Gamehost (GH) Q1 2025 earnings summary

Executive summary

• Operating revenue for Q1 2025 increased 3.3% year-over-year to $21.2 million, with all segments posting positive results and hotels achieving double-digit growth.

• EBITDA rose 7.5% to $8.5 million, and earnings per share climbed 15.7% to $0.26 compared to Q1 2024.

• Regional performance varied: Fort McMurray saw an 8.1% decline in revenue, Grande Prairie was flat, and Calgary grew 8%.

Financial highlights

• Gross profit increased 8% year-over-year to $8.7 million for the quarter.

• Profit and comprehensive profit rose 13.7% to $5.4 million.

• EBITDA margin improved to 39.9% from 38.4% sequentially.

• Cash balance at March 31, 2025 was $14.9 million, up from $14.4 million at December 31, 2024.

• Total debt reduced to $35.3 million from $37.4 million at year-end 2024.

Outlook and guidance

• A 2% temporary increase in operators' share of electronic gaming device win remains in effect through March 2026.

• Management notes ongoing economic uncertainty due to new U.S. tariffs and recent Canadian federal election outcomes.

• Shifts in consumer behavior toward Canadian businesses and travel destinations are anticipated.