Enthusiast Gaming Reports Q4 and Full Year 2024 Financial Results

/EIN News/ -- Quarterly Adjusted EBITDA of $1.9 Million in Q4, a $4.9 Million Improvement YoY

Annual Adjusted EBITDA of $(0.2) Million in 2024, a $12.8 Million Improvement YoY

Gross Margins of 76% in Q4, up 3600 bps YoY

TORONTO, March 31, 2025 (GLOBE NEWSWIRE) -- Enthusiast Gaming Holdings Inc. (“Enthusiast Gaming” or the “Company”) (TSX: EGLX), a leading gaming media and entertainment company, today announced financial results for the three months (“Q4 2024”) and year ended December 31, 2024 (“FY 2024”).

“2024 was a milestone year for Enthusiast Gaming, as we repositioned the business for long-term, high-margin growth,” said Adrian Montgomery, Interim CEO of Enthusiast Gaming. “By streamlining operations and enhancing monetization, we have established an efficient, scalable model that delivers stronger returns. With this solid foundation in place, our focus is now on audience expansion—spending more time with more gamers across our owned and operated properties. As we enter 2025, we are positioned to drive sustained growth by deepening engagement and maximizing the value of our gaming ecosystem.”

“The Company’s realignment towards higher-margin, owned and operated revenue streams and a significantly reduced cost base has established a strong financial foundation, including profitability, expanded gross margins, and growing operating leverage,” said Alex Macdonald, Chief Financial Officer of Enthusiast Gaming. “With this structure in place, we are now focused on scaling revenue in ways that accelerate EBITDA growth and drive free cash flow. Every user is more valuable under our current monetization structure, and audience expansion is a key operational focus for 2025. We are also investing in our direct sales team to reestablish it as a meaningful driver of high-margin, top-line revenue growth. With this foundation, the business is structured for efficient growth and increasing EBITDA contribution at scale.”

Financial Highlights for Q4 2024

• Revenue of $17.8 million, compared to $47.1 million in Q4 2023, with the vast majority of the decline being attributable to the strategic deprioritization of the low margin video platform revenue.
• Gross profit of $13.5 million, compared to $18.9 million in Q4 2023, with gross margin expanding to 76% from 40% in the year ago period.
• Operating expenses of $15.6 million, a $12.2 million year-over-year decrease from $27.8 million in Q4 2023 as a result of strategic initiatives taken to establish an efficient and scalable operating model throughout FY2024.
• Adjusted EBITDA profit of $1.9 million, a $4.9 million improvement compared to an Adjusted EBITDA loss of $3.0 million in Q4 2023
• Net loss and comprehensive loss of $80.1 million in Q4 2024 compared to $40.8 million in Q4 2023. Net and comprehensive loss in Q4 2024 includes non-cash impairment charges of $81.9 million (Q4 2023 - $38.0 million).
  

