Gross Margin Expands to 59% from 52%; Net Loss Narrows 32%; Company Closes Secured Financing After Quarter-End

TORONTO, May 27, 2026 /CNW/ - OverActive Media Corp. ("OverActive" or the "Company") (TSXV: OAM) (OTC: OAMCF) (FRA: 0RB), a premier global esports and entertainment company for today's generation of fans, today announced its results for the three-month period ended March 31, 2026.

First quarter revenue grew 7% to a Company-record $5.4 million, gross margin expanded to 59% from 52%, and the Adjusted EBITDA loss narrowed 43% to $1.3 million, reflecting a higher-margin commercial mix and a leaner cost base. The Company reduced underlying operating costs and, subsequent to quarter-end, closed a secured debt financing for aggregate gross proceeds of approximately $1.95 million.

The Company's condensed consolidated interim financial statements and Management's Discussion and Analysis for the three-month period ended March 31, 2026 are available on the Company's website at www.overactivemedia.com and under the Company's profile on SEDAR+ at www.sedarplus.ca. Unless otherwise specified, all amounts are in Canadian dollars ($).

Financial Results Summary for Q1 2026

CEO Commentary

"This was a strong start to the year," said Adam Adamou, CEO and Co-Founder of OverActive Media. "We grew revenue 7 percent, expanded gross margin to 59 percent from 52 percent, and cut our Adjusted EBITDA loss by 43 percent year over year. Our higher-margin commercial business is carrying more of the company, our cost base is leaner, and the gap to profitability is closing. We are executing the plan we set out, and the numbers are showing it."

Adamou continued, "Our brands also delivered on the global stage. Movistar KOI brought roughly 15,000 fans to LEC Versus in Barcelona, Toronto KOI reached the podium at the Call of Duty League, and we were named Official National Team Partner for Canada alongside Esport Canada at the Esports Nations Cup in Riyadh. After quarter-end we closed a secured financing that strengthens our balance sheet, and we expect our highest-margin league and digital revenue to build through the year, as it does each year. We stay focused on reaching profitability."

First Quarter 2026 Financial Highlights

• Revenue grew 7% to a record first-quarter $5.4 million, up from $5.0 million in Q1 2025. Growth was led by Business Operations, with higher commercial activity across sponsorships, partnerships, agency services, content production, and live events. This more than offset lower Team Operations revenue, which reflected the timing of revenue recognition and the Company's exit from the VALORANT Champions Tour (VCT) league.
• Gross profit climbed 22% to $3.2 million from $2.6 million, and gross margin expanded to 59% from 52% year over year, a seven-point improvement, driven by a stronger contribution from Business Operations, improved performance across agency and live event activities, and lower cost of sales from operational efficiencies.
• Operating costs declined to $4.8 million from $4.9 million. Excluding $0.3 million of restructuring costs that did not recur in the prior-year quarter, underlying operating costs fell approximately 9%, reflecting lower corporate payroll, roster and team payroll, and team operations costs, partially offset by higher commercial and marketing activity.
• Adjusted EBITDA loss narrowed 43% to $1.3 million from $2.3 million, driven by higher Business Operations gross profit, lower underlying operating costs, and improved operating efficiency.
• Net loss narrowed 32% to $2.5 million from $3.7 million, reflecting higher gross profit, lower operating costs, and lower share-based compensation, partially offset by higher finance costs and other expenses.
• Liquidity. The Company ended the quarter with $5.1 million in cash, up from $4.4 million at December 31, 2025. Subsequent to quarter-end, on April 30, 2026, the Company completed a secured debt financing for aggregate gross proceeds of approximately $1.95 million, further strengthening its liquidity position.

First Quarter 2026 Operating Highlights

• OverActive Media was named Official National Team Partner for Canada in conjunction with Esport Canada, with Movistar KOI named Official Co-Team Partner for Spain, at the Esports Nations Cup in Riyadh, Saudi Arabia.
• Movistar KOI hosted LEC Versus in Barcelona, Spain before approximately 15,000 fans, finishing third.
• Movistar KOI secured new partnerships with Idealo and Philips for the 2026 season.
• Toronto KOI finished third at the Call of Duty League Major II tournament.

