East Side Games Group (EAGR) Q1 2026 earnings summary

Executive summary

• Q1 2026 focused on profitability, cash preservation, and efficient marketing, with a strategic shift to prioritize Adjusted EBITDA and cash flow over top-line growth.

• Significant reduction in user acquisition spend to target more profitable player cohorts and improve capital efficiency.

• Adjusted EBITDA reached CAD 1.74 million ($1.7M), down 11.3% year-over-year but up $1.44M sequentially from Q4 2025.

• Launched Trailer Park Boys Match, showing strong early retention and monetization.

• Strategic reset is yielding positive margin and profitability improvements, positioning for a stronger remainder of 2026.

Financial highlights

• Q1 2026 revenue was CAD 12.45 million ($12.5M), down 32% year-over-year due to reduced user acquisition spend.

• Adjusted EBITDA margin improved to 14%, a 32% increase year-over-year.

• Daily active users decreased to 145,581, with ARPDAU at CAD 0.95 ($0.95), down 3.4% year-over-year.

• DAU/MAU stickiness rate increased to 28.1%, up 14.7% year-over-year.

• Direct-to-consumer revenue rose to 11% of total, up from 3% quarter-over-quarter.

Outlook and guidance

• Targeting elimination of bank debt by end of 2026, with ongoing focus on cash generation and debt repayment.

• Two new titles in development, funded by operating cash flow, tracking for late 2026 and early 2027 launches.

• Expecting further increases in direct-to-consumer revenue and incremental profit from Google’s revised fee structure in Q2 and beyond.

• Anticipates $0.5M in annual profit from reduced platform fees due to Google’s revised service fee program.

• Focus remains on maximizing returns from core portfolio and maintaining a disciplined capital markets strategy.