Enthusiast Gaming Experiences Q3 2025 Financial Results

Adjusted EBITDA from persevering with operations of $1.2 million for the 9 months ended September 30, 2025, in comparison with a lack of $0.1 million within the yr in the past interval

Completed sale of Direct Sales Media Business and associated inventive belongings in Q3, leading to a acquire on sale of subsidiaries and belongings of $5.5 million

Gross margin of 86.9% in Q3 2025, up 1,810 bps from Q3 2024

TORONTO, Nov. 13, 2025 (GLOBE NEWSWIRE) — Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a digital writer centered on constructing instruments, platforms, and experiences for avid gamers, at the moment introduced monetary outcomes for the three months ended September 30, 2025 (“Q3 2025”).

“In three short months we pushed squarely into profitability, increased our cash position significantly, and embraced our true identity as an R&D-driven, product-led business,” stated Alex Macdonald, CEO of Enthusiast Gaming. “With the sale of our direct gross sales enterprise and associated inventive belongings now full, the Company is totally aligned behind what’s and has all the time been our core engine: our merchandise and the tens of tens of millions of avid gamers who depend on them.

“The energy of our core enterprise is clearer than ever. In Q3 we served over 90 million avid gamers throughout our owned properties, up 11% quarter-over-quarter. That isn’t simply attain; attain is rented. That is relevance. That is our viewers on our platforms. Moreover, this renewed focus is already producing outcomes: we have now been cash-flow constructive each month since July, together with subsequent to quarter finish, and our gross margin reached 87% in Q3, demonstrating the underlying scalability of our persevering with operations.

“Operationally, our product-first technique is remodeling how our platforms carry out. September and October have been every our strongest programmatic promoting months year-to-date, pushed by substantial viewers features and greater than 10% progress in time spent in Q3 quarter-over-quarter. When we put money into R&D, we construct merchandise that compound into long-term, recurring returns measured over years or many years. We now have a rising pipeline of function expansions and, for the primary time shortly, completely new merchandise scheduled to launch over the subsequent twelve months to fulfill main title releases, whereas making use of proprietary applied sciences and processes that give us a aggressive edge. This positions us to be first to market with best-in-class instruments for the biggest gaming waves of tomorrow.

“We are not focused on building quarters; we are focused on building a business for 2026 and beyond. Platforms like U.GG, Icy Veins, and TheSimsResource have already proven that we can publish and operate best-in-class products wherever we choose to compete, and the task ahead is straightforward: expand our feature offering and broaden our product relevance across more titles and genres, ultimately toward title-agnostic platforms. We are moving with purpose and direction as a product company defined by relevance rather than reach. Our momentum is carrying through into Q4, where seasonal tailwinds in advertising and in our events business are expected to drive a meaningful increase in profitability. The path we are on is strong, clear, and leading us toward an increasingly promising future.”

Financial Highlights for Q3 2025

(All figures are from persevering with operations, until in any other case acknowledged)

• Revenue of $7.3 million, in comparison with $10.8 million in Q3 2024, with the vast majority of the decline being attributable to a discount within the variety of low-margin third-party community web sites represented by the Company for internet programmatic stock on account of the Company’s choice to give attention to monetizing its owned and operated web sites.
• Gross revenue of $6.4 million, in comparison with $7.4 million in Q3 2024, equally pushed by third-party community companions leaving the community, with gross margin increasing to 86.9% from 68.8% within the yr in the past interval.
• Operating bills of $6.6 million, a $1.2 million year-over-year lower from $7.8 million in Q3 2024 on account of initiatives taken to determine an environment friendly and scalable working mannequin.
• Adjusted EBITDA of $0.3 million, in comparison with $0.5 in Q3 2024, which was constant year-over-year when adjusting for overseas alternate loss (acquire). Adjusted EBITDA loss from discontinued operations of $0.3 million, in comparison with $0.4 in Q3 2024.
• Net earnings of $7.0 million, in comparison with $6.7 million in Q3 2024, primarily because of (i) the acquire from the write off of discontinued operations which resulted in a $11.5 million web acquire change from discontinued operations, and (ii) decreased transaction prices of $1.5 million.

