- Q2 2026 Adjusted EBITDA more than doubled year-over-year to $0.7 million, from $0.3 million in Q2 2025, marking the fourth consecutive quarter of positive Adjusted EBITDA and $5.1 million of trailing twelve-month Adjusted EBITDA
- Significant year-over-year increase in users across the core product portfolio, alongside increased engagement
- Pipeline of new features and products aligned with major gaming releases and moments in the coming months
Toronto, Ontario--(Newsfile Corp. - August 12, 2026) - Enthusiast Gaming Holdings Inc. (TSX: EGLX) ("Enthusiast Gaming" or the "Company"), a digital publisher focused on building tools, platforms, and experiences for gamers, today announced financial results for the three and six months ended June 30, 2026 ("Q2 2026").
"Q2 marked our fourth consecutive quarter of positive Adjusted EBITDA, giving us a full year of consistent profitability and $5.1 million of trailing twelve-month Adjusted EBITDA," said Alex Macdonald, CEO of Enthusiast Gaming. "Adjusted EBITDA more than doubled year-over-year in Q2 to $0.7 million in what is seasonally our slowest quarter, alongside significant year-over-year growth in the number of gamers we serve and their engagement with our products. After a year operating under our product-first strategy, we believe the results are increasingly visible in both the performance of the business and the relevance of our products to gamers.
"As we enter the second half, the seasonal backdrop becomes more favourable, particularly as we move toward Q4 and Q1, historically our strongest quarters. At the same time, we have entered a new product development cycle focused on sharpening the vision for our core properties and pursuing the highest-value opportunities within them. That work is already translating into new products and features positioned around some of the most anticipated gaming releases and moments of the coming months.
"That product development cycle is also being accelerated by the rapid deployment of AI capabilities across our R&D and product development teams, fundamentally changing the speed, scale, and ambition with which we can build. We now have a roadmap to continue expanding those capabilities across the portfolio, helping position us to lead in building the next generation of tools, platforms, and experiences that make every moment of play more meaningful for gamers.
"Taken together, the operating progress we have made and the continued execution we have demonstrated over the past year are creating additional pathways toward a balance sheet better aligned with the long-term goals and opportunities of the business, and we are actively pursuing those pathways. While the legacy capital structure of the business remains a significant challenge, we remain committed to translating that progress into a capital structure that provides greater freedom to invest in our products, our people, and the opportunities we believe can drive the next phase of growth and create long-term value for stakeholders."
Financial Highlights for Q2 2026
(All figures are from continuing operations, unless otherwise stated)
- Revenue of $6.9 million, compared to $7.1 million in the three months ended June 30, 2025 ("Q2 2025"), with the majority of the decrease being attributable to a decrease in subscription revenue.
- Gross profit of $6.2 million, compared to $6.3 million in Q2 2025, with gross margin increasing to 89% from 88% in the year ago period.
- Cost of sales of $0.8 million, compared to $0.8 million in Q2 2025.
- Adjusted EBITDA of $0.7 million, compared to $0.3 million in Q2 2025, a $0.4 million year-over-year improvement. Adjusted EBITDA from discontinued operations of $0.8 million, compared to $(1.5) million in Q2 2025.
- Net income of $0.3 million, compared to a net loss of $39.1 million in Q2 2025, primarily due to the decrease in net loss from discontinued operations of $36.4 million, a decrease in operating expenses of $1.2 million, and a decrease in other expenses (income) of $2.0 million.
Business Highlights for Q2 2026
- U.GG continued to build out its premium offering in Q2 2026, launching new personalized League of Legends build statistics, counters and visual tier lists exclusively for U.GG Plus subscribers. In addition, U.GG Plus includes an ad-free experience, profile customization and priority support, with additional value-additive features scheduled for release through H2 2026. The Deadlock desktop application also continued to gain traction, reaching a new high in daily active users during the quarter and is expected to see significant growth upon release of Deadlock into open beta, currently anticipated for late 2026.
