NorthStar Gaming (BET) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 15% year-over-year to CAD 8.5 million, the second highest in company history, with record gross margin highlighting a scalable growth model.

• Managed services revenue more than doubled year-over-year in Q2 2025, now representing 10% of total revenue.

• Profit before marketing and other expenses rose 87% year-over-year, turning positive for the first half of 2025.

• Marketing expense declined 16% year-over-year to 35.8% of revenue, the lowest level reported, with cost per acquisition down 10%.

• Maintained record-level customer retention, launched new marketing campaigns, and upgraded casino UI/UX to enhance customer experience.

Financial highlights

• Q2 2025 revenue: CAD 8.5 million, up 15% from Q2 2024; first half 2025 revenue: CAD 16.4 million, up 23% year-over-year.

• Q2 gross margin: CAD 3.5 million, up 25% year-over-year; first half gross margin: CAD 6.5 million, up 39%.

• Profit before marketing and other expenses: CAD 700,000 in Q2, up 87% year-over-year; first half: CAD 1.3 million.

• Marketing expense in Q2: CAD 3.1 million, down from CAD 3.6 million in Q2 2024.

• General and administrative expense was CAD 2.7 million, up 14%, including CAD 300,000 in one-time restatement costs.

Outlook and guidance

• Focus remains on reaching break-even by continuing revenue growth and expense management, with management confident in the trajectory.

• Expects continued solid year-over-year growth, driven by improved business fundamentals and KPIs.

• Alberta market expected to open to online betting in H1 2026, representing a significant growth opportunity.

• Anticipates growth opportunities in other Canadian regions as regulatory frameworks evolve.

• Company expects further narrowing of net losses and continued gross margin expansion.