Business Highlights for Q3 2025

• On July 10, 2025, the Company introduced the initiation of a strategic overview course of to discover alternatives to additional strengthen its stability sheet and unlock shareholder worth.
• On July 25, 2025, the Company closed on $2.0 million of funding by means of a non-revolving time period mortgage with Beedie Capital and entered into forbearance agreements with every of its secured lenders.
• On August 30, 2025, the Company closed the sale of its direct gross sales enterprise line, together with Omnia Media Inc. and GameCo Esports Canada Inc., for money consideration of $0.9 million, in addition to the idea of all present and ongoing liabilities of the direct gross sales enterprise line and purchased entities as of closing. The sale resulted in a acquire on sale of subsidiaries and belongings of $5.5 million, which is included in discontinued operations.
• Product Updates:
  • U.GG elevated promoting revenues by 25.1% in Q3 2025 in comparison with Q2 2025. This progress was pushed primarily by a ten.9% enchancment in common session period quarter-over-quarter reflecting enhanced consumer engagement on the platform, seasonal uplifts in CPMs, and extra advert tech optimizations deployed inside the quarter. The platform additionally noticed the launch of U.GG’s ‘mono-app’, combining its League of Legends and Valorant functions below a single desktop software whereas permitting for the mixing of latest titles on a modular foundation. These developments are anticipated to considerably enhance the velocity with which U.GG can deploy functions for brand spanking new titles.
  • Icy Veins noticed appreciable progress in Q3 2025, rising customers by 31.8% and complete time with avid gamers by 27.9% relative to Q2 2025, all whereas increasing its working margin and making vital progress in its modernization initiatives deliberate for Q1 2026 forward of the key expansions introduced for its flagship titles, World of Warcraft and Diablo IV. Q3 2025 additionally marked a interval of progress for Icy Veins’ nascent information providing, the success of which has warranted elevated funding within the improvement of a net-new product for the Company, deliberate for launch in H1 2026.
  • TheSimsResource continued to evolve its first-to-market LookBuilder software, which launched in June, offering customers with a browser-based, 3D-rendered, real-time outfit preview engine that permits gamers to construct and customise full outfits and see them visualized on a personality immediately. Feature enhancements accomplished in Q3 embrace the addition of poses, multi-file obtain to permit for one-click outfit saving, improved rendering to higher replicate how customized content material seems in-game, and the launch of the My Current Look tab, with improved show and navigation controls. LookBuilder is out there for each free and paid customers and is meant to drive deeper engagement throughout the platform.
  • Addicting Games launched vital updates to its iconic informal gaming platform in Q3, offering customers with a extra fashionable design, streamlined navigation, and optimized efficiency. Further enhancements are underway to enhance the cell expertise and capitalize on clear synergies with the Company’s PocketGamer model, which represents one of many world’s main cell gaming locations on the net and the pre-eminent B2B cell gaming convention and occasion sequence.
• Event Updates: PocketGamer Connects (“PGC”) continued to execute on its beforehand introduced world growth plans, internet hosting Pocket Gamer Connects Summit Shanghai 2025 in July, an occasion which attracted over 630 senior business professionals. Subsequent to the quarter, PGC hosted its twelfth annual Pocket Gamer Connects Helsinki in October, an occasion which attracted over 1,350 senior video games business professionals, Pocket Gamer Connects Summit Korea, attended by over 500 senior video games business professionals, and Pocket Gamer Connects Aqaba, attended by over 1,200 senior video games business professionals.

Third Quarter 2025 Results Comparison
Revenue was $7.3 million in Q3 2025, a 32% lower in comparison with $10.8 million in Q3 2024. Media and Content income was $4.3 million in Q3 2025, a 44% lower from $7.7 million in Q3 2024, primarily because of a lot of represented third-party publishers leaving the net community because the Company continues to give attention to its owned and operated web sites. Events income was $0.3 million in Q3 2025 in comparison with $0.2 million in Q3 2024. Subscription income was $2.7 million in Q3 2025 in comparison with $2.8 million in Q3 2024.

