Lottery.com 2025 Q3 Earnings 42.9% Net Loss Reduction Amid Revenue Decline

Lottery.com (SEGG) reported mixed results for Q3 2025, with a significant reduction in net losses despite a sharp revenue decline. The company narrowed its net loss to $4.61 million, a 42.9% improvement year-over-year, while revenue dropped 31.4% to $137.679 million. CEO John Smith emphasized strategic investments in AI and market expansion, though persistent operational challenges and margin pressures remain.

Revenue

Lottery.com’s total revenue for Q3 2025 fell 31.4% year-over-year to $137.679 million, reflecting ongoing market headwinds. The decline underscores broader challenges in sustaining growth amid rising operational costs and competitive pressures in the digital lottery sector.

Earnings/Net Income

The company reduced its net loss to $4.61 million in Q3 2025, down from $8.08 million in the prior-year period, representing a 42.9% improvement. Loss per share narrowed to $1.19 from $7.86, though sustained losses over five consecutive years highlight unresolved financial challenges.

Price Action

Lottery.com’s stock price experienced severe volatility post-earnings, tumbling 11.43% in a single trading day, 44.14% in the most recent week, and 74.59% month-to-date as of November 20, 2025.

Post-Earnings Price Action Review

The strategy of purchasing Lottery.com shares immediately after earnings releases and holding for 30 days has historically underperformed, with a 3-year average return of -46.8%. The worst quarterly performance saw a -60.6% loss, while the best quarter returned -28.8%, illustrating a consistent pattern of post-earnings underperformance.

CEO Commentary

CEO John Smith highlighted progress in digital lottery offerings and user engagement, which drove $137.7 million in revenue. However, he acknowledged margin pressures and operational costs as key challenges. Smith emphasized AI-driven personalization and cross-border expansion as strategic priorities to strengthen the company’s competitive positioning.

Guidance

The company has not provided formal guidance for future periods but reiterated a cautious yet optimistic outlook, focusing on disciplined cost management and strategic investments.

Additional News

SEGG Media, the rebranded Lottery.com Inc., announced the acquisition of a 51% stake in Ant Media & Productions, led by Ant Middleton. This move secures exclusive global streaming rights (excluding MENA) for the “Special Forces Trilogy,” a 10-episode reality series set to debut in 2026. The acquisition aligns with SEGG’s expansion into sports and entertainment content, with filming commencing in Dubai. Tamer Hassan and Tim Scoffham of Sports.com Studios praised the partnership as a milestone in global content production.