High Roller Technologies — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenues were $2.4 million, a 51% decrease from $4.9 million in the third quarter of 2025, driven by market exits in 2025 and a revised marketing strategy; prediction markets generated no revenue in Q3 2026.
• Average revenue per unique depositing customer was $507, more than double the $242 recorded in the third quarter of 2025.
• Total operating expenses were $5.1 million, an 8% decrease from $5.6 million in the third quarter of 2025, as lower direct operating costs were partially offset by higher spending to prepare for the prediction markets launch.
• Loss from operations was $2.7 million, compared to a loss of $0.7 million in the third quarter of 2025.
• Net loss from continuing operations was $2.8 million, or $(0.25) per basic and diluted share, versus net income of $2.9 million, or $0.34 basic and $0.31 diluted, in the prior year quarter.
• Loss before income taxes was $2.6 million, compared to $0.8 million in the third quarter of 2025.
• Income tax expense was $0.2 million in the third quarter of 2026, compared to a $3.6 million income tax benefit in the prior year quarter.
• Adjusted EBITDA was negative $2.1 million, compared to negative $0.2 million in the third quarter of 2025.
• Cash and cash equivalents were $13.4 million at September 30, 2026, with no outstanding borrowings.
• Stockholders' equity was $27.3 million at September 30, 2026.

Guidance and Future Outlook:

• Management expects prediction markets to become a major growth driver for the company in 2027.
• The company anticipates Q3 2026 to be the final quarter where prediction markets appear only on the expense side of the ledger.
• An Android app is planned for release before the end of 2026.
• A new product release is planned for later in November 2026.
• Management believes the current cash position is sufficient to fund operations for at least the next twelve months.

Business Segments and Product Lines:

• The ROLR™ prediction markets platform launched commercially on October 21, 2026, and began generating revenue in the fourth quarter.
• The ROLR iOS app became available in the Apple App Store on November 9, 2026.
• The company entered into a platform and source code license and development agreement with DeepEther Labs, Ltd. on August 13, 2026, securing technology rights and ownership of the customer-facing ROLR application.
• A commercial agreement with ProphetX was announced on November 12 to expand event contracts, effective six months after ROLR FCM LLC receives FCM registration.
• The company registered with the National Futures Association as a commodity trading advisor.
• ROLR US LLC operates as a registered guaranteed introducing broker, with customer accounts carried by Crypto.com FCM.
• ROLR FCM LLC was formed to explore potential registration as a Futures Commission Merchant (FCM) with the CFTC and NFA.
• The company appointed Ben Sutherland as Senior Vice President, Product and Platform, and Flip Pidot as Chief Business Officer.

Market and Competitive Landscape:

• Bernstein analysts estimated 2026 prediction market trading volume at approximately $410 billion, with projections of $10 trillion by 2035.
• The company focuses on capturing share of the growing prediction market by combining regulated exchange infrastructure with a controlled consumer experience.
• Marketing relationships include Lines.com, Forever Network, Leverage Game Media, and affiliated partner Spike Up Media.

Risks and Challenges:

• Limited operating history in the prediction markets business and continued cash usage.
• Risks related to platform stability, scalability, cybersecurity, and technical performance.
• Uncertainty regarding the timing and outcome of FCM registration, which is required for the ProphetX agreement to become effective.
• The evolving and uncertain federal and state legal and regulatory environment applicable to prediction markets.
• The impact of exiting markets in 2025 on online casino revenue.
• Restatement of 2026 interim financial statements regarding the accounting for non-cash placement-agent warrant costs.

Management Commentary and Tone:

• CEO Seth Young stated the company has formally entered its "next chapter" with the ROLR launch and believes prediction markets will be a major growth driver in 2027.
• CFO Adam Felman noted that while online casino revenue declined due to market exits, the remaining customers are more valuable, with revenue per depositing customer more than doubling year-over-year.
• Management expressed confidence in their playbook, citing a track record of positive returns on customer acquisition ad spend and the addition of proven leaders to the product and partnerships teams.
• The tone emphasized discipline in managing the online casino business while strategically shifting focus to prediction markets.

Other Key Points:

• In October 2026, the company filed amended quarterly reports for the first and second quarters of 2026 to correct the accounting for approximately $1.0 million of non-cash placement-agent warrant costs, which reduced previously reported net losses without affecting revenue, cash, or equity.
• The company partnered with Kindbridge Behavioral Health to provide quarterly training for customer service and a confidential pathway to care, including a planned Trader Care Fund for at-risk customers.
• The company highlighted the ROLR Election Tracker for the 2026 U.S. midterms on November 2.
• Weighted average common shares outstanding were 11,002,788 (basic) and 11,002,788 (diluted) for the three months ended September 30, 2026.