Business Highlights for Q4 2024

• Subscription Growth: Led by The Sims Resource, the leading custom content and community site for players of The Sims franchise, the Company has seen continuous subscriber growth through Q4 and year-to-date in Q1 2025, reversing first-half declines in FY 2024 and driving new record subscriber counts for the Company. March 2025 will mark the tenth consecutive month of growth in the subscriber base, which has seen over 25,000 subscribers joining the platform during that time frame.
• Platform Engagement and Audience Growth: The Company’s key owned and operated properties saw sustained engagement and continued year-over-year growth, with overall web pageviews across all web properties increasing to 1.8 billion in Q4 2024 compared to 1.5 billion in Q4 2023, despite both the sale of certain of the Company’s legacy casual gaming properties in April 2024 and the Company’s intentional deprioritization of third-party-owned, low-margin network sites throughout 2024. The Company saw material contributions to this growth from its core property Icy Veins, the Company’s leading site for Blizzard games and ARPG enthusiasts, which saw record user activity on the site from both the continued impact of Blizzard’s World of Warcraft expansion: The War Within, and Blizzard’s October launch of the Diablo IV expansion: Vessel of Hatred, as well as significant contributions from sites like PocketGamer.com, which doubled its traffic over the course of 2024 and continues to grow as the go-to destination for mobile game news, guides, tier lists, and reviews. In addition, the Company’s leading data and insights platform, U.GG, saw consistent and significant growth in its proprietary applications through 2024, now achieving more than 2.5 million downloads in the aggregate between its League of Legends and Valorant applications, capturing greatly enhanced user retention, engagement and monetization from converted users as compared to the web property.
• Direct Sales: Q4 2024 brought multiple new clients to the Enthusiast roster, including White Claw, Johnson & Johnson, Raising Cane’s and Sargento, while also continuing to service a strong roster of returning clients like Amazon, Ampm, Coca-Cola, Disney, Lego, Mattel, Netease, Paramount, RBC, Square Enix, State Farm, Toyota, Warner Brothers, and Xbox. In addition, the Company has continued to bolster its direct sales team with the addition of new sellers, as well as Bob Lonigro as VP of Sales, with a goal to achieve an average ramped seller headcount in 2025 approaching the levels in 2023.
• Event Growth and Engagement: The Company’s B2B mobile games event series, PocketGamer Connects, continued to entrench itself as the industry leading conference series for mobile gaming professionals and industry participants, hosting PGC Helsinki in October 2024 and PGC London, its largest event ever by all relevant metrics, including attendance, sponsors, speakers and company representation, being held in January 2025.
• Luminosity Gaming’s Event Success: Luminosity Gaming hosted its second invitational Super Smash Bros. Ultimate event of the year drawing over 600,000 hours watched and peaking at 60,000 concurrent viewers during the grand finals, demonstrating Luminosity’s continued strength as a leading esports brand that can deliver high-engagement content for fans and valuable exposure for sponsors, while also serving as a core execution arm for our direct sales team. Luminosity has also expanded its game coverage to include strategically relevant titles such as League of Legends and Marvel Rivals. These expansions will enhance the user and fan experience through the cross-platform amplification of these audiences across the Company’s owned and operated properties like U.GG, which is the number one League of Legends data and insights platform in North America and has recently expanded its coverage to include a best-in-class product for Marvel Rivals, a title which has seen significant and continued success in recent months.
  

Fourth Quarter 2024 Results Comparison

Revenue was $17.8 million in Q4 2024, a 62% decrease compared to $47.1 million in Q4 2023. Media and Content revenue was $12.8 million in Q4 2024, a 70% decrease from $42.6 million in Q4 2023. The Company’s strategic decision to de-prioritize the lower margin video platform revenue accounted for $24.1 million of the $29.8 million reduction in Media and Content revenue. Direct Sales (the majority of which is included in media and content revenue) decreased from $13.2 million in Q4 2023 to $5.9 million in Q4 2024 mainly due to a lower number of ramped sellers than the year ago period, contributing $7.3 million to the decline in revenue. Esports and Entertainment revenue increased to $2.0 million from $1.2 million in Q4 2023, mainly due to an increase in live events in Q4 2024 as compared to Q4 2023. Subscription revenue decreased from $3.3 million in Q4 2023 to $2.9 million in Q4 2024 largely due to the sale of certain non-core, non-profitable assets in April 2024.

Gross profit was $13.5 million in Q4 2024, a 29% decrease compared to $18.9 million in Q4 2023. Gross margin increased to 76% in Q4 2024 from 40% in Q4 2023.

Operating expenses decreased to $15.6 million in Q4 2024, a 44% decrease from $27.8 million in Q4 2023.

Adjusted EBITDA profit was $1.9 million in Q4 2024 compared to an Adjusted EBITDA loss of $3.0 million in Q4 2023.

Net loss was $83.6 million, or $(0.53) per share, in Q4 2024, compared to $39.7 million, or $(0.26) per share, in Q4 2023.

Full Year 2024 Results Comparison

Revenue was $72.6 million in 2024, a 59% decrease compared to $178.2 million in 2023. Media and Content revenue was $51.3 million in 2024, a 67% decrease from $154.8 million in 2023. The Company’s strategic decision to de-prioritize the lower margin video platform revenue accounted for $79.4 million of the $103.5 million reduction in Media and Content revenue. Direct Sales (the majority of which is included in media and content revenue) decreased from $41.7 million in 2023 to $21.4 million in 2024 mainly due to a lower number of ramped sellers than the year ago period, contributing $20.3 million to the decline in revenue. Esports and Entertainment revenue increased to $8.5 million in 2024 from $8.3 million in 2023. Subscription revenue decreased from $15.0 million in 2023 to $12.9 million in 2024 in part due to change in mix of subscribers and lower subscriber count during portions of the year on The Sims Resource and in part due to the sale of certain non-core, non-profitable assets in April 2024.

Gross profit was $49.1 million in 2024, a 27% decrease compared to $67.4 million in 2023. Gross margin increased to 68% in 2024 from 38% in 2023.

