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Overactive Media (OAM) investor relations material
Overactive Media Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 revenue increased 14% year-over-year to $7.8M, driven by events and agency growth.
Operating expenses declined 3% to $5.5M, reflecting cost discipline, acquisition synergies, and integration.
Year-to-date revenue rose 24% to $21.2M, with operating expenses down 8% over the same period.
Launched ActiveVoices, an AI-powered, subscription-based content distribution and localization platform, with early adoption by creators and agencies.
Leadership transition: Louis Zhang appointed as EVP of Finance and Acting CFO, succeeding Rikesh Shah.
Financial highlights
Q3 gross margin was 52%, down from 72% YoY, impacted by a higher mix of event production and project-specific work.
Q3 comprehensive loss widened to $3M, mainly due to VCT agreement write-off and lower gross margin.
Q3 Adjusted EBITDA: -$1.3M (vs. breakeven YoY); YTD: -$4.6M (vs. -$3.0M YoY).
Cash & equivalents at quarter end: $2.4M (down 73% YoY); $2M in new debt financing secured post-quarter.
Exit from non-core Esports titles, including VCT EMEA, expected to be accretive to adjusted EBITDA and operating cash flow in 2026.
Outlook and guidance
Gross margin expected to improve in Q4 as higher-margin digital items and league revenue increase.
Gross profit margins in the mid-50% range and beyond are targeted for 2026 and beyond.
ActiveVoices anticipated to become a significant, recurring, high-margin digital revenue stream.
Streamlined operating model and diversified revenue mix position the company for scalable growth in 2026.
Exit from underperforming titles anticipated to improve adjusted EBITDA and cash flow in 2026.
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