Enthusiast Gaming Reports Q2 2025 Financial Results
Implements product-first strategy and realigns operations around core properties
TORONTO, Aug. 14, 2025 (GLOBE NEWSWIRE) — Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a digital publisher focused on building tools, platforms, and experiences for gamers, today announced financial results for the three months ended June 30, 2025 (“Q2 2025”).
“We are a company of builders and our future will be shaped by the tools, platforms, and experiences we own, and by the tens of millions of gamers who rely on them,” said Alex Macdonald, CEO of Enthusiast Gaming. “We know exactly what we do best, which is deliver products that elevate performance, deepen engagement, and make every moment of play more meaningful. Our portfolio is made up of many category leaders including U.GG, Icy-Veins, TheSimsResource, PocketGamer, Addicting Games, Fantasy Football Scout, ProBuildStats, and PoE-Vault. These properties are not only well known, they are profitable, valuable, trusted by their audiences, and positioned for continued growth. They are the foundation of our business and the core of our identity.
“Direct sales and creative production, including Omnia, Luminosity, and related assets, have been important parts of our history, but they are not part of our future. Exiting these areas allows us to direct all of our energy, talent, and reinvestment toward building and improving our owned and operated platforms. In Q2, these non-core segments were the primary source of losses and the driver of year-over-year declines. Their departure will remove a major drag on our results and give a clearer view of the strength, value, and profitability of our core business.
“Every feature, every improvement, and every new product we deliver builds lasting value,” Mr. Macdonald continued. “This is the engine that will drive our growth, united under a single purpose: to serve gamers by building the best products in gaming. This company is going to win when we let the builders build.”
Financial Highlights for Q2 2025
- Revenue of $10.0 million, compared to $14.7 million in Q2 2024, with the majority of the decline being attributable to the declines in direct sales and the Omnia video platform.
- Gross profit of $8.0 million, compared to $9.7 million in Q2 2024, driven by decreased revenue, with gross margin expanding to 80.0% from 66.2% in the year ago period.
- Operating expenses of $10.6 million, a $1.0 million year-over-year decrease from $11.6 million in Q2 2024 as a result of initiatives taken to establish an efficient and scalable operating model.
- Adjusted EBITDA loss of $1.4 million, compared to an Adjusted EBITDA loss of $0.4 million in Q2 2024, primarily driven by the decrease in gross profit, and offset by the decrease in operating expenses.
- Net loss and comprehensive loss of $39.8 million in Q2 2025 compared to $2.9 million in Q2 2024. Net and comprehensive loss in Q2 2025 includes non-cash impairment charges of $45.3 million (Q2 2024 – $Nil) and a deferred tax recovery of $11.4 million (Q2 2024 – $0.2).
Business Highlights for Q2 2025
- Platform Engagement and Subscriber Growth:
- U.GG achieved 39% growth in programmatic yield in Q2 2025 compared to Q1 2025, driven by continued ad tech optimizations and deepened engagement. The platform also advanced its multi-title expansion, adding support for games such as Marvel Rivals, Rainbow Six Siege, Rocket League, and Rematch, the last of which has seen significant adoption with over 200,000 user profiles being created since its launch on June 30, 2025.
- Icy Veins continued its strong performance in Q2 2025 as one the Company’s strongest contributors across both traffic and yield with the site launching expanded coverage of new, high-demand titles such as Honkai Star Rail, Ashes of Creation, and Path of Exile 2, and broadening its coverage capabilities through expanded news offerings.
- The Sims Resource saw the launch of its first-to-market LookBuilder tool, providing users with a browser-based, 3D-rendered, real-time outfit preview engine that enables players to build and customize complete outfits and see them visualized on a character instantly. The feature enhances the experience for both free and paid users and is intended to drive deeper engagement across the platform.
- PocketGamer.com has continued its tremendous year-over-year growth, up over 26% in pageviews in Q2 2025 and 55% through the first half of 2025 compared to the respective periods in 2024, serving over 10 million active users and re-affirming its position as a leading trusted authority in mobile game discovery, news and engagement, and a leading destination for mobile-first players.
