High Roller Technologies Q4 2025 Earnings Call - Binding LOI with Crypto.com signals U.S. prediction markets push

Operator: Good afternoon, and welcome to the High Roller Technologies fourth quarter and full year 2025 earnings conference call. Today’s call is being recorded. At this time, all participants are in a listen-only mode. Following management’s prepared remarks, we will open the call for a question-and-answer session. Joining us today are Seth Young, Chief Executive Officer, and Adam Felman, Chief Financial Officer. As a reminder, today’s call includes forward-looking statements subject to risks and uncertainties. Actual results may differ materially. Investors are directed to the company’s SEC filings, including risk factors, for additional information. The company undertakes no duty to update forward-looking statements except as required by law. With that, I’ll turn the call over to Mr. Young. Please go ahead.

Seth Young, Chief Executive Officer, High Roller Technologies: Thank you, operator, and thank you all for joining us today. 2025 capped a period of meaningful transformation for High Roller. Over the past 12 months, we improved operational efficiency, refined our geographic footprint, and strengthened the foundation of our business while positioning the company for its next phase of growth. As we enter 2026, we’re laser-focused on our planned expansion into one of the most compelling high upside regulated categories, prediction markets, which will also mark our entry into the USA. We believe prediction markets have significant mainstream appeal, and combining that with our incredible brand, our product capabilities, and our distribution capabilities, it creates compelling opportunity to scale our U.S. consumer presence following launch. In parallel, we’re on track for our planned iGaming expansion in Ontario and well-advanced in the licensing process. We plan to provide updates on launch timings for both products in due course.

To support our strategic initiatives and accelerate our growth, we recently strengthened our balance sheet with $26 million in capital, a $1 million private placement from Saratoga Casino Holdings, and $25 million through a successful registered direct offering priced at $13.21 per common share. We’ve continued to add seasoned executives to our leadership team, and we’ve continued to build other key partnerships to complement our existing distribution capabilities. We believe the pieces are now in place to capitalize on the opportunities in front of us, and we’re confident in our ability to execute on our strategy moving forward. I’ll take a moment now to highlight our results for 2025, which Adam will elaborate on shortly. For the full year, net revenues from continuing operations were $20.4 million, compared to $23.2 million in 2024.

This change reflects our deliberate decision to exit certain markets in response to evolving regulatory conditions and to focus on higher-quality, sustainable revenue streams. Despite lower revenue, our financial performance improved meaningfully. We reported net income from continuing operations of nearly $700,000 in 2025, as compared with a net loss of $8.6 million in 2024. This improvement reflects disciplined cost management, operational efficiencies, and a $3 million tax benefit realized during the year. For the fourth quarter, net revenues from continuing operations were $4.6 million, compared to $5.9 million in the prior year period. Profitability improved significantly year-over-year, supported in part by a $4 million gain related to the acquisition of intangible assets.

As a result, we reported net income of $2.5 million for the quarter, compared with a net loss of $3 million in the previous corresponding period. Beyond the financial results, we recently delivered a series of strategic and corporate milestones, highlighted by our planned expansion into U.S. prediction markets, continued progress on sportsbook initiatives, meaningful capital formation, and key leadership appointments. In prediction markets, we entered a binding letter of intent for a partnership with Crypto.com to launch an event-based trading product in the United States. This partnership marks a strategic inflection point and is the cornerstone of our strategy to enter a new vertical experiencing robust growth. It allows us to participate in a fast-emerging regulated category while leveraging what we already do well, building premium consumer experiences and driving distribution. We are extremely excited and focused on this opportunity.

We believe the prediction markets opportunity is already meaningful and growing quickly. Public reporting and industry estimates suggest total prediction market trading volume in 2025 was on the order of $30 billion-$40 billion across major platforms. Several market observers believe long-term US market volume could reach the hundreds of billions in trading volume, potentially approaching $1 trillion or more in a mature state. To further support our go-to-market execution, we signed non-binding letters of intent for marketing and distribution relationships with Lines.com, Forever Network, and Leverage Game Media. We also had exciting news in the sportsbook segment as we signed a non-binding letter of intent with Altenar to pursue a fully managed B2B sportsbook solution.

To strengthen operational execution, we appointed Jake Francis as Chief Operating Officer and enhanced our marketing bench with the appointments of Carlos Capetillo as Chief Marketing Officer and Frances Cong as Director of Marketing. Just last week, we appointed Andrew Walter as Chief Legal and Compliance Officer, succeeding Sarah Stienon. Finally, underscoring our continued commitment to responsible gaming, High Roller entered into a non-binding letter of intent with Kindbridge Behavioral Health to support responsible gambling initiatives in Ontario, subject to licensing and regulatory approval. From an investor perspective, we recognize that an important question relates to the performance of our existing business while we work to achieve scale with our newly planned products and geographic expansion. Our approach remains disciplined and straightforward. We will continue operating the core business with a focus on compliant, durable revenue while carefully aligning our cost structure with our refined geographic footprint.