Adjusted EBITDA loss was $0.2 million in 2024 compared to an Adjusted EBITDA loss of $13.0 million in 2023.

Net loss $96.0 million, or $(0.61) per share, in 2024, compared to $117.7 million, or $(0.77) per share, in 2023.

Organizational Updates

The Company is pleased to announce that Alex Gonzalez has been promoted to Chief Marketing Officer for the Company, reflecting his broad range of responsibilities for the Company’s creator talent, go-to-market strategy, campaign development and overall marketing efforts across the Company. Alex has been a valued member of the leadership team at Enthusiast Gaming for the past three years, having previously served as Head of Luminosity, as well as SVP of Talent, Gaming and Marketing.

Investor Conference Call

Management will host a conference call and webcast on Monday, March 31, 2025, at 5 p.m. ET to review and discuss its Q4 and full-year 2024 results. Conference call details:

• Toll Free: 1-855-239-1101 or 1-412-317-5231 or ‘Call me’: https://callme.viavid.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9JmluZm89Y29tcGFueSZyPXRydWUmYj0xNQ== (‘Call me’ Passcode: 1771177)
  

  Conference ID: 10197864

• Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1712465&tp_key=4b60ef7f97
  

A replay will be available on Enthusiast Gaming’s website at enthusiastgaming.com/investors.

Supplemental Information

Enthusiast Gaming’s financial statements and management discussion and analysis (“MD&A”) are available at www.sedarplus.ca and enthusiastgaming.com/investors. All amounts are in Canadian dollars.

About Enthusiast Gaming

Enthusiast Gaming is a leading gaming media and entertainment company, building the largest platform for video game enthusiasts and esports fans to connect and compete worldwide. Combining the elements of its four core pillars: creators, content, communities, and experiences, Enthusiast Gaming provides a unique opportunity for marketers to create integrated brand solutions to connect with coveted Gen Z and Millennial audiences. Through its proprietary mix of digital media, content and gaming assets, Enthusiast Gaming continues to grow its network of communities, reflecting the scale and diversity of gaming enthusiasts today.

Forward-Looking Statements

This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast Gaming anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, statements regarding trends in certain financial and operating metrics of the Company, and expectations relating to the financial performance and the financial results of future periods.

Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the esports and gaming media industry; the Company’s growth plan, and judgment applied in the application of the Company’s accounting policies and in the preparation of financial statements in accordance with applicable financial reporting standards. While Enthusiast Gaming considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risks, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of Enthusiast Gaming which are available on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Enthusiast Gaming disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Measures

This press release references certain non-GAAP measures, including Adjusted EBITDA, as described below. These non-GAAP measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those GAAP measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.

The Company uses non-GAAP measures including:

“EBITDA”, which is defined as earnings before interest, taxes, depreciation and amortization. Enthusiast Gaming calculates EBITDA using gross margin less total operating expenses plus share-based compensation and amortization and depreciation; and

“Adjusted EBITDA”, which is defined as EBITDA adjusted for severance and other non-recurring public company costs. These non-recurring costs include, but are not limited to, annual Nasdaq listing fees and annual directors and officers (“D&O”) liability insurance associated with the Company’s former listing on Nasdaq. Adjusted EBITDA also excludes “NFL TNG EBITDA” which is defined as EBITDA attributable to the Company’s NFL TNG program during Q4 2024, as the program became non-recurring due to its termination.

Neither the Toronto Stock Exchange nor its Regulation Services Provider (as that term is defined in the policies of the exchange) accepts responsibility for the adequacy or accuracy of this release.

