- Q1 2026 Revenue of $9.4 million, compared to $9.0 million in prior year
- Q1 2026 Adjusted EBITDA of $1.7 million, compared to $0.7 million in prior year
- YoY growth across core product portfolio, serving over 100 million gamers in Q1
- Alex Macdonald, CEO, appointed to Board of Directors
Toronto, Ontario--(Newsfile Corp. - May 14, 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 months ended March 31, 2026 ("Q1 2026").
"Q1 delivered another quarter of meaningful profitability for Enthusiast Gaming," said Alex Macdonald, CEO of Enthusiast Gaming. "At the core of that performance is our ability to serve the gamers who love and rely on our products, including the more than 100 million gamers that visited our properties in Q1. That kind of relevance is earned through focus and execution, and today we are operating with greater consistency, clarity, and follow-through across the organization."
"More importantly, we are seeing those qualities translate into a repeatable and scalable operating pattern in the business, with year-over-year growth in both revenue and profit being seen across our product portfolio. This is reinforcing the strength of our product-first model built around direct user relevance and a mission of bringing gamers closer to the worlds they love. With each additional proof point, the path forward becomes more tangible."
"That leaves us in a very different position than we were in even a few quarters ago. We are no longer spending our energy trying to simplify the business or define the strategy. That work is done. The task now is to execute against a clearer roadmap, press selectively where we see growth opportunity, and continue building a business that grows more valuable, more durable, and more capable over time. The challenges of capital structure remain, but the business itself is giving us even more reasons to be constructive about the future, and continued execution is creating greater flexibility as we work toward a balance sheet better aligned with our long-term goals and opportunities."
Financial Highlights for Q1 2026
(All figures are from continuing operations, unless otherwise stated)
- Revenue of $9.4 million, compared to $9.0 million in the three months ended March 31, 2025 ("Q1 2025"), with the majority of the increase being attributable to an increase in web programmatic revenue and an increase in events revenue from PGC London 2026. Gross profit of $8.0 million, compared to $7.4 million in Q1 2025, mainly driven by increases in revenue and decreases in cost of sales, with gross margin increasing to 85% from 82% in the year ago period.
- Cost of sales of $1.4 million, compared to $1.6 million in Q1 2025, with the majority of the decrease being attributable to a decrease in third-party publisher sites cost of sales and a decrease in PGC event cost of sales.
- Adjusted EBITDA of $1.7 million, compared to $0.7 million in Q1 2025, a $1.0 million year-over-year improvement. Adjusted EBITDA from discontinued operations of $(0.3) million, compared to $(4.5) million in Q1 2025.
- Net loss of $1.5 million, compared to $6.0 million in Q1 2025, primarily due to the decrease in net loss from discontinued operations of $4.5 million and the increase in gross profit of $0.7 million.
Business Highlights for Q1 2026
- U.GG executed on multiple product advancements in Q1, including in respect of the Deadlock desktop application and tracklock.gg, which are expected to see significant growth upon release of Deadlock into open beta, currently anticipated for late 2026. Additionally, Q1 saw the launch of U.GG's premium offering, U.GG Plus, which includes an ad-free experience, profile customization and priority support, with additional value-additive features released subsequent to Q1.
- Icy Veins demonstrated continued growth in Q1 2026, with strong execution in connection with the World of Warcraft Midnight expansion, and continuing growth of its presence in Gacha titles like Genshin Impact, Honkai: Star Rail, and Zenless Zone Zero, while further establishing itself as a go-to source for gaming news beyond ARPGs and Blizzard titles. Additionally, Q1 saw significant progress towards Icy Veins' modernization initiatives and the development of a genre-agnostic sister-site to Icy Veins, leveraging the Icy Veins model and expansive writer network, each of which is planned for Q2 2026, together with support for Diablo IV's Lord of Hatred which released on April 27, 2026.
- TheSimsResource continued to evolve its first-to-market LookBuilder tool which provides users with a browser-based, 3D-rendered, real-time outfit preview engine, including significant UI/UX enhancements. LookBuilder is available for both free and paid users and is intended to drive deeper engagement across TSR. Additional product advancements included security enhancements, significant back-end updates to improve legacy infrastructure and scalability and improvements to search for enhanced discoverability.
