NorthStar Gaming (BET) Q1 2025 earnings summary

Executive summary

• Achieved 32% year-over-year revenue growth in Q1 2025, reaching $7.8 million, with gross margin up 58% to $3.0 million.

• Profit before marketing and other expenses was $0.6 million, reversing a loss of $0.6 million in Q1 2024.

• Highest customer retention rate recorded, supported by new product launches and expanded game offerings.

Financial highlights

• Revenue rose to $7.8 million from $5.9 million year-over-year; managed services revenue doubled to $0.2 million.

• Gross margin increased to $3.0 million (38.5% of revenue) from $1.9 million (31.5%).

• General and administrative expenses decreased to 31% of revenue, while marketing expenses fell to 52% of revenue.

• Net loss narrowed to $5.8 million from $6.8 million year-over-year.

Outlook and guidance

• Expects continued top-line growth and margin expansion in 2025, with major expenses declining as a percentage of revenue.

• Managed services business anticipated to drive further revenue growth.

• Monitoring regulatory developments in Alberta for potential market expansion.