East Side Games Group Inc. (EAGR) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to the Eastside Games Group Q2 2025 earnings call. Today we will be going over the performance of our core portfolio for Q2 of 2025, the launch of RuPaul Match Queen, as well as some exciting things coming up in our Q3 of 2025 launches. I'd like to remind everyone that some of the statements made are forward-looking under the applicable securities laws. The details and disclaimer for which can be found at our website at www.eastsidegamesgroup.com. Thank you. Hi everyone, I'm Jason Chad, interim CFO of eSide Games, and here's our results for Q2. We ended the quarter with a top line revenue of $19.2 million, 6% down from Q2 2024, but a 4% increase from Q1. The core portfolio remains consistent and strong, contributing positive cash flows that continue to fund our investments in our new growth games. We achieved an adjusted EBITDA of $1.6 million, a margin of 8%. This is a result of our increased marketing spend budget on our new game launch, RuPaul Match. as well as a ramp up of our titles in the latter half of the quarter to take advantage of favorable payback windows, whose results we expect to see in Q3. On the balance sheet side, we ended the quarter with $4.1 million in cash with zero debt, down $1.3 million from Q1. The company also received a subsequent inflow of cash from Apple of $1.37 million in July for Q2 revenue recognized. The core portfolio continues to generate positive operating cash flows that give us the flexibility to continue funding our growth games and future projects. For game metrics, the player base remains strong, with an average DAO of 203,000 players and an ARC DAO of $1.04. Although there were some seasonal pullbacks, we're starting to see some good payback opportunities going into Q3, and we will continue to invest in ac...