Canada's East Side Games Q1 revenue falls 32% as user acquisition spending drops

East Side Games

14/05/2026 21:12

Overview

Canada mobile gaming firm's Q1 2026 revenue fell 32% yr/yr

Adjusted EBITDA for Q1 declined 11.3% yr/yr as company focused on profitability

Company reduced user acquisition spend and daily active users fell 30.5% yr/yr

Outlook

Company expects to launch two new titles in late 2026 and early 2027

Company expects Google platform fee changes to add about $0.5 mln in annual profit

Company aims to eliminate bank debt by end of 2026

Result Drivers

LOWER USER ACQUISITION SPEND - Co significantly reduced user acquisition spend to focus on profitability and cash preservation, contributing to lower revenue and DAU

DAU DECLINE - Daily active users fell 30.5% yr/yr, which the company attributes to lower user acquisition investment

INCREASED DIRECT-TO-CONSUMER REVENUE - Direct-to-consumer revenue rose as co expanded web payment options and optimized conversion rates

Company press release: ID:nCNWfFFw4a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$12.50 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.)