East Side Games Group Reports Q3 2025 Financial Results

Executive Summary

• East Side Games Group reported Q3 2025 revenue of $20 M, a 6% YoY decline and a modest 4% sequential increase, with EBITDA of approximately –$3 M reflecting strategic investment in new game launches.
• The company launched two new Match‑genre titles—RuPaul’s Drag Race: Match Queen and Squishmallows Match—and announced additional upcoming features (Collab Pass, Drop Pass) and a fifth title (Trailer Park Boys Match) to drive future growth.
• Share repurchase activity continued, with 147 k shares bought back and 168 k cancelled in Q3, bringing total repurchases to 4.5 M shares at a cumulative cost of $3 M.

Key Details

• Revenue: $20 M (‑$1.3 M or ‑6% YoY; +$0.8 M or +4% QoQ). Excluding a one‑time Q2 platform payment, core revenue grew $2 M (+12% QoQ).
• EBITDA: ~ –$3 M (down from near breakeven in the prior quarter) due to higher marketing and launch costs.
• Marketing Allocation: ~60% of Q3 marketing spend directed to Match‑genre portfolio supporting the two new titles.
• Share Repurchase Program (NCIB): 147,000 shares repurchased & 168,000 cancelled in Q3; total to date 4.5 M shares at $3 M cost.
• Cash & Debt: $3.2 M cash on hand; $2 M debt outstanding.
• New Game Launches:
• RuPaul’s Drag Race: Match Queen – strong monetization, weekly pass now 7% of IAP revenue, daily goals boost return rates, in‑show integrations deliver 300% higher Day‑7 LTV vs. typical cohorts.
• Squishmallows Match – high player ratings, strong community sentiment; co‑branded social campaigns on Meta & TikTok driving growth.
• Fifth title Trailer Park Boys Match launched in Canada (Oct 2025).
• Upcoming Q4 Initiatives:
• New mini‑game “The Office: Somehow We Manage.”
• First chat feature for Trailer Park Boys: Greasy Money.
• Daily leaderboard competition for RuPaul’s Drag Race Match Queen.
• Gameplay expansion for Milk Farm Tycoon (bakery & R&D center).
• Q4 monetization features: “Collab Pass” (RU‑Drag Race) and “Drop Pass” (Squishmallows).
• International creative testing, geo‑targeted campaigns, and cross‑channel “Screens and Speakers” advertising.
• Outlook: Expect Q4 revenue driven by seasonal/holiday events, rollout of engagement & monetization features, and continued marketing efficiency gains.

Notable Quotes

“Our Q3 performance reflects the strength of our core portfolio, the impact of our new game launches, and the disciplined execution of our long‑term strategy,” said Jason Bailey, CEO, East Side Games Group. “While we recognize there’s still room to optimize performance across new titles, we’re encouraged by early results and the strong foundation we’ve built heading into Q4.”

Materiality Assessment: Material – Negative (revenue decline and negative EBITDA indicate a material adverse financial development).