Enthusiast Gaming (EGLX) Q3 2025 earnings summary

Executive summary

• Achieved adjusted EBITDA from continuing operations of $1.2M for the nine months ended September 30, 2025, reversing a loss of $0.1M year-over-year.

• Completed sale of direct sales media business, resulting in a $5.5M gain on sale of subsidiaries and assets.

• Shifted to a product-led, R&D-driven strategy, focusing on owned and operated platforms and tools for gamers.

• Served over 90M gamers across owned properties in Q3 2025, up 11% quarter-over-quarter.

Financial highlights

• Q3 2025 revenue was $7.3M, down 32% from $10.8M in Q3 2024, mainly due to reduced third-party network representation.

• Gross profit was $6.4M, down 14% year-over-year, but gross margin expanded to 86.9% from 68.8%.

• Operating expenses decreased by $1.2M year-over-year to $6.6M.

• Adjusted EBITDA from continuing operations was $0.3M, compared to $0.5M in Q3 2024, consistent when adjusting for FX.

• Net income was $7.0M ($0.04/share) in Q3 2025, compared to a net loss of $6.7M ($-0.04/share) in Q3 2024, driven by gains from discontinued operations and lower transaction costs.

Outlook and guidance

• Anticipates increased profitability in Q4 2025 due to seasonal advertising and events tailwinds.

• Plans to launch new products and feature expansions over the next twelve months, leveraging proprietary technologies.

• Management will provide a comprehensive update on product-focused operations after the transition is complete.