Subsequent to Quarter-End

• On April 30, 2026, the Company completed a secured debt financing for aggregate gross proceeds of approximately $1.95 million, consisting of four secured promissory notes and the issuance of 9,797,000 common share purchase warrants. Proceeds will be used for general working capital purposes.
• Toronto KOI signed a new partnership with Video Game Live Expo (VGLX) for a weekend event scheduled for October 2026.
• Toronto KOI finished third at the Call of Duty League Major III tournament.
• Movistar KOI hosted its Spring Roadtrip in Madrid, Spain with approximately 12,000 fans.

Conference Call Details

OverActive Media will be hosting a First Quarter 2026 Earnings Conference Call on Thursday, May 28 at 8:30 AM (Eastern Time) 

To access the conference call, please register and enter your phone number at https://app.webinar.net/d7xNyl7Jl2e to receive an instant automated callback.  

To dial directly to be entered into the call by an operator, please dial 1-416-945-7677, or for international callers, 1-888-699-1199. 

The conference call will be webcast live in its entirety at 8:30 AM (Eastern Time) at https://emportal.ink/4v8tqOy and will be archived for 90 days following the call. 

Links to SEDAR+ filings and press releases are available on the investor website at https://overactivemedia.com/pages/filings/. 

TELEPHONIC REPLAY 

Call Details: 1-289-819-1450 
Encore Replay Entry Code: 95772 # 
Encore Replay Expiration Date: 06/04/2026

Reconciliation of Net Loss to Adjusted EBITDA
Three months ended March 31:

Non-IFRS Measures

This press release includes references to Adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is defined by the Company as net income or loss before income taxes, finance income and costs, depreciation and amortization, foreign exchange gains/losses, restructuring and development costs, one-time gains and losses, other income and loss, and share-based compensation. The Company believes that Adjusted EBITDA is a useful measure of financial performance because it provides an indication of the Company's ability to capitalize on growth opportunities in a cost-effective manner, finance its ongoing operations, and service its financial obligations.

This non-IFRS financial measure is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. The Company's method of calculating such a financial measure may differ from the methods used by other issuers and, accordingly, its definition of this non-IFRS financial measure may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of the Company's performance or to cash flows from operating activities as measures of liquidity and cash flows.

Cautionary Note Regarding Forward-Looking Information

This press release contains statements which constitute "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws (collectively, "forward-looking statements"), including statements regarding the plans, intentions, beliefs and current expectations of OverActive with respect to future business activities and operating performance, including anticipated revenue growth, margin improvement, the Company's ability to secure additional financing, and the Company's ability to continue as a going concern. Forward-looking statements are often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and include information regarding the anticipated financial and operating results of OverActive in the future.

Investors are cautioned that forward-looking statements are not based on historical facts but instead on OverActive management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although OverActive believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon. Key factors that could cause actual results to differ materially include: the Company's ability to raise additional financing and continue as a going concern; changes in general economic, business, and political conditions; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with government regulation; risks associated with foreign markets; the ability of the Company to execute on its partnerships and business strategy; the ability of the LEC and Call of Duty Leagues to maintain viewership; and other risk factors set out in OverActive's public disclosure documents filed under its profile at www.sedarplus.ca.

OverActive does not intend and does not assume any obligation to update the forward-looking statements except as otherwise required by applicable law.

About OverActive Media

OverActive Media Corp. (TSXV: OAM) (OTC: OAMCF) (FRA: 0RB) is a premier global esports and entertainment company for today's generation of fans, headquartered in Toronto, Canada, with operations in Madrid, Spain and Berlin, Germany. OverActive delivers premium experiences by operating top-tier competitive teams and complementary business units across media, content, and live events, including Movistar KOI in the League of Legends EMEA Championship and Toronto KOI in the Call of Duty League.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Overactive Media Corp.