East Side Games Group Inc.

Good afternoon, ladies and gentlemen, and welcome to the Eastside Games Group Q1 2026 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If for any time during this call you require immediate assistance, please press bar zero for the operator. This call is being recorded on Thursday, May 14, 2026. And I would now like to turn the conference over to Mr. Jason Bailey. Thank you. Please go ahead.

Thank you. Welcome, everybody, to the Eastside Games Group Q1 2026 earnings call. I'm Jason Bailey, Board Chair and CEO of Eastside Games Group. Today, we will share highlights from the first quarter ended March 31st, 2026, and I'd like to remind you that certain statements made on this call are forward-looking within the means of applicable securities laws. This call includes references to non-GAAP measures, and please refer to our fourth quarter press release in our first quarter press release in MD&A for cautionary statements relating to forward-looking information and reconciliations of non-GAAP measures to GAAP results. References to all figures are in Canadian dollars on an IFRS basis unless otherwise noted. Additional materials can be found in the investor section of our website at www.eatsidegamesgroup.com under the financial information section. G1 2026 was focused on improving adjusted EBITDA and maintaining disciplined cash management across the business. During quarter, we significantly reduced user acquisition spend as part of a broader strategy to prioritize efficiency and preserve cash. We are now targeting a 30-day return on ad spend, which allows us to focus on acquiring the most profitable player cohorts while improving overall capital efficiency. At the same time, we remain very focused on cash generation and debt repayment, with the goal of eliminating our bank debt by the end of 2026. Overall, we believe these changes position the company well for a stronger and more disciplined remainder of 2026. I will now pass it over to Mr. Chan for some financial highlights.

Thank you, Jason. Today, we reported our results for the company's first quarter, ended March 31st, 2026. As a reminder, all these amounts are in Canadian dollars. Our financial results for the quarter reflect the decisive strategic shift we announced in Q4, which was prioritizing cash flow generation and profitability over top-line growth. Revenue for Q1 was $12.45 million, a decrease of 32% year-over-year, which is a direct result of the discipline cuts to our user acquisition spend. More importantly, we achieved adjusted EBITDA of $1.74 million, down 11.3% year-over-year, but driving a strong adjusted EBITDA margin of 14%. which is 32% improvement year over year and on pace with our guidance. The margin expansion shows that our pivot is taking effect in successfully creating a structurally leaner and more profitable business. The user metrics illustrate the outcome of focusing on quality over volume as well. We are taking a more disciplined 30-day approach on ad spend. While our daily active user count has decreased to 145,581 and average revenue per user was 95 cents, We maintained a strong, high-quality user base, particularly our Dow over miles fakeness rate, which increased to 28.1%, which is up 14.7% year-over-year, demonstrating the improved engagement and retention of the core audience as we cut inefficiencies in spending. From a capital structure perspective, as anticipated, we saw a temporary increase in debt in Q1-2026 to fund necessary one-time expenditures, including severance and litigation costs. However, we remain intensely focused on strengthening our balance sheet, and our definitive goal is to pay down our bank debt by the end of 2026. We have made strong progress in managing this process and are actively executing financial arrangements to support this goal, including a private placement of up to $3.6 million this month. Overall, Q1 was a disciplined quarter of execution, confirming that our strategic reset is yielding positive margin and profitability improvements. We are confident this foundation will ensure long-term, stable, and profitable growth for Eastside Gains Group. I will now pass it on to Mr. Wagner, our Chief Product Officer.