This strategy prioritizes efficiency and strong unit economics rather than pursuing uneconomic growth in markets where regulatory dynamics have shifted. In terms of timing and execution, we’re advancing go-to-market planning alongside product development and operational readiness. Key milestones we’re expecting to update investors on include completing go-to-market readiness, including marketing and distribution partnerships that support our scale at launch timing for prediction markets, and launch timing for new iGaming markets, including Ontario and Alberta. Our objective is clear to position High Roller for a rapid and sustained revenue ramp in 2026 and into the coming years. With that, I’ll turn the call over to our CFO, Adam Felman, to walk through the financial results in more detail.

Adam Felman, Chief Financial Officer, High Roller Technologies: Thank you, Seth, and good afternoon, everyone. As Seth mentioned, fourth quarter and full year reflect continued progress in strengthening the company’s financial foundation and operating discipline. For the fourth quarter of 2025, net revenues from continuing operations were $4.6 million, compared to $5.9 million in Q4 2024. The decrease was primarily due to the planned exit from certain markets. Net income from continuing operations was $2.7 million, compared to a net loss from continuing operations of $3 million in 2024, primarily as a result of a $4 million gain on an acquisition of intangible assets in Q4 2025. Adjusted EBITDA from continuing operations improved $1.9 million to -$427 thousand from -$2.3 million in Q4 2024.

For the full year 2025, net revenues from continuing operations were $20.5 million, a decrease of $2.8 million or 11.9% compared to $23.2 million for the year ended December 31, 2024. Total operating expenses were $26.6 million, a decrease of 16% as compared to $31.7 million for the year ended December 31, 2024, primarily as a result of lower direct operating costs and advertising and promotions in 2025 versus 2024. Loss from operations improved to $6.2 million compared to $8.5 million in 2024, primarily due to cost-cutting, operational improvements, and focusing on more profitable opportunities.

Net income from continuing operations was $690,000 or $0.08 per basic common share and $0.07 per diluted common share, compared to the net loss from continuing operations of $8.6 million or a net loss of $1.89 per basic and diluted common share in 2024, primarily as a result of both a $4 million gain on acquisition of intangible assets and an income tax benefit of $3 million in 2025. Net income from discontinued operations, net of taxes, was $2.5 million or $0.29 per basic common share and $0.26 per diluted common share in 2025, compared to $2.7 million or $0.37 per basic and diluted common share in 2024.

Net income was $3.2 million or $0.37 per basic common share and $0.33 per diluted common share compared to a net loss of $5.9 million or a net loss of $0.82 per basic and diluted common share in 2024. Adjusted EBITDA from continuing operations improved $2 million to -$3.7 million or -$0.39 per common share from -$0.7 million or -$0.79 per common share in 2024. Cash and cash equivalents total approximately $2.7 million, $589,000 of which is restricted as of December 31, 2025, as compared to $3.5 million, of which $770,000 was restricted as of September 30, 2025.

Subsequent to year-end 2025, we raised a total of $26 million in gross proceeds, which included $1 million from a strategic investment by Saratoga Casino Holdings through a private placement of restricted shares of common stock on January 9, 2026, and $25 million from a registered direct offering of approximately 1.9 million shares of common stock priced at $13.21 per share, which closed on January 21, 2026. We plan for these proceeds to provide additional runway and strategic flexibility to support regulated market expansion and associated licensing and compliance investments, advance product development and data-driven initiatives that improve acquisition efficiency, player value, and operating leverage, and evaluate selected strategic opportunities while maintaining a disciplined approach to cost control and return on invested capital. With that, I’ll turn the call back to Seth.

Seth Young, Chief Executive Officer, High Roller Technologies: Thank you, Adam. High Roller is entering a new chapter, one defined by disciplined execution, expanding market opportunities, and a clear path to long-term value creation. We believe the groundwork we’ve laid has set us on the path to deliver enduring value. To this end, the capital raise in January strengthens our balance sheet and supports execution across both our core iGaming business and the strategic initiatives designed to expand our addressable market, including our planned entry into prediction markets. We’ve spent the past year positioning the company for this moment. With the strategic foundation largely in place, we’re now in a period of execution. The team is highly focused. The opportunity is significant, and we’re very optimistic about what lies ahead for High Roller. With that, we’ll now open the line for questions. Thank you.

Operator: Thank you. Ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad and a confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. Our first question comes from the line of Andrew Scott with 395 Group. Please proceed.

