Enthusiast Gaming Reports Record Q4 2025 Adjusted EBITDA of $2.4 Million and Full Year 2025 Financial Results

Q4 2025 Adjusted EBITDA of $2.4 million, compared to $(0.2) million in prior year Q4 Adjusted EBITDA margin of 27%, compared to (2)% in the prior year FY2025 Adjusted EBITDA from continuing operations of $3.7 million, compared to $2.2 million in prior year Results reflect operating progress from the Company's product-first strategic shift Record profits achieved while continuing to invest in R&D and future growth Toronto, Ontario--(Newsfile Corp. - April 14, 2026) - Enthusiast Gaming Holdings Inc. (TSX: EGLX) ("Enthusiast Gaming" or the "Company"), a digital publisher focused on building tools, platforms, and experiences for gamers, today announced financial results for the three months ended ("Q4 2025") and year ended December 31, 2025 ("FY 2025"). The results reflect continued operating progress from the Company's product-first strategic shift, including record quarterly Adjusted EBITDA, strong Adjusted EBITDA margins, and cash generation, demonstrating a scalable business model. "In Q3, we said the results of our product-first strategic shift would begin to shine through, and in Q4 they did," said Alex Macdonald, CEO of Enthusiast Gaming. "We delivered record Adjusted EBITDA of $2.4 million in the quarter, the highest in company history by a wide margin, alongside an Adjusted EBITDA margin of approximately 27%. Importantly, this level of profitability was achieved while directing a significant portion of our spend toward R&D and future growth, underscoring the quality of the earnings we delivered. These results were also achieved despite a muted advertising backdrop and were accompanied by gains in working capital and cash. "The operating progress behind these results is increasingly visible across the business, with total time spent with gamers increasing a further 7% quarter-over-quarter in Q4. We are also seeing future value emerge across our portfolio through the continued scaling of the U.GG mono-app ecosystem, the emergence of Tracklock.gg as a high-potential new contributor, and the expansion of Icy Veins into new gaming genres through a proven product model, technology stack, and CMS. "We have demonstrated that the business is capable of producing meaningful profitability and generating cash, creating real underlying enterprise value. Our task now is to continue building on that foundation. The principal remaining challenge is one of capital structure, not business viability, and we expect continued execution to unlock value for all stakeholders. With that momentum and solid profits continuing into Q1, our priorities for 2026 remain clear: continue developing best-in-class products, demonstrate scalable growth from our already strong P&L position, broaden our relevance, maximize efficiency, and foster our culture of innovation." Financial Highlights for Q4 2025 (All figures are from continuing operations, unless otherwise stated) Revenue of $8.9 million, compared to $10.6 million in Q4 2024, with the majority of the decline being attributable to a reduction in the number of low-margin third-party network websites represented by the Company for web programmatic inventory as a result of the Company's decision to focus on developing its owned and operated websites. Gross profit of $8.0 million, compared to $8.9 million in Q4 2024, similarly driven by third-party network partners leaving the network, with gross margin increasing to 89.9% from 83.8% in the year ago period. Operating expenses of $6.1 million, a $2.2 million year-over-year decrease from $8.3 million in Q4 2024 as a result of initiatives taken to establish an efficient and scalable operating model. Adjusted EBITDA of $2.4 million, compared to $(0.2) million in Q4 2024, a $2.6 million year-over-year improvement. Adjusted EBITDA from continuing operations of $2.4 million, compared to $2.2 million in Q4 2024. Adjusted EBITDA from discontinued operations of $Nil, compared to $(2.5) million in Q4 2024. Net loss of $6.0 million, compared to $83.6 million in Q4 2024, primarily due to the decrease in Q4 2025 goodwill and intangible