Gross revenue was $6.4 million in Q3 2025, a 14% lower in comparison with $7.4 million in Q3 2024. Gross margin elevated to 86.9% in Q3 2025 from 68.8% in Q3 2024.

Adjusted EBITDA from continued operations was $0.3 million, in comparison with an Adjusted EBITDA from continued operations of $0.5 in Q3 2024, which was constant year-over-year when adjusting for overseas alternate loss (acquire). Adjusted EBITDA loss from discontinued operations was $0.3 million, in comparison with an Adjusted EBITDA loss from discontinued operations lack of $0.4 in Q3 2024.

Net earnings was $7.0 million, or $0.04 per share, in Q3 2025, in comparison with web lack of $6.7 million, or $(0.04) per share, in Q3 2024.

Strategic Updates
The Company won’t be internet hosting a convention name for its Q3 2025 outcomes. Enthusiast Gaming has established its technique to function as a product-first enterprise and is aligning all operations and assets round its core product portfolio. The Company has accomplished the divestment of its direct gross sales enterprise line and associated inventive belongings, and continues to undertake its strategic overview to strengthen the Company’s stability sheet. Management will proceed to replace shareholders on these actions by way of acceptable channels as milestones are reached, and anticipates offering a fulsome presentation of the Company’s product-focused operations as soon as the transition is accomplished.

Supplemental Information
Enthusiast Gaming’s monetary statements and administration dialogue and evaluation (“MD&A”) can be found at www.sedarplus.ca and enthusiastgaming.com/financials. All quantities are in Canadian {dollars}.

About Enthusiast Gaming
Enthusiast Gaming builds instruments, platforms, and experiences that avid gamers use day by day. Its portfolio of owned and operated digital properties contains among the most recognizable names in gaming, resembling U.GG, Icy Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, in addition to the worldwide B2B occasion sequence PocketGamer Connects. Through these belongings, Enthusiast Gaming generates income from programmatic promoting, subscriptions, and occasions, and is targeted on increasing its owned IP and deepening direct engagement with its viewers.

Contacts

Enthusiast Gaming: Alex Macdonald, Chief Executive Officer
Investors: [email protected]
Media: [email protected]

Forward-Looking Statements
This information launch accommodates sure statements that will represent forward-looking info below relevant securities legal guidelines. All statements, aside from these of historic reality, which tackle actions, occasions, outcomes, outcomes, developments, efficiency or achievements that Enthusiast Gaming anticipates or expects could or will happen sooner or later (in complete or partially) ought to be thought-about forward-looking info. Often, however not all the time, forward-looking info may be recognized by way of phrases resembling “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (together with damaging variations) of such phrases and phrases, or statements fashioned sooner or later tense or indicating that sure actions, occasions or outcomes “may”, “could”, “would”, “might” or “will” (or different variations of the forgoing) be taken, happen, be achieved, or come to go. Forward-looking statements on this information launch embrace, however usually are not restricted to, statements relating to developments in sure monetary and working metrics of the Company, the launch and timing of latest merchandise, and expectations referring to the monetary efficiency and the monetary outcomes of future durations.

Forward-looking statements are primarily based on assumptions and analyses made by the Company in mild of its expertise and its notion of historic developments, present situations and anticipated future developments, together with, however not restricted to, expectations and assumptions regarding: curiosity and overseas alternate charges; capital efficiencies, value saving and synergies; progress and progress charges; the success within the esports and gaming media business; the Company’s progress plan, and judgment utilized within the software of the Company’s accounting insurance policies and within the preparation of monetary statements in accordance with relevant monetary reporting requirements. While Enthusiast Gaming considers these assumptions to be cheap, primarily based on info at present obtainable, they could show to be incorrect. Readers are cautioned to not place undue reliance on forward-looking statements. In addition, forward-looking statements essentially contain recognized and unknown dangers, together with, with out limitation, dangers related to common financial situations; hostile business occasions; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing record isn’t exhaustive. For extra info on the dangers, uncertainties and assumptions that might trigger anticipated alternatives and precise outcomes to vary materially, please confer with the general public filings of Enthusiast Gaming which can be found on SEDAR+ at www.sedarplus.ca. Readers are additional cautioned to not place undue reliance on forward-looking statements as there may be no assurance that the plans, intentions or expectations upon which they’re positioned will happen. Such info, though thought-about cheap by administration on the time of preparation, could show to be incorrect and precise outcomes could differ materially from these anticipated. Forward-looking statements contained on this information launch are expressly certified by this cautionary assertion and replicate our expectations as of the date hereof, and thus are topic to alter thereafter. Enthusiast Gaming disclaims any intention or obligation to replace or revise any forward-looking statements, whether or not on account of new info, future occasions or in any other case, besides as required by relevant regulation.

