Executive Summary

Revenue of $2.423M declined 45.3% year over year and 19.3% sequentially as management prioritized a capital and balance-sheet turnaround; gross margin expanded to 45% (from 39% YoY; 44% in Q2) and pro forma net loss improved versus last year .
Results missed Wall Street consensus: revenue $2.423M vs $3.395M and EPS -$3.07 vs -$2.80; the miss was driven by softer campaign volumes during restructuring and a near-term advertiser “flight to performance” into large platforms, per management commentary * .
Corporate catalysts: completed $20M private placement, restored full Nasdaq compliance, and—per management—eliminated debt post quarter-end; Q4 booked revenue already exceeds Q3, with eight seven-figure opportunities and a weighted pipeline up 69% in six weeks .
Guidance reiterated: targeting Adjusted EBITDA-positive in Q4 2025, supported by a lean OpEx footprint (~$4M in Q3), revenue diversification (mobile ads ~15% of Q3 revenue; Roblox ~42%), and new channels (CTV partnership with ES3) .

Note: Items marked with an asterisk (*) are values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Gross margin expansion: 45% in Q3 vs 44% in Q2 and 39% in Q3 2024, reflecting a mix shift to higher-margin products and tighter execution .
Strategic financing and compliance: closed a $20M round, streamlined capital structure, restored full Nasdaq compliance, and management stated the company “eliminated our debt” as of last week (post quarter) .
Commercial momentum and diversification: Q4 booked revenue exceeds Q3; weighted pipeline +69% over six weeks; mobile ads steady at 15% of revenue; Roblox down to 42% amid purposeful diversification; new ES3 CTV partnership opening a $33B+ ad pool .

Quote: “We are fully funded with no plans to go back to market other than for opportunistic growth…as of last week, we have eliminated our debt.” — Matt Edelman .

What Went Wrong

Top-line pressure: revenue fell to $2.423M (–45% YoY; –19% QoQ) as the company executed a complex turnaround and advertisers prioritized performance channels at large platforms, delaying spend into newer formats .
EPS below expectations: diluted EPS was a large loss in a microcap capital-intensive quarter; Street EPS missed by ~$0.28 (Primary EPS -3.07 vs -2.80), reflecting lower revenue and other income/expense volatility .
Continued reliance on pass-through work can dilute margins: management noted that larger “general contractor” campaigns can entail third-party passthroughs that compress gross margin despite supporting long-term relationships .

Financial Results

Income Statement Summary vs Prior Periods and Mix

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD)	$4,431,000	$3,001,000	$2,423,000
Gross Profit ($USD)	$1,725,000	$1,309,000	$1,080,000
Gross Margin %	39%	44%	45%
Total Operating Expense ($USD)	$5,178,000	$4,454,000	$4,131,000
Net Operating Loss ($USD)	$(3,453,000)	$(3,145,000)	$(3,051,000)
Net Loss ($USD)	$(3,632,000)	$(2,783,000)	$(3,562,000)
Diluted EPS ($USD)	$(21.47)	$(4.52)	$(2.65)

Results vs Wall Street Consensus (S&P Global)

Metric	Q3 2025 Actual	Q3 2025 Consensus	Surprise
Revenue ($USD)	$2,423,000	$3,395,000	-$972,000 (–28.6%)
Primary EPS ($USD)	-$3.0712	-$2.795	-$0.276 (miss)

Values retrieved from S&P Global.

Segment/Channel Mix (Q3 2025)

Channel/Category	Q3 2025 Mix
Mobile Advertising	~15% of revenue
Roblox Campaigns	~42% of revenue

KPIs and Operating Indicators

KPI	Q3 2025
Weighted pipeline change	+69% in six weeks
# of active seven-figure opportunities	8 (all-time high)
Booked revenue visibility	Q4 booked > Q3 actual
Pro forma net loss ($USD)	$(2,752,000)
Non-cash OpEx YoY change	–29% YoY

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA	Q4 2025	“On track to reach EBITDA positive in Q4” (Q1/Q2)	Reiterated commitment to achieve Adjusted EBITDA-positive in Q4 2025	Maintained
Revenue	Q4 2025	No numeric prior; seasonally stronger H2 historically	Booked revenue already higher than Q3	Improved visibility
Operating Expenses	Near term	Rightsized; no plan to increase (Q2)	Lean structure; do not anticipate increases; ~$4.1M in Q3	Maintained
Capital Structure	Post-Q3	NASDAQ deficiencies outstanding early 2025	Full Nasdaq compliance; $20M placement; management says debt eliminated post quarter	Improved

