OverActive Media Reports Second Quarter 2026 Results; Operating Expenses Narrow 17%, Gross Margin Expands to 52% Year-to-Date

About this update from Overactive Media Corp

Net Loss Narrows 16% Year-to-Date; Company Closes Secured Financing During the Quarter TORONTO, Aug. 26, 2026 /CNW/ -- OverActive Media Corp. ("OverActive" or the "Company") (TSXV: OAM) (OTC: OAMCF) (FRA: 0RB), a premier global esports and entertainment company for today's generation of fans , today announced its results for the three and six-month period ended June 30, 2026. Second quarter revenue was $5.0 million, down from a Q2 2025 that included two of the Company's largest live events in its history and the Company's exit from the VALORANT Champions Tour (VCT) EMEA league in the fourth quarter of 2025. Operating expenses narrowed 17% in the quarter and 10% year-to-date, gross margin expanded to 52% year-to-date from 50%, and net loss for the first half of 2026 narrowed 16% year-over-year. During the quarter, the Company closed a secured debt financing with entities controlled by certain directors and shareholders to support working capital. The Company's condensed consolidated interim financial statements and Management's Discussion and Analysis for the three and six-month period ended June 30, 2026 are available on the Company's website at www.overactivemedia.com and under the Company's profile on SEDAR+ at www.sedarplus.ca. Unless otherwise specified, all amounts are in Canadian dollars ($). Financial Results Summary for Q2 2026 Three months ended June 30: Six months ended June 30: (1) Adjusted EBITDA is a non-IFRS measure. Refer to "Non-IFRS Measures" at the end of this press release. CEO Commentary "Revenue was down in the quarter as a result of several non-recurring factors," said Adam Adamou, CEO and Co-Founder of OverActive Media. "Last year's second quarter included two of the biggest live events in our history, LEC on the Road in Madrid and the Call of Duty League Championship Weekend in Kitchener. Neither returned this season, and our exit from the VALORANT Champions Tour EMEA league in the fourth quarter negatively affected our League revenues, a decline that was partially offset by lower team operating costs. Operating expenses were down 17 percent in the quarter and 10 percent for the first half. Gross margin for the first half moved up to 52 percent from 50 percent. Net loss for the first six months improved 16 percent year over year. The cost side of the business is doing what we planned." Adamou continued, "Our brands kept performing on the global stage. Toronto KOI took third at Call of Duty League Major III and finished in the top six at the Call of Duty League Major IV event. Movistar KOI brought over 12,000 fans to our Spring Roadtrip in Madrid, and both brands have since competed again at the Esports World Cup. Toronto KOI signed a new partnership with Video Game Live Expo for an event in October, and we're about to host the Bell Esports Challenge here in Toronto. We also brought in new capital this quarter, with directors and shareholders backing the Company through a secured debt financing. Closing out our financing plan and converting our partnership pipeline are our priorities for the second half." Second Quarter 2026 Financial Highlights Year-to-Date Financial Highlights Second Quarter 2026 Operating Highlights Subsequent to Quarter-End Conference Call Details OverActive Media will be hosting a Second Quarter 2026 Earnings Conference Call on Thursday, August 27 at 9:00 AM (Eastern Time)  To access the conference call, please join at the stated time enter your phone number at  https://app.webinar.net/q7eky1rLRG J  receive an instant automated callback. To dial directly to be entered into the call by an operator, please dial 1-416-945-7677, or for North American callers, 1-888-699-1199.  The conference call will be webcast live in its entirety at 9:00 AM (Eastern Time) at  https://emportal.ink/4xdeFv1  and will be archived for 90 days following the call.  Links to SEDAR+ filings and press releases are available on the investor website at  https://overactivemedia.com/pages/filings/ TELEPHONIC REPLAY   Call Details: 1-289-819-1450  Toll Free: 1-888-660-6345 Encore Replay Entry Code: 82423 #  Encore Replay Expiration Date: 09/03/2026 Reconciliation of Net Loss to Adjusted EBITDA Three months ended June 30: Six months ended June 30: Non-IFRS Measures This press release includes references to Adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is defined by the Company as net income or loss before income taxes, finance income and costs, depreciation and amortization, foreign exchange gains/losses, restructuring and development costs, one-time gains and losses, other income and loss, and share-based compensation. The Company believes that Adjusted EBITDA is a useful measure of financial performance because it provides an indication of the Company's ability to capitalize on growth opportunities in a cost-effective manner, finance its ongoing operations, and service its financial obligations. This non-IFRS financial measure is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. The Company's method of calculating such a financial measure may differ from the methods used by other issuers and, accordingly, its definition of this non-IFRS financial measure may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating activities as measures of liquidity and cash flows. Cautionary Note Regarding Forward-Looking Information This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of OverActive with respect to future business activities and operating performance, including the Company's ability to secure additional financing, and the Company's ability to continue as a going concern. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include information regarding the anticipated financial and operating results of OverActive in the future. Investors are cautioned that forward-looking statements are not based on historical facts but instead on OverActive management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although OverActive believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon. Key factors that could cause actual results to differ materially include: the Company's ability to raise additional financing and continue as a going concern; changes in general economic, business, and political conditions; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with government regulation; risks associated with foreign markets; the ability of the Company to execute on its partnerships and business strategy; the ability of the LEC and Call of Duty Leagues to maintain viewership; and other risk factors set out in OverActive's public disclosure documents filed under its profile at www.sedarplus.ca . OverActive does not intend and does not assume any obligation to update the forward-looking statements except as otherwise required by applicable law. About OverActive Media OverActive Media Corp. (TSXV: OAM) (OTC: OAMCF) (FRA: 0RB) is a premier global esports and entertainment company for today's generation of fans, headquartered in Toronto, Canada, with operations in Madrid, Spain and Berlin, Germany. OverActive delivers premium experiences by operating top-tier competitive teams and complementary business units across media, content, and live events, including Movistar KOI in the League of Legends EMEA Championship and Toronto KOI in the Call of Duty League. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release. View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2026/26/c8613.html

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