Executive Summary

Revenue declined 27% year over year to $1.92M on a sharp drop in casual mobile gaming, partially offset by stronger in‑person event revenues; GAAP net loss widened to $(4.83)M and Adjusted EBITDA loss increased to $(2.06)M .
Operating expenses rose modestly to $8.01M, driven largely by higher legal and proxy contest costs associated with a dissident stockholder, pressuring operating margin to -317% .
Liquidity remains solid with ~$60.0M in cash, short‑term investments and marketable securities at 6/30/25, providing runway for strategic initiatives, including participation in Angry Birds 3 IP, and a newly appointed CEO signaling focus on content, IP, and blockchain/tokenization opportunities .
No formal quantitative guidance or earnings call transcript was available; S&P Global consensus estimates for Q2 2025 were unavailable, limiting beat/miss determinations and increasing reliance on qualitative catalysts around governance resolution and strategy execution in 2H25 . Consensus unavailable via S&P Global for Q2 2025.*

What Went Well and What Went Wrong

What Went Well
- In‑person event revenues grew to $1.16M from $0.92M YoY on robust arena activity (75 events; 36 proprietary, 39 third‑party event days) .
- Strong liquidity: cash and short‑term investments position of ~$60.0M as of June 30, 2025; balance sheet shows $23.08M cash, $33.89M short‑term investments, and $3.01M marketable securities (≈$60M combined) .
- Strategic direction: New CEO Yangyang (James) Li emphasized building around gaming and immersive entertainment, pursuing RWA tokenization and blockchain integration, and advancing investments in iconic IPs like Angry Birds 3: “I am honored to be appointed CEO…participating in strategic investments in iconic intellectual properties like Angry Birds 3…” .
What Went Wrong
- Revenue contraction: total revenue fell to $1.92M from $2.64M (-27% YoY), driven by a ~$1.0M decline in casual mobile gaming .
- Profitability pressured: net loss widened to $(4.83)M from $(3.88)M; Adjusted EBITDA loss increased to $(2.06)M from $(1.73)M; operating margin deteriorated to -317% (from -200%) on higher legal/proxy costs and lower scale .
- Elevated legal and governance overhang: G&A increased primarily due to ~$0.5M higher legal and professional fees tied to dissident stockholder complaints and a proxy contest; company also disclosed Nasdaq deficiency notice in May related to delayed filings, adding compliance risk .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD)	$2,639,868	$2,275,135 (derived from 6M 2025 − Q2 2025)	$1,919,483
Loss from Operations ($USD)	$(5,290,252)	$(5,251,623) (derived from 6M 2025 − Q2 2025)	$(6,091,978)
Operating Margin (%)	-200.4% (calc)	-230.8% (calc)	-317.4% (calc)
Net Loss ($USD)	$(3,882,951)	$(4,899,887) (derived from 6M 2025 − Q2 2025)	$(4,833,967)
Net Income Margin (%)	-146.9% (calc)	-215.4% (calc)	-251.9% (calc)
Basic & Diluted EPS ($)	$(0.09)	— (not disclosed)	$(0.11)
Adjusted EBITDA ($USD)	$(1,732,543)	$(3,092,002) (derived from 6M 2025 − Q2 2025)	$(2,062,225)
Adjusted EBITDA Margin (%)	-65.7% (calc)	-135.9% (calc)	-107.5% (calc)
Total Costs & Expenses ($USD)	$7,930,120	—	$8,011,461

Notes:

“calc” indicates calculation using values from the cited document(s).
Q1 2025 figures shown as derived are computed from year‑to‑date (six months) totals minus Q2 results as presented in the same filing .

Segment revenue breakdown (Q2 YoY):

Segment	Q2 2024	Q2 2025	YoY Change
In‑person ($)	$917,362	$1,160,995	+26.6% (calc)
Casual mobile gaming ($)	$1,722,454	$758,408	-56.0% (calc)
Multiplatform content ($)	$52	$80	+53.8% (immaterial; calc)
Total Revenues ($)	$2,639,868	$1,919,483	-27.3% (calc)

KPIs and balance sheet highlights:

KPI	Q2 2025
Events hosted	75 total; 36 proprietary; 39 third‑party event days
Cash & short‑term investments	~$60.0M at 6/30/25
Cash ($)	$23,075,975 at 6/30/25
Short‑term investments ($)	$33,894,921 at 6/30/25
Marketable securities ($)	$3,006,165 at 6/30/25
Working capital ($)	$44.9M at 6/30/25
Shares outstanding	~38.0M at 6/30/25

Non‑GAAP reconciliation highlights (Q2 2025):

Adjusted EBITDA excludes: $2.40M non‑recurring legal fees, $1.07M proxy contest costs, $(0.79)M gain on marketable securities, $(0.02)M gain on money market fund, $0.54M FX loss, and $0.19M stock‑based comp .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3 2025	None disclosed	None disclosed	Maintained (no formal guidance)
Margins/OpEx/Tax/Segments	FY/Q3 2025	None disclosed	None disclosed	Maintained (no formal guidance)

Note: The company did not provide quantitative guidance in the Q2 2025 materials reviewed .

