East Side Games Group (EAGR) Q2 2026 earnings summary

Executive summary

• Revenue declined 46% year-over-year to CAD 10.3 million, reflecting reduced user acquisition spend and a focus on profitability.

• Adjusted EBITDA was CAD 1.36 million, down 11% year-over-year, but margin improved to 13.2%, up 65% year-over-year.

• Raised CAD 2.95 million in outside capital to support working capital, reduce debt, and settled litigation with Truly Social Games, eliminating a significant contingent liability.

• Strategic focus on disciplined cash management, targeting profitable player cohorts, and capital efficiency.

• Transitioning to a new banking relationship for better capital access and flexibility.

Financial highlights

• Q2 2026 revenue was CAD 10.3 million, down 46% year-over-year.

• Adjusted EBITDA reached CAD 1.36 million, with a margin of 13.2%, up 65% year-over-year.

• Daily active users averaged 118,872, down 41% year-over-year; ARPDAU was CAD 0.95, down 9% year-over-year.

• DAU/MAU stickiness rate increased 22% year-over-year to 29.6%.

Outlook and guidance

• User acquisition spend to increase in mid-August with a broader investment approach and a 60-day payback window, focusing on profitable cohorts in high-margin games.

• 2026 guidance restated: revenue CAD 40–44 million, adjusted EBITDA CAD 4–4.7 million, margin 10–12%.

• Revised guidance reflects recent constraints but anticipates improved performance for the rest of 2026.