- Event Growth and Engagement: PocketGamer Connects (“PGC”) began to execute on its previously announced global expansion plans, hosting PGC Barcelona in June, an event which attracted over 1,000 senior industry professionals (a PGC record for a first year event in Europe). Subsequent to the quarter, PGC also completed the second leg of its international growth plan in PGC Shanghai, which took place in July, and announced its further expansion into South Korea, via its Pocket Gamer Connects Summit event to be held on October 31.
Second Quarter 2025 Results Comparison
Revenue was $10 million in Q2 2025, a 32% decrease compared to $14.7 million in Q2 2024. Media and Content revenue was $5.9 million in Q2 2025, a 44% decrease from $10.6 million in Q2 2024. The Company’s strategic decision to de-prioritize the lower margin video platform revenue accounted for $1.9 million of the $4.6 million reduction. Direct Sales (the majority of which is included in media and content revenue) decreased from $4.1 million in Q2 2024 to $2.7 million in Q2 2025, contributing a $1.4 million to the decline in revenue. Esports and Entertainment revenue was $1.2 million in Q2 2025 compared to $1.0 million in Q2 2024. Subscription revenue decreased from $3.1 million in Q2 2024 to $2.9 million in Q2 2025.
Gross profit was $8.0 million in Q2 2025, an 18% decrease compared to $9.7 million in Q2 2024. Gross margin increased to 80.0% in Q2 2025 from 66.2% in Q2 2024.
Adjusted EBITDA loss was $1.4 million in Q2 2025 compared to an Adjusted EBITDA loss of $0.4 million in Q2 2024.
Net loss $39.1 million, or $(0.25) per share, in Q2 2025, compared to $3.4 million, or $(0.02) per share, in Q2 2024. Net and comprehensive loss in Q2 2025 includes non-cash impairment charges of $45.3 million (Q2 2024 – $Nil) and a deferred tax recovery of $11.4 million (Q2 2024 – $0.2).
Strategic Updates
The Company will not be hosting a conference call for its Q2 2025 results. Enthusiast Gaming has established its strategy to operate as a product-first business and is aligning all operations and resources around its core product portfolio. The Company is in the process of completing the divestment of its direct sales business line and related creative assets, which are not part of its go-forward business, and continues to undertake its strategic review to strengthen the Company’s balance sheet. Management will continue to update shareholders on these activities through appropriate channels as milestones are reached, and anticipates providing a fulsome presentation of the Company’s product-focused operations once the transition is completed.
Supplemental Information
Enthusiast Gaming’s financial statements and management discussion and analysis (“MD&A”) are available at www.sedarplus.ca and enthusiastgaming.com/investors. All amounts are in Canadian dollars.
About Enthusiast Gaming
Enthusiast Gaming builds tools, platforms, and experiences that gamers use every day. Its portfolio of owned and operated digital properties includes some of the most recognizable names in gaming, such as U.GG, Icy-Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, as well as the global B2B event series PocketGamer Connects. Through these assets, Enthusiast Gaming generates revenue from programmatic advertising, subscriptions, and events, and is focused on expanding its owned IP and deepening direct engagement with its audience.
Contacts
Enthusiast Gaming: Alex Macdonald, Chief Executive Officer
Investors: investor@enthusiastgaming.com
Media: press@enthusiastgaming.com
Forward-Looking Statements
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast Gaming anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, statements regarding trends in certain financial and operating metrics of the Company, and expectations relating to the financial performance and the financial results of future periods.
Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the esports and gaming media industry; the Company’s growth plan, and judgment applied in the application of the Company’s accounting policies and in the preparation of financial statements in accordance with applicable financial reporting standards. While Enthusiast Gaming considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risks, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of Enthusiast Gaming which are available on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Enthusiast Gaming disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures
This press release references certain non-GAAP measures, including Adjusted EBITDA, as described below. These non-GAAP measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those GAAP measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.
