Q2 2026 Super League Enterprise Inc Earnings Call Transcript
Key Points
- Net revenue increased 16% sequentially to approximately $1.24 million, with gross margin improving to 41% from 36% in Q1.
- Adjusted EBITDA loss improved approximately 20% year-over-year to about $1.7 million, reflecting better operational efficiency.
- Successfully integrated Misfits Ads assets without increasing overall cost base, and total headcount remains below pre-acquisition levels.
- Weighted pipeline per seller increased significantly to approximately $2.8 million from $1.78 million in Q1, driven by new leadership, broader product set, and inherited pipeline.
- Closed six first-time clients in Q2 and Q3 to date, including Dodge, and secured renewals with key partners like USGA, Logitech, GoGo squeeZ, and Regal Cinemas.
- Ended Q2 with approximately $6.7 million in cash and investments, up from $475,000 a year ago, and eliminated all preferred stock, simplifying the capital structure.
- Launched a youth and family marketplace for programmatic advertising, expanding revenue diversification and offering higher-margin, more predictable revenue streams.
- Gross revenue was approximately $3 million, essentially flat year-over-year and sequentially, indicating lack of top-line growth.
- Adverse macro factors, including World Cup spending, tariff uncertainty, geopolitical events like the Iran war, and evolving Roblox policies, negatively impacted advertising budgets and brand activations.
- Adjusted EBITDA remained negative at approximately $1.7 million loss, indicating continued unprofitability.
- The company still relies on converting a growing pipeline into revenue, with no guarantee of sustained growth, as revenue conversion remains a key challenge.
- GAAP OpEx was approximately $5 million in the quarter, and management indicated limited flexibility to reduce costs further, suggesting high fixed costs.
- The business faces uncertainty from evolving platform policies (e.g., Roblox) and a fragmented advertising environment, which could continue to pressure revenue stability.
Greetings, and welcome to Super League's second quarter 2026 conference call. Please note, this conference is being recorded. Before we begin, I'd like to caution listeners that comments made by management during this call may include forward-looking statements within the meaning of applicable securities laws.
These statements involve material risks and uncertainties, and actual results could differ from those projected in any forward-looking statements due to numerous factors. For a description of these factors -- for a description of these risks and uncertainties, please see Super League's financial statements and MD&A for the second quarter 2026 ended June 30, 2026, available on EDGAR.
Important qualifications regarding forward-looking statements are also contained in Super League's earnings release distributed earlier this morning, also available on EDGAR. Furthermore, the content of this conference call contains time-sensitive information accurate only as of today, August 14, 2026. Super League undertakes no obligation to revise or otherwise update any statements to reflect
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