Earnings Call Themes & Trends

No Q2 2025 earnings call transcript was available in our document set; themes below reflect press releases and governance filings.

Topic	Previous Mentions (Q‑2 and Q‑1)	Current Period (Q2 2025)	Trend
Governance/legal matters	Nasdaq deficiency notice for delayed 10‑K/10‑Q (May 2025)	Higher legal/proxy costs; dissident stockholder litigation and proxy contest cited; CEO/Board commentary on defense	Intensifying governance overhang
Strategic IP/content	Limited disclosures earlier in the year amid delayed filings	Participation in strategic investments including Angry Birds 3 IP	Increasing emphasis on IP monetization
Events/experiential	No prior quarter event metrics disclosed in our set	75 events; stronger in‑person revenue	Positive momentum (limited history)
Blockchain/tokenization	Introduced in CEO transition articulation (June 26)	CEO reiterates focus on RWA tokenization and crypto integration within entertainment/gaming	Emerging strategic pillar

Management Commentary

Strategic focus and outlook: “While our second quarter performance was impacted by disruptions related to a dissident stockholder, I am confident that we are gaining meaningful traction on our key initiatives…participating in strategic investments in iconic intellectual properties like Angry Birds 3…” — Yangyang (James) Li, CEO .
Growth vectors and technology integration: “Solidifying…gaming and immersive entertainment, while actively pursuing the tokenization of real‑world assets (RWA), and exploring a deeper integration of cryptocurrency and blockchain technologies within entertainment and gaming.” — CEO transition release .
Governance stance: Management highlighted “baseless attacks and costly litigation brought by dissident shareholders” and a commitment to governance reforms and strategic plan in coming months to “safeguard shareholder rights” and “enhance asset value” .

Q&A Highlights

No Q2 2025 earnings call transcript was available; no Q&A details could be reviewed. Management commentary in releases emphasizes governance defense, strategic IP expansion, and blockchain/tokenization initiatives .

Estimates Context

Wall Street consensus: S&P Global consensus for Q2 2025 revenue and EPS was unavailable; as a result, we cannot assess beats/misses versus consensus for this quarter. Values retrieved from S&P Global.*

Implications:

In the absence of estimates, investors should focus on trajectory (in‑person growth vs. mobile softness), expense normalization prospects post‑proxy contest, and timing of monetization from IP and new initiatives .

Key Takeaways for Investors

Revenue mix is shifting: in‑person events were a bright spot (+27% YoY), but the mobile gaming contraction (-$1.0M YoY) dominated the print; sustainability of in‑person momentum matters for H2 .
Expense normalization is key: elevated legal/proxy spend materially depressed margins; any governance resolution should improve loss trajectory and Adjusted EBITDA leverage .
Balance sheet strength provides runway: ~$60M in liquid assets supports execution on IP/content and technology initiatives without near‑term financing needs .
Strategy watch‑items: track concrete milestones on Angry Birds 3 participation, broader IP pipeline, and the RWA/crypto integration roadmap under the new CEO .
Compliance/governance risk remains a swing factor: monitor filings timeliness and outcomes related to dissident stockholder matters and Nasdaq compliance .
Near‑term setup: absent guidance/consensus, stock reaction likely hinges on governance headlines and visibility on expense normalization and IP monetization cadence .
Medium‑term thesis: if mobile stabilizes and events continue to scale, combined with incremental IP monetization and lower non‑recurring costs, losses could narrow; conversely, prolonged disputes could keep G&A elevated and delay strategic execution .

Citations:

Q2 2025 earnings 8‑K and press release (financials, segment results, cash/working capital, events):
CEO transition (strategy, governance stance):
Nasdaq deficiency notice (compliance context):

*Consensus/estimates note: We attempted to retrieve Q2 2025 S&P Global consensus for AGAE; data was unavailable at time of analysis. Values retrieved from S&P Global.

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