asset impairment charges of $81.9 million. Business Highlights for Q4 2025 U.GG achieved a significant increase in engagement in Q4, including an 11% improvement in average session duration quarter-over-quarter, driven by multiple product and feature advancements. These advancements included the launch of the Deadlock desktop application into U.GG's mono-app ecosystem, the continued growth of tracklock.gg, which is expected to see significant further gains upon release of Deadlock into open beta, and the release of U.GG's League of Legends year-in-review feature, a personalized snapshot that summarizes a player's annual performance. Icy Veins demonstrated continued growth in Q4 2025, expanding its presence in Gacha titles like Genshin Impact, Honkai: Star Rail, and Zenless Zone Zero, while further establishing itself as a go-to source for gaming news beyond ARPGs and Blizzard titles. Additionally, Q4 saw significant progress towards Icy Veins' modernization initiatives planned for H1 2026, together with preparations for major expansions announced for both of its flagship titles, with support for World of Warcraft Midnight successfully launching in Q1 2026 and Diablo IV's Lord of Hatred scheduled for Q2 2026. TheSimsResource continued to evolve its first-to-market LookBuilder tool which provides users with a browser-based, 3D-rendered, real-time outfit preview engine, including significant UI/UX enhancements, and the inclusion of colour swatch collections to increase customizability.LookBuilder is available for both free and paid users and is intended to drive deeper engagement across TSR. Additional product advancements included significant back-end updates to improve legacy infrastructure and scalability and improvements to search for enhanced discoverability. Addicting Games launched Indie Spotlight, a rotating curated selection of playable indie games and demos meant to highlight independent developers and the games they are building, as well as further enhancements to improve the user experience and position the property to capitalize on clear synergies with the Company's PocketGamer brand, which represents one of the world's leading mobile gaming destinations on the web and the pre-eminent B2B mobile gaming conference and event series. Pocket Gamer Connects ("PGC") continued to entrench itself as the industry leading conference series for mobile gaming professionals and industry participants, hosting PGC Helsinki and PGC Summit Korea in October 2025 and PGC Aqaba in November 2025. Subsequent to the quarter, PGC also hosted PGC London, its largest event ever by all relevant metrics, including attendance, sponsors, speakers and company representation, in January 2026, and PGC San Francisco in March 2026. Fantasy Football Scout ("FFS") expanded its partnership with the English Premier League in Q4, introducing assistive warning systems for the Premier League's fantasy football offering, alerting fantasy managers to the impending or potential absence of a player in a future game week. In addition, FFS launched a new mobile app for its sister site, LiveFPL, providing a native mobile experience for its long-standing fantasy property and attracting hundreds of thousands downloads since launch. Fourth Quarter 2025 Results Comparison Revenue was $8.9 million in Q4 2025, an 15.8% decrease compared to $10.6 million in Q4 2024. Media and Content revenue was $5.2 million in Q4 2025, a 21.0% decrease from $6.6 million in Q4 2024, primarily due to a decreased number of represented third-party publishers in the network as the Company shifted focus to its owned and operated websites. Events revenue was $0.9 million in Q4 2025 compared to $1.1 million in Q4 2024. Subscription revenue was $2.8 million in Q4 2025 compared to $2.9 million in Q4 2024. Gross profit was $8.0 million in Q4 2025, a 9.6% decrease compared to $8.9 million in Q4 2024. Gross margin increased to 89.9% in Q4 2025 from 83.8% in Q4 2024. Adjusted EBITDA was $2.4 million, compared to $(0.2) million in Q4 2024. Adjusted EBITDA from continuing operations was $2.4 million, compared to $2.2 in Q4 2024. Adjusted EBITDA from discontinued operations was $Nil, compared to $(2.5) million in Q4 2024. Net loss was $6.0 million, or $(0.04) per share, in Q4 2025, compared to net loss of $83.6 million, or $(0.52) per share, in Q4 2024. Full Year 2025 Results Comparison Revenue was $32.0 million in FY 2025, a 23.1% decrease compared to $41.7 million in FY 2024. Media and Content revenue was $15.3 million in FY 2025, a 37.1% decrease from $24.3 million in FY 2024, primarily due to a decreased number of represented third-party publishers in the network as the Company shifted focus to its owned and operated websites. Events revenue was $5.3 million in FY 2025 compared to $4.5 million in FY 2024. Subscription revenue was $11.4 million in FY 2025 compared to $12.8 million in FY 2024. Gross profit was $28.0 million in FY 2025, a 9.9% decrease compared to $31.1 million in FY 2024. Gross margin increased to 87.4% in FY 2025 from 74.6% in FY 2024. Adjusted EBITDA was $(2.6) million, compared to $(2.0) million in FY2024. Adjusted EBITDA from continuing operations was $3.7 million, compared to $2.2 million in FY 2024. Adjusted EBITDA from discontinued operations was $(6.3) million, compared to $(4.2) million in FY 2024. Net loss was $44.1 million, or $(0.28) per share, in FY 2025, compared to net loss of $96.0 million, or $(0.61) per share, in FY 2024. Organizational Updates The Company announced that Sara Slane has tendered her resignation from the board of directors of the Company. The Company thanks Ms. Slane for her contributions and service. Supplemental Information Enthusiast Gaming's financial statements and management discussion and analysis ("MD&A") are available at www.sedarplus.ca and enthusiastgaming.com/financials. All amounts are in Canadian dollars. About Enthusiast Gaming Enthusiast Gaming builds tools, platforms, and experiences that gamers use every day. Its portfolio of owned and operated digital properties includes some of the most recognizable names in gaming, such as U.GG, Icy Veins, TheSimsResource, PocketGamer, Addicting Games, and Fantasy Football Scout, as well as the global B2B event series PocketGamer Connects. Through these assets, Enthusiast Gaming generates revenue from programmatic advertising, subscriptions, and events, and is focused on expanding its owned IP and deepening direct engagement with its audience. Contacts Enthusiast Gaming: Alex Macdonald, Chief Executive Officer Investors: [email protected] Media: [email protected] 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, the launch and timing of new products, 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 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", 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, annual directors and officers liability insurance associated with the Company's former listing on Nasdaq and other non-recurring company costs, such as litigation costs. 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. Consolidated Statements of Loss and Comprehensive Loss For the three months and year ended December 31, 2025 and 2024 (Expressed in Canadian Dollars)     For the three months ended   For the year ended   December 31, 2025  December 31, 2024  December 31, 2025  December 31, 2024     (Unaudited)   (Unaudited)   (Audited)   (Audited) Revenue $ 8,910,976 $ 10,581,054 $ 32,034,244 $ 41,664,470 Cost of sales   897,571   1,711,866   4,033,351   10,591,758 Gross margin   8,013,405   8,869,188   28,000,893   31,072,712 Operating expenses                 Professional fees 413,457   476,861   1,451,065   1,550,559 Consulting fees   71,776   318,335   432,764   2,113,639 Advertising and promotion   74,335   46,099   550,268   377,247 Office and general   376,666   486,180   2,407,072   2,736,650 Salaries and wages   2,947,018   2,947,872   12,910,753   15,128,317 Technology support, web development and content   1,890,995   2,927,906   7,896,882   9,319,926 Foreign exchange loss (gain)    53,212   198,857   (53,746 )   64,515 Share-based compensation    45,075   392,699   177,864   (1,147,697 ) Amortization and depreciation   253,166   520,413   1,549,173   2,234,312 Total operating expenses   6,125,700   8,315,222   27,322,095   32,377,468 Other expenses (income)                 Goodwill impairment -   72,044,148   -   72,044,148 Intangible asset impairment   -   9,844,441   -   9,844,441 Transaction costs   -   227,151   389,439   2,136,114 Share of net loss from investment in associates and joint ventures   -   -   -   11,024 Interest and accretion   947,753   444,906   3,674,310   2,170,348 (Gain) loss on revaluation of deferred payment liability   (504,542 )   67,937   (743,298 )   44,451 Gain on sale of assets   -   -   -   (344,852 ) Loss on disposal of property and equipment   -   -   -   25,997 Loss (gain) on revaluation of long-term debt   2,528,863   (478,408 )   5,315,417   2,907,390 Loss on modification of long-term debt   550,000   -   700,759   401,951 Loss on derecognition of long-term debt   -   -   1,537,923   - Other income   (375,309 )   -   (375,309 )   - Interest income   (350 )   (3,077 )   (5,990 )   (4,787 ) Loss before income taxes from continuing operations   (1,258,710 )   (81,593,132 )   (9,814,453 )   (90,540,981 )                           Income taxes                 Current tax expense   30,132   189,631   31,549   372,160 Deferred tax recovery   (67,928 )   (847,490 )   (165,393 )   (1,056,310 ) Net loss for the period from continuing operations   (1,220,914 )   (80,935,273 )   (9,680,609 )   (89,856,831 ) Net loss from discontinued operations   (4,729,108 )   (2,636,940 )   (34,438,172 )   (6,126,169 ) Net loss for the period   (5,950,022 )   (83,572,213 )   (44,118,781 )   (95,983,000 )                           Other comprehensive (loss) income                 Items that may be reclassified to profit or loss                 Foreign currency translation adjustment   (267,469 )   3,514,132   (6,764,889 )   4,340,222 Net loss and comprehensive loss for the period $ (6,217,491 ) $ (80,058,081 ) $ (50,883,670 ) $ (91,642,778 ) Net loss per share from continuing operations, basic and diluted $ (0.01 ) $ (0.52 ) $ (0.06 ) $ (0.57 ) Net loss per share from discontinued operations, basic and diluted $ (0.03 ) $ (0.02 ) $ (0.22 ) $ (0.04 ) Net loss per share, basic and diluted $ (0.04 ) $ (0.54 ) $ (0.28 ) $ (0.61 ) Weighted average number of common shares                  outstanding, basic and diluted   159,169,003   155,759,149   159,169,003   156,481,036   Enthusiast Gaming Holdings Inc. Consolidated Statements of Financial Position As of December 31, 2025 and 2024 (Expressed in Canadian Dollars)   December 31, 2025  December 31, 2024 ASSETS         Current         Cash  $ 3,262,528 $ 4,765,373 Trade and other receivables   4,806,842   12,351,539 Income tax receivable   75,334   12,371 Prepaid expenses   752,995   2,010,796 Total current assets   8,897,699   19,140,079 Non-current          Property and equipment   8,755   187,464 Right-of-use assets   -   800,908 Long-term portion of prepaid expenses   -   148,546 Intangible assets   24,491,606   71,815,485 Goodwill   31,543,408   36,353,244 Total assets $ 64,941,468 $ 128,445,726               LIABILITIES AND SHAREHOLDERS' EQUITY         Current         Contract liabilities   6,235,303   5,735,275 Income tax payable   -   131,441 Current portion of long-term debt   45,583,794   38,990,332 Current portion of deferred payment liability   525,083   2,322,274 Current portion of lease liabilities   118,078   727,525 Total current liabilities   61,238,830   62,929,477 Non-current          Long-term portion of lease liabilities   -   295,977 Deferred tax liability   1,921,014   13,470,905 Total liabilities $ 63,159,844 $ 76,696,359               Shareholders' Equity         Share capital   461,607,373   461,607,373 Warrants reserve   2,561,231   1,823,168 Contributed surplus   17,774,059   17,596,195 Accumulated other comprehensive income    4,777,309   11,542,198 Deficit   (484,938,348 )   (440,819,567 ) Total shareholders' equity    1,781,624   51,749,367 Total liabilities and shareholders' equity $ 64,941,468 $ 128,445,726   Enthusiast Gaming Holdings Inc. Consolidated Statements of Cash Flows For the years ended December 31, 2025 and 2024 (Expressed in Canadian Dollars)     December 31, 2025   December 31, 2024 Cash flows from operating activities         Net loss for the year from