The Company uses non-GAAP measures including:
“EBITDA”, which is defined as earnings before interest, taxes, depreciation and amortization. Enthusiast Gaming calculates EBITDA using gross margin less total operating expenses plus share-based compensation and amortization and depreciation; and,
“Adjusted EBITDA”, which is defined as EBITDA adjusted for severance and other non-recurring public costs. These non-recurring costs include, but are not limited to, annual directors and officers liability insurance associated with the Company’s former listing on Nasdaq. Adjusted EBITDA also excludes “NFL TNG EBITDA” which is defined as EBITDA attributable to the Company’s NFL TNG program during Q4 2024 and thereafter, as the program became non-recurring due to its termination.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the exchange) accepts responsibility for the adequacy or accuracy of this release.
| Enthusiast Gaming Holdings Inc. | ||||||||||||
| Condensed Consolidated Interim Statements of Loss and Comprehensive Loss | ||||||||||||
| For the three and six months ended June 30, 2025 and 2024 | ||||||||||||
| (Unaudited – Expressed in Canadian Dollars) | ||||||||||||
| For the three months ended | For the six months ended | |||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
| Revenue | $ | 10,005,665 | $ | 14,704,634 | $ | 22,168,202 | $ | 38,032,873 | ||||
| Cost of sales | 1,994,973 | 4,974,098 | 5,124,322 | 14,226,178 | ||||||||
| Gross margin | 8,010,692 | 9,730,536 | 17,043,880 | 23,806,695 | ||||||||
| Operating expenses | ||||||||||||
| Professional fees | 440,513 | 345,530 | 854,253 | 898,088 | ||||||||
| Consulting fees | 268,561 | 477,109 | 533,276 | 1,929,345 | ||||||||
| Advertising and promotion | 770,469 | 243,556 | 1,187,507 | 723,360 | ||||||||
| Office and general | 783,700 | 580,681 | 1,831,801 | 1,575,079 | ||||||||
| Salaries and wages | 5,192,572 | 5,413,206 | 11,311,292 | 13,759,507 | ||||||||
| Technology support, web development and content | 2,080,405 | 2,836,032 | 6,801,646 | 7,104,691 | ||||||||
| Esports player, team and game expenses | 459,183 | 568,051 | 981,225 | 1,177,163 | ||||||||
| Foreign exchange (gain) loss | (56,069 | ) | 35,599 | (144,948 | ) | 141,534 | ||||||
| Share-based compensation | 41,794 | 377,777 | 97,000 | (1,620,480 | ) | |||||||
| Amortization and depreciation | 643,132 | 715,967 | 1,291,082 | 1,431,461 | ||||||||
| Total operating expenses | 10,624,260 | 11,593,508 | 24,744,134 | 27,119,748 | ||||||||
| Other expenses (income) | ||||||||||||
| Intangible asset impairment | 45,331,449 | – | 45,331,449 | – | ||||||||
| Investment in associates impairment | – | 26,497 | – | 26,497 | ||||||||
| Other long-term asset impairment | – | 1,098,506 | – | 1,098,506 | ||||||||
| Share of net loss (income) from investment | ||||||||||||
| in associates and joint ventures | – | 6,477 | – | (18,905 | ) | |||||||
| Interest and accretion | 1,872,851 | 563,310 | 2,721,037 | 1,186,524 | ||||||||
| Gain on revaluation of deferred payment liability | (110,107 | ) | (46,468 | ) | (238,756 | ) | (63,368 | ) | ||||
| Gain on sale of assets | – | (344,852 | ) | – | (344,852 | ) | ||||||
| Loss on disposal of property and equipment | – | 25,997 | – | 25,997 | ||||||||
| Loss on revaluation of long-term debt | 885,526 | – | 899,816 | – | ||||||||
| Loss on modification of long-term debt | – | 397,058 | – | 397,058 | ||||||||
| Gain on player buyouts | (41,948 | ) | – | (41,948 | ) | – | ||||||
| Interest income | (43 | ) | (396 | ) | (5,532 | ) | (5,449 | ) | ||||
| Net loss before income taxes | (50,551,296 | ) | (3,589,101 | ) | (56,366,320 | ) | (5,615,061 | ) | ||||