- Icy Veins demonstrated continued growth in Q2, with strong execution in connection with the late April release of Diablo IV's Lord of Hatred expansion, including the release of updated tooling and content in support of the expansion, and continuing growth of its presence in Gacha titles like Genshin Impact, Honkai: Star Rail, and Zenless Zone Zero. Additionally, Q2 saw the full redesign of the Icy Veins website and the launch of All.gg, a genre-agnostic sister-site to Icy Veins, leveraging the Icy Veins model and expansive writer network, and significant progress towards the release of an Icy Veins desktop application scheduled for Q3 2026.
- TheSimsResource advanced a series of infrastructure and product initiatives in Q2 2026, including the rolling out of a new semantic search engine that has improved relevance across top search terms. Additional product advancements included significant back-end updates to improve legacy infrastructure and scalability, with upgrades planned to the site's payment processing to improve authorization rates and overall checkout experience.
- Pocket Gamer Connects ("PGC") continued to entrench itself as the industry leading conference series for mobile gaming professionals and industry participants, hosting the inaugural PGC Summit Malmö and the second annual PGC Barcelona, with PGC Barcelona sponsorship and ticket revenue increasing year-over-year and receiving strong attendance from across the global mobile games industry. PGC Barcelona welcomed over 1,100 games industry professionals from 49 countries.
- Fantasy Football Scout ("FFS") capitalized on the World Cup held during the quarter, launching a new toolkit featuring qualifying data and interactive widgets, together with FFS's first-ever Visual Team Rater tool, which drove a significant increase in free member sign-ups compared to prior major tournament periods. FFS also launched a new EFL Fixture Ticker, available on both the FFS and English Football League websites, and successfully concluded its Premier League fantasy season.
- Addicting Games continued to build on the Q1 2026 launch of its Indie Spotlight feature during the quarter, rolling out a new developer center, expanded developer profile pages and improved search functionality.
Second Quarter 2026 Results Comparison
(All figures are from continuing operations, unless otherwise stated)
Revenue was $6.9 million in Q2 2026, a 3% decrease from $7.1 million in Q2 2025. Media and Content revenue was $3.5 million in Q2 2026, a 6% increase from $3.3 million in Q2 2025, primarily due to an increase in sessions. Events revenue was $1.0 million in Q2 2026 compared to $0.9 million in Q2 2025. Subscription revenue was $2.5 million in Q2 2026, a 14% decrease from $2.9 million in Q2 2025, primarily due to a decrease in TSR subscribers and a decrease in the average monthly subscription pricing for TSR's VIP features which has decreased to USD$2.65 per month in Q2 2026 from USD$3.00 per month in Q2 2025 as a result of an increased percentage of subscribers purchasing the discounted annual plan.
Gross profit was $6.2 million in Q2 2026, a 2% decrease compared to $6.3 million in Q2 2025. Gross margin increased to 89% in Q2 2026 from 88% in Q2 2025.
Adjusted EBITDA was $0.7 million, compared to $0.3 million in Q2 2025. Adjusted EBITDA from discontinued operations was $0.8 million, compared to $(1.5) million in Q2 2025.
Net income from continuing and discontinued operations was $0.3 million, or $0.00 per share, in Q2 2026, compared to a net loss from continuing and discontinued operations of $39.1 million, or $(0.25) per share, in Q2 2025.
Supplemental Information
Enthusiast Gaming's financial statements and management discussion and analysis ("MD&A") are available at www.sedarplus.ca and enthusiastgaming.com/financials. All amounts are in Canadian dollars.
About Enthusiast Gaming
Enthusiast Gaming builds tools, platforms, and experiences that gamers use every day. Its portfolio of owned and operated digital properties includes some of the most recognizable names in gaming, such as U.GG, Icy Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, as well as the global B2B event series PocketGamer Connects. Through these assets, Enthusiast Gaming generates revenue from programmatic advertising, subscriptions, and events, and is focused on expanding its owned IP and deepening direct engagement with its audience.
Contacts
Enthusiast Gaming: Alex Macdonald, Chief Executive Officer
Investors: investor@enthusiastgaming.com
Media: press@enthusiastgaming.com
Forward-Looking Statements
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast Gaming anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, statements regarding trends in certain financial and operating metrics of the Company, the launch and timing of new products, and expectations relating to the financial performance and the financial results of future periods.
Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the gaming media industry; the Company's growth plan, and judgment applied in the application of the Company's accounting policies and in the preparation of financial statements in accordance with applicable financial reporting standards. While Enthusiast Gaming considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risks, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of Enthusiast Gaming which are available on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions, or expectations upon which they are based will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Enthusiast Gaming disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
Non-GAAP Measures
This press release references certain non-GAAP measures, including Adjusted EBITDA, as described below. These non-GAAP measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those GAAP measures by providing further understanding of the Company's results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company's financial information reported under IFRS.
The Company uses non-GAAP measures including:
"EBITDA", defined as earnings before interest, taxes, depreciation and amortization. Enthusiast Gaming calculates EBITDA using gross margin less total operating expenses plus share-based compensation and amortization and depreciation; and,
"Adjusted EBITDA", which is defined as EBITDA adjusted for severance, annual directors and officers liability insurance associated with the Company's former listing on Nasdaq and other non-recurring company costs, such as litigation costs.
Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the exchange) accepts responsibility for the adequacy or accuracy of this release.
Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
For the three and six months ended June 30, 2026 and 2025
(Unaudited - Expressed in Canadian Dollars)
| For the three months ended | For the six months ended | |||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||
| Revenue | $ | 6,942,495 | $ | 7,125,783 | $ | 16,387,058 | $ | 16,108,002 | ||||
| Cost of sales | 770,247 | 839,379 | 2,185,866 | 2,470,331 | ||||||||
| Gross margin | 6,172,248 | 6,286,404 | 14,201,192 | 13,637,671 | ||||||||
| Operating expenses | ||||||||||||
| Professional fees | 256,867 | 346,031 | 645,464 | 624,732 | ||||||||
| Consulting fees | 295,881 | 132,296 | 552,980 | 339,119 | ||||||||
| Advertising and promotion | 76,983 | 155,443 | 157,124 | 324,288 | ||||||||
| Office and general | 275,526 | 625,129 | 1,239,658 | 1,391,496 | ||||||||
| Salaries and wages | 2,841,003 | 3,308,144 | 6,125,029 | 7,009,932 | ||||||||
| Technology support, web development and content | 1,786,893 | 1,922,428 | 3,669,845 | 3,917,018 | ||||||||
| Foreign exchange loss (gain) | 43,231 | (34,226 | ) | 178,726 | (113,201 | ) | ||||||
| Share-based compensation | 4,929 | 41,794 | 15,676 | 97,000 | ||||||||
| Amortization and depreciation | 215,713 | 521,460 | 432,224 | 1,043,246 | ||||||||
| Total operating expenses | 5,797,026 | 7,018,499 | 13,016,726 | 14,633,630 | ||||||||
| Other expenses (income) | ||||||||||||
| Interest and accretion | 1,076,877 | 1,803,254 | 2,292,150 | 2,643,673 | ||||||||
| Gain on revaluation of deferred payment liability | - | (110,107 | ) | - | (238,756 | ) | ||||||
| Gain on sale of assets | (24,916 | ) | - | (24,916 | ) | - | ||||||
| (Gain) loss on revaluation of long-term debt | (499,943 | ) | 885,526 | (173,477 | ) | 899,816 | ||||||
| Other income | (3,541 | ) | - | (75,970 | ) | - | ||||||
| Interest income | (43 | ) | (43 | ) | (463 | ) | (5,532 | ) | ||||
| Net loss before income taxes from continuing operations | (173,212 | ) | (3,310,725 | ) | (832,858 | ) | (4,295,160 | ) | ||||
| Income taxes | ||||||||||||
