East Side Games Group (EAGR) Q3 2026 earnings summary

Executive summary

• Q3 2026 revenue was $10.79M, down 46% YoY; Adjusted EBITDA was $1.59M versus a $3.00M loss in Q3 2025, supported by a $2.2M development milestone and lower user-acquisition spend.

• Net loss narrowed to $485K from $6.44M in Q3 2025; 9M revenue was $33.56M and net loss was $8.63M.

• Priorities include profitability, cash generation, debt reduction, and investment in high-return core games and newer titles.

Financial highlights

• Q3 revenue was $10.79M and Adjusted EBITDA was $1.59M; excluding the $2.2M milestone, revenue was $8.6M and Adjusted EBITDA was $617K.

• Q3 Adjusted EBITDA margin was 14.8%, versus negative 15% in Q3 2025; excluding the milestone, Q3 margin was 7.2%.

• Q3 gross profit was $7.42M; 9M gross profit was $20.98M and gross margin was 62.5%.

• Q3 gaming revenue was $8.46M and advertising revenue was $2.33M; 9M revenue was $33.56M.

• 9M transaction, litigation and restructuring charges totaled $5.46M, including $4.52M in litigation costs.

Outlook and guidance

• Q4 Adjusted EBITDA margin is expected to soften as user-acquisition spending increases, with targeted 60–90-day paybacks; investment is intended to support future audience recovery and returns.

• Priorities for the remainder of 2026 include positive Adjusted EBITDA, cash generation, debt paydown, and rebuilding cash reserves.

• Newer titles are expected to become a meaningful revenue contributor and a primary base-business growth catalyst in 2027.

• A new match game is planned for a Q4 Canada soft launch ahead of a 2027 global launch; Trailer Park Boys: Get Merged is scheduled for global launch in H1 2027.

• Fully funded development and platform partnership work may generate milestone payments based on project progress, not a regular schedule.