| Income taxes | ||||||||||||
| Current tax expense | (46,036 | ) | 24,554 | 1,417 | 127,137 | |||||||
| Deferred tax recovery | (11,374,568 | ) | (200,377 | ) | (11,193,281 | ) | (27,173 | ) | ||||
| Net loss for the period | (39,130,692 | ) | (3,413,278 | ) | (45,174,456 | ) | (5,715,025 | ) | ||||
| Other comprehensive (loss) income | ||||||||||||
| Items that may be reclassified to profit or loss | ||||||||||||
| Foreign currency translation adjustment | (709,401 | ) | 479,575 | (794,714 | ) | 1,465,701 | ||||||
| Net loss and comprehensive loss for the period | $ | (39,840,093 | ) | $ | (2,933,703 | ) | $ | (45,969,170 | ) | $ | (4,249,324 | ) |
| Net loss per share, basic and diluted | $ | (0.25 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | (0.04 | ) |
| Weighted average number of common shares | ||||||||||||
| outstanding, basic and diluted | 159,169,003 | 155,721,839 | 159,169,003 | 155,699,940 | ||||||||
| Enthusiast Gaming Holdings Inc. | ||||||
| Condensed Consolidated Interim Statements of Financial Position | ||||||
| As of June 30, 2025 and December 31, 2024 | ||||||
| (Unaudited – Expressed in Canadian Dollars) | ||||||
| June 30, 2025 | December 31, 2024 | |||||
| ASSETS | ||||||
| Current | ||||||
| Cash | $ | 361,867 | $ | 4,765,373 | ||
| Trade and other receivables | 5,336,428 | 12,351,539 | ||||
| Income tax receivable | – | 12,371 | ||||
| Prepaid expenses | 864,219 | 2,010,796 | ||||
| Total current assets | 6,562,514 | 19,140,079 | ||||
| Non-current | ||||||
| Property and equipment | 146,354 | 187,464 | ||||
| Right-of-use assets | 476,927 | 800,908 | ||||
| Long-term portion of prepaid expenses | 140,845 | 148,546 | ||||
| Intangible assets | 24,882,324 | 71,815,485 | ||||
| Goodwill | 36,312,835 | 36,353,244 | ||||
| Total assets | $ | 68,521,799 | $ | 128,445,726 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current | ||||||
| Accounts payable and accrued liabilities | $ | 15,341,512 | $ | 15,022,630 | ||
| Contract liabilities | 4,563,199 | 5,735,275 | ||||
| Income tax payable | 52,272 | 131,441 | ||||
| Current portion of long-term debt | 37,340,588 | 38,990,332 | ||||
| Current portion of deferred payment liability | 2,325,612 | 2,322,274 | ||||
| Current portion of lease liabilities | 765,191 | 727,525 | ||||
| Total current liabilities | 60,388,374 | 62,929,477 | ||||
| Non-current | ||||||
| Long-term portion of lease liabilities | – | 295,977 | ||||
| Deferred tax liability | 2,256,228 | 13,470,905 | ||||
| Total liabilities | $ | 62,644,602 | $ | 76,696,359 | ||
| Shareholders’ Equity | ||||||
| Share capital | 461,607,373 | 461,607,373 | ||||
| Warrants reserve | 1,823,168 | 1,823,168 | ||||
| Contributed surplus | 17,693,195 | 17,596,195 | ||||
| Accumulated other comprehensive income | 10,747,484 | 11,542,198 | ||||
| Deficit | (485,994,023 | ) | (440,819,567 | ) | ||
| Total shareholders’ equity | 5,877,197 | 51,749,367 | ||||
| Total liabilities and shareholders’ equity | $ | 68,521,799 | $ | 128,445,726 | ||
| Enthusiast Gaming Holdings Inc. | ||||||
| Condensed Consolidated Interim Statements of Cash Flows | ||||||
| For the six months ended June 30, 2025 and 2024 | ||||||
| (Unaudited – Expressed in Canadian Dollars) | ||||||
| June 30, 2025 | June 30, 2024 | |||||
| Cash flows from operating activities | ||||||
| Net loss for the period | $ | (45,174,456 | ) | $ | (5,715,025 | ) |
| Items not affecting cash: | ||||||
| Intangible asset impairment | 45,331,449 | – | ||||
| Investment in associates impairment | – | 26,497 | ||||
| Other long-term asset impairment | – | 1,098,506 | ||||