- Pocket Gamer Connects ("PGC") continued to entrench itself as the industry leading conference series for mobile gaming professionals and industry participants, hosting PGC London, its largest event ever by all relevant metrics, including attendance, sponsors, speakers and company representation, in January 2026, and PGC San Francisco in March 2026. PGC London welcomed over 3,000 games industry professionals from 60 countries, including a visit from the UK Government's Minister of State for Trade Policy, Sir Chris Bryant. PGC London 2026 also marked the 20th anniversary of Pocket Gamer's founding.
- Addicting Games launched the Indie Spotlight in Q1, a rotating curated selection of playable indie games and demos meant to highlight independent developers and the games they are building, as well as further enhancements to improve the user experience and position the property to capitalize on potential synergies with the Company's Pocket Gamer brand, which represents one of the world's leading mobile gaming destinations on the web and the pre-eminent B2B mobile gaming conference and event series.
- Fantasy Football Scout ("FFS") continued to expand its partnership with the English Premier League in Q1, introducing additional resources to the English Premier League's fantasy offering. In addition, Q1 saw significant progress towards FFS website upgrades and the development and planning of content and offerings for tentpole football tournaments to be held during the second half of 2026.
First Quarter 2026 Results Comparison
(All figures are from continuing operations, unless otherwise stated)
Revenue was $9.4 million in Q1 2026, a 5% increase from $9.0 million in Q1 2025. Media and Content revenue was $3.4 million in Q1 2026, a 22% increase from $2.8 million in Q1 2025, primarily due to an increase in sessions. Events revenue was $3.4 million in Q1 2026, a 9% increase from $3.1 million in Q1 2025, mainly attributable to the higher event sponsorships and ticket sales generated in Q1 2026 compared to Q1 2025. Subscription revenue was $2.6 million in Q1 2026, a 14% decrease from $3.0 million in Q1 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$2.70 per month in Q1 2026 from USD$3.00 per month in Q1 2025 as a result of an increased percentage of subscribers purchasing the discounted annual plan.
Gross profit was $8.0 million in Q1 2026, a 9% increase compared to $7.4 million in Q1 2025. Gross margin increased to 85% in Q1 2026 from 82% in Q1 2025.
Adjusted EBITDA was $1.7 million, compared to $0.7 million in Q1 2025. Adjusted EBITDA from discontinued operations was $(0.3) million, compared to $(4.5) million in Q1 2025.
Net loss from continuing and discontinued operations was $1.5 million, or $(0.01) per share, in Q1 2026, compared to net loss of $6.0 million, or $(0.04) per share, in Q1 2025.
Organizational Updates
The Company announced that Jordan Gnat has tendered his resignation from the board of directors of the Company. The Company thanks Mr. Gnat for his significant contributions and service. Concurrently, the Company is also pleased to announce that Alex Macdonald, CEO of Enthusiast Gaming, has been appointed as a director.
Additionally, the Company provided an update on its strategic review process under its special committee, now comprised of Thomas Hearne (chair), John Albright and Scott O'Neil (the "Special Committee"), pursuant to which it continues to evaluate potential refinancing and recapitalization alternatives in light of the expiry of the Company's previously announced forbearance terms with its secured lenders. The Special Committee is assisted by Paradigm Capital Inc. in its ongoing review of strategic alternatives which remain focused on deleveraging the business and unlocking shareholder value.
