The company's operational viability is severely compromised by inverted margins, as evidenced by the -11.7% gross margin reported in 2025Q3.
| Sales/Revenue | 902.11K | 1.07M | 7.02M | 6.78M | 16.41M | 7.46M | 0 | 0 | 0 |
| Revenue Growth % | -85.39% | -84.82% | 3.54% | -58.69% | 119.99% | - | - | - | - |
| Cost of Goods Sold | 7.91M | 10.1M | 15.93M | 47.03M | 32.99M | 8.96M | 0 | 0 | 0 |
| COGS % of Revenue | - | 947.91% | 226.93% | 693.7% | 201.02% | 120.17% | - | - | - |
| Gross Profit | -7.01M | -9.04M | -8.91M | -40.25M | -16.58M | -1.5M | 0 | 0 | 0 |
| Gross Margin % | -776.7% | -847.91% | -126.93% | -593.7% | -101.02% | -20.17% | - | - | - |
| Gross Profit Growth % | - | -1.43% | 77.86% | -142.78% | -1001.62% | - | - | - | - |
| Operating Expenses | 8.02M | 9.13M | 7.94M | 15.21M | 13.3M | 2.21M | 1.1M | 699.33K | 387 |
| OpEx % of Revenue | - | 856.21% | 113.16% | 224.42% | 81.05% | 29.57% | - | - | - |
| Selling, General & Admin | 8.02M | 9.13M | 7.94M | 15.21M | 13.3M | 2.21M | 1.1M | 699.33K | 387 |
| SG&A % of Revenue | - | 856.21% | 113.16% | 224.42% | 81.05% | 29.57% | - | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -15.03M | -18.16M | -16.85M | -55.46M | -29.88M | -3.71M | -1.1M | -699.33K | -387 |
| Operating Margin % | -1666.25% | -1704.12% | -240.1% | -818.13% | -182.07% | -49.75% | - | - | - |
| Operating Income Growth % | - | -7.78% | 69.61% | -85.63% | -705.15% | -237.31% | -57.31% | -180606.46% | - |
| EBITDA | -10.55M | -13.14M | -11.16M | -49.86M | -25.59M | -2.18M | -1.1M | -699.33K | -387 |
| EBITDA Margin % | -1169.85% | -1233.04% | -159.01% | -735.5% | -155.91% | -29.18% | - | - | - |
| EBITDA Growth % | 34.76% | -17.75% | 77.62% | -94.88% | -1075.34% | -97.87% | -57.31% | -180606.46% | - |
| D&A (Non-Cash Add-back) | 4.48M | 5.02M | 5.69M | 5.6M | 4.29M | 1.53M | 0 | 0 | 0 |
| EBIT | -20.52M | -28.17M | -25.3M | -59.6M | -34.79M | -3.71M | -1.1M | -699.33K | -387 |
| Net Interest Income | -165.5K | -508.56K | -408.77K | -764.84K | -19.79M | -1.22M | 4.32M | 2.47M | 0 |
| Interest Income | 124.54K | 0 | 0 | 0 | 0 | 0 | 4.32M | 2.47M | 0 |
| Interest Expense | 290.05K | 508.56K | 408.77K | 764.84K | 19.79M | 1.22M | 0 | 0 | 0 |
| Other Income/Expense | -5.78M | -10.52M | -8.85M | -4.9M | -24.7M | -2.1M | 4.32M | 2.48M | 0 |
| Pretax Income | -20.81M | -28.68M | -25.71M | -60.36M | -54.57M | -5.81M | 3.22M | 1.78M | -387 |
| Pretax Margin % | -2307.33% | -2691.23% | -366.24% | -890.39% | -332.57% | -77.91% | - | - | - |
| Income Tax | 17.87K | 26.32K | 60K | 23.36K | -1.66M | 800 | 690.82K | 374.64K | 0 |
| Effective Tax Rate % | -0.09% | -0.09% | -0.23% | -0.04% | 3.05% | -0.01% | 21.43% | 21.06% | 0% |
| Net Income | -20.37M | -28.54M | -25.49M | -60M | -53.05M | -5.81M | 2.53M | 1.4M | -387 |
| Net Margin % | -2258.39% | -2677.74% | -363.22% | -885.13% | -323.27% | -77.92% | - | - | - |
| Net Income Growth % | 41.09% | -11.95% | 57.51% | -13.11% | -812.62% | -329.47% | 80.41% | 362912.14% | - |
| Net Income (Continuing) | -20.83M | -28.71M | -25.77M | -60.38M | -52.91M | -5.81M | 2.53M | 1.4M | -387 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 10.6M | 2.06M | 2.12M | 2.4M | 2.78M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -5.46 | -32.67 | -98.14 | -237.89 | -408.08 | -51.31 | 0.00 | -3.81 | -0.00 |
| EPS Growth % | 90.7% | 66.71% | 58.75% | 41.71% | -695.32% | - | 100% | - | - |
| EPS (Basic) | - | -32.67 | -98.14 | -237.89 | -408.08 | -51.31 | 0.00 | -3.81 | -0.00 |