Enthusiast Gaming Holdings Inc.
Consolidated Statements of Loss and Comprehensive Loss
For the three months and year ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
				For the three months ended						For the year ended
				December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
				(Unaudited)			(Unaudited)			(Audited)			(Audited)
	Revenue		$	17,757,358		$	47,141,121		$	72,568,506		$	178,178,127
	Cost of sales			4,233,851			28,204,166			23,443,419			110,756,401
	Gross margin			13,523,507			18,936,955			49,125,087			67,421,726
	Operating expenses
		Professional fees		652,249			596,256			1,843,478			2,413,954
		Consulting fees		334,768			2,320,745			2,434,113			6,904,431
		Advertising and promotion		163,691			1,386,966			1,105,391			4,335,937
		Office and general		394,281			1,659,298			3,041,114			7,950,085
		Salaries and wages		5,535,030			9,610,955			25,054,989			37,564,336
		Technology support, web development and content		6,744,049			8,787,448			17,880,197			24,902,819
		Esports player, team and game expenses		473,316			565,742			2,115,202			2,527,541
		Foreign exchange loss		264,030			80,043			338,915			174,399
		Share-based compensation		392,699			1,191,567			(1,147,697	)		5,474,447
		Amortization and depreciation		643,418			1,646,055			2,754,986			10,432,382
	Total operating expenses			15,597,531			27,845,075			55,420,688			102,680,331
	Other expenses (income)
		Goodwill impairment		72,044,148			20,005,377			72,044,148			64,827,952
		Intangible asset impairment		9,844,441			14,602,083			9,844,441			21,440,143
		Investment in associates impairment		-			17,363			26,497			17,363
		Other long-term asset impairment		-			3,364,584			1,098,506			3,364,584
		Transaction costs		227,151			-			2,136,114			-
		Share of net income from investment in associates and joint ventures		-			(383,893	)		(18,627	)		(456,062	)
		Interest and accretion		453,856			615,761			2,214,340			2,449,139
		Loss (gain) on revaluation of deferred payment liability		67,937			(23,068	)		44,451			592,053
		Gain on sale of assets held for sale		-			-			(344,852	)		-
		Loss on disposal of property and equipment		-			-			25,997			-
		(Gain) loss on revaluation of long-term debt		(478,408	)		-			2,907,390			-
		Loss on modification of long-term debt		-			419,953			401,951			419,953
		Interest income		(3,077	)		(1,020	)		(8,807	)		(64,316	)
	Net loss before income taxes			(84,230,072	)		(47,525,260	)		(96,667,150	)		(127,849,414	)
	Income taxes
		Current tax expense		189,631			(135,170	)		372,160			261,947
		Deferred tax recovery		(847,490	)		(7,734,130	)		(1,056,310	)		(10,437,753	)
	Loss for the period			(83,572,213	)		(39,655,960	)		(95,983,000	)		(117,673,608	)
	Other comprehensive (loss) income
	Items that may be reclassified to profit or loss
		Foreign currency translation adjustment		3,514,132			(1,107,935	)		4,340,222			(1,427,872	)
	Net loss and comprehensive loss for the period		$	(80,058,081	)	$	(40,763,895	)	$	(91,642,778	)	$	(119,101,480	)
	Net loss per share, basic and diluted		$	(0.54	)	$	(0.26	)	$	(0.61	)	$	(0.77	)
	Weighted average number of common shares
		outstanding, basic and diluted		158,748,136			154,393,280			156,481,036			153,191,778

Enthusiast Gaming Holdings Inc.
Consolidated Statements of Financial Position
As of December 31, 2024 and 2023
(Expressed in Canadian Dollars)
			December 31, 2024				December 31, 2023
	ASSETS
	Current
		Cash	$	4,765,373			$	6,851,966
		Trade and other receivables		12,351,539				31,502,732
		Income tax receivable		12,371				31,251
		Prepaid expenses		2,010,796				1,820,144
	Total current assets			19,140,079				40,206,093
	Non-current
		Property and equipment		187,464				124,640
		Right-of-use assets		800,908				1,441,149
		Investment in associates and joint ventures		-				2,888,730
		Long-term portion of prepaid expenses		148,546				182,108
		Intangible assets		71,815,485				85,421,227
		Goodwill		36,353,244				105,868,081
	Total assets		$	128,445,726			$	236,132,028
	LIABILITIES AND SHAREHOLDERS' EQUITY
	Current
		Accounts payable and accrued liabilities	$	15,022,630			$	47,101,272
		Contract liabilities		5,735,275				6,078,950
		Income tax payable		131,441				274,924
		Current portion of long-term debt		38,990,332				21,888,597
		Current portion of deferred payment liability		2,322,274				82,231
		Current portion of lease liabilities		727,525				740,212
		Current portion of other long-term debt		-				9,668
	Total current liabilities			62,929,477				76,175,854
	Non-current
		Long-term portion of deferred payment liability		-				2,083,262
		Long-term portion of lease liabilities		295,977				938,845
		Other long-term debt		-				140,613
		Deferred tax liability		13,470,905				14,076,780
	Total liabilities		$	76,696,359			$	93,415,354
	Shareholders' Equity
		Share capital		461,607,373				444,474,076
		Warrants reserve		1,823,168				-
		Contributed surplus		17,596,195				35,877,189
		Accumulated other comprehensive income		11,542,198				7,201,976
		Deficit		(440,819,567	)			(344,836,567	)
	Total shareholders' equity			51,749,367				142,716,674
	Total liabilities and shareholders' equity		$	128,445,726			$	236,132,028

