Core Viewpoint - Vertiqal Studios Corp. has announced the resignation of Jon Dwyer as Chairman and CEO, with Max Desmarais appointed as interim CEO during the search for a permanent replacement [1][2]. Leadership Transition - Jon Dwyer will continue to support the company as an advisor, ensuring business continuity during the transition [1][3]. - Max Desmarais, co-founder and current President, has been appointed as interim CEO, effective immediately [2]. - Desmarais has been with the company since 2021 and played a key role in its acquisition strategy and rebranding efforts [2]. Company Background - Vertiqal Studios is a digital-channel network and video-production studio, owning North America's largest gaming and lifestyle network [4]. - The company focuses on helping global brands reach Gen Z and Millennial audiences through data-driven creative campaigns [4]. Operational Scale - Vertiqal manages over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat, producing more than 100 pieces of content daily for a community of over 52 million followers [5]. - Revenue is generated through direct brand partnerships, agency relationships, and platform monetization across its owned channels [5].

Group 1 - Vertiqal Studios Corp. plans to complete a senior secured debenture financing of up to USD $2,000,000 with an annual interest rate of 13% and a maturity date of eighteen months from issuance [1] - The debentures will be secured by a first-ranking security interest over all present and after-acquired property and assets of the company [1] - Proceeds from the offering will be utilized for general working capital purposes [1] Group 2 - Vertiqal Studios is a scaled digital-channel network and video-production studio, owning North America's largest gaming and lifestyle network [2] - The company manages over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat, producing more than 100 pieces of content daily for a community of over 52 million followers [3] - Revenue is generated through a combination of direct brand partnerships, agency relationships, and platform monetization across its owned and operated channels [3]

Core Viewpoint - Vertiqal Studios has appointed Nikki Stone to its Board of Directors, bringing extensive experience in media, marketing, and commerce to support the company's growth strategy [1][2][5]. Company Overview - Vertiqal Studios is a leading digital-channel network and video-production studio, owning North America's largest gaming and lifestyle network on social media [1][9]. - The company manages over 200 channels across platforms like TikTok, Instagram, YouTube, and Snapchat, producing more than 100 pieces of content daily for a community of over 52 million followers [10]. Appointment of Nikki Stone - Nikki Stone has over two decades of senior leadership experience and is recognized for transforming organizations and enhancing brand performance through data-driven strategies [2][3]. - Her previous role as Chief Commerce Officer at GroupM Canada involved modernizing the group's market approach and expanding capabilities across media and commerce [3][4]. - Stone's expertise aligns with Vertiqal's focus on monetization opportunities, strategic brand partnerships, and enhancing content and data connections [5]. Strategic Implications - The addition of Nikki Stone is expected to strengthen Vertiqal's competitive position and support its ongoing momentum in the digital media landscape [6]. - Stone's insights into strategy and operational excellence will be crucial for shaping Vertiqal's long-term roadmap and optimizing its business model for sustainable revenue growth [5][6].

Core Insights - Vertiqal Studios has renewed its partnership with a US government agency, marking its second deal with this agency in 2025, with total campaign spending reaching seven figures [1][2][4] - The company has significantly expanded its US audience footprint, primarily targeting Gen Z and young millennials, with over 50 million viewers engaged monthly [1][2][3] - The renewal of the partnership highlights the effectiveness of Vertiqal Studios in engaging younger demographics through culturally relevant content [2][3] Company Expansion - Following the acquisition of Enthusiast Gaming's digital media assets, Vertiqal Studios has increased its US audience base, with a majority of its audience now located in the US [2] - The company emphasizes the importance of relevance in its US expansion strategy, which has led to significant partnerships and campaign spending [4] Strategic Positioning - Vertiqal Studios is positioned as a strategic partner for both public and private institutions, leveraging data-driven approaches and creative expertise to connect with younger audiences [3] - The company’s platform is recognized for its effectiveness in communicating important messages to hard-to-reach demographics [3]

Core Insights - Vertiqal Studios reported a significant decline in revenue and gross profit for Q2 2025 compared to the same period in 2024, with revenues down 30% and gross profit down 42% [2][3][8] - The company experienced a net loss of approximately $542 million for the quarter, which is a 38% improvement compared to the previous year's loss [3][8] - Despite the challenges, Vertiqal Studios is optimistic about future performance, citing stable gross margins and anticipated improvements in monetization due to seasonal advertising trends and acquisition strategies [5][8] Financial Performance - Revenues for Q2 2025 were reported at $777.8 million, down from $1.1 billion in Q2 2024, marking a 30% decrease [3][8] - Gross profit for the quarter was $501 million, a decrease of 42% from $868 million in the same quarter last year [3][8] - Total expenses decreased by 40% year-over-year to $1.04 billion, while the net loss for the quarter was $542 million, an improvement from a loss of $881 million in Q2 2024 [3][8] Market Context - The decline in revenue is attributed to macroeconomic pressures, a slowdown in industry-wide advertising, and changes in platform monetization strategies, particularly affecting Snapchat [5][8] - Vertiqal Studios noted a rebound in revenue growth of 101% year-over-year on Snapchat in March 2025, indicating potential recovery in advertising spend [8] - The company maintained a gross margin of 64% for the quarter and 72% for the year-to-date period, reflecting operational efficiency despite revenue challenges [8]

Core Viewpoint - Vertiqal Studios has reported a significant financial turnaround in 2024, achieving a 95% reduction in net loss, driven by strategic cost-cutting and operational efficiencies [1][2][6]. Financial Performance - The company reported stable revenues of $4.86 million for the year ended December 31, 2024, reflecting a 0.32% increase compared to $4.85 million in 2023 [4][8]. - Gross profit decreased slightly by 1% to $3.37 million from $3.44 million in the previous year [4]. - Total expenses were significantly reduced by 90%, amounting to $5.76 million compared to $56.69 million in 2023 [4]. - The net loss for 2024 was $2.37 million, a substantial decrease from $49.02 million in 2023, marking a 95% improvement [4][6]. - EBITDA loss improved by 47%, with a reported loss of $1.52 million compared to $2.92 million in 2023 [4][8]. Strategic Initiatives - The company has focused on strengthening its financial position through disciplined cost management and operational efficiencies, which are essential for sustainable growth and long-term value creation [6][8]. - Direct media revenue saw a remarkable increase of 48% year over year, indicating a successful shift in revenue strategy [8]. - The gross margin for 2024 was reported at 69%, showcasing operational efficiency and a favorable revenue mix [8]. Future Outlook - Vertiqal Studios anticipates continued growth in fiscal 2025, driven by the expansion of its direct media business and strategic partnerships with major brands [7][9]. - The company is exploring further acquisition opportunities to enhance service offerings and diversify income streams [9][10].