Andrew Scott, Analyst, 395 Group: Good afternoon, gentlemen. Congratulations. Really like the strategy. Can you elaborate a little bit more on your marketing strategy, on how you’re gonna leverage the core business, and how you’re looking at, you know, marketing and growing your prediction markets, crypto, model?

Seth Young, Chief Executive Officer, High Roller Technologies: Sure, Andrew. Thank you. I appreciate the question. We’ve announced a couple of planned tie-ups with distribution channels like the Forever Network, Lines.com, Leverage Game Media, and those represent fairly significant reach for us. We have genuine performance marketing expertise in regulated markets, fiercely competitive markets, which we also believe will serve us well, and we’re very excited about the brand we’re coming to market with. I think, you know, taking your question maybe in a bit of a different direction, I do wanna call out something that I think is a bit underappreciated as a competitive advantage that we have. We know what we are, and we know what we’re not. When it comes to market, if you look at the competitive set, we’re gonna be up against some pretty interesting companies.

It appears that virtually all of our competitors have other business verticals competing for management attention, capital allocation, strategic focus. Prediction markets are one of many priorities for them. For us, this is our first and only vertical in the U.S. market, which means every dollar of investment is pointed at one thing, and we think that kind of focus is definitely a structural advantage. I’d add one more thing actually that’s particularly relevant for this audience. If you believe in the prediction markets opportunity the way that we do, I’d contend that we represent the most compelling pure play expression of that thesis in the public markets today. Yes, there are public companies in the market that are tangentially exposed to the space, but they’re operating at scale across multiple verticals.

Prediction markets for them is an option on top of an already mature business. The upside is real, but it’s diluted. For us, it’s a core thesis, which means that if this market develops the way that we believe it will, the leverage for our shareholders is fundamentally different. You’re not really getting prediction markets as a footnote, an earnings supplement. It’s the story. We’re pretty excited about this opportunity, to say the least.

Operator: The next question comes from the line of Ken Londoner with Endicott Management Partners. Please proceed.

Ken Londoner, Analyst, Endicott Management Partners: Hi. Good afternoon, Seth. How large do you see the U.S. prediction markets? You know, is that market totally available to you and your strategy, or are there anything blocking part of that market for any reason?

Seth Young, Chief Executive Officer, High Roller Technologies: Hey, Ken. Thanks for the question. Oh, man. Honestly, I think the market is bigger than everybody’s giving it credit for. Most of the TAM estimates that we’re seeing are anchored to trading volume alone, and they don’t really account for the full monetization stack that a sophisticated operator like us can really build on top of the core. How do I put this? From my perspective, this opportunity is the most compelling that I’ve seen in years in terms of the breadth and engagement frequency and the upside potential, and it’s still very much in its first inning, which is obviously very exciting to us.

Internally, we’ve been working off of a TAM estimate of about $10 billion annually on the take rate from contract trading volume, and we think that’s pretty conservative once you factor in the full fee stack we intend to build on top of the core transaction layer. The monetization architecture itself is pretty interesting, ’cause it’s multilayered in a way that’s definitely very compelling. The core take rate on contract volume is the foundation, but the marketplace, as it matures, we’re expecting an evolution towards a fee stack that’s materially expanding the revenue opportunity beyond what the headline TAM suggests. TBD on all the markets that we’ll serve, but I think it’s fair to say that, you know, we’ll take a pretty measured approach as a compliance-focused operator. We’ve, yeah, we’re very excited about the upside.

More to come on that one.

Ken Londoner, Analyst, Endicott Management Partners: Can I just ask a follow-up? I know that this is probably not the time for you to make financial forecasts, but, given what you’ve said on this call, is it fair to say that we as investors can expect a material step-up in revenue growth from what you’ve been doing over the last couple of years to a new neighborhood?

Seth Young, Chief Executive Officer, High Roller Technologies: Look, Ken, I think that’s fair to suggest. Internally, we’re all very, very bullish on the opportunity. We have a lot of conviction. I don’t think we’d be doing this if we didn’t expect it to be a pretty sizable driver for us. You know, we have mentioned that we’re anticipating, and we’ve been preparing the company for the kind of scale that we believe we’ll be backing into here. I think that’s fair to suggest, yes.

Andrew Scott, Analyst, 395 Group: Is your current platform a distinct competitive advantage of what you currently have over, let’s say, some of the others that you mentioned that are using this as a sort of passive vertical?

Ken Londoner, Analyst, Endicott Management Partners: I don’t think this is the time to reveal all of our secrets yet. More to come on this one once this-

Okay. No, I don’t want you to.

Yeah.

Thank you. Thank you.

Seth Young, Chief Executive Officer, High Roller Technologies: Thank you.