continuing operations  $  (9,680,609 ) $ (89,856,831 ) Items not affecting cash:         Goodwill impairment   -   72,044,148 Intangible asset impairment   -   9,844,441 Amortization and depreciation   1,549,173   2,234,312 Share-based compensation    177,864   (1,147,697 ) Accretion   (97,784 )   (161,878 ) Deferred tax recovery   (165,393 )   (1,056,310 ) Share of net income from investment in joint ventures   -   11,024 Gain on sale of assets    -   (344,852 ) (Gain) loss on revaluation of deferred payment liability   (743,298 )   44,451 Foreign exchange loss (gain)   42,457   (320,592 ) Loss on disposal of property and equipment   -   25,997 Gain on settlement of accounts payable   (386,500 )   (1,384,377 ) Loss on modification of long-term debt   700,759   401,951 Loss on derecognition of long-term debt   1,537,923   - Loss on revaluation of long-term debt   5,315,417   2,907,390 Transaction costs   389,439   2,136,114 Provisions   56,672   24,837 Changes in working capital:         Changes in trade and other receivables   1,009,985   3,797,171 Changes in prepaid expenses   106,091   518,379 Changes in accounts payable and accrued liabilities   (1,531,330 )   (6,422,503 ) Changes in contract liabilities   509,771   1,094,870 Changes in income tax receivable and payable   52,459   421,934 Income tax paid   (246,135 )   (538,682 ) Net cash used in operating activities from continuing operations   (1,403,039 )   (5,726,703 ) Net cash from (used in) operating activities from discontinued operations   659,684   (14,023,339 ) Net cash used in operating activities    (743,355 )   (19,750,042 ) Cash flows from investing activities         Proceeds from sale of assets, net of transaction costs   -   2,693,339 Repayment of deferred payment liability   (1,376,800 )   (85,700 ) Acquisition of property and equipment   (840 )   (5,303 ) Net cash (used in) from investing activities from continuing operations   (1,377,640 )   2,602,336 Net cash from investing activities from discontinued operations   941,948   1,244,289 Net cash (used in) from investing activities    (435,692 )   3,846,625 Cash flows from financing activities         Proceeds from long-term debt, net of transaction costs   2,249,464   20,737,490 Repayment of long-term debt   (2,268,758 )   (6,373,678 ) Repayment of other long-term debt   -   (173,858 ) Lease payments   (39,359 )   (289,431 ) Net cash (used in) from financing activities from continuing operations   (58,653 )   13,900,523 Net cash used in financing activities from discontinued operations   (183,867 )   (561,193 ) Net cash (used in) from financing activities    (242,520 )   13,339,330 Foreign exchange effect on cash from continuing operations   (74,389 )   318,588 Foreign exchange effect on cash from discontinued operations   (6,889 )   158,906 Foreign exchange effect on cash    (81,278 )   477,494 Net change in cash   (1,502,845 )   (2,086,593 ) Cash, beginning of year   4,765,373   6,851,966 Cash, end of year   3,262,528   4,765,373 Cash held by discontinued operations   -   180,903 Cash held by continuing operations $ 3,262,528 $ 4,584,470   Enthusiast Gaming Holdings Inc. EBITDA and Adjusted EBITDA from Continuing Operations For the three months and year ended December 31, 2025 and 2024 (Unaudited - Expressed in Canadian Dollars)     For the three months ended   For the years ended   December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 Gross margin $ 8,013,405 $ 8,869,188 $ 28,000,893 $ 31,072,712 Operating expenses   (6,125,700 )   (8,315,222 )   (27,322,095 )   (32,377,468 ) Share-based compensation   45,075   392,699   177,864   (1,147,697 ) Amortization and depreciation   253,166   520,413   1,549,173   2,234,312 EBITDA   2,185,946   1,467,078   2,405,835   (218,141 ) Severance   9,647   273,799   389,064   763,677 D&O insurance specific to the                   Company's former Nasdaq listing   82,380   201,478   475,085   1,022,926 Other non-recurring items   130,407   382,668   380,501   614,259 Adjusted EBITDA $ 2,408,380 $ 2,325,023 $ 3,650,485 $ 2,182,721   To view the source version of this press release, please visit https://www.newsfilecorp.com/release/292377