| Current tax expense | 76,427 | (46,036 | ) | 317,251 | 1,417 | |||||||
| Deferred tax (recovery) expense | (11,430 | ) | (11,368 | ) | 288,364 | 169,919 | ||||||
| Net loss for the period from continuing operations | (238,209 | ) | (3,253,321 | ) | (1,438,473 | ) | (4,466,496 | ) | ||||
| Net gain (loss) from discontinued operations | 543,133 | (35,877,371 | ) | 200,005 | (40,707,960 | ) | ||||||
| Net income (loss) for the period | 304,924 | (39,130,692 | ) | (1,238,468 | ) | (45,174,456 | ) | |||||
| Other comprehensive (loss) income | ||||||||||||
| Items that may be reclassified to profit or loss | ||||||||||||
| Foreign currency translation adjustment | 282,463 | (709,401 | ) | 548,434 | (794,714 | ) | ||||||
| Net income (loss) and comprehensive income (loss) for the period | $ | 587,387 | $ | (39,840,093 | ) | $ | (690,034 | ) | $ | (45,969,170 | ) | |
| Net earnings (loss) per share from continuing operations, basic and diluted | $ | 0.00 | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.03 | ) | |
| Net earnings (loss) per share from discontinued operations, basic and diluted | $ | 0.00 | $ | (0.23 | ) | $ | 0.00 | $ | (0.26 | ) | ||
| Net earnings (loss) per share, basic and diluted | $ | 0.00 | $ | (0.25 | ) | $ | (0.01 | ) | $ | (0.29 | ) | |
| Weighted average number of common shares | ||||||||||||
| outstanding, basic and diluted | 168,022,456 | 159,169,003 | 163,620,187 | 159,169,003 | ||||||||
Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Financial Position
As of June 30, 2026 and December 31, 2025
(Unaudited - Expressed in Canadian Dollars)
| June 30, 2026 | December 31, 2025 | |||||
| ASSETS | ||||||
| Current | ||||||
| Cash | $ | 2,040,447 | $ | 3,262,528 | ||
| Trade and other receivables | 2,706,805 | 4,806,842 | ||||
| Income tax receivable | - | 75,334 | ||||
| Prepaid expenses | 551,658 | 752,995 | ||||
| Total current assets | 5,298,910 | 8,897,699 | ||||
| Non-current | ||||||
| Property and equipment | 5,356 | 8,755 | ||||
| Intangible assets | 24,555,595 | 24,491,606 | ||||
| Goodwill | 31,623,971 | 31,543,408 | ||||
| Total assets | $ | 61,483,832 | $ | 64,941,468 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current | ||||||
| Accounts payable and accrued liabilities | $ | 6,692,255 | $ | 8,776,572 | ||
| Contract liabilities | 5,089,924 | 6,235,303 | ||||
| Income tax payable | 241,055 | - | ||||
| Current portion of long-term debt | 45,047,572 | 45,583,794 | ||||
| Current portion of deferred payment liability | - | 525,083 | ||||
| Current portion of lease liabilities | 122,420 | 118,078 | ||||
| Total current liabilities | 57,193,226 | 61,238,830 | ||||
| Non-current | ||||||
| Deferred tax liability | 2,238,251 | 1,921,014 | ||||
| Total liabilities | $ | 59,431,477 | $ | 63,159,844 | ||
| Shareholders' Equity | ||||||
| Share capital | 462,552,462 | 461,607,373 | ||||
| Warrants reserve | 2,561,231 | 2,561,231 | ||||
| Contributed surplus | 17,789,735 | 17,774,059 | ||||
| Accumulated other comprehensive income | 5,325,743 | 4,777,309 | ||||
| Deficit | (486,176,816 | ) | (484,938,348 | ) | ||
| Total shareholders' equity | 2,052,355 | 1,781,624 | ||||
| Total liabilities and shareholders' equity | $ | 61,483,832 | $ | 64,941,468 |
Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Cash Flows
For the six months ended June 30, 2026 and 2025
(Unaudited - Expressed in Canadian Dollars)
| June 30, 2026 | June 30, 2025 | |||||
| Cash flows from operating activities | ||||||
| Net loss for the period from continuing operations | $ | (1,438,473 | ) | $ | (4,466,496 | ) |
| Items not affecting cash: | ||||||
| Amortization and depreciation | 432,224 | 1,043,246 | ||||
| Share-based compensation | 15,676 | 97,000 | ||||
| Accretion | - | (85,311 | ) | |||
