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East Side Games Cuts Spending, Profitability Focus

14 Aug

Summary

Revenue missed targets due to tight user acquisition spending.
Adjusted EBITDA remained positive, showing cost control.
Player engagement improved significantly year-over-year.

East Side Games Cuts Spending, Profitability Focus

East Side Games Group strategically prioritized profitability and capital efficiency in Q2 2026, resulting in revenue of CAD 10.3 million, below forecasts. The company deliberately reduced user acquisition spending to preserve cash, leading to positive adjusted EBITDA of CAD 1.36 million. This approach improved cost control and increased player engagement by 22% year-over-year.

Looking ahead, East Side Games plans to increase user acquisition spending after establishing a new banking relationship by mid-August 2026. This will be complemented by joining Google Play's Level Up program on October 1, 2026, which is expected to reduce platform fees. The company is also expanding direct-to-consumer sales and aims to optimize its operations for sustainable, profitable growth.

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