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Business Highlights for Q4 2024

• Subscription Growth: Led by The Sims Resource, the leading custom content and community site for players of The Sims franchise, the Company has seen continuous subscriber growth through Q4 and year-to-date in Q1 2025, reversing first-half declines in FY 2024 and driving new record subscriber counts for the Company. March 2025 will mark the tenth consecutive month of growth in the subscriber base, which has seen over 25,000 subscribers joining the platform during that time frame.

• Platform Engagement and Audience Growth: The Company’s key owned and operated properties saw sustained engagement and continued year-over-year growth, with overall web pageviews across all web properties increasing to 1.8 billion in Q4 2024 compared to 1.5 billion in Q4 2023, despite both the sale of certain of the Company’s legacy casual gaming properties in April 2024 and the Company’s intentional deprioritization of third-party-owned, low-margin network sites throughout 2024. The Company saw material contributions to this growth from its core property Icy Veins, the Company’s leading site for Blizzard games and ARPG enthusiasts, which saw record user activity on the site from both the continued impact of Blizzard’s World of Warcraft expansion: The War Within, and Blizzard’s October launch of the Diablo IV expansion: Vessel of Hatred, as well as significant contributions from sites like PocketGamer.com, which doubled its traffic over the course of 2024 and continues to grow as the go-to destination for mobile game news, guides, tier lists, and reviews. In addition, the Company’s leading data and insights platform, U.GG, saw consistent and significant growth in its proprietary applications through 2024, now achieving more than 2.5 million downloads in the aggregate between its League of Legends and Valorant applications, capturing greatly enhanced user retention, engagement and monetization from converted users as compared to the web property.

• Direct Sales: Q4 2024 brought multiple new clients to the Enthusiast roster, including White Claw, Johnson & Johnson, Raising Cane’s and Sargento, while also continuing to service a strong roster of returning clients like Amazon, Ampm, Coca-Cola, Disney, Lego, Mattel, Netease, Paramount, RBC, Square Enix, State Farm, Toyota, Warner Brothers, and Xbox. In addition, the Company has continued to bolster its direct sales team with the addition of new sellers, as well as Bob Lonigro as VP of Sales, with a goal to achieve an average ramped seller headcount in 2025 approaching the levels in 2023.

• Event Growth and Engagement: The Company’s B2B mobile games event series, PocketGamer Connects, continued to entrench itself as the industry leading conference series for mobile gaming professionals and industry participants, hosting PGC Helsinki in October 2024 and PGC London, its largest event ever by all relevant metrics, including attendance, sponsors, speakers and company representation, being held in January 2025.

• Luminosity Gaming’s Event Success: Luminosity Gaming hosted its second invitational Super Smash Bros. Ultimate event of the year drawing over 600,000 hours watched and peaking at 60,000 concurrent viewers during the grand finals, demonstrating Luminosity’s continued strength as a leading esports brand that can deliver high-engagement content for fans and valuable exposure for sponsors, while also serving as a core execution arm for our direct sales team. Luminosity has also expanded its game coverage to include strategically relevant titles such as League of Legends and Marvel Rivals. These expansions will enhance the user and fan experience through the cross-platform amplification of these audiences across the Company’s owned and operated properties like U.GG, which is the number one League of Legends data and insights platform in North America and has recently expanded its coverage to include a best-in-class product for Marvel Rivals, a title which has seen significant and continued success in recent months.
  

Fourth Quarter 2024 Results Comparison

Revenue was $17.8 million in Q4 2024, a 62% decrease compared to $47.1 million in Q4 2023. Media and Content revenue was $12.8 million in Q4 2024, a 70% decrease from $42.6 million in Q4 2023. The Company’s strategic decision to de-prioritize the lower margin video platform revenue accounted for $24.1 million of the $29.8 million reduction in Media and Content revenue. Direct Sales (the majority of which is included in media and content revenue) decreased from $13.2 million in Q4 2023 to $5.9 million in Q4 2024 mainly due to a lower number of ramped sellers than the year ago period, contributing $7.3 million to the decline in revenue. Esports and Entertainment revenue increased to $2.0 million from $1.2 million in Q4 2023, mainly due to an increase in live events in Q4 2024 as compared to Q4 2023. Subscription revenue decreased from $3.3 million in Q4 2023 to $2.9 million in Q4 2024 largely due to the sale of certain non-core, non-profitable assets in April 2024.

Gross profit was $13.5 million in Q4 2024, a 29% decrease compared to $18.9 million in Q4 2023. Gross margin increased to 76% in Q4 2024 from 40% in Q4 2023.

Operating expenses decreased to $15.6 million in Q4 2024, a 44% decrease from $27.8 million in Q4 2023.

Adjusted EBITDA profit was $1.9 million in Q4 2024 compared to an Adjusted EBITDA loss of $3.0 million in Q4 2023.

Net loss was $83.6 million, or $(0.53) per share, in Q4 2024, compared to $39.7 million, or $(0.26) per share, in Q4 2023.

