Super League Enterprise, Inc. Q2 FY2025 earnings call

• Streamlined operations, closed financial transactions, and forged new partnerships for revenue diversification. More than 75% of closed deals came from repeat customers.
• Exclusive partnership with AdArcade for mobile gaming, where their playable ad format outperformed standard ones by 3x. Non-immersive platform revenue stayed at ~15% of total revenue in Q2.
• Announced expansion of partnership with Meta-Stadiums to enter the TikTok ecosystem via their Metastars Creator Network, with revenue expected from Q4 2025.
• Launched Roadtrends Pro, a subscription product tied to immersive gaming. Acquired Super Social, an award-winning Roblox studio, which expanded brand partnership structure.
• Divested Minecraft property in PVP to Mineville, became exclusive partner for brand partnerships and advertising sales. Made progress in improving capital structure, securing new capital, reducing debt service obligations, and establishing an equity line of credit.
• Exploring opportunities in the cryptocurrency space with the GENIUS Act.

Non-immersive platform revenue in Q2 remained approximately 15% of total revenue. Mobile gaming has emerged as a growth opportunity, with the company now having access to over 191 million U.S. mobile gamers, representing more than 56% of the country. The subscription product Roadtrends Pro, a Roblox trend intelligence analytics tool, is a new revenue contributor. Revenue from the partnership with Meta-Stadiums is expected to begin in Q4 2025 and scale in 2026.

• Aim to have mobile revenue closer to 25% of total revenue this year.
• Expect immersive platforms to be 50%-60% of revenue and other connected areas to be 40%-50% of revenue in the next year.
• Committed to delivering adjusted EBITDA positive results in Q4 2025.

• Material risks and uncertainties from forward-looking statements.
• Tariff uncertainty impacting gross revenue.
• Regulatory aspects related to the cryptocurrency space and the need for proper expertise and partnerships to enter the stablecoin-powered programs space.

Q: Can you touch a little bit on the new revenue lines? What's the scope of opportunity for mobile, subscription service, and TikTok partnership, and what do you expect the mix to look like a year or 2 ahead?

A: This year, mobile diversification is key. Subscription product and TikTok partnership are just starting this year. Target mobile to be closer to 25% of revenue this year. Next year, expect immersive platforms to be 50%-60% of revenue and other areas 40%-50%.

Q: Given efficiencies, do you see OpEx to be a certain run rate and if it will creep up?

A: No plans to increase expense footprint. Expenses are rightsized for profitability. Revenue is seasonal with back half of year stronger.

Q: Has customer base hesitation abated and activity increased in Q3?

A: Yes, budgets were paused earlier but have opened up, seeing stronger signs.

Q: Thinking about New York, Chicago team, cycle for sales force growth and potential growth from sales force?

A: New sales team members take ~6 months to operate at full throttle. East Coast team began solidifying late last year and is hitting stride.

Q: Thoughts on GENIUS Act and potential partnership/acquisition to exploit it?

A: Have ideas on GENIUS Act opportunities, surrounding ourselves with right expertise and partners. Opportunity is about new consumer engagement models leveraging regulatory framework.