SLE

• Overall Q2 2026 Financial Performance

  • Gross revenue was flat year-over-year and sequentially at ~$3 million, in line with analyst expectations. Management attributes stable top-line performance to business resilience amid macro headwinds including shifted advertising budgets around the World Cup, tariff and geopolitical uncertainty, and evolving Roblox platform policies.
  • Net revenue rose 16% sequentially to ~$1.24 million, gross margin improved to 41% from 36% in Q1, and adjusted EBITDA loss narrowed 20% year-over-year to ~$1.7 million.

• Operational Efficiency and Misfits Acquisition Integration

  • Implementation team utilization improved, with billable activity as a share of cost of goods-related team capacity increasing ~30% sequentially from Q1.
  • The Misfits Ads acquisition, completed early in Q2, was fully integrated without increasing Super League's total cost base, and overall company headcount remains below pre-acquisition levels.
  • Misfits added programmatic advertising and turnkey media solutions, which are operationally lower-lift, higher-margin, and expected to deliver more predictable revenue streams. The acquisition also expanded service breadth for brand partners, added a strong opportunity pipeline, and reinforced the company's performance culture.

• Commercial and Product Updates

  • A new youth and family kid-safe gaming ad marketplace was launched, accessible via programmatic buying or managed services.
  • As of Q2 end, weighted pipeline per seller increased to ~$2.8 million from ~$1.78 million at Q1 end, client win rates are improving, and renewal business remains strong. Six new first-time clients were closed in Q2 and early Q3, including Dodge for an inaugural Fortnite marketing program.
  • Late in Q2, the commercial revenue team was substantially rebuilt under new EVP of Revenue Anthony Alexander, a 15-year gaming media revenue leader, with new experienced sellers added in key Los Angeles, New York, and Chicago markets. All expansion was done while keeping the overall cost structure largely flat, and weekly RFP volume has increased since the rebuild.

• Financial Position

  • Ended Q2 2026 with ~$6.7 million in cash and investments, up from ~$475,000 at June 30 2025.
  • The company's capital structure was simplified, and Super League no longer has any preferred stock outstanding, a first in several years.

• Management reaffirms its target of achieving adjusted EBITDA profitability in Q4 2026, with recent gains in margin, operating efficiency, and commercial activity supporting this objective.
• Core priorities for the remainder of 2026 are: (1) convert the growing commercial opportunity pipeline into revenue; (2) continue improving the quality and margin profile of revenue; (3) maintain cost discipline and operating leverage to translate growth into improved financial performance; (4) fully leverage capabilities added via the Misfits Ads acquisition and prior business investments.

The provided earnings call transcript does not break out financial performance for distinct product segments. Overall company-level results for Q2 2026 are: gross revenue of approximately $3 million, flat year-over-year and sequentially; net revenue of ~$1.24 million, up 16% sequentially from Q1 2026; gross margin of 41%, up 5 percentage points from Q1 2026; adjusted EBITDA loss of ~$1.7 million, improved 20% year-over-year from a $2.1 million loss in Q2 2025.

• Forward-looking statements are explicitly noted to carry material risks and uncertainties, with actual results potentially differing from projections due to multiple factors including macroeconomic conditions, geopolitical instability, changes to third-party platform policies (such as Roblox), and shifting brand advertising budgets.
• Key specific risks cited include the uncertainty of converting the expanded opportunity pipeline into tangible revenue growth, even with an upgraded commercial team. The challenging current advertising environment, impacted by macro factors, creates pressure on top-line growth.

Q: The 57% jump in weighted pipeline per seller is very large. What is driving this increase, and how much comes from new sales leadership versus the expanded product portfolio? / A: The increase comes from three core factors: new sales leadership has opened up many new opportunities, the broader product set allows the company to engage more potential brand partners on a wider range of marketing objectives, and the Misfits acquisition inherited an attractive additional pipeline that boosted overall opportunity volume.

Q: Management reaffirmed the Q4 adjusted EBITDA profitability target. What is the roadmap to hit this target: just pipeline conversion, further margin gains, cost discipline, or all of these? / A: The path relies primarily on converting the existing volume of opportunities, leveraging the broader product line and upgraded sales and strategy team to generate new revenue from the built pipeline, alongside continued cost discipline that is already in place.

Q: How does the Misfits acquisition lead to more predictable revenue, and how does this impact client base stickiness? / A: Predictable is a more accurate description than recurring, as the revenue is not subscription-based. Programmatic advertising inventory from Misfits can be purchased and adjusted easily by buyers or the company's managed services team, creating a more steady revenue stream than the company's historical custom projects. Super League has already acquired new clients using this inventory, and is expanding its applicability to more brands, expecting this to become a healthy revenue source.

Q: Which industry channels are showing improvement, and are there revenue contribution targets for growing segments like mobile or CTV? / A: The company has shifted from pitching individual channel-specific products to pitching full cross-channel solutions that reach specific target gamer audiences, combining any mix of mobile, Roblox, CTV, web games, and YouTube influencers to meet advertiser goals. All channels are expected to grow in concert as campaigns leverage different channels depending on each brand's specific objectives, so no specific standalone percentage targets were shared.