East Side Games Group (EAGR) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw continued revenue growth and significant progress in product development, driven by the launch of two new match titles leveraging strong entertainment IPs, now contributing 22% of total revenue.

• Aggressive marketing and user acquisition spend peaked this quarter to support new game launches, with expectations of long-term payback and sustained cash flow.

• Core game portfolio remains stable and profitable, providing a foundation for investment in new genres and titles.

• Strategic focus remains on deepening engagement, expanding monetization, and scaling efficiently through data-driven marketing.

Financial highlights

• Q3 revenue was CAD 20 million (or $20 million), down 6% year-over-year but up 4% sequentially; nine-month revenue totaled CAD 57.8 million.

• Adjusted EBITDA for Q3 was negative CAD 3 million (or -$3 million), a decline from positive CAD 2.5 million in Q3 2024, due to heavy investment in new titles.

• Daily active users (DAU) reached 227,000, up 12% quarter-over-quarter.

• ARPDAU was $0.97, down 6% due to influx of new users.

• Net cash position at quarter-end was CAD 1.2 million (CAD 3.2 million cash, CAD 2 million debt).

Outlook and guidance

• Q4 marketing spend will remain high but below Q3 levels, with continued focus on scaling new match titles and benefiting from seasonal events.

• EBITDA is expected to remain negative through Q4 and Q1, with a return to positive territory anticipated by mid-2026 as revenue from new titles ramps up.

• International expansion, new monetization streams, and further product updates are planned for Q4.

• Investments in user acquisition for match titles are expected to yield returns over 180-day payback windows, longer than idle games.