| Diluted Shares Outstanding | 3.73M | 863.75K | 260.47K | 252.22K | 129.99K | 113.29K | 0 | 124.96K | 115.13K |
| Basic Shares Outstanding | 3.73M | 863.75K | 260.47K | 252.22K | 129.99K | 113.29K | 0 | 124.96K | 115.13K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Imminent Going Concern Failure
As evidenced by the most recent quarterly filings, SEGG has experienced a precipitous revenue decline, with the latest period showing a 31.4% year-over-year contraction, confirming that the company's core lottery courier operations have effectively stalled and lost their previous market relevance within the gaming sector.
The consistent downward trend in top-line performance suggests that the company has failed to maintain its competitive position against better-capitalized peers. This revenue erosion appears structural rather than cyclical, indicating that the firm's value proposition has likely been eclipsed by larger, more integrated gaming ecosystems.
According to historical income statements, SEGG consistently reports negative gross margins, with the most recent data indicating a -11.7% margin, which highlights a fundamental inability to cover the direct costs of ticket procurement and data licensing through its current transactional service fee model.
The persistence of negative gross margins suggests that the company's cost of goods sold is not variable in nature, but rather reflects fixed overheads that do not scale with declining volume. Investors should monitor whether these costs represent legacy contractual obligations that continue to drain remaining liquidity.
Based on reported financial figures, SEGG's operating income remains deeply negative, with the company consistently spending significantly more on SG&A than it generates in gross profit, demonstrating a total lack of operating leverage and an inability to achieve economies of scale in its current configuration.
The company's inability to reduce SG&A expenses in proportion to the massive revenue decline suggests a lack of management discipline or an inability to shed fixed corporate overhead. This structural imbalance implies that the business model is currently incapable of reaching a break-even point without a radical restructuring.
While some market participants may view SEGG as a high-optionality turnaround play, the company's financial data suggests that the prohibitive costs of maintaining state-by-state regulatory compliance and physical infrastructure likely outweigh any residual value in the brand or existing data assets held by the firm.
The assumption that the company can pivot or restart operations ignores the reality that the regulatory and capital barriers to entry in the lottery courier space have only increased. Any potential recovery would require a massive capital infusion that appears unlikely given the current state of the balance sheet.
Quick answers to the most common questions about buying SEGG stock.
For fiscal year 2024, Sports Entertainment Gaming Global Corporation (SEGG) reported total revenue of $1.1M.
Sports Entertainment Gaming Global Corporation (SEGG) reported a net loss of $28.5M for the fiscal year ending 2024.
Sports Entertainment Gaming Global Corporation (SEGG) reported an operating income of $-18.2M, resulting in an operating profit margin of -1704.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Sports Entertainment Gaming Global Corporation (SEGG) generated $-9.0M in gross profit for the year, representing a gross profit margin of -847.9%. This demonstrates the company's core pricing power and production efficiency.