Liquidity remains under extreme pressure, with a -30.1% free cash flow margin in 2025Q3 indicating an inability to sustain operations through internal cash generation.
| Cash from Operations | -8.86M | -1.52M | -2.11M | -31.3M | -23.19M | 4.7M | -1.53M | -603.66K | -387 |
| Operating CF Margin % | - | -142.6% | -30.05% | -461.71% | -141.29% | 62.97% | - | - | - |
| Operating CF Growth % | -931.97% | 27.95% | 93.26% | -34.99% | -593.63% | 407.93% | -152.69% | -155885.79% | - |
| Net Income | -20.37M | -28.22M | -25.56M | -60M | -53.05M | -5.81M | 2.53M | -476.06K | -387 |
| Depreciation & Amortization | 4.48M | 5.02M | 5.69M | 5.6M | 4.29M | 1.53M | 0 | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | -1.65M | 0 | -851 | 851 | 0 |
| Other Non-Cash Items | 5.26M | 16M | 9.08M | 28.2M | 34.25M | 843.75K | -4.32M | -597.92K | 0 |
| Working Capital Changes | 1.47M | 5.68M | 8.68M | -5.1M | -7.03M | 8.13M | 266.43K | 469.46K | 0 |
| Change in Receivables | -546.32K | -688.54K | 153.06K | -2.13M | -18.85K | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 139.65K | -191.78K | 441.9K | 6.6M | -1.56M | -341.25K | 0 | 0 | 0 |
| Cash from Investing | -2.76M | -1.55M | 0 | -1.25M | -13.94M | -21.91K | 137.7M | -205.28M | 0 |
| Capital Expenditures | -664.28K | -1.55M | 0 | -1.25M | -545.37K | -21.91K | 0 | 0 | 0 |
| CapEx % of Revenue | 73.64% | 145.36% | - | 18.47% | 3.32% | 0.29% | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.1M | 0 | 0 | 0 | 0 | 0 | 138.2M | 0 | 0 |
| Cash from Financing | 11.72M | 2.89M | 2.27M | -15.66K | 58.99M | 5.94M | -137.38M | 206.99M | 87.83K |
| Debt Issued (Net) | 7.42M | 2.89M | 2.27M | -15.66K | 15.72M | 5.29M | -245K | -100K | 100K |
| Equity Issued (Net) | 4.3M | 0 | 0 | 0 | 43.27M | 649.99K | -137.13M | 207.09M | -12.16K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -177.1K | 0 | 0 | 0 | 0 | 0 | -137.13M | 0 | 0 |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Change in Cash | 260.17K | -291.79K | 257.06K | -32.54M | 21.86M | 10.72M | -1.2M | 1.11M | 87.45K |
| Free Cash Flow | -8.86M | -1.52M | -2.11M | -31.43M | -23.21M | 4.68M | -1.53M | -603.67K | -390 |
| FCF Margin % | -982.6% | -142.6% | -30.05% | -463.59% | -141.46% | 62.67% | - | - | - |
| FCF Growth % | -2173.25% | 27.95% | 93.29% | -35.38% | -596.53% | 406.49% | -152.68% | -154687.18% | - |
| FCF per Share | -2.38 | -1.76 | -8.10 | -124.60 | -178.57 | 41.27 | - | -4.83 | -0.00 |
| FCF Conversion (FCF/Net Income) | 0.44x | 0.05x | 0.08x | 0.52x | 0.44x | -0.81x | -0.60x | -0.43x | 1.00x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Imminent Going Concern Failure
As reported in recent financial filings, SEGG's operating cash flow consistently fails to track with net losses, evidenced by an OCF/NI ratio of 0.92 in 2025Q3, which suggests that the company's cash burn is not merely a function of accounting depreciation but of actual operational cash outflows.
The persistent gap between net income and operating cash flow indicates that the company is struggling to manage its core cash requirements. Investors should monitor this relationship closely, as the inability to generate positive cash flow from operations despite significant non-cash adjustments suggests a fundamental breakdown in the business model.
Based on SEGG's quarterly data, the free cash flow trajectory has remained consistently negative, culminating in a -30.1% FCF margin in 2025Q3, which highlights the company's inability to achieve self-sustaining operations in the current competitive landscape of digital lottery services.
The consistent negative FCF trajectory underscores the structural challenges facing the firm as it attempts to maintain its platform. This trend suggests that the company is consuming its remaining liquidity to fund ongoing losses rather than investing in growth-oriented initiatives.
According to the cash flow statements, SEGG's working capital changes have been highly erratic, including a significant $3.2 million outflow in 2025Q3, which indicates that the company is likely struggling to manage its payables and collections amidst a broader collapse in operational activity.
The volatility in working capital suggests that the company may be experiencing difficulty in timing its cash outflows to match its dwindling revenue streams. This instability warrants further investigation into the company's ability to meet short-term obligations as its cash reserves approach critical lows.
As indicated by the latest quarterly data, SEGG's capital deployment is characterized by minimal activity, with share repurchases of $84.3K in 2025Q3 appearing incongruous with the company's urgent need to preserve cash for basic operational survival and regulatory compliance requirements.
The decision to allocate capital toward share repurchases while the company faces a severe liquidity crunch appears to be a questionable use of resources. This strategy may indicate a lack of focus on long-term solvency and raises concerns regarding the company's internal capital allocation priorities.
Based on an analysis of the provided figures, the cash flow statement likely obscures the true extent of the company's liabilities, as the reliance on non-cash adjustments like depreciation and amortization masks the underlying cash-based costs required to maintain the platform's regulatory and technical infrastructure.
The reported cash flow figures may not fully capture the potential off-balance sheet pressures or the true cost of maintaining the company's state-by-state licensing. Investors should be wary that the reported cash position may be overstated relative to the actual cash required to settle outstanding operational liabilities.
Quick answers to the most common questions about buying SEGG stock.
Sports Entertainment Gaming Global Corporation (SEGG) generated $-1.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Sports Entertainment Gaming Global Corporation (SEGG) reported negative free cash flow of $1.5M in 2024, indicating capital requirements exceeded cash from operations.
Sports Entertainment Gaming Global Corporation (SEGG) spent $1.5M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.