East Side Games Group (TSE:EAGR) Releases Earnings Results

East Side Games Group (TSE:EAGR) released its quarterly earnings data on Tuesday. The company reported C($0.13) earnings per share (EPS) for the quarter, FiscalAI reports. The business had revenue of C$19.76 million during the quarter. East Side Games Group had a negative net margin of 15.16% and a negative return on equity of 26.90%.

Here are the key takeaways from East Side Games Group’s conference call:

• Company is executing a strategic pivot from top-line growth to profitability and cash flow, targeting a 60-day ROAS, prioritizing fully funded exclusive licensed deals, and guiding 2026 revenue of CAD 50–56 million with Adjusted EBITDA of CAD 7.5–10 million.
• 2025 results showed weakness: revenue of CAD 77.6 million (down 7% YoY) and Adjusted EBITDA of CAD 800,000 (down 92% YoY), with a DAU base of 196,000 and ARPDAU of CAD 1.09.
• Leadership has implemented cost cuts and operational changes—including a reduction in force, cancellation of high‑risk projects, and bringing live operations in‑house—projected to add approximately CAD 4 million to free cash flow annually and ~CAD 1 million in incremental net revenue.
• Revenue mix and fee tailwinds are improving: D2C in‑app revenue in the U.S. rose from 0.2% to 5% in Q4 (projected to reach the high teens in Q1 2026), off‑platform payments already returned CAD 320k, and Google’s fee cuts are expected to add ~CAD 0.5 million in annual profit.
• Balance sheet and covenant risk remain: total debt is CAD 5.3 million (net CAD 4.9M), the company is currently non‑compliant with a credit covenant and is seeking a waiver from its lender, and it expects a temporary debt increase in Q1 2026 to cover severance and litigation costs.

East Side Games Group Stock Up 5.9%

Shares of EAGR traded up C$0.02 during trading hours on Tuesday, reaching C$0.27. The stock had a trading volume of 75,300 shares, compared to its average volume of 47,222. The company has a market capitalization of C$20.79 million, a price-to-earnings ratio of -1.80 and a beta of 1.22. The firm has a 50-day simple moving average of C$0.25 and a 200 day simple moving average of C$0.32. The company has a current ratio of 1.02, a quick ratio of 0.91 and a debt-to-equity ratio of 5.20. East Side Games Group has a 12 month low of C$0.21 and a 12 month high of C$0.70.

About East Side Games Group

East Side Games Group Inc is a free-to-play mobile game group, that creates engaging games that produce enduring player loyalty. Its studio group entrepreneurial culture is anchored in creativity, execution, and growth through a diverse portfolio of original and licensed IP mobile games that include Archer: Danger Phone, Bud Farm Idle Tycoon, Cheech & Chong Bud Farm, The Goldbergs: Back to the 80s, It’s Always Sunny: The Gang Goes Mobile; Trailer Park Boys Greasy Money, and many more. It generates revenue through in-app purchases (IAP) from the sale of in-game virtual items that enhance the gameplaying experience, and through in-game advertising.