High Roller Technologies, Inc.(ROLR) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2025, the company reported revenues of $6.281 million, a decrease from $7.516 million in the same period of 2024, representing a decline of approximately 16.5%[142] - The net income for the three months ended September 30, 2025, was $3.667 million, compared to a net loss of $501,000 in the same period of 2024, indicating a significant turnaround[144] - The average revenue per user for the three months ended September 30, 2025, was $242, down from $279 in the same period of 2024, reflecting a decrease of about 13.3%[138] - The company had 21,800 active users during the three months ended September 30, 2025, compared to 25,326 active users in the same period of 2024, a decline of approximately 13.9%[138] - Adjusted EBITDA for the three months ended September 30, 2025, was $622,000, a significant increase from $40,000 in the same period of 2024[144] - Revenue for the nine months ended September 30, 2025, increased by $162 thousand or 0.8% to approximately $20.0 million, compared to $19.8 million for the same period in 2024[152] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(1,539) thousand, compared to $(1,675) thousand for the same period in 2024, reflecting a slight improvement[150] - Net gaming revenue decreased by $2.6 million or 14.3% to $15.8 million during the nine months ended September 30, 2025, primarily due to exits from multiple markets, including Norway[153] - Non-core services revenue increased by $2.8 million or 210.2% to $4.1 million during the nine months ended September 30, 2025, driven by optimized marketing efforts[154] - Adjusted earnings per share for the nine months ended September 30, 2025, was $(0.18), compared to $(0.24) for the same period in 2024[150] Expenses and Costs - The total operating expenses for the three months ended September 30, 2025, were $6.201 million, down from $7.990 million in the same period of 2024, a reduction of approximately 22.3%[143] - Direct operating costs decreased by $710 thousand or 27.6% to $1.9 million for the nine months ended September 30, 2025, due to a shift in marketing strategy[159] - General and administrative expenses increased to $7.6 million for the nine months ended September 30, 2025, compared to $7.3 million for the same period in 2024, mainly due to higher stock-based compensation[165] - Total advertising and promotion expenses increased to $6.6 million for the nine months ended September 30, 2025, compared to $5.2 million for the same period in 2024, reflecting increased marketing spend[172] - Product and software development expenses increased by $532 thousand or 98.3% to $1.1 million for the nine months ended September 30, 2025, as the company utilized its internal software development team[178] Cash Flow and Financial Position - Net cash used in operating activities increased to $4.5 million for the nine months ended September 30, 2025, from net cash provided by operations of $1.4 million in the same period of 2024, primarily due to increased marketing spend[197] - As of September 30, 2025, the company had $2.7 million in cash and cash equivalents, down from $6.9 million as of December 31, 2024[193][194] - The accumulated deficit as of September 30, 2025, was $27.3 million, compared to $27.1 million as of December 31, 2024[193][194] - Interest expense for the nine months ended September 30, 2025, was $154 thousand, up from $77 thousand for the same period in 2024, primarily due to non-cash interest related to domain purchase liability[183] - The company reported negative working capital of $4.8 million as of September 30, 2025, compared to negative working capital of $1.4 million as of December 31, 2024[193][194] Strategic Initiatives - The company soft launched its second active brand, Fruta.com, in December 2023, with plans for a full launch in February 2024[132] - The company expects to enter regulated North American markets by the end of 2026, aiming to expand its geographical presence[131] - The company operates a multi-brand strategy, leveraging existing resources to launch new brands and access new target demographics[132] Auditor and Compliance - The independent auditor expressed substantial doubt about the company's ability to continue as a going concern, highlighting the need for additional financing to meet obligations[195] - The company is classified as an "emerging growth company" under the JOBS Act and has elected to take advantage of the extended transition period for compliance with new accounting standards[218] - Management does not anticipate that recently issued accounting guidance will materially impact financial statement presentation or disclosures[217] - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[219] - ASC 740 clarifies the accounting for uncertainty in income taxes and prescribes a recognition threshold for tax positions[215]