Earnings Call Themes & Trends

Topic	Q1 2025 (Prior Mentions)	Q2 2025 (Prior Mentions)	Q3 2025 (Current)	Trend
AI/Technology initiatives	Acquisition of Supersocial; pipeline ~$20M; higher-margin focus	Ad Arcade playable ads outperform; TikTok expansion; Roadtrends analytics launched	Google’s “Be Internet Awesome” AI literacy on Roblox; Pop-Ups SDK strategy	Expanding execution and productization
Revenue mix diversification	Mobile grew to ~15% of rev	Target mobile to 25%; mix 50–60% immersive, 40–50% other next year	Roblox ~42%; Mobile ~15%; CTV partnership adds new engine	Diversifying beyond Roblox
Macro/advertiser budgets	On track to Q4 EBITDA; restructuring noted	Budgets paused then opening up; stronger H2	Encouraging signs of reopening; flight to performance at big platforms earlier in year	Improving budget environment
Product performance: Roblox custom vs Pop-Ups	–	Shift to scalable formats highlighted at IAB PlayFronts	12 Pop-Ups by YE; higher margin and faster time-to-market	Mix shift to scalable/higher margin
M&A / Capital structure	–	Multiple debt and equity actions; reverse split; ELOC/PIPE -	$20M private placement; balance sheet strengthened; accretive M&A back on table	Strengthening platform for inorganic growth
Digital assets strategy	–	Exploring crypto/stablecoin (Genius Act) opportunities	Evo Fund backing; targeting Q1 2026 launch of integrated treasury model	Early-stage strategic exploration

Management Commentary

“Super League is in a stronger position to succeed now…we reported a final close on $20 million of financing…we have eliminated our debt. Our balance sheet is stronger than it has been in years.” — Matt Edelman .
“Q3 gross margins remained strong at 45%, up from 39% a year ago…Mobile ad revenue held steady at 15% of total revenue, while Roblox campaigns represented 42% of revenue…a result of purposeful diversification efforts.” .
“Our partnership with ES3 opens access to CTV budgets…projected to grow from $33 billion in 2025 to $47 billion by 2028.” .
“Booked revenue for Q4 is already higher than our Q3 revenue…our weighted pipeline has increased by 69% in the past six weeks.” .
“We expect Pop-Ups to become more meaningful in 2026…higher margin product…faster to market.” .

Q&A Highlights

OpEx run-rate and cost discipline: headcount reduced from ~75 to ~35; current OpEx levels viewed as appropriate, with no plans for increases near-term .
Advertiser budget sentiment: budgets have opened back up after a period of flight to performance at major platforms; economic conditions and rates remain watch items .
Revenue mix outlook: Roblox likely remains a meaningful share, but diversification expected (Fortnite, Minecraft, mobile); mobile seen as largest growth potential given open platform dynamics .
New channels: strong enthusiasm for CTV “Ingage” module; interactive experiences via TV remote as an emerging engagement format .
Digital assets leadership: leveraging Evo Fund expertise; searching for board/advisors with deep experience; aiming for a symbiotic operating business–treasury model .

Estimates Context

Q3 2025 outcomes versus consensus: revenue $2.423M vs $3.395M (–28.6% miss); Primary EPS -$3.0712 vs -$2.795 (–$0.276 miss). Values retrieved from S&P Global.
Implications: Street models likely need lower near-term revenue assumptions and account for the evolving mix (higher-margin Pop-Ups, mobile/CTV ramp) and the timing effects from restructuring; management flagged improving pipelines and Q4 bookings exceeding Q3, which could support upward revisions for Q4 and early 2026 if conversion rates hold .

Key Takeaways for Investors

Near-term: headline misses vs consensus reflect turnaround execution; watch Q4 delivery on Adjusted EBITDA-positive target and whether booked revenue momentum translates to reported growth .
Mix evolution: sustained gross margin expansion to 45% with a strategic pivot to scalable Pop-Ups and mobile/CTV suggests structurally better unit economics even at lower volumes .
Capital and compliance: $20M financing and Nasdaq compliance reduce overhangs; management asserts debt elimination post quarter—monitor subsequent filings for balance-sheet confirmation .
Pipeline and demand: eight seven-figure opportunities and weighted pipeline +69% indicate potential inflection; the reopening of budgets and East Coast sales build from Q2 underpin the setup .
New channels as catalysts: CTV “Ingage” partnership and mobile playable ads broaden TAM and diversify cyclicality across platforms .
Digital asset optionality: early-stage strategy with Evo Fund support could create non-linear upside; execution and regulatory clarity remain key .
Risk management: continued pass-through elements can pressure margins; macro and rate sensitivity of brand budgets persist; share count dynamics and non-GAAP adjustments should be tracked across filings .