Company Overview
Super League Enterprise, Inc. operates within the Communication Services sector, specifically focusing on the Internet Content & Information industry, where it generates and distributes digital media solutions across immersive platforms both domestically and internationally. The company leverages a proprietary cloud-based infrastructure to deliver dynamic media technology, metaverse game experiences, tournament solutions, and fully remote capabilities to its user base. In terms of scale, the enterprise maintains a market capitalization of $4.29M and employs a workforce of 72 individuals to support its operations. The annual revenue generated over the trailing twelve months stands at $11.57M, figures that indicate the company functions as a small-cap entity with a relatively modest revenue footprint compared to larger market peers.
Financial Health
The company reported a revenue of $11.57M for the trailing twelve months, while simultaneously reporting a net income loss of $-9,954,000 and an EBITDA of $-12,307,000. The substantial gap between the positive revenue figure and the significant negative net income and EBITDA reveals a cost structure where operating expenses and losses heavily outweigh the gross earnings generated from sales. Free cash flow for the period was $-6,838,375, indicating a cash burn rate that limits the company's immediate financial flexibility and ability to fund operations without external capital injections. Margin analysis shows a gross margin of 39.6%, suggesting that roughly 40% of revenue remains after direct costs, yet this is insufficient to cover overhead, resulting in an operating margin of -125.9% and a profit margin of -137.1%. The balance sheet reflects total cash holdings of $1.06M against total debt obligations of $3.30M, with a debt-to-equity ratio listed as N/A due to the negative equity position. The current ratio stands at 0.47, which indicates that the company's current assets are less than half of its current liabilities, signaling potential short-term liquidity constraints. Return on Equity is recorded at -2095.5% and Return on Assets at -85.6%, metrics that reveal management is currently unable to generate positive returns on the capital invested or the assets utilized in the business.
Valuation Assessment
Valuation multiples for Super League Enterprise, Inc. present a complex picture given its earnings profile, with a P/E Ratio (TTM) of N/A and a Forward P/E of -0.52. The difference between a nonexistent trailing P/E and a negative forward P/E implies that the market is pricing the stock based on expected future earnings growth rather than historical profitability, although the negative forward multiple suggests anticipated continued losses or a specific accounting adjustment. The price-to-book ratio is -0.24, indicating that the market values the company at a fraction of its book value, a situation often seen in distressed or unprofitable firms where assets may not be fully realized or the business model faces significant headwinds. Alternative valuation metrics further illustrate the company's precarious financial standing, with a Price to Sales of 0.37 and an EV/EBITDA of -0.43, suggesting that the stock trades at a very low multiple of revenue despite the lack of profitability. Regarding trading range, the 52-Week High is $215.52 and the 52-Week Low is $3.25, meaning the current market price sits significantly closer to the low end of this range, reflecting high investor skepticism. The Beta is 1.54, which indicates that the stock price is expected to be 54% more volatile than the broader market, exposing holders to amplified price swings during periods of market turbulence.
Growth & Income
Super League Enterprise, Inc. experienced a Revenue Growth (YoY) of -45.3%, while Earnings Growth (YoY) is N/A due to the company's unprofitable status. The contraction in revenue of 45.3% suggests a challenging operational environment or market share loss, and since the company is not generating positive earnings, there is no earnings growth to compare against revenue changes, implying a fundamental deterioration in the business model rather than a lag in profitability. As a non-dividend payer, the company reports a Dividend Yield of N/A and a Payout Ratio of 0.0%, confirming that the firm reinvests its limited resources or retains cash for operations rather than distributing income to shareholders. This lack of dividend distribution, combined with the negative growth trajectory and negative cash flow profile, indicates that the company is in a survival mode focused on preserving liquidity rather than delivering income or capital appreciation to investors.