LTRY

Based on a comprehensive review of LTRY (Lottery.com), the investment case appears exceptionally weak across all major analytical dimensions. The technical picture is obscured by a lack of data, but the fundamental health of the company is critically poor. Revenue is declining sharply, profitability is deeply negative, and operational inefficiencies are severe. The valuation is contradictory but dominated by an alarmingly high Price-to-Sales ratio, suggesting the stock price is disconnected from its minimal revenue base.

The combination of unsustainable cash burn, poor working capital management, and significantly higher market volatility creates a high-risk profile. The lack of available peer data further complicates analysis but does not offset the clear fundamental deterioration. This stock carries substantial risk of capital loss.

Recommendation: Strong Sell / Avoid. Given the severe operational issues, negative cash flow, and questionable valuation, LTRY presents an unattractive risk-reward proposition. The company's fundamentals suggest a high likelihood of continued financial distress. Investors should avoid this stock until there is clear evidence of a sustainable turnaround in its business model and profitability. The risks significantly outweigh any potential rewards at this time.

RockFlow Model Forecast: Three Scenarios for 2026

Based on the comprehensive analysis provided, the 12-month outlook for LTRY (Lottery.com) is highly unfavorable. Key catalysts for any potential recovery are virtually nonexistent, as the company faces severe operational distress, including sharp revenue decline and unsustainable cash burn. The primary risks are extreme, centering on a high probability of continued financial distress and significant capital loss for investors. Given the lack of analyst targets and the overwhelming fundamental weaknesses, it is impossible to establish a reasonable target price range, and preserving capital by avoiding the stock is the prudent course of action.

Wall Street Consensus

Most Wall Street analysts are optimistic about LTRY's 12-month outlook, with consensus target around $0.00, indicating expected upside potential.

Overall, LTRY has investment potential but also faces challenges. Here are key factors to weigh before investing.

Based on the limited data provided, no meaningful price performance analysis can be conducted for LTRY as all critical price-related metrics are unavailable.

The absence of 1-month, 3-month, and relative strength data prevents any assessment of short-term performance or market comparison. Without current price information or trading activity, LTRY's momentum and recent directional trends cannot be evaluated.

The lack of current price, 52-week range endpoints, and maximum drawdown data makes it impossible to determine the stock's position within its historical range or assess potential overbought/oversold conditions. The elevated beta of 1.333 indicates the stock exhibits approximately 33% more volatility than the broader market, but without price data, this volatility cannot be contextualized.

Revenue & Profitability LTRY's revenue declined 28% quarter-over-quarter to $137,679 while reporting deeply negative profitability metrics. The company swung from a positive gross margin of 15% in Q2 to a negative 49% gross margin in Q3, indicating severe cost structure issues. Operating and net margins remain deeply negative at -33% and -32% respectively, reflecting unsustainable operational losses.

Financial Health The company exhibits significant liquidity constraints with a current ratio of 0.63 and minimal cash reserves relative to operations. Despite modest debt levels (debt-to-equity of 0.17), cash flow metrics are alarming with an operating cash flow to sales ratio of -61% and negative cash flow to debt coverage. The working capital cycle of 498 days indicates extremely poor receivables management and cash collection.

Operational Efficiency Operational efficiency metrics are severely deficient, with asset turnover of just 0.002 showing minimal revenue generation from the asset base. The negative return on equity (-14%) and return on assets (-6%) confirm destructive capital allocation and operational performance. The high fixed asset turnover suggests the company is operating with minimal productive assets, yet failing to generate profitable operations.

Valuation Level: Lottery.com's valuation metrics present a contradictory picture. The company is unprofable, as indicated by negative TTM and forward PE ratios and a negative EV/EBITDA, suggesting it has no current earnings-based valuation. Conversely, the stock trades below its book value (PB ratio of 0.50), which could signal undervaluation of its assets. However, the extraordinarily high PS ratio of 119.4 is a major concern, indicating the market price is immense relative to its minuscule revenue stream, a classic sign of overvaluation for a company with weak fundamentals.

Peer Comparison: A meaningful peer comparison is not possible as industry average data is unavailable. The crucial PS ratio of 119.4 is so exceptionally high that it would almost certainly be a significant outlier, even in a high-growth or speculative industry. Without benchmark data, it is difficult to contextualize the PB ratio of 0.50, but the extreme revenue-based valuation remains the dominant and most alarming characteristic.

Volatility Risk: With a beta of 1.333, LTRY exhibits significantly higher volatility than the broader market, meaning its price is prone to more dramatic swings in both upward and downward directions. Beta above 1.0 indicates amplified responsiveness to market movements, which presents a clear volatility risk for investors.

Other Risks: The unavailability of key data such as short interest and liquidity metrics presents a significant informational risk, hindering the ability to assess market sentiment and ease of trading. This lack of transparency makes it difficult to evaluate potential pressures from short sellers or the risk of price dislocation during larger trades.