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 placed 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 Loss and Comprehensive Loss
For the three months ended March 31, 2026 and 2025
(Unaudited - Expressed in Canadian Dollars)
| March 31, 2026 | March 31, 2025 | |||||
| Revenue | $ | 9,444,563 | $ | 8,982,219 | ||
| Cost of sales | 1,415,619 | 1,630,952 | ||||
| Gross margin | 8,028,944 | 7,351,267 | ||||
| Operating expenses | ||||||
| Professional fees | 388,597 | 278,701 | ||||
| Consulting fees | 257,099 | 206,823 | ||||
| Advertising and promotion | 80,141 | 168,845 | ||||
| Office and general | 964,132 | 766,367 | ||||
| Salaries and wages | 3,284,026 | 3,701,788 | ||||
| Technology support, web development and content | 1,882,952 | 1,994,590 | ||||
| Foreign exchange loss (gain) | 135,495 | (78,975 | ) | |||
| Share-based compensation | 10,747 | 55,206 | ||||
| Amortization and depreciation | 216,511 | 521,786 | ||||
| Total operating expenses | 7,219,700 | 7,615,131 | ||||
| Other expenses (income) | ||||||
| Interest and accretion | 1,215,273 | 840,419 | ||||
| Gain on revaluation of deferred payment liability | - | (128,649 | ) | |||
| Loss on revaluation of long-term debt | 326,466 | 14,290 | ||||
| Other income | (72,429 | ) | - | |||
| Interest income | (420 | ) | (5,489 | ) | ||
| Net loss before income taxes from continuing operations | (659,646 | ) | (984,435 | ) | ||
| Income taxes | ||||||
| Current tax expense | 240,824 | 47,453 | ||||
| Deferred tax expense | 299,794 | 181,287 | ||||
| Net loss for the period from continuing operations | (1,200,264 | ) | (1,213,175 | ) | ||
| Net loss from discontinued operations | (343,128 | ) | (4,830,589 | ) | ||
| Net loss for the period | (1,543,392 | ) | (6,043,764 | ) | ||
| Other comprehensive (loss) income | ||||||
| Items that may be reclassified to profit or loss | ||||||
| Foreign currency translation adjustment | 265,971 | (85,313 | ) | |||
| Net loss and comprehensive loss for the period | $ | (1,277,421 | ) | $ | (6,129,077 | ) |
| Net loss per share from continuing operations, basic and diluted | $ | (0.01 | ) | $ | (0.01 | ) |
| Net loss per share from discontinued operations, basic and diluted | $ | - | $ | (0.03 | ) | |
| Net loss per share, basic and diluted | $ | (0.01 | ) | $ | (0.04 | ) |
| Weighted average number of common shares | ||||||
| outstanding, basic and diluted | 159,169,003 | 159,169,003 |
Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Financial Position
As of March 31, 2026 and December 31, 2025
(Unaudited - Expressed in Canadian Dollars)
| March 31, 2026 | December 31, 2025 | |||||
| (audited) | ||||||
| ASSETS | ||||||
| Current | ||||||
| Cash | $ | 4,293,083 | $ | 3,262,528 | ||
| Trade and other receivables | 3,120,413 | 4,806,842 | ||||
| Income tax receivable | - | 75,334 | ||||
| Prepaid expenses | 331,346 | 752,995 | ||||
| Total current assets | 7,744,842 | 8,897,699 | ||||
| Non-current | ||||||
| Property and equipment | 6,478 | 8,755 | ||||
| Intangible assets | 24,493,678 | 24,491,606 | ||||
| Goodwill | 31,545,855 | 31,543,408 | ||||
| Total assets | $ | 63,790,853 | $ | 64,941,468 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current | ||||||
| Accounts payable and accrued liabilities | $ | 9,230,724 | $ | 8,776,572 | ||
| Contract liabilities | 5,095,465 | 6,235,303 | ||||
| Income tax payable | 165,563 | - | ||||
| Current portion of long-term debt | 45,910,260 | 45,583,794 | ||||
| Current portion of deferred payment liability | 523,073 | 525,083 | ||||
| Current portion of lease liabilities | 120,086 | 118,078 | ||||
| Total current liabilities | 61,045,171 | 61,238,830 | ||||
| Non-current | ||||||
| Deferred tax liability | 2,230,732 | 1,921,014 | ||||
| Total liabilities | $ | 63,275,903 | $ | 63,159,844 | ||
| Shareholders' Equity | ||||||