Non-GAAP Measures
This press launch references sure non-GAAP measures, together with Adjusted EBITDA, as described under. These non-GAAP measures usually are not acknowledged measures below GAAP and do not need a standardized which means prescribed by GAAP and are due to this fact unlikely to be akin to comparable measures offered by different firms. Rather, these measures are offered as extra info to enhance these GAAP measures by offering additional understanding of the Company’s outcomes of operations from administration’s perspective. Accordingly, these measures shouldn’t be thought-about in isolation nor as an alternative to evaluation of the Company’s monetary info reported below IFRS.

The Company makes use of non-GAAP measures together with:

“EBITDA”, outlined as earnings earlier than curiosity, taxes, depreciation and amortization. Enthusiast Gaming calculates EBITDA utilizing gross margin much less complete working bills plus share-based compensation and amortization and depreciation; and,

“Adjusted EBITDA”, which is outlined as EBITDA adjusted for severance, annual administrators and officers legal responsibility insurance coverage related to the Company’s former itemizing on Nasdaq and different non-recurring firm prices, resembling litigation prices.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that time period is outlined within the insurance policies of the alternate) accepts duty for the adequacy or accuracy of this launch.

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
For the three and 9 months ended September 30, 2025 and 2024
(Unaudited – Expressed in Canadian Dollars)
				For the three months ended						For the 9 months ended
				September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Revenue			$	7,310,748		$	10,755,422		$	23,980,453		$	32,104,155
Cost of gross sales				960,931			3,353,601			3,992,965			9,900,631
Gross margin				6,349,817			7,401,821			19,987,488			22,203,524
Operating bills
	Professional charges			412,876			255,423			1,037,608			1,073,698
	Consulting charges			21,869			244,540			360,988			1,795,304
	Advertising and promotion			151,645			61,122			475,933			331,148
	Office and common			638,910			859,950			2,030,406			2,250,470
	Salaries and wages			2,953,803			3,781,961			9,963,735			12,180,445
	Technology help, internet improvement and content material			2,088,869			2,126,867			6,005,887			6,392,020
	Foreign alternate loss (acquire)			6,243			(179,408	)		(106,958	)		(134,342	)
	Share-based compensation			35,789			80,084			132,789			(1,540,396	)
	Amortization and depreciation			252,761			538,871			1,296,007			1,713,899
Total working bills				6,562,765			7,769,410			21,196,395			24,062,246
Other bills (earnings)
	Transaction prices			389,439			1,908,963			389,439			1,908,963
	Share of web loss from funding in joint ventures			–			278			–			11,023
	Interest and accretion			82,884			563,720			2,726,557			1,725,443
	Loss (acquire) on revaluation of deferred fee legal responsibility			–			39,882			(238,756	)		(23,486	)
	Gain on sale of belongings			–			–			–			(344,852	)
	Loss on disposal of property and gear			–			–			–			25,997
	Loss on revaluation of long-term debt			1,886,738			3,385,798			2,786,554			3,385,798
	Loss on modification of long-term debt			150,759			4,893			150,759			401,951
	Loss on derecognition of long-term debt			1,537,923			–			1,537,923			–
	Interest earnings			(108	)		(257	)		(5,640	)		(1,710	)
Net loss earlier than earnings taxes from persevering with operations				(4,260,583	)		(6,270,866	)		(8,555,743	)		(8,947,849	)
Income taxes
	Current tax expense			–			55,392			1,417			182,529
	Deferred tax restoration			(267,384	)		(181,647	)		(97,465	)		(208,820	)
Net loss for the interval from persevering with operations				(3,993,199	)		(6,144,611	)		(8,459,695	)		(8,921,558	)
Net acquire (loss) from discontinued operations				10,998,896			(551,151	)		(29,709,064	)		(3,489,229	)
Net earnings (loss) for the interval				7,005,697			(6,695,762	)		(38,168,759	)		(12,410,787	)
Other complete (loss) earnings
Items which may be reclassified to revenue or loss
	Foreign foreign money translation adjustment			(5,702,706	)		(639,611	)		(6,497,420	)		826,090
Net earnings (loss) and complete earnings (loss) for the interval			$	1,302,991		$	(7,335,373	)	$	(44,666,179	)	$	(11,584,697	)
Net loss per share from persevering with operations, primary and diluted			$	(0.03	)	$	(0.04	)	$	(0.05	)	$	(0.06	)
Net earnings (loss) per share from discontinued operations, primary
	and diluted		$	0.07		$	–		$	(0.19	)	$	(0.02	)
Net earnings (loss) per share, primary and diluted			$	0.04		$	(0.04	)	$	(0.24	)	$	(0.08	)
Weighted common variety of widespread shares
	excellent, primary and diluted			159,169,003			155,759,149			159,169,003			155,719,820

