EBET, Inc.

Esports Technologies reported Q1 revenue of $7.1 million and over $2.5 million in gross margin. Adjusted EBITDA was negative $3.9 million, which included a $7.8 million operating loss, $2.2 million of acquisition costs, $1.4 million of non-cash stock compensation, and about $300,000 of depreciation and amortization. Net cash used in operating activities was $3.0 million, and cash at quarter end was $11.8 million, up $2.7 million from the year ended September 30, 2021. Management said comparison to prior periods is not very meaningful because the acquisition closed at the end of November and the quarter included only one month of the acquired business. Forward, the company reiterated its goal of $70 million for fiscal 2022, which is a 10-month fiscal year ending September 30, 2022, and said Esports Book and Browser Bets are on track for Q2 of calendar 2022, while an odds-and-modeling product should launch in the first quarter of the year.

CEO Aaron Speach framed the quarter as a step toward becoming a leader in esports wagering and technology. He emphasized the transformative acquisition, access to regulated European markets, and a younger customer base as key strategic advantages. His tone was upbeat and execution-focused, highlighting integration progress, patent applications, and new product launches in 2022.

CFO Jim Purcell kept the financial discussion brief but pointed to the new scale of the business. He cited $7.1 million of revenue, over $2.5 million of gross margin, negative $3.9 million adjusted EBITDA, and $11.8 million of cash at quarter end, up $2.7 million from year-end. He also noted the company raised over $67.7 million to fund the acquisition price of €50 million and related acquisition costs, and said the business is being operated within plan while management continues to invest.

Analysts focused on what the platform migration meant operationally, how the acquired brands were producing higher revenue, and how esports will be used to deepen engagement. Management said the move to a single platform means Gogawi and the acquired brands are now under one provider, improving CRM, loyalty, and operational efficiency. On revenue, Aaron Speach said the acquired brands had not received enough attention under the prior owner and that dedicated resources, better marketing, and more tailored affiliate deals are helping drive performance. On esports monetization, he said younger customers are more valuable and cheaper to acquire, and that the company is building products and odds models aimed at Gen Z and Millennials in regulated and international markets.