| Amortization and depreciation | 1,291,082 | 1,431,461 | ||||
| Share-based compensation | 97,000 | (1,620,480 | ) | |||
| Accretion | (71,441 | ) | (31,188 | ) | ||
| Deferred tax recovery | (11,193,281 | ) | (27,173 | ) | ||
| Share of net income from investment in associates and joint ventures | – | (18,905 | ) | |||
| Gain on sale of assets | – | (344,852 | ) | |||
| Gain on revaluation of deferred payment liability | (238,756 | ) | (63,368 | ) | ||
| Foreign exchange loss (gain) | 111,379 | (463,931 | ) | |||
| Loss on disposal of property and equipment | – | 25,997 | ||||
| Gain on settlement of accounts payable | (70,589 | ) | (622,413 | ) | ||
| Loss on revaluation of long-term debt | 899,816 | – | ||||
| Loss on modification of long-term debt | – | 397,058 | ||||
| Gain on player buyouts | (41,948 | ) | – | |||
| Provisions | 72,691 | 4,166 | ||||
| Changes in working capital: | ||||||
| Changes in trade and other receivables | 6,942,420 | 19,982,340 | ||||
| Changes in prepaid expenses | 1,143,997 | 843,787 | ||||
| Changes in accounts payable and accrued liabilities | 389,471 | (20,543,835 | ) | |||
| Changes in contract liabilities | (1,172,076 | ) | (2,124,657 | ) | ||
| Changes in income tax receivable and payable | 22,074 | 136,207 | ||||
| Income tax paid | (86,649 | ) | (400,927 | ) | ||
| Net cash used in operating activities | (1,747,817 | ) | (8,030,735 | ) | ||
| Cash flows from investing activities | ||||||
| Proceeds from sale of assets, net of transaction costs | – | 2,693,339 | ||||
| Distribution from investment in associates, net of adjustments | – | 1,416,830 | ||||
| Repayment of deferred payment liability | – | (85,700 | ) | |||
| Proceeds from player buyouts | 41,948 | – | ||||
| Acquisition of property and equipment | (840 | ) | (115,815 | ) | ||
| Net cash from investing activities | 41,108 | 3,908,654 | ||||
| Cash flows from financing activities | ||||||
| Proceeds from long-term debt, net of transaction costs | 11,992 | 1,520,877 | ||||
| Repayment of long-term debt | (2,408,043 | ) | (1,769,118 | ) | ||
| Repayment of other long-term debt | – | (3,002 | ) | |||
| Lease payments | (221,722 | ) | (465,179 | ) | ||
| Net cash used in financing activities | (2,617,773 | ) | (716,422 | ) | ||
| Foreign exchange effect on cash | (79,024 | ) | 147,077 | |||
| Net change in cash | (4,403,506 | ) | (4,691,426 | ) | ||
| Cash, beginning of period | 4,765,373 | 6,851,966 | ||||
| Cash, end of period | $ | 361,867 | $ | 2,160,540 | ||
| Enthusiast Gaming Holdings Inc. | ||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||
| For the three and six months ended June 30, 2025 and 2024 | ||||||||||||
| (Unaudited – Expressed in Canadian Dollars) | ||||||||||||
| For the three months ended | For the six months ended | |||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||
| Gross margin | $ | 8,010,692 | $ | 9,730,536 | $ | 17,043,880 | $ | 23,806,695 | ||||
| Operating expenses | (10,624,260 | ) | (11,593,508 | ) | (24,744,134 | ) | (27,119,748 | ) | ||||
| Share-based compensation | 41,794 | 377,777 | 97,000 | (1,620,480 | ) | |||||||
| Amortization and depreciation | 643,132 | 715,967 | 1,291,082 | 1,431,461 | ||||||||
| EBITDA | (1,928,642 | ) | (769,228 | ) | (6,312,172 | ) | (3,502,072 | ) | ||||
| Severance | 436,761 | 121,430 | 588,045 | 705,628 | ||||||||
| D&O insurance specific to the | ||||||||||||
| Company’s former Nasdaq listing | 111,386 | 240,935 | 312,864 | 619,970 | ||||||||
| NFL TNG EBITDA | – | – | 1,422,838 | – | ||||||||
| Adjusted EBITDA | $ | (1,380,495 | ) | $ | (406,863 | ) | $ | (3,988,425 | ) | $ | (2,176,474 | ) |
