Executive Summary

Q3 2025 was SBET’s first full quarter under its ETH treasury strategy, delivering total revenue of ~$10.8M and net income of ~$104.3M, driven primarily by fair value gains and staking yields on ETH holdings .
Against Wall Street consensus, SBET delivered a major revenue and EBITDA beat but an EPS miss: revenue $10.84M vs $3.41M estimate; EBITDA $111.88M vs $1.84M estimate; EPS $0.62 vs $1.30 estimate (S&P Global)* .
Management highlighted strategic catalysts: $1.5B authorized buyback with $31.6M executed, $76.5M premium-priced registered direct, and planned $200M ETH deployment on ConsenSys’ Linea to enhance DeFi yields .
ETH holdings stood at ~817,747 at 9/30/25 and increased to ~861,251 by 11/9/25, supporting long-term ETH-per-share accretion; management reiterated focus on risk-adjusted yield and institutional-grade custody .

What Went Well and What Went Wrong

What Went Well

Record profitability and scaling: net income surged to ~$104.3M, reflecting ~$107.3M unrealized gains on ETH and ~$6.3M realized gains from ETH-to-LsETH conversion .
Strategic capital actions: $76.5M registered direct priced at a 12% premium to market and NAV; $1.5B repurchase authorization with $31.6M repurchased, reinforcing ETH-per-share accretion playbook .
Positive strategic positioning: “We’ve doubled our ETH per share concentration from 2.0 to 4.0 since inception of the treasury” and intend to deploy $200M on Linea via ether.fi/EigenCloud to generate enhanced DeFi yields .

What Went Wrong

EPS miss vs consensus despite strong revenue/EBITDA, driven by the accounting mix of fair value gains and impairments; diluted EPS came in ~$0.62 vs ~$1.30 estimate (S&P Global)* .
Elevated SG&A to ~$12.4M as they staffed and ramped treasury operations; affiliate revenues fell to ~$570k from ~$882k YoY as focus shifted to ETH strategy .
GAAP impairment on LsETH (~$7M in Q3) introduced volatility; management reiterated impairment mechanics and lowest-price rules for LsETH under U.S. GAAP .

Financial Results

Consolidated Performance (last 4 quarters)

Metric	Q4 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$0.82M*	$0.74M*	$0.70M*	$10.84M
Net Income ($USD)	$(0.90)M*	$(0.97)M*	$(103.42)M*	$104.27M
Diluted EPS ($USD)	$(3.10)*	$(1.73)*	$(4.27)*	$0.62
EBITDA ($USD)	$(1.07)M*	$(0.92)M*	$(18.50)M*	$111.88M*
EBITDA Margin (%)	(130.38%)*	(124.50%)*	N/A*	1031.72%*
Total Operating Expenses ($USD)	$1.90M*	$1.67M*	$19.20M*	$(101.03)M*

Values with an asterisk were retrieved from S&P Global.

Notes:

Q3 revenue and net income figures cross-validated to 8-K/press release and CFO remarks .
Negative operating expenses in Q3 reflect presentation effects with “other operating income” tied to ETH fair value accounting .

Q3 2025 Actual vs Consensus (S&P Global)

Metric	Actual	Consensus	Surprise
Revenue ($USD)	$10.84M	$3.41M*	+$7.43M (beat)*
EBITDA ($USD)	$111.88M*	$1.84M*	+$110.04M (beat)*
Primary EPS ($USD)	$0.62	$1.30*	$(0.68) (miss)*

Values with an asterisk were retrieved from S&P Global.

Segment/KPIs (Q3 2025)

KPI	Q3 2025	Notes
Affiliate Marketing Revenue ($USD)	~$0.57M	Down from ~$0.88M in Q3 2024
ETH Holdings (units)	817,747 at 9/30	Subsequent rise to 861,251 as of 11/9
Crypto Assets ($USD)	~$3.0B at 9/30	580,841 native ETH + 236,906 LsETH at 9/30
Cash ($USD)	$11.1M at 9/30
USDC ($USD)	$26.7M at 9/30
SG&A ($USD)	$12.4M	Ramp associated with treasury execution
Buybacks	1,938,450 shares for $31.6M	$1.5B authorization

Guidance Changes

SBET did not issue formal numerical guidance for revenue, margins, OpEx, EPS, or tax. Management emphasized capital allocation flexibility and ETH-per-share accretion under varying NAV multiples.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Qtr	N/A	No formal guidance provided	Maintained: none
EPS	FY/Qtr	N/A	No formal guidance provided	Maintained: none
OpEx	FY/Qtr	N/A	No formal guidance provided	Maintained: none
Capital Actions	Ongoing	N/A	$1.5B buyback authorization; $31.6M executed	New program
ETH Deployment	Near term	N/A	Intent to deploy $200M to Linea via ether.fi/EigenCloud	New initiative

