Super League's Q3 2025: Contradictions Emerge on Advertising Sentiment, Revenue Diversification, and Mobile Growth

Date of Call: November 13, 2025

Financials Results

• Revenue: $2.4M, decreased vs Q3 2024
• Gross Margin: 45%, up from 44% in Q2 and 39% in Q3 2024

Guidance:

• Booked Q4 revenue is already higher than Q3 2025.
• Q1 2026 revenue is approaching Q1 2025 levels.
• Target launch of a digital asset strategy in Q1 2026; advisory and board hires expected before year-end.
• Company is fully funded after a $20M private placement, eliminated debt, and does not plan near-term capital raises except opportunistic opportunities.

Business Commentary:

• Financial Stability and Turnaround:
• Super League reported a final close on $20 million in a private placement, achieving its target without further market exposure.

• Elimination of debt and streamlining of the capital structure were key to the successful turnaround.

• Cost Reduction and Operational Efficiency:

• The company reduced its workforce from 75 to 35 people, emphasizing cost efficiency and maintaining a lean structure.
• This reduction improved operating margins by 23% compared to the prior year, despite a decline in revenue.

• Revenue Diversification and Strategic Partnerships:
• Roblox opportunities now represent only 42% of the pipeline, down from 57% in 2024.
• New partnerships, such as with Automatic Worlds and ES3, are expected to drive growth in mobile and Connected TV advertising, contributing to overall revenue diversification.

• Digital Asset Strategy and Investment:
• Super League seeks to explore potential opportunities in the digital asset space, aiming to establish a symbiotic relationship between its operating business and a digital asset treasury.
• The company anticipates announcing advisory relationships in the digital asset sector by the end of the year, as part of its strategic planning.

Sentiment Analysis:

Overall Tone: Positive

• Management emphasized a structural turnaround: "we are fully funded" after a $20M close and "we have eliminated our debt." They reported pipeline momentum—"weighted pipeline has increased by 69% in the past 6 weeks"—and noted booked Q4 revenue already exceeds Q3, underscoring an optimistic outlook toward profitability.

Q&A:

• Question from Jack Codera (Maxim Group LLC): Do you expect the current OpEx levels to be kind of the go-forward base? Or do you expect to see more efficiencies realized over the next few quarters given that it's at just above $4 million now?
  Response: Headcount reduced from ~75 to ~35; current OpEx is a sustainable baseline to accelerate growth and management does not expect immediate additional reductions.

• Question from Jack Codera (Maxim Group LLC): Can you give me a commentary from your view, the sentiment around the broader advertising market over the next 12 months? Are conversations with CMOs, do they seem positive? Or does it seem like it's becoming more challenging?
  Response: Budgets had shifted to safe, performance-oriented channels but are beginning to reopen; recent pipeline acceleration is encouraging though economic and rate risks could change advertiser behavior.

• Question from Jack Codera (Maxim Group LLC): Where do you see that Roblox mix getting to? And kind of what are the most important, most significant buckets that are going to fill that difference?
  Response: Roblox will remain meaningful—likely above ~33% of revenue in 2026—while growth will come from mobile, Fortnite/Minecraft and new Connected TV interactive ad opportunities.

• Question from Howard Halpern (Taglich Brothers, Inc.): You talked about the digital strategy. Have you tapped anybody? Or are you still going through the process of finding the right person to lead all the different intricacies of that of -- maybe a multifaceted strategy?
  Response: Leveraging Evo Fund expertise now, conducting a search to add a board member with digital-asset experience and bringing on advisers; expect some advisory relationships announced before year-end.

• Question from Howard Halpern (Taglich Brothers, Inc.): When you talked about pop-ups, is that... leading to new customers, like a lead generation that you can prove yourself and then cross-sell into a larger revenue opportunity?
  Response: Yes — pop-ups are a low-friction starter package that drive renewals and cross-sell; two clients renewed within the same year, supporting lead-generation effectiveness.

• Question from Howard Halpern (Taglich Brothers, Inc.): In terms of gross margin, do you anticipate what you experienced in the third quarter to be somewhat of a 4 and you're going to just strive for revenue that provides expanded gross margins?
  Response: Gross margin is a priority, but some large 'general contractor' deals have pass-through costs that lower margins; such deals are still pursued for significant revenue and long-term value.

Contradiction Point 1

Advertising Market Sentiment

It directly impacts expectations regarding the advertising market sentiment, which is crucial for the company's growth and business strategy.

How do you view the advertising market's sentiment over the next 12 months? Are CMO conversations positive or challenging? - Jack Codera (Maxim Group LLC, Research Division)

2025Q3: Advertising budgets have been tight, with a focus on performance-driven solutions. However, there are signs of budget relaxation in the past 1-2 months, suggesting a positive shift. - Matthew Edelman(CEO)

How are macro headwinds impacting your business, and how are you addressing them? - Jack Cordero (Maxim Group)

2025Q1: We are not yet seeing evidence of significant budget cuts, but some evidence of budget delays. - Matt Edelman(CEO)

Contradiction Point 2

Revenue Diversification Strategy

It highlights differing opinions on the strategic focus and expected contributions from various revenue streams, which are crucial for Super League's growth and market positioning.

What is the expected mix of Roblox in these initiatives, and which categories will account for the difference? - Jack Codera (Maxim Group LLC, Research Division)

2025Q3: Roblox is expected to remain a significant contributor, likely around 1/3 of revenue in 2026. Fortnite and Minecraft will also grow, but mobile has the greatest growth potential. Connected TV partnership offers new revenue opportunities. - Matthew Edelman(CEO)

Can you discuss new revenue lines such as mobile (now 15% of total revenue), potential programmatic advertising growth, and the new subscription service? From a high level, describe the opportunity scope for each and the expected revenue mix in 1-2 years? - Jack Codera (Maxim Group)

2025Q2: This year, the real opportunity will likely remain in mobile in terms of diversification. The subscription product and our partnership to move into TikTok will really just be getting started this year and probably not be as material certainly compared to mobile. - Matthew Edelman(CEO)

Contradiction Point 3

Mobile Revenue Expectations

It involves changes in financial forecasts, specifically regarding mobile revenue expectations, which are critical indicators for investors.

What is the expected Roblox mix, and which categories will account for the difference? - Jack Codera (Maxim Group LLC, Research Division)

2025Q3: Mobile has the greatest growth potential due to its open platform nature. - Matthew Edelman(CEO)

With mobile games now at 15% of revenue, what growth do you expect by year-end and beyond? - Jack Cordero (Maxim Group)

2025Q1: We think mobile will represent at least 25% of our revenue in 2025, and we're on a nice pace to achieve this growth. - Matt Edelman(CEO)

Contradiction Point 4

Growth Initiatives and Revenue Mix

It involves the evolution of strategic focus and expected revenue contributions, which are key to understanding the company's growth trajectory and market positioning.

What is the expected revenue mix for Roblox, and which categories will account for the difference? - Jack Codera (Maxim Group LLC, Research Division)

2025Q3: Roblox is expected to remain a significant contributor, likely around 1/3 of revenue in 2026. Fortnite and Minecraft will also grow, but mobile has the greatest growth potential. Connected TV partnership offers new revenue opportunities. - Matthew Edelman(CEO)

Can you provide more details on the mix of immersive tech, AR, and VR? Are you seeing a broader mix of brands beyond gaming? - Ryan MacDonald (Needham & Company)

2024Q4: The launch of these immersive technologies and the associated brand partnerships are now beginning to produce meaningful revenue, with over 65% of our revenue coming from immersive technology. - Matthew Edelman(CEO)