Vertiqal Studios: Leveraging Regional Expertise to Fuel Scalable Growth in Gen Z Markets

Vertiqal Studios, North America's largest gaming and lifestyle social media network, has emerged as a compelling investment opportunity after reporting its first-ever EBIT-positive quarter in Q3 2024. The company's strategic hires of Pano Rongakos and Sotero Bernardo—veterans of gaming communities and Canadian media, respectively—have positioned it to capitalize on Gen Z and Millennial demographics while scaling operations efficiently. Combined with partnerships like the 6ixbuzztv collaboration, Vertiqal is building a moat in fragmented digital media markets. Here's why investors should take note.

Regional Market Penetration: The Power of Localized Expertise

Vertiqal's expansion hinges on two pillars: gaming communities and Canadian media dominance. Pano Rongakos, as Head of Brand Partnerships for the West Coast, brings 15 years of experience in gaming and creator-driven platforms like Twitch and StreamElements. His expertise is critical: gaming is the fastest-growing segment of social media, with Gen Z spending nearly 20% of their screen time on gaming content. Vertiqal's 52 million followers and 100+ daily content pieces across TikTok and Instagram are already resonating with this audience, but Rongakos' ability to tailor campaigns to hyper-engaged gaming communities could unlock $100M+ in untapped ad revenue.

Meanwhile, Sotero Bernardo's appointment as Head of Brand Partnerships for Canada addresses a regional sweet spot. Canada's Gen Z and Millennial population is digitally native, with 85% using social media daily, yet fragmented media landscapes have left gaps for niche players. Bernardo's deep Canadian media ties—spanning agencies like Cossette and the AdClub of Toronto—allow Vertiqal to craft localized campaigns while maintaining its “white-glove” service model. This is key: Canadian digital ad spend is projected to grow at 12% CAGR through 2027, outpacing the U.S., and Vertiqal is now poised to capture a larger share.

Operational Scalability: Cost Discipline Meets Growth Leverage

Vertiqal's Q3 2024 financial turnaround—14% revenue growth to $1.86M, 78% jump in direct media revenue, and 72% expense cuts—proves its model works. But scalability requires more than cost control; it demands systems that amplify growth without proportionate spending. Here, the new leadership and partnerships create leverage:

1. Content Synergy with 6ixbuzztv: Their August 2024 partnership combines Vertiqal's social media prowess with 6ixbuzztv's Canadian cultural insights. Jointly developing original series and experiential campaigns reduces production costs while boosting content quality. This “content flywheel” could drive 20-30% gross margin expansion by 2026.

2. Cross-Border Playbook: The Crossmedia partnership (March 2025) extends Vertiqal's reach into the U.S. and U.K., leveraging its Canadian expertise. By standardizing campaign templates across regions, Vertiqal avoids redundant spending while tailoring local touches—critical in Gen Z's hyper-personalized consumption habits.

3. Data-Driven Optimization: Vertiqal's 2B monthly video views generate rich audience data. Rongakos and Bernardo's teams can use this to refine targeting, reducing CPMs for advertisers and boosting ROI—a rare win-win in digital media.

Financial Upside: Underappreciated Growth and Margin Expansion

Vertiqal's Q3 EBIT positivity was a milestone, but the real prize is margin expansion. With gross profit margins already up to 66% (vs. 54% in 2023) and expenses slashed, even modest revenue growth could flip the company to full-year profitability in 2025. The 6ixbuzztv partnership's Canadian focus alone could add $15M+ in annual revenue by 2026, while U.S. expansion via Crossmedia targets a $50M opportunity.

Investors should also note Vertiqal's asset-light model: its 138 social channels and creator network require minimal capital outlay compared to traditional media. This allows reinvestment in growth while maintaining a low debt burden (no explicit debt mentioned in filings).

Risks and Considerations

• Market Fragmentation: Gen Z's shifting preferences could dilute campaign effectiveness. Vertiqal's data-driven approach mitigates this, but execution is key.
• Regulatory Risks: Social media content scrutiny is rising. Vertiqal's focus on creator-driven, non-political content may reduce exposure.
• Competition: Meta and TikTok's owned platforms loom large. Vertiqal's niche in gaming and localized markets offers a counterweight.

Investment Takeaway

Vertiqal Studios is a high-growth, scalable digital media play with a clear path to profitability. Its regional focus—bolstered by Pano and Sotero's expertise—and partnerships like 6ixbuzztv create a defensible moat in fragmented markets. With Gen Z spending $200B annually on digital content and advertisers scrambling to reach them, Vertiqal's 52M followers and 2B monthly views are undervalued assets.

For investors, the stock is a buy with a 12-18 month horizon, targeting a $200M+ valuation if margins hit 40% (vs. current ~25%). Monitor Q3 2025 results for signs of sustained EBITDA improvement and U.S. expansion traction. This is a story of scalability in a fragmented world—and Vertiqal's timing couldn't be better.

Disclosure: The analysis is based on publicly available data and does not constitute personalized investment advice.