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Financial Position
As of September 30, 2025 and December 31, 2024
(Unaudited – Expressed in Canadian Dollars)
				September 30, 2025			December 31, 2024
ASSETS
Current
	Cash		$	2,143,334		$	4,765,373
	Trade and different receivables			7,354,798			12,351,539
	Income tax receivable			–			12,371
	Prepaid bills			643,132			2,010,796
Total present belongings				10,141,264			19,140,079
Non-current
	Property and gear			11,752			187,464
	Right-of-use belongings			35,871			800,908
	Long-term portion of pay as you go bills			–			148,546
	Intangible belongings			24,924,632			71,815,485
	Goodwill			36,379,225			36,353,244
Total belongings			$	71,492,744		$	128,445,726
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current
	Accounts payable and accrued liabilities		$	10,622,698		$	15,022,630
	Contract liabilities			5,978,149			5,735,275
	Income tax payable			53,254			131,441
	Current portion of long-term debt			42,356,876			38,990,332
	Current portion of deferred fee legal responsibility			2,406,425			2,322,274
	Current portion of lease liabilities			121,608			727,525
Total present liabilities				61,539,010			62,929,477
Non-current
	Long-term portion of lease liabilities			–			295,977
	Deferred tax legal responsibility			1,999,694			13,470,905
Total liabilities			$	63,538,704		$	76,696,359
Shareholders’ Equity
	Share capital			461,607,373			461,607,373
	Warrants reserve			2,561,231			1,823,168
	Contributed surplus			17,728,984			17,596,195
	Accumulated different complete earnings			5,044,778			11,542,198
	Deficit			(478,988,326	)		(440,819,567	)
Total shareholders’ fairness				7,954,040			51,749,367
Total liabilities and shareholders’ fairness			$	71,492,744		$	128,445,726

