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TORONTO, May 15, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a leading gaming media and entertainment company, today announced financial results for the three months ended March 31, 2025 (“Q1 2025”).

“We’ve spent the last year rebuilding Enthusiast Gaming into a leaner, more focused business, and now that structure is starting to deliver,” said Adrian Montgomery, Interim CEO of Enthusiast Gaming. “With higher yield in our programmatic business, growth in paid subscriptions, event revenue accelerating, and early momentum in direct sales, what we’ve built is an engine that turns audience into value. As our reach expands, our ability to monetize each interaction becomes even more powerful. With a stronger foundation now in place, we’re well-positioned to scale responsibly and continue executing on our mission to spend more time with more gamers. Every part of our ecosystem is now aligned around this goal.”

Alex Macdonald, CFO of Enthusiast Gaming, added, “With gross margins stabilizing above 70% and cash-based operating expenses significantly reduced, we’re seeing the benefits of a leaner, more efficient structure. We’ve refocused around our highest-margin products and properties, and as engagement continues to grow, our ability to convert that activity into financial performance is improving. Our priority now is to remain disciplined while positioning the Company for the second half of the year, when stronger seasonal trends and audience expansion are expected to have a meaningful impact.”

Financial Highlights for Q1 2025

• Revenue of $12.2 million, compared to $23.3 million in Q1 2024, with the majority of the decline being attributable to the strategic deprioritization of the low margin video platform revenue.
• Gross profit of $9.0 million, compared to $14.1 million in Q1 2024, with gross margin expanding to 74.3% from 60.3% in the year ago period.
• Operating expenses of $14.1 million, a $1.4 million year-over-year decrease from $15.5 million in Q1 2024 as a result of strategic initiatives taken to establish an efficient and scalable operating model. Share-based compensation included a recovery of $2.0 million in Q1 2024 compared to an expense of $0.1 million in Q1 2025. The recovery of $2.0 million in Q1 2024 is mainly due to 6.1 million options being forfeited upon the resignation of the former CEO in Q1 2024. Share-based compensation expense recorded on these options during the year ended December 31, 2023 in the amount of $2.2 million was credited against share-based compensation expense during Q1 2024.
• Adjusted EBITDA loss of $2.6 million, compared to an Adjusted EBITDA loss of $1.8 million in Q1 2024.
• Net loss and comprehensive loss of $6.1 million in Q1 2025 compared to $1.3 million in Q1 2024.
  

Business Highlights for Q1 2025

• Platform Engagement and Subscriber Growth:
  • Icy Veins continued its strong performance in Q1, emerging as one the Company’s strongest contributors across both traffic and profitability, with overall yield on the site improving by more than 100% year-over-year, driven by a combination of strategic ad tech optimizations and expanded coverage of new, high-demand titles such as Monster Hunter Wilds and Path of Exile 2.
  • The Sims Resource continued to grow paid subscriber counts quarter-over-quarter, while also improving the quality of its subscriber base. The past year has focused on an intentional shift toward premium annual subscriptions, which carry better retention and significantly higher lifetime value, the results of which have created a stable and growing base of high-value subscribers serving as the cornerstone of the Company’s subscription offering.
  • U.GG experienced significant growth in engagement, driven by its desktop applications, in Q1 2025, compared to the same period last year. This growth was primarily driven by its core League of Legends offerings, while the platform also advanced its broader evolution, transitioning from a leading League of Legends tool into a category-defining destination for gamers by expanding into new titles like Marvel Rivals and Rainbow Six Siege.
  • The Company’s mobile focused site PocketGamer.com more than doubled its audience in Q1 2025 compared to Q1 2024, and has significantly improved session times and engagement, exceeding 30 million page views in quarter and re-affirming its position as a leading trusted authority in mobile game news, tier lists, and guides, and a leading destination for mobile-first players.
• Direct Sales: The direct sales team, which underwent a major rebuilding effort in 2024, has already started to show a return to growth with total closed dollars growing to $2.4 million in Q1 as compared to $2.1 million in Q4 2024. In addition, as announced as part of the Company’s Q4 2024 results, the Company added new sellers which have started to ramp, contributing initial sales and significant growth in RFP activity in-line with expectations. Notable campaigns in Q1 2025 included campaigns with Ford and a multi-phase launch for SNK’s Fatal Fury: City of the Wolves, in partnership with Petrol Advertising, as well as repeat business from major brands, including the likes of Amazon, State Farm, Paramount, Lego, Nintendo, Samsung, Disney.
• Event Growth and Engagement: PocketGamer Connects (“PGC”) hosted two major events in Q1 2025, PGC London in January, which was the Company’s largest and most successful event to date by every relevant metric, and PGC San Francisco in March — the 50th event in PGC history — which ran alongside the 2025 Game Developers Conference and delivered strong year-over-year growth in attendance, sponsorship, and revenue. The Company also announced a major international expansion of the Pocket Gamer Connects series, with new events scheduled in Barcelona in June, Shanghai in July, and Bangkok later this year
• Luminosity Gaming’s Event Success: Luminosity Gaming’s Rising Stars campaign continued to deliver high-impact results, with the 2025 edition generating over 500 million livestream banner impressions, engaging over 5,800 community members in its first week, and producing thousands of organic creator posts, demonstrating Luminosity’s ability to execute complex, creator-led campaigns efficiently and at scale. The season was presented by Elgato, with key sponsorship from Cash App, Corsair, CTRL, Fisher College, FocusFuel, JLab, Juvee Energy Drink, PüK Gaming, Sprecher Brewing Company, Starforge Systems, and U.GG.