| Deferred tax expense | 288,364 | 169,919 | ||||
| Foreign exchange (gain) loss | (224,977 | ) | 106,030 | |||
| Gain on settlement of accounts payable | (194,869 | ) | (70,589 | ) | ||
| (Gain) loss on revaluation of long-term debt | (173,477 | ) | 899,816 | |||
| Gain on revaluation of deferred payment liability | - | (238,756 | ) | |||
| Provisions | 336,920 | 776 | ||||
| Gain on sale of assets | (24,916 | ) | - | |||
| Changes in working capital: | ||||||
| Changes in trade and other receivables | 119,441 | 1,707,142 | ||||
| Changes in prepaid expenses | 194,375 | 141,981 | ||||
| Changes in accounts payable and accrued liabilities | (151,407 | ) | 314,981 | |||
| Changes in contract liabilities | (1,145,379 | ) | (1,173,746 | ) | ||
| Changes in income tax receivable and payable | 316,389 | 22,074 | ||||
| Income tax paid | - | (86,649 | ) | |||
| Net cash used in operating activities from continuing operations | (1,650,109 | ) | (1,618,582 | ) | ||
| Net cash (used in) from operating activities from discontinued operations | 733,315 | (129,235 | ) | |||
| Net cash used in operating activities | (916,794 | ) | (1,747,817 | ) | ||
| Cash flows from investing activities | ||||||
| Proceeds from sale of assets | 24,916 | - | ||||
| Acquisition of property and equipment | - | (840 | ) | |||
| Net cash from (used in) investing activities from continuing operations | 24,916 | (840 | ) | |||
| Net cash from investing activities from discontinued operations | - | 41,948 | ||||
| Net cash from investing activities | 24,916 | 41,108 | ||||
| Cash flows from financing activities | ||||||
| Proceeds from long-term debt, net of transaction costs | 53,691 | 11,992 | ||||
| Repayments of long-term debt | (416,436 | ) | (2,408,043 | ) | ||
| Lease payments | - | (39,179 | ) | |||
| Net cash used in financing activities from continuing operations | (362,745 | ) | (2,435,230 | ) | ||
| Net cash used in financing activities from discontinued operations | - | (182,543 | ) | |||
| Net cash used in financing activities | (362,745 | ) | (2,617,773 | ) | ||
| Foreign exchange effect on cash from continuing operations | 32,542 | (70,866 | ) | |||
| Foreign exchange effect on cash from discontinued operations | - | (8,158 | ) | |||
| Foreign exchange effect on cash | 32,542 | (79,024 | ) | |||
| Net change in cash | (1,222,081 | ) | (4,403,506 | ) | ||
| Cash, beginning of period | 3,262,528 | 4,765,373 | ||||
| Cash, end of period | 2,040,447 | 361,867 | ||||
| Cash held by discontinued operations | - | 83,114 | ||||
| Cash held by continuing operations | $ | 2,040,447 | $ | 278,753 |
Enthusiast Gaming Holdings Inc.
EBITDA and Adjusted EBITDA from Continuing Operations
For the three and six months ended June 30, 2026 and 2025
(Unaudited - Expressed in Canadian Dollars)
| For the three months ended | For the six months ended | |||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||
| Gross margin | $ | 6,172,248 | $ | 6,286,404 | $ | 14,201,192 | $ | 13,637,671 | ||||
| Operating expenses | (5,797,026 | ) | (7,018,499 | ) | (13,016,726 | ) | (14,633,630 | ) | ||||
| Share-based compensation | 4,929 | 41,794 | 15,676 | 97,000 | ||||||||
| Amortization and depreciation | 215,713 | 521,460 | 432,224 | 1,043,246 | ||||||||
| EBITDA | 595,864 | (168,841 | ) | 1,632,366 | 144,287 | |||||||
| Severance | 7,673 | 227,112 | 134,206 | 337,791 | ||||||||
| D&O insurance specific to the | ||||||||||||
| Company's former Nasdaq listing | 18,307 | 111,386 | 100,687 | 312,864 | ||||||||
| Other non-recurring items | 117,808 | 117,172 | 572,842 | 148,152 | ||||||||
| Adjusted EBITDA | $ | 739,652 | $ | 286,829 | $ | 2,440,101 | $ | 943,094 | ||||
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/309353
Source: Enthusiast Gaming Holdings Inc.