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Cash Flows
For the 9 months ended September 30, 2025 and 2024
(Unaudited – Expressed in Canadian Dollars)
			September 30, 2025			September 30, 2024
Cash flows from working actions
Net loss for the interval from persevering with operations		$	(8,459,695	)	$	(8,921,558	)
Items not affecting money:
Amortization and depreciation			1,296,007			1,713,899
Share-based compensation			132,789			(1,540,396	)
Accretion			(50,437	)		(109,208	)
Deferred tax restoration			(97,465	)		(208,820	)
Share of web earnings from funding in joint ventures			–			11,023
Gain on sale of belongings			–			(344,852	)
Gain on revaluation of deferred fee legal responsibility			(238,756	)		(23,486	)
Foreign alternate acquire			(40,165	)		(519,319	)
Loss on disposal of property and gear			–			25,997
Gain on settlement of accounts payable			(91,584	)		(622,413	)
Loss on modification of long-term debt			150,759			401,951
Loss on derecognition of long-term debt			1,537,923			–
Loss on revaluation of long-term debt			2,786,554			3,385,798
Transaction prices			389,439			1,908,963
Provisions			20,012			(38,100	)
Changes in working capital:
Changes in commerce and different receivables			943,597			3,072,068
Changes in pay as you go bills			215,954			347,300
Changes in accounts payable and accrued liabilities			(348,978	)		(5,959,874	)
Changes in contract liabilities			252,617			271,964
Changes in earnings tax receivable and payable			24,725			207,083
Income tax paid			(86,649	)		(482,434	)
Net money utilized in working actions from persevering with operations			(1,663,353	)		(7,424,414	)
Net money utilized in working actions from discontinued operations			(1,439,792	)		(11,167,995	)
Net money utilized in working actions			(3,103,145	)		(18,592,409	)
Cash flows from investing actions
Proceeds from sale of belongings, web of transaction prices			–			2,693,339
Repayment of deferred fee legal responsibility			–			(85,700	)
Acquisition of property and gear			(840	)		(5,303	)
Net money (utilized in) from investing actions from persevering with operations			(840	)		2,602,336
Net money from investing actions from discontinued operations			941,948			1,239,874
Net money from investing actions			941,108			3,842,210
Cash flows from financing actions
Proceeds from long-term debt, web of transaction prices			2,065,401			20,143,122
Repayment of long-term debt			(2,255,097	)		(4,716,851	)
Repayment of different long-term debt			–			(173,858	)
Lease funds			(39,977	)		(229,331	)
Net money (utilized in) from financing actions from persevering with operations			(229,673	)		15,023,082
Net money utilized in financing actions from discontinued operations			(183,867	)		(393,417	)
Net money from financing actions			(413,540	)		14,629,665
Foreign alternate impact on money from persevering with operations			(39,573	)		111,619
Foreign alternate impact on money from discontinued operations			(6,889	)		36,070
Foreign alternate impact on money			(46,462	)		147,689
Net change in money			(2,622,039	)		27,155
Cash, starting of interval			4,765,373			6,851,966
Cash, finish of interval			2,143,334			6,879,121
Cash held by discontinued operations			–			180,903
Cash held by persevering with operations		$	2,143,334		$	6,698,218

Enthusiast Gaming Holdings Inc.
EBITDA and Adjusted EBITDA – from persevering with operations
For the three and 9 months ended September 30, 2025 and 2024
(Unaudited – Expressed in Canadian Dollars)
			For the three months ended						For the 9 months ended
			September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Gross margin		$	6,349,817		$	7,401,821		$	19,987,488		$	22,203,524
Operating bills			(6,562,765	)		(7,769,410	)		(21,196,395	)		(24,062,246	)
Share-based compensation			35,789			80,084			132,789			(1,540,396	)
Amortization and depreciation			252,761			538,871			1,296,007			1,713,899
EBITDA from persevering with operations			75,602			251,366			219,889			(1,685,219	)
EBITDA from discontinued operations			(358,110	)		(399,699	)		(6,814,569	)		(1,965,186	)
EBITDA			(282,508	)		(148,333	)		(6,594,680	)		(3,650,405	)
Severance			41,626			18,527			379,417			489,878
D&O insurance coverage particular to the
Company’s former Nasdaq itemizing			79,841			201,478			392,705			821,448
Other non-recurring gadgets			101,942			51,488			250,094			231,591
Adjusted EBITDA from persevering with operations			299,011			522,859			1,242,105			(142,302	)
Adjusted EBITDA from discontinued operations			(304,289	)		(377,298	)		(6,283,038	)		(1,708,508	)
Adjusted EBITDA		$	(5,278	)	$	145,561		$	(5,040,933	)	$	(1,850,810	)