Core Insights - NorthStar Gaming reported a year-over-year growth in both revenue and gross margin for Q3 2025, with ongoing operational improvements enhancing player experience and reducing expenses [3][6][9] Financial Highlights for Q3 2025 - Revenue reached CAD 6.9 million, a 4% increase from CAD 6.6 million in Q3 2024, including CAD 0.8 million from managed services, up 167% from CAD 0.3 million [6] - Gross Margin was CAD 2.4 million, a 14% increase from CAD 2.1 million in Q3 2024, with a gross margin percentage of 34.7%, up from 31.7% [6] - Profit before marketing and other expenses was CAD 0.2 million, improving by CAD 0.7 million compared to a loss of CAD 0.5 million in Q3 2024 [6] - General and administrative expenses decreased by 16% to CAD 2.2 million, representing 31.6% of revenue compared to 39.4% in Q3 2024 [6] - Marketing expenses decreased by 21% to CAD 2.3 million, representing 32.6% of revenue compared to 42.9% in Q3 2024 [6] Financial Highlights for YTD 2025 - Revenue for the nine-month period was CAD 23.3 million, a 17% increase from CAD 20.0 million in YTD 2024, including CAD 1.9 million from managed services, up 138% from CAD 0.8 million [6] - Gross Margin was CAD 8.9 million, a 32% increase from CAD 6.8 million in YTD 2024, with a gross margin percentage of 38.2%, up from 33.9% [6] - Profit before marketing and other expenses was CAD 1.5 million, improving by CAD 2.2 million compared to a loss of CAD 0.6 million in YTD 2024 [6] - General and administrative expenses were CAD 7.37 million, a slight decrease of 1% from CAD 7.42 million in YTD 2024 [6][7] Recent Operating Highlights - Launched "The Boost" website to enhance customer acquisition in Ontario [14] - Recognized at the Clio Sports Awards for innovative marketing campaigns [14] - Implemented enhancements to onboarding processes, resulting in 9% faster registration times and an 8% uplift in completion rates [14] Outlook - The company anticipates moderate top-line growth in 2026, focusing on optimizing player acquisition and retention aligned with financial resources and market conditions [9] - Management has developed a cash flow forecast indicating the ability to meet obligations, though there are risks related to potential breaches of debt-related covenants [10]