| Share capital | 461,607,373 | 461,607,373 | ||||
| Warrants reserve | 2,561,231 | 2,561,231 | ||||
| Contributed surplus | 17,784,806 | 17,774,059 | ||||
| Accumulated other comprehensive income | 5,043,280 | 4,777,309 | ||||
| Deficit | (486,481,740 | ) | (484,938,348 | ) | ||
| Total shareholders' equity | 514,950 | 1,781,624 | ||||
| Total liabilities and shareholders' equity | $ | 63,790,853 | $ | 64,941,468 |
Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2026 and 2025
(Unaudited - Expressed in Canadian Dollars)
| March 31, 2026 | March 31, 2025 | |||||
| Cash flows from operating activities | ||||||
| Net loss for the period from continuing operations | $ | (1,200,264 | ) | $ | (1,213,175 | ) |
| Items not affecting cash: | ||||||
| Amortization and depreciation | 216,511 | 521,786 | ||||
| Share-based compensation | 10,747 | 55,206 | ||||
| Accretion | - | (55,618 | ) | |||
| Deferred tax expense | 299,794 | 181,287 | ||||
| Gain on revaluation of deferred payment liability | - | (128,649 | ) | |||
| Foreign exchange loss (gain) | 31,263 | (140,783 | ) | |||
| Gain on settlement of accounts payable | (10,860 | ) | (14,352 | ) | ||
| Loss on revaluation of long-term debt | 326,466 | 14,290 | ||||
| Provisions | 404,959 | 2,881 | ||||
| Changes in working capital: | ||||||
| Changes in trade and other receivables | (422,064 | ) | 575,074 | |||
| Changes in prepaid expenses | 421,765 | 494,087 | ||||
| Changes in accounts payable and accrued liabilities | 639,327 | (531,523 | ) | |||
| Changes in contract liabilities | (1,139,838 | ) | (862,013 | ) | ||
| Changes in income tax receivable and payable | 240,897 | 64,010 | ||||
| Income tax paid | - | (70,902 | ) | |||
| Net cash used in operating activities from continuing operations | (181,297 | ) | (1,108,394 | ) | ||
| Net cash from (used in) operating activities from discontinued operations | 1,185,975 | (251,140 | ) | |||
| Net cash from (used in) operating activities | 1,004,678 | (1,359,534 | ) | |||
| Cash flows from financing activities | ||||||
| Proceeds from long-term debt, net of transaction costs | 19,240 | 11,760 | ||||
| Repayment of long-term debt | (19,240 | ) | (1,319,575 | ) | ||
| Lease payments | - | (41,284 | ) | |||
| Net cash used in financing activities from continuing operations | - | (1,349,099 | ) | |||
| Net cash used in financing activities from discontinued operations | - | (144,263 | ) | |||
| Net cash used in financing activities | - | (1,493,362 | ) | |||
| Foreign exchange effect on cash from continuing operations | 25,877 | 32,745 | ||||
| Foreign exchange effect on cash from discontinued operations | - | (175 | ) | |||
| Foreign exchange effect on cash | 25,877 | 32,570 | ||||
| Net change in cash | 1,030,555 | (2,820,326 | ) | |||
| Cash, beginning of period | 3,262,528 | 4,765,373 | ||||
| Cash, end of period | 4,293,083 | 1,945,047 | ||||
| Cash held by discontinued operations | - | 83,114 | ||||
| Cash held by continuing operations | $ | 4,293,083 | $ | 1,861,933 |
Enthusiast Gaming Holdings Inc.
EBITDA and Adjusted EBITDA from Continuing Operations
For the three months ended March 31, 2026 and 2025
(Unaudited - Expressed in Canadian Dollars)
| March 31, 2026 | March 31, 2025 | |||||
| Gross margin | $ | 8,028,944 | $ | 7,351,267 | ||
| Operating expenses | (7,219,700 | ) | (7,615,131 | ) | ||
| Share-based compensation | 10,747 | 55,206 | ||||
| Amortization and depreciation | 216,511 | 521,786 | ||||
| EBITDA | 1,036,502 | 313,128 | ||||
| Severance | 126,533 | 110,679 | ||||
| D&O insurance specific to the | ||||||
| Company's former Nasdaq listing | 82,380 | 201,478 | ||||
| Other non-recurring items | 455,034 | 30,980 | ||||
| Adjusted EBITDA | $ | 1,700,449 | $ | 656,265 |
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/297493
Source: Enthusiast Gaming Holdings Inc.