First Quarter 2025 Results Comparison
Revenue was $12.2 million in Q1 2025, a 48% decrease compared to $23.3 million in Q1 2024. Media and Content revenue was $5.6 million in Q1 2025, a 65% decrease from $15.9 million in Q1 2024. The Company’s strategic decision to de-prioritize the lower margin video platform revenue accounted for $5.1 million of the $10.3 million reduction. Direct Sales (the majority of which is included in media and content revenue) decreased from $6.6 million in Q1 2024 to $2.3 million in Q1 2025 mainly due to a lower number of ramped sellers than the year ago period, contributing a $4.3 million to the decline in revenue. Esports and Entertainment revenue was $3.6 million in Q1 2025 compared to $3.4 million in Q1 2024, Esports and Entertainment revenue remained relatively flat. Subscription revenue decreased from $4.0 million in Q1 2024 to $3.0 million in Q1 2025, a 25% decrease, in part due to change in mix of subscribers and due to the sale of certain non-core, non-profitable assets in April 2024.

Gross profit was $9.0 million in Q1 2025, a 36% decrease compared to $14.1 million in Q1 2024. Gross margin increased to 74.3% in Q1 2025 from 60.3% in Q1 2024.

Adjusted EBITDA loss was $2.6 million in Q1 2025 compared to an Adjusted EBITDA loss of $1.8 million in Q1 2024.

Net loss $6.1 million, or $(0.04) per share, in Q1 2025, compared to $1.3 million, or $(0.01) per share, in Q1 2024.

Investor Conference Call
Management will host a conference call and webcast on Thursday, May 15, 2025, at 5 p.m. ET to review and discuss its Q1 2025 results. Conference call details:

• Toll Free: 1-855-239-1101 or 1-412-317-5231 or ‘Call me’: https://callme.viavid.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9JmluZm89Y29tcGFueSZyPXRydWUmYj0xNg== (Passcode: 8936424)
• Live webcast: https://viavid.webcasts.com/starthere.jsp?ei=1719552&tp_key=83a3083ffb

A replay will be available on Enthusiast Gaming’s website at enthusiastgaming.com/investors.

Supplemental Information
Enthusiast Gaming’s financial statements and management discussion and analysis (“MD&A”) are available at www.sedarplus.ca and enthusiastgaming.com/investors. All amounts are in Canadian dollars.

About Enthusiast Gaming
Enthusiast Gaming is a leading gaming media and entertainment company, building the largest platform for video game enthusiasts and esports fans to connect and compete worldwide. Combining the elements of its four core pillars: creators, content, communities, and experiences, Enthusiast Gaming provides a unique opportunity for marketers to create integrated brand solutions to connect with coveted Gen Z and Millennial audiences. Through its proprietary mix of digital media, content and gaming assets, Enthusiast Gaming continues to grow its network of communities, reflecting the scale and diversity of gaming enthusiasts today.

Contacts

Enthusiast Gaming: Alex Macdonald, Chief Financial 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 forgoing) 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, 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 esports and 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”, which is 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 and other non-recurring public costs. These non-recurring costs include, but are not limited to, annual directors and officers (“D&O”) liability insurance associated with the Company’s former listing on Nasdaq. Adjusted EBITDA also excludes “NFL TNG EBITDA” which is defined as EBITDA attributable to the Company’s NFL TNG program during Q4 2024 and thereafter, as the program became non-recurring due to its termination.

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, 2025 and 2024
(Unaudited - Expressed in Canadian Dollars)

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Financial Position
As of March 31, 2025
(Unaudited - Expressed in Canadian Dollars)

Enthusiast Gaming Holdings Inc.
Condensed Consolidated Interim Statements of Cash Flows
For the three months ended March 31, 2025 and 2024
(Unaudited - Expressed in Canadian Dollars)

Enthusiast Gaming Holdings Inc.
EBITDA and Adjusted EBITDA
For the three months ended March 31, 2025 and 2024
(Unaudited - Expressed in Canadian Dollars)