Lottery.com Reports Q1 2025 Financial Results with Revenue Decline and Improved Net Loss

Lottery.com Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $223,849, a decrease from $259,319 in the same period of 2024. The company's gross profit also fell significantly to $61,381 from $175,532 year-over-year. Operating expenses were reduced to $3,541,363 from $5,770,361, primarily due to lower personnel costs and professional fees. Despite these reductions, Lottery.com recorded a net loss of $3,295,020, an improvement compared to the net loss of $5,753,872 in the first quarter of 2024.

The company’s total assets increased slightly to $53,439,131 as of March 31, 2025, compared to $52,942,271 at the end of 2024. Cash reserves saw a significant rise, reaching $468,677 from $68,035, while accounts receivable remained relatively stable at $487,133. However, the accumulated deficit grew to $266,775,196, up from $263,468,728 at the end of the previous fiscal year. The company’s total liabilities also increased to $31,532,777 from $30,397,442, reflecting ongoing financial challenges.

Strategically, Lottery.com has been active in expanding its operations and product offerings. The company completed the acquisition of S&MI Ltd. on March 13, 2025, for $1.5 million in common stock, which is expected to enhance its international lottery and gaming operations. Additionally, the company launched the Sports.com app in 2024, providing users with curated sports content, and partnered with BOXXER to stream live boxing matches in Africa. These initiatives are part of Lottery.com’s broader strategy to diversify its offerings and expand its market presence.

Operationally, Lottery.com has resumed limited ticket sales operations as of April 2023, following a period of furloughs and operational cessation that began in July 2022. The company is focusing on rebuilding its user base and enhancing engagement metrics. As of March 31, 2025, the company reported a weighted average of 23,990,699 common shares outstanding, a significant increase from 4,008,381 shares in the previous year, indicating a potential increase in market participation.

Looking ahead, Lottery.com faces substantial challenges, including the need for additional capital to support its operations and growth plans. The company has indicated that it will continue to seek financing through private placements and other means to meet its obligations. Management has expressed cautious optimism about the potential for recovery and growth, contingent on the successful execution of its business strategies and the stabilization of market conditions. However, the ongoing legal proceedings and investigations stemming from previous operational issues pose risks that could impact future performance.