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Ethereum institutional adoption	Macro tailwinds, scaling, stablecoins/tokenization narrative	“Institutional adoption supercycle” with regulatory clarity; SWIFT/DTCC activity highlighted	Strengthening
DeFi yield strategy / staking	Portfolio of native/liquid staking; risk-managed approach; impairment mechanics	“Staking nearly 100% of ETH,” seek risk-adjusted enhanced yields via Linea; Anchorage custody	Scaling with partners
Capital markets/NAV premium/discount	Equity issuance, ATM capacity; explore equity-linked/preferred	Premium-priced $76.5M direct; buybacks under NAV; converts/preferred considered	Active toolkit
Regulatory clarity	Shift from headwinds to tailwinds; SEC initiatives foreshadowed	“It is now finally supported by our regulators”; GENIUS Act/stablecoin framework	Improving
Competitor landscape (Solana vs ETH)	Ethereum scaling, composability roadmap	ETH upgrades (Fusaka/Glamsterdam), stablecoin/TRWA share vs Solana	ETH positioning reinforced
AI/agentic commerce	Emerging	ERC-804 registry, X402 micropayments; Linea as home for agents	Rising narrative

Management Commentary

“We’ve doubled our ETH per share concentration from 2.0 to 4.0 since inception of the treasury and continue to focus on long-term value accretion for our stockholders.” — Joseph Chalom, Co-CEO .
“Our ability to dynamically manage capital, pursue sophisticated compounding yield strategies and partner with many of the most revered names in the Ethereum ecosystem, puts SharpLink in pole position as the Ethereum institutional supercycle accelerates.” — Joseph Chalom .
“We announced a collaboration to deploy $200 million of our ETH treasury holdings on ConsenSys’ Linea…to unlock enhanced Ethereum DeFi yields.” — Management .
“Net income…was primarily driven by $107.3 million unrealized gain related to fair value accounting adjustments on our ETH holdings… and a non-cash impairment charge of approximately $7 million due to the lowest intraday market price for LsETH.” — Bob DeLucia, CFO .

Q&A Highlights

Yield strategy and staking mix: Management targets “nearly 100%” staked ETH and risk-adjusted yield, leveraging partnerships (ether.fi/EigenLayer/Linea) and qualified custody at Anchorage; no spread guidance provided .
Capital deployment and NAV framework: Under NAV, buybacks; above NAV, equity issuance to acquire ETH; use converts/preferred/equity-linked to monetize volatility without undue dilution .
ETH vs Solana: ETH’s reliability, scaling roadmap (Fusaka/Glamsterdam), and dominant shares in stablecoins/TRWA/high-quality DeFi activity support leadership vs Solana .
Agentic AI: ERC-804 registry and X402 micropayments as emerging enablers; Linea positioned for agent-based commerce .

Estimates Context

Consensus (S&P Global) implied a significant underappreciation of Q3 ETH-driven operating results: revenue and EBITDA meaningfully beat, while EPS missed (mix of fair value gains and impairments; higher SG&A) (S&P Global)* .
Forward quarterly consensus implies revenue stepping up into Q1–Q2 2026 ($24.48M–$25.03M) with more modest EBITDA and EPS trajectories vs Q3’s outsized accounting gains (S&P Global)*.
Target price consensus ~$35.25 and recommendation data sparse; we expect estimate dispersion to increase given treasury-specific accounting dynamics (S&P Global)*.

Values in this section were retrieved from S&P Global.

Key Takeaways for Investors

SBET is executing a treasury-led equity story: large ETH base, near-full staking, and structured DeFi yield partnerships to drive ETH-per-share accretion; buybacks and premium capital raises reinforce the flywheel .
Expect continued accounting volatility from fair value and impairment rules on crypto assets, which can amplify EBITDA and net income swings irrespective of cash yields; monitor 10-Q footnotes each quarter .
NAV multiple awareness matters: under NAV, buybacks; above NAV, accretive issuance — both aim to improve ETH concentration per share .
The Linea deployment ($200M) is a near-term catalyst for incremental yield and ecosystem positioning; watch custody/risk controls and incentive structures .
Affiliate marketing is de-emphasized but stable; revenue down modestly and not central to the thesis .
Macro tailwinds — regulatory clarity, institutional adoption, and ETH upgrade cadence — support treasury model durability; compare to peers by yield generation, custody, and capital efficiency .
Near-term trading: revenue/EBITDA beats vs EPS miss may create mixed reactions; medium-term thesis hinges on sustained accretive ETH accumulation and risk-adjusted yield scaling .

Additional Source Documents Read

Q3 2025 8-K 2.02 earnings press release and exhibits .
Q3 2025 earnings call transcripts .
Press releases dated Nov. 12 and 13, 2025 .
Q2 2025 8-K 2.02 press release and Q2 call transcript for trend context .

SharpLink Gaming, Inc. (SBET)·Q3 2025 Earnings Summary