Canada's East Side Games Q4 revenue declines on tough competition, high platform fees

Overview

• Canada mobile gaming firm's Q4 2025 revenue declined yr/yr amid challenging market conditions

• Company implemented cost-cutting measures, including headcount reductions and project cancellations

• Management expects cost reductions to improve EBITDA margins and profitability in 2026

Outlook

• East Side Games sees FY 2026 revenue between $50 mln and $56 mln

• Company expects FY 2026 EBITDA margin of 15-18%

• Company expects Google platform fee changes to add $0.5 mln in annual profit

Result Drivers

• MARKET HEADWINDS - Co said saturated user acquisition market, increased competition, and high platform fees limited revenue growth

• NEW GAME LAUNCHES - Several new titles launched in H2 2025 delivered strong engagement, but did not offset overall market challenges

• COST REDUCTIONS INITIATED - Co began reducing user acquisition spend, cancelling projects, and cutting headcount late in 2025 to improve efficiency and profitability

Company press release: ID:nCNWvpTbQa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for East Side Games Group Inc is C$1.10, about 331.4% above its March 30 closing price of C$0.26

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