High Roller Q2 Loss Widens Y/Y as Revenues Drop 52% on Market Exit

Other Key Business Metrics

Total operating expenses declined 23% to $5.28 million from $6.87 million in the prior-year quarter. However, the sharper revenue contraction pushed the operating loss to $2.47 million from $1.07 million. Adjusted EBITDA was negative $1.82 million compared with negative $0.20 million, and adjusted loss per share expanded to 17 cents from 2 cents. As of June 30, cash and cash equivalents were $18.01 million, restricted cash was $0.53 million, and stockholders’ equity was $29.63 million compared with $2.08 million, $0.59 million and $9.64 million, respectively, as of Dec. 31, 2025. First-half operating cash use rose to $5.87 million from $4.45 million, while investing cash use increased to $1.88 million from $0.30 million.

Factors Influencing the Results

The revenue decline primarily reflected High Roller’s exit from several online casino markets after the second quarter of 2025, a refined marketing approach focused on higher-value customers and a growing organizational emphasis on prediction markets. Related-party direct operating costs fell 59.30% to $0.15 million, while other direct operating costs decreased 58.60% to $1.04 million amid lower payment, game-provider and affiliate revenue-sharing expenses.

Other general and administrative expenses rose 18.80% to $3.36 million, mainly because of spending to prepare for prediction-market entry. Advertising and promotion expenses totaled $0.52 million versus $0.92 million, as optimization of legacy marketing more than offset new prediction-market spending. Interest income of $0.15 million compared with $0.05 million of interest expenses a year earlier partly cushioned the loss.

Management Commentary

CEO Seth Young characterized the quarter as one of coordinated execution across product, technology, compliance and operations. He said that National Futures Association membership and guaranteed introducing-broker registration established an important regulatory foundation, although ongoing compliance, end-to-end technology integration and third-party dependencies remain substantial work streams.

The ROLR Free-To-Trade Prediction Challenge introduced the brand, tested consumer messaging and helped build an interest list ahead of a real-money launch; management did not disclose user or engagement figures. High Roller also signed marketing agreements with Lines.com, Forever Network and Leverage Game Media, and expanded applied-AI work covering compliance automation, personalization and customer engagement.

Guidance

For the second half, CFO Adam Felman indicated investors should expect a pattern broadly similar to the second quarter: continued streamlining of the legacy casino operation alongside investment in the ROLR platform and licensing. The company said that prediction-market marketing spending, which began in the second quarter, would increase through the year. Management plans to stage customer-acquisition and other spending against launch milestones, engagement data and unit economics rather than establish a larger cost base in advance.

Other Developments

During the quarter, High Roller acquired ROLR.com and made it the primary digital destination for its planned U.S. prediction-markets platform; no purchase price was disclosed. On April 14, the company entered a two-year collaboration agreement with Crypto.com and affiliates, with automatic 12-month renewal unless terminated. CDNA will exclusively supply prediction contracts through High Roller’s U.S. technology for the first 24 months, while High Roller will develop and maintain the customer-facing platform.

On June 24, subsidiary ROLR US LLC received its guaranteed introducing-broker license, with Crypto.com FCM set to carry introduced customer accounts and provide processing, custody and related regulatory infrastructure.

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