Company Overview
High Roller Technologies, Inc. operates within the consumer cyclical sector, specifically targeting the gambling industry by providing a suite of online casino games globally. The company's core business involves offering digital entertainment platforms such as blackjack, roulette, craps, baccarat, poker, and slot machines accessible through HighRoller.com, alongside the operation of Fruta.com. The enterprise maintains a market capitalization of $34.96M, supported by an annual revenue of $20.45M and an employee base of 57 individuals. These financial figures indicate that the company functions as a small-cap entity within the broader gambling landscape, reflecting a niche operational scale rather than a dominant market position.
Financial Health
The company reported a revenue of $20.45M over the trailing twelve months, generating a net income of $690,000 while reporting an EBITDA of $-6,117,000. The significant disparity between the positive net income and the negative EBITDA reveals a substantial non-cash expense or depreciation structure that impacts cash generation before tax, though the specific nature of these adjustments is not detailed in the provided metrics. Free cash flow stands at $-8,555,875, indicating that the company is currently burning cash, which limits its financial flexibility for capital expenditures or unexpected liabilities without external financing. Gross margin is recorded at 54.5%, suggesting that the company retains more than half of its revenue after direct costs, yet operating margin sits at -30.2%, highlighting significant overhead costs or administrative inefficiencies. Profit margin is listed at 15.5%, a metric that contrasts with the negative operating margin, potentially suggesting non-operating income contributions or accounting classifications that boost bottom-line profitability relative to operational performance. The company holds $2.08M in cash against $807,000 in debt, resulting in a debt-to-equity ratio of 8.37, which characterizes the balance sheet as highly leveraged despite the positive cash balance. Current ratio is 0.81, indicating that current liabilities exceed current assets and suggesting potential short-term liquidity constraints that could challenge the company's ability to meet obligations as they come due. Return on equity is 9.0%, showing positive returns generated for shareholders, while return on assets is -22.0%, revealing that the company's total asset base is failing to generate sufficient earnings to cover costs.
Valuation Assessment
The trailing P/E ratio is 45.86, whereas the forward P/E is N/A, implying that analysts do not have a projected earnings trajectory sufficient to calculate a future price-to-earnings multiple, likely due to the lack of earnings growth data. The price-to-book ratio is 2.83, indicating that the market values the company at nearly three times its net asset value, which suggests a premium placed on its intangible assets or brand equity in the online gaming sector. Price-to-sales ratio is 1.71, and EV/EBITDA is -5.51, offering alternative valuation perspectives where the negative EV/EBITDA reflects the company's negative earnings before interest, taxes, depreciation, and amortization despite its profitability on an accrual basis. The 52-week high is $33.68 and the 52-week low is $1.16, establishing a wide trading range that underscores significant price volatility over the past year. Given the current market cap of $34.96M and the low price floor of $1.16, the stock trades with high variance relative to the broader market, though the specific current price is not provided to calculate the exact percentage deviation from the 52-week high or low. Beta is N/A, meaning that the company's price volatility relative to the broader market cannot be quantified with the available historical data points.
Growth & Income
Revenue growth and earnings growth rates are both listed as N/A, preventing a direct comparison of whether earnings are expanding faster or slower than revenue in the most recent period. The company does not pay a dividend, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, which signifies that all earnings are retained within the business rather than distributed to shareholders. The absence of a dividend payout implies that High Roller Technologies, Inc. prioritizes reinvesting its earnings into business operations, technology upgrades, or market expansion to fuel future growth rather than providing immediate income to investors. The overall growth and income profile is characterized by a lack of historical growth metrics and a zero-dividend policy, reflecting a capital-intensive strategy typical of small-cap online gaming operators seeking to build long-term value through internal funding.