Enthusiast Gaming Holdings Inc.
Consolidated Statements of Cash Flows
For the year ended December 31, 2024 and 2023
(Expressed in Canadian Dollars)
		December 31, 2024				December 31, 2023
	Cash flows from operating activities
	Net loss for the year	$	(95,983,000	)		$	(117,673,608	)
	Items not affecting cash:
	Goodwill impairment		72,044,148				64,827,952
	Intangible asset impairment		9,844,441				21,440,143
	Investment in associates impairment		26,497				17,363
	Other long-term asset impairment		1,098,506				3,364,584
	Amortization and depreciation		2,754,986				10,432,382
	Share-based compensation		(1,147,697	)			5,474,447
	Accretion		(118,359	)			191,722
	Deferred tax recovery		(1,056,310	)			(10,437,753	)
	Share of net income from investment in associates and joint ventures		(18,627	)			(456,062	)
	Gain on sale of assets		(344,852	)			-
	Loss on revaluation of deferred payment liability		44,451				592,053
	Foreign exchange (gain) loss		(507,121	)			245,058
	Loss on disposal of property and equipment		25,997				-
	Gain on settlement of accounts payable		(1,384,377	)			-
	Loss on modification of long-term debt		401,951				419,953
	Loss on revaluation of long-term debt		2,907,390				-
	Transaction costs		2,136,114				-
	Provisions		208,553				105,512
	Changes in working capital:
	Changes in trade and other receivables		19,974,940				2,865,276
	Changes in prepaid expenses		15,812				289,713
	Changes in accounts payable and accrued liabilities		(30,702,273	)			14,277,952
	Changes in contract liabilities		145,536				698,572
	Changes in income tax receivable and payable		421,934				633,073
	Income tax paid		(538,682	)			(151,793	)
	Net cash used in operating activities		(19,750,042	)			(2,843,461	)
	Cash flows from investing activities
	Proceeds from sale of assets, net of transaction costs		2,693,339				-
	Distribution from investment in associates, net of adjustments		1,416,830				-
	Proceeds from redemption of investments		-				125,000
	Repayment of deferred payment liability		(85,700	)			(844,350	)
	Acquisition of intangible assets		-				(27,488	)
	Acquisition of property and equipment		(177,844	)			(20,430	)
	Net cash from (used in) investing activities		3,846,625				(767,268	)
	Cash flows from financing activities
	Proceeds from long-term debt, net of transaction costs		20,737,490				8,222,904
	Repayment of long-term debt		(6,373,678	)			(4,129,561	)
	Repayment of other long-term debt		(173,858	)			(12,569	)
	Lease payments		(850,624	)			(986,802	)
	Net cash from financing activities		13,339,330				3,093,972
	Foreign exchange effect on cash		477,494				(46,793	)
	Net change in cash		(2,086,593	)			(563,550	)
	Cash, beginning of year		6,851,966				7,415,516
	Cash, end of year	$	4,765,373			$	6,851,966

Enthusiast Gaming Holdings Inc.
EBITDA and Adjusted EBITDA
For the three months and year ended December 31, 2024 and 2023
(Unaudited - Expressed in Canadian Dollars)
			For the three months ended								For the year ended
		December 31, 2024				December 31, 2023				December 31, 2024				December 31, 2023
	Gross margin	$	13,523,507			$	18,936,955			$	49,125,087			$	67,421,726
	Operating expenses		(15,597,531	)			(27,845,075	)			(55,420,688	)			(102,680,331	)
	Share-based compensation		392,699				1,191,567				(1,147,697	)			5,474,447
	Amortization and depreciation		643,418				1,646,055				2,754,986				10,432,382
	EBITDA		(1,037,907	)			(6,070,498	)			(4,688,312	)			(19,351,776	)
	Severance		281,187				2,617,134				1,007,743				4,049,127
	Listing fees & D&O insurance specific
	to the Company's Nasdaq listing		201,478				429,797				1,022,926				2,270,949
	NFL TNG EBITDA		2,504,408				-				2,504,408				-
	Adjusted EBITDA	$	1,949,166			$	(3,023,567	)		$	(153,235	)		$	(13,031,700	)

Contacts
                    Enthusiast Gaming: Alex Macdonald, Chief Financial Officer
                    Investors: investor@enthusiastgaming.com
                    Media: press@enthusiastgaming.com