Full Year 2024 Results Comparison

Revenue was $72.6 million in 2024, a 59% decrease compared to $178.2 million in 2023. Media and Content revenue was $51.3 million in 2024, a 67% decrease from $154.8 million in 2023. The Company’s strategic decision to de-prioritize the lower margin video platform revenue accounted for $79.4 million of the $103.5 million reduction in Media and Content revenue. Direct Sales (the majority of which is included in media and content revenue) decreased from $41.7 million in 2023 to $21.4 million in 2024 mainly due to a lower number of ramped sellers than the year ago period, contributing $20.3 million to the decline in revenue. Esports and Entertainment revenue increased to $8.5 million in 2024 from $8.3 million in 2023. Subscription revenue decreased from $15.0 million in 2023 to $12.9 million in 2024 in part due to change in mix of subscribers and lower subscriber count during portions of the year on The Sims Resource and in part due to the sale of certain non-core, non-profitable assets in April 2024.

Gross profit was $49.1 million in 2024, a 27% decrease compared to $67.4 million in 2023. Gross margin increased to 68% in 2024 from 38% in 2023.

Adjusted EBITDA loss was $0.2 million in 2024 compared to an Adjusted EBITDA loss of $13.0 million in 2023.

Net loss $96.0 million, or $(0.61) per share, in 2024, compared to $117.7 million, or $(0.77) per share, in 2023.

Organizational Updates

The Company is pleased to announce that Alex Gonzalez has been promoted to Chief Marketing Officer for the Company, reflecting his broad range of responsibilities for the Company’s creator talent, go-to-market strategy, campaign development and overall marketing efforts across the Company. Alex has been a valued member of the leadership team at Enthusiast Gaming for the past three years, having previously served as Head of Luminosity, as well as SVP of Talent, Gaming and Marketing.

Investor Conference Call

Management will host a conference call and webcast on Monday, March 31, 2025, at 5 p.m. ET to review and discuss its Q4 and full-year 2024 results. Conference call details:

• Toll Free: 1-855-239-1101 or 1-412-317-5231 or ‘Call me’: https://callme.viavid.com/?$Y2FsbG1lPXRydWUmcGFzc2NvZGU9JmluZm89Y29tcGFueSZyPXRydWUmYj0xNQ== (‘Call me’ Passcode: 1771177)
  

Conference ID: 10197864

• Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1712465&tp_key=4b60ef7f97
  

A replay will be available on Enthusiast Gaming’s website at enthusiastgaming.com/investors.

Supplemental Information

Enthusiast Gaming’s financial statements and management discussion and analysis (“MD&A”) are available at www.sedarplus.ca and enthusiastgaming.com/investors. All amounts are in Canadian dollars.

About Enthusiast Gaming

Enthusiast Gaming is a leading gaming media and entertainment company, building the largest platform for video game enthusiasts and esports fans to connect and compete worldwide. Combining the elements of its four core pillars: creators, content, communities, and experiences, Enthusiast Gaming provides a unique opportunity for marketers to create integrated brand solutions to connect with coveted Gen Z and Millennial audiences. Through its proprietary mix of digital media, content and gaming assets, Enthusiast Gaming continues to grow its network of communities, reflecting the scale and diversity of gaming enthusiasts today.

Forward-Looking Statements

This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast Gaming anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking statements in this news release include, but are not limited to, statements regarding trends in certain financial and operating metrics of the Company, and expectations relating to the financial performance and the financial results of future periods.

Forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, including, but not limited to, expectations and assumptions concerning: interest and foreign exchange rates; capital efficiencies, cost saving and synergies; growth and growth rates; the success in the esports and gaming media industry; the Company’s growth plan, and judgment applied in the application of the Company’s accounting policies and in the preparation of financial statements in accordance with applicable financial reporting standards. While Enthusiast Gaming considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; and future legislative, tax and regulatory developments. Readers are cautioned that the foregoing list is not exhaustive. For more information on the risks, uncertainties and assumptions that could cause anticipated opportunities and actual results to differ materially, please refer to the public filings of Enthusiast Gaming which are available on SEDAR+ at www.sedarplus.ca. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement and reflect our expectations as of the date hereof, and thus are subject to change thereafter. Enthusiast Gaming disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Measures

This press release references certain non-GAAP measures, including Adjusted EBITDA, as described below. These non-GAAP measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those GAAP measures by providing further understanding of the Company’s results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of the Company’s financial information reported under IFRS.

The Company uses non-GAAP measures including:

“EBITDA”, which is defined as earnings before interest, taxes, depreciation and amortization. Enthusiast Gaming calculates EBITDA using gross margin less total operating expenses plus share-based compensation and amortization and depreciation; and

“Adjusted EBITDA”, which is defined as EBITDA adjusted for severance and other non-recurring public company costs. These non-recurring costs include, but are not limited to, annual Nasdaq listing fees and annual directors and officers (“D&O”) liability insurance associated with the Company’s former listing on Nasdaq. Adjusted EBITDA also excludes “NFL TNG EBITDA” which is defined as EBITDA attributable to the Company’s NFL TNG program during Q4 2024, as the program became non-recurring due to its termination.

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

CONTACT: Contacts Enthusiast Gaming: Alex Macdonald, Chief Financial Officer Investors: investor@enthusiastgaming.com Media: press@enthusiastgaming.com