Super League Enterprise(SLE) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue decreased to $2.4 million, down from $4.4 million in Q3 2024, representing a decline of 45% year-over-year[21] - Operating losses narrowed by 23% on a cash basis compared to Q3 2024, with a net operating loss of $3.1 million[21] - GAAP net loss for Q3 2025 was $3,562,000, a slight improvement from a loss of $3,632,000 in Q3 2024[23] - Pro forma net loss for the nine months ended September 30, 2025, was $8,491,449, compared to $8,597,000 for the same period in 2024[23] - Non-GAAP net earnings per share for Q3 2025 was $(2.52), significantly better than $(10.19) in Q3 2024[23] Revenue Sources - Mobile ad revenue accounted for 15% of total revenue, while Roblox campaigns contributed 42%, down from 57% in 2024, indicating diversification efforts[6] Cost Management - Gross margins improved to 45% in Q3 2025, up from 39% in the same quarter last year[6] - Non-cash operating expenses decreased by 29% year-over-year, reflecting strict cost discipline[6] - The company aims to achieve Adjusted EBITDA profitability in Q4 2025, supported by a more efficient cost structure and a stronger partner pipeline[6] Financial Position - The company achieved a strong balance sheet with $20 million from a private placement and zero debt, enhancing its financial foundation[2] - The total assets decreased to $8.7 million as of September 30, 2025, from $11.7 million at the end of 2024[19] - Total liabilities reduced to $10.7 million from $11.5 million at the end of 2024, indicating improved financial health[19] Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025, was $6,805,000, an improvement from $8,160,000 in 2024[25] - Cash and cash equivalents at the end of Q3 2025 were $1,061,000, compared to $289,000 at the end of Q3 2024[25] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $923,000, compared to a net outflow of $457,000 in 2024[25] - Proceeds from the issuance of common stock in Q3 2025 amounted to $1,945,000[25] Expenses - The company recorded a depreciation and amortization expense of $1,607,000 for the nine months ended September 30, 2025[25] - The change in fair value of warrant liability resulted in a loss of $1,934,000 for the nine months ended September 30, 2025[25] - The company reported a stock-based compensation expense of $1,372,000 for the nine months ended September 30, 2025, compared to $986,000 in 2024[25] Strategic Initiatives - The company is exploring strategies within the digital asset economy, backed by a $10 million investment from Evo Fund[8]