Sharplink Gaming Q3 Earnings Call Highlights

Key Points

• Net income surged to $751.4 million from $104.3 million a year earlier, primarily reflecting $676.7 million in unrealized and $75.2 million in realized gains as Ether rose about 72% during the quarter. Revenue grew to $13.5 million, including staking revenue up 27% to $13.1 million.
• SharpLink held 602,361 native ETH at quarter-end, with combined ETH holdings rising to 895,117 by November 2. The company is pursuing returns above traditional staking through initiatives including a $200 million Lido allocation and an onchain yield fund launched with Galaxy Digital.
• Management said its priority is increasing ETH exposure per share, avoiding share issuance when the stock trades below net asset value. SharpLink also said its crypto assets are held with qualified U.S. custodians and it had no exposure to recent exchange hacks.

Sharplink Gaming NASDAQ: SBET reported a sharp increase in third-quarter profit as a rebound in Ether prices produced substantial gains on its digital asset holdings, while staking revenue also grew.

Net income for the quarter ended September 30, 2026, rose to $751.4 million from $104.3 million a year earlier. Revenue increased to $13.5 million from $10.8 million, including $13.1 million in staking revenue, which grew 27%.

Chief Financial Officer Bob DeLucia said the results were driven primarily by a $676.7 million unrealized gain and $75.2 million in realized gains. Ether, or ETH, rose approximately 72% during the quarter, from about $1,563 at the end of June to $2,681 at September 30, according to management.

DeLucia cautioned that the unrealized gains did not represent realized economic gains and did not change the number of ETH units the company held. SharpLink also recorded a $1 million impairment charge, compared with $7 million a year earlier.

ETH Holdings and Treasury Returns

SharpLink held 602,361 native ETH with a net fair value of $1.6 billion at quarter-end, DeLucia said. It also held liquid-staking positions in LsETH, weETH and wstETH with a combined net historical cost of $482 million.

By November 2, the company’s combined holdings had risen to 895,117 ETH, including liquid-staking positions measured as if redeemed, according to DeLucia. Cash on hand was $47.9 million at September 30, up from $28.5 million at the end of 2025.

CEO Joseph Chalom said SharpLink outperformed its CESR staking benchmark in each month of the third quarter and for the quarter overall, including rewards from additional treasury deployments. He put the benchmark rate at 2.63% for the quarter but declined to quantify the company’s excess return, saying newer strategies were still being deployed and scaled.

“Our focus remains essentially on generating sustainable additive returns above traditional staking rates while maintaining disciplined risk management,” Chalom said.

The company announced a $200 million ETH allocation staked through Lido in August. That same month, the Galaxy Sharplink Onchain Yield Fund launched with $125 million in initial commitments: $100 million from SharpLink and $25 million from Galaxy Digital. The fund began deploying capital during the third quarter.

Chalom said SharpLink is contributing Lido liquid-staking tokens to the fund, preserving the underlying staking yield while pursuing additional ETH-denominated returns. He did not provide a target return, describing the fund’s objective as generating steady returns above traditional staking rather than seeking outsized gains.

Capital Allocation and Infrastructure Investments

Chalom said growing ETH exposure per share remains the company’s central capital-allocation objective. SharpLink did not issue shares through its at-the-market program during the third quarter, he said, adding that the company avoids such issuance when its shares trade below net asset value because it could dilute shareholders’ ETH exposure.

In June, SharpLink completed a $75 million registered direct financing at a premium to net asset value, with attached warrants. Chalom said the company used capital to repurchase shares and buy ETH, and would continue to weigh financing, buybacks and acquisitions according to their potential effect on per-share value.

SharpLink also made an equity investment of less than $500,000 in Blockspace, an Ethereum infrastructure company focused on areas including block building, validation and staking. Chalom characterized the investment as support for important infrastructure with potential equity upside, rather than a vertical integration move.

The company is also evaluating potential opportunities involving operating businesses and Ethereum-related protocols. In response to an analyst’s question about acquisitions, Chalom said SharpLink could potentially acquire such protocols or purchase tokenized real-world assets for yield, but had nothing to announce.

Institutional Adoption and Share Sale

Chairman Joe Lubin pointed to financial institutions’ use of Ethereum for stablecoins and tokenized assets as evidence of growing adoption. He also discussed Glamsterdam, a planned Ethereum protocol update intended to improve transaction processing and reduce reliance on certain third parties.

During the question-and-answer session, Lubin said the upgrade could increase throughput and reduce some centralization, but described it as “relatively immaterial” to institutional adoption, which he said was proceeding independently of the upgrade.

Lubin addressed the October sale of approximately 5.7 million SharpLink common shares by Consensys/MetaMask, saying the proceeds were intended to support its operating business. He said he had not sold any of his personal holdings and continued to own more than 5 million SharpLink shares.

Chalom also said SharpLink had no direct or indirect exposure to recent crypto exchange hacks. The company’s crypto assets are held with U.S.-based qualified custodians in hardware-isolated systems, he said.

About Sharplink Gaming (NASDAQ:SBET)

SharpLink Gaming Ltd. is a technology and performance-marketing company serving the online sports betting and iGaming industries. The company provides customer-acquisition solutions designed to connect sports fans and gaming audiences with licensed betting and gaming operators through digital marketing, affiliate partnerships and related technology.

SharpLink's activities have historically focused on the United States and other regulated online gaming markets, where it has supported operators with player acquisition, engagement and retention initiatives.

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