Financial Data and Key Metrics Changes - For Q2 2025, the company reported consolidated revenue of $84.8 million, with adjusted EBITDA of $33.5 million, reflecting a decline from $88.2 million in Q2 2024 [6][12] - Social casino revenues decreased by 14% year-over-year, totaling $69.3 million, while iGaming revenues from Super Nation nearly doubled, increasing by 96% to $15.5 million [12][13] - Adjusted EBITDA margin was 39.5% for Q2 2025, down from 42.5% in Q2 2024, with net cash flows from operating activities at $19.7 million, compared to $34.8 million in Q2 2024 [17][18] Business Line Data and Key Metrics Changes - The Flexit DoubleDown Casino app remains a significant cash flow generator, with ARPDAU at $1.33, unchanged from Q2 2024, and payer conversion rate increased to 7% from 6.7% in Q2 2024 [7][14] - Direct-to-consumer (DTC) revenue now accounts for over 15% of total social casino revenue, indicating a successful shift towards DTC monetization [8] - Super Nation's revenue of $15.5 million in Q2 2025 marked the highest quarterly performance since its acquisition, reflecting a growth of $2.3 million from the previous quarter [9][10] Market Data and Key Metrics Changes - The company is expanding its presence in Europe through the acquisition of Val Games, which primarily generates revenue in Germany [8] - The integration of Wow Games is expected to diversify revenue streams and enhance operational success in new markets [9][10] Company Strategy and Development Direction - The company is committed to enhancing shareholder value through strategic acquisitions and investments in both social casino and iGaming sectors [6][10] - The acquisition of Wow Games is seen as an opportunity to leverage existing strengths in the social casino business while expanding into the European market [8][32] - Future growth strategies include launching additional brand sites for Super Nation and exploring new gaming categories and geographic expansions [48][54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the social casino industry due to expected revenue declines in 2025 but remains committed to product development and marketing initiatives [15][16] - The company is optimistic about the growth potential of Super Nation, with plans to enhance retention and operational efficiency [48][56] Other Important Information - The transition to IFRS reporting is expected to have minimal impact on financial statements, primarily affecting lease treatment [4][12] - As of June 30, 2025, the company had a cash position of approximately $481.2 million, which was reduced following the acquisition payment [18][19] Q&A Session Summary Question: Balancing growth versus profitability for Wow Games - Management views Wow Games as an exciting opportunity to leverage strengths in Europe and plans to support its growth through existing expertise [24][25] Question: Future targets for direct-to-consumer revenue - Management is pleased with the current DTC revenue exceeding 15% and anticipates further growth but has not set a specific long-term target [26][28] Question: Background on the Wow Games acquisition process - The acquisition was seen as opportunistic, complementing the company's existing social casino business without detracting from other growth searches [32][33] Question: Impact of regulatory actions on the business - Management clarified that the company is not involved in the sweepstakes business and has not seen a quantifiable positive impact from regulatory actions against competitors [34][35] Question: Revenue and profitability expectations for iGaming - Management believes that Super Nation can achieve a profit margin of over 10% once sufficient scale is reached, with plans for further brand site launches [47][48] Question: Expansion plans beyond current markets - The company is exploring additional licenses in various European countries and Canada, aiming for regional expansion [53][54]

Financial Data and Key Metrics Changes - Consolidated revenue for Q1 2025 was $83.5 million, a decrease from $88.1 million in Q1 2024, reflecting a 12% decline in social casino revenues and a 59% increase in iGaming revenues [6][12] - Adjusted EBITDA for Q1 2025 was $30.8 million, down from $32.7 million in the prior year, with an adjusted EBITDA margin of 36.9% compared to 37.1% in Q1 2024 [15][16] - Cash flow from operations increased to $41.1 million, up more than $5 million from Q1 2024 [7][16] - Profit excluding non-controlling interest was $23.9 million, or $9.65 per diluted share, compared to $30.3 million, or $12.24 per diluted share in Q1 2024 [15] Business Line Data and Key Metrics Changes - Social casino free-to-play games generated $17.3 million, while iGaming business Super Nation generated $13.2 million, marking the highest quarterly performance since its acquisition [6][9] - Average revenue per daily active user (ARPDAU) increased to $1.29 in Q1 2025 from $1.26 in Q1 2024, and payer conversion rate rose to 6.9% from 6.4% [12][8] - Direct-to-consumer revenue accounted for over 10% of social casino business, with a target to exceed 15% by 2025 [8][9] Market Data and Key Metrics Changes - Super Nation's revenue growth was driven by increased investments in new player acquisition, particularly in the UK and Sweden [9][23] - The company noted that the iGaming market presents significant opportunities for growth, especially in regulated European markets [9][10] Company Strategy and Development Direction - The company aims to maintain capital efficiency while focusing on product improvements and live operations enhancements to sustain its competitive position [17] - There is an ongoing strategy to explore potential acquisitions to diversify revenue and cash flow sources [10][17] - The company has decided not to launch a new match-three style game after extensive testing, emphasizing a cautious approach to new game development [10][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in achieving year-over-year growth in the social casino segment due to strong performance in the previous year [13] - The company expects to continue generating attractive free cash flow and strengthen its balance sheet while pursuing growth opportunities [18] - Management remains optimistic about the scalability and profitability of the iGaming business as it continues to grow [17] Other Important Information - The company switched its financial reporting from GAAP to IFRS starting Q4 2024, with minimal implications for financial statements [4][11] - Operating expenses for Q1 2025 were $53.9 million, down from $57 million in Q1 2024, reflecting lower R&D expenses and cost of revenue [14] Q&A Session Summary Question: Trends in Super Nation's markets and major sporting events - Management noted strong ROI from new player acquisition investments and expressed satisfaction with marketing spend in Q1 [23] Question: Update on M&A opportunities - The company continues to see a flow of opportunities in both iGaming and casual games, with no recent changes in interest [28] Question: Expectations for Super Nation's growth and sales/marketing spending - Management expects to maintain or increase investment levels in Super Nation, anticipating continued revenue growth [33] Question: Rate of decline in social casino business - Management indicated that the first half of the year presents tough comparisons, but expects easier comps in the second half [36] Question: User acquisition costs and competition from sweepstakes - Management acknowledged rising user acquisition costs due to competition but could not confirm player losses to sweepstakes [39]