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Good morning, and thank you for joining us. I'm pleased to share our financial results and business updates for the first quarter of 2026, along with our perspective on the progress we are making as a company and the opportunities ahead. As we discussed during our last earnings call, 2025 was about stabilizing and restructuring Super League. We strengthened our balance sheet, eliminated our debt, simplified our capital structure, reduced operating costs, and established a more disciplined operating model. The focus of 2026 is execution. Our first quarter results reflect the early stages of delivery against the commitments we made to shareholders. We are investing strategically to strengthen the business, expand our capabilities, and create a more scalable and predictable revenue foundation, all while continuing to preserve capital and maintain financial flexibility. We believe our liquidity position remains strong.

We ended the quarter with $11.4 million in cash, and even with the $1.5 million in cash consideration associated with the closing of the Misfits Ads business acquisition paid earlier this month, we do not anticipate needing to raise capital in the foreseeable future to fund ongoing operations. At the same time, we are beginning to see encouraging operational signals across the business. Gross revenue for Q1 2026 increased to $3.3 million, up from $2.7 million in the prior first year quarter. Sequentially, revenue declined only 6% from Q4 2025, despite typical seasonal patterns in which our fourth quarter is materially stronger than the first. We believe this reflects the early establishment of a higher revenue baseline for Super League.

Gross margin improved to 36% in Q1, up from 32% in Q4 2025, reflecting continued improvement in the quality and structure of our revenue mix, and the more disciplined delivery model we have implemented across the organization. Cash-based EBITDA improved 11% year-over-year as we continued to balance strategic investment with operational discipline. We are also seeing positive momentum in our commercial activity. Average closed deal size increased to $157,000, up from $145,000 in the prior year quarter. While weighted pipeline open opportunities per salesperson grew to approximately $1.78 million as of this month, nearly triple the level from 2 years ago. In addition, we have continued to expand our client base, engaging 23 new clients year to date, while also increasing activity with returning partners.

We are beginning to see evidence that brands view Super League as more than a campaign execution partner. In an increasing number of cases, relationships that began on one gaming platform such as Roblox are evolving into multi-platform programs spanning Fortnite, Minecraft, and mobile. Connected TV, PC, and web gaming are now entering the mix as well. We are also incorporating more media solutions and amplification strategies through TikTok and YouTube influencers, tapping into the vibrant gaming creator economy. Together, these trends reinforce Super League's role as a strategic partner, helping brands reach consumers across fragmented digital environments. That progress is supported by a stronger and more connected operating model. Our platform and data capabilities continue to expand through the integration of Bounce, our Solsten partnership, and now the addition of rewarded video advertising technology and new programmatic solutions via the Misfits Ads business acquisition.

Together, these capabilities strengthen our ability to better understand audiences, improve the return on advertising spend, and support more scalable campaign execution. At the same time, our strategic properties initiative continues to evolve through ownership interest in gaming experiences on Roblox, such as Hide or Die and My Avatar, along with our commercial partnership with Misfits Gaming Group. These initiatives provide access to differentiated inventory, including more than 100 million users through the Misfits Gaming Group Roblox game portfolio, direct monetization opportunities, and gameplay behavior signals that further enhance our understanding of consumer engagement patterns. The recent closing of the Misfits Ads business transaction reinforces this broader strategy. The addition of profitable programmatic revenue, proprietary technology, and expanded brand relationships is expected to contribute to our financial results beginning in the second quarter.

More importantly, we believe the transaction strengthens the predictability and scalability of our revenue model while supporting our path to cash-based EBITDA profitability by year-end. On a pro forma basis, the combined Super League and Misfits pipeline of opportunities reflects approximately $12 million of gross revenue potential in fiscal year 2026. While this should not be interpreted as guidance, we believe it provides a useful illustration of the expanded scale and commercial reach of the combined business, as well as a clearer trajectory towards sustained financial pro stability. Stepping back more broadly, we believe the market itself is evolving in ways that further align with Super League's strengths. We've spoken often about the scale and influence of gaming audiences. What is becoming clear, however, is that gaming behavior itself is shaping consumer behavior across the digital economy.

Consumers are gravitating toward products and services built around progression-based engagementParticipation, identity expression, rewards, and continuous interactive feedback loops. We see these dynamics across prediction markets, sports betting, stock trading, collectibles, social commerce, dating platforms, and even emerging entertainment formats such as micro dramas. Said simply, we are witnessing the rise of the gamified consumer. With more than 80% of people under the age of 45 playing video games, we believe Super League is uniquely positioned to help brands understand and connect with this highly engaged and under