operational revenue streams have ceased, and its primary revenue-generating assets, the B2C brands like Karamba and Hopa, were sold off for approximately $6.5 million in a major strategic pivot prior to the bankruptcy filing. The last reported trailing twelve-month (TTM) revenue as of March 31, 2024, was $21 million, with an Earnings Per Share (EPS) of -$10.36, illustrating the financial distress that led to this point. Any future financial value will come from the liquidation process, not from new customer wagers.

Here's the quick math on the current reality versus a growth outlook:

• Analysis of Key Growth Drivers: None exist; the driver is maximizing recovery value from residual assets.
• Future Revenue Projections: Operational revenue is effectively $0 for the 2025 fiscal year as a going concern.
• Strategic Initiatives: The only initiative is the court-supervised asset sale.

Competitive Advantages and Strategic Initiatives

In a liquidation scenario, the traditional competitive advantages-like proprietary technology or a strong brand reputation-are irrelevant. The company possesses no traditional strategic or competitive advantages in the market as it is not actively competing. The focus has shifted entirely to the efficient execution of the liquidation process to maximize the recovery value for creditors from the remaining assets. That's the only action item left.

What this estimate hides is the potential for a strategic pivot if the company were to emerge from a different type of restructuring, but Chapter 7 is a clear path to dissolution. The only financial activity that matters now is the orderly disposal of any remaining intellectual property (IP) or technology assets, which might hold some niche value. To fully grasp the context of this collapse, you should review the company's prior operational struggles:

Exploring EBET, Inc. (EBET) Investor Profile: Who's Buying and Why?

The table below summarizes the financial transition leading into the 2025 liquidation environment, showing the dramatic shift from a high-growth attempt to a complete wind-down.

The key takeaway is simple: your investment thesis must shift from growth to asset recovery value.