Canada's East Side Games Q2 revenue falls 46% on lower marketing spend

East Side Games

13/08/2026 21:30

Overview
Canada mobile gaming firm's Q2 revenue fell 46% yr/yr
Adjusted EBITDA declined 11% as company cut user acquisition spend
Company raised C$2.95 mln and settled litigation to strengthen balance sheet

Outlook
Company restates 2026 revenue guidance at $40-44 mln
Company expects 2026 A-EBITDA of $4-4.7 mln, margin of 10-12%
Company to expand User Acquisition spend from mid-August, targeting profitable cohorts

Result Drivers
REDUCED USER ACQUISITION SPEND - Co said it significantly cut user acquisition spending to preserve cash and focus on profitable player cohorts
CASH MANAGEMENT FOCUS - Co emphasized disciplined cash management and capital efficiency to strengthen its financial position

Company press release: ID:nCNWxwvcKa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$10.30 mln
 

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)