East Side Games Group (EAGR) Q4 2025 earnings summary

Executive summary

• 2025 focused on aggressive growth with new genre launches, but market saturation and high user acquisition costs led to a strategic pivot toward profitability, debt reduction, and core portfolio optimization for 2026 and beyond.

• Shift to fully funded, platform-exclusive titles with IP partners to secure stable revenues and profits.

• Rightsizing, project cancellations, and in-housing of live operations implemented to improve efficiency and profitability.

• Reported Q4 2025 revenue of $19.8M and full-year revenue of $77.6M, with A-EBITDA of $0.8M for the year.

• Launched several high-performing titles in H2 2025, but growth targets were missed due to a saturated user acquisition market and high platform fees.

Financial highlights

• 2025 revenue was CAD 77.6 million (USD $77.6M), down 7% year-over-year; Adjusted EBITDA was CAD 800,000 (USD $0.8M), a 92% decrease from 2024.

• Q4 2025 DAU was 196,401; ARPDAU reached $1.09, up 12% from Q3 2025.

• Efficiency measures expected to contribute approximately CAD 4 million to free cash flow annually.

• Off-platform fee payments added 10-15 percentage points to margins, generating CAD 320,000 from Q4 to Q1 2026; Q1 2026 saw $1.0M in off-platform payments, a 240% increase over Q4 2025, adding $0.2M to net income.

• Core portfolio margin at approximately 14%; daily active users at 196,000 with ARPDAU of CAD 1.09.

Outlook and guidance

• 2026 revenue guidance: CAD 50–56 million (USD $50M–$56M); Adjusted EBITDA: CAD 7.5–10 million; A-EBITDA margin expected at 15–18%.

• Focus on maximizing profitability, generating cash flow, and reducing debt.

• Expectation to return to positive EBITDA and materially reduce debt over the next 12 months.

• Google’s new tiered platform fee structure (10–25%) effective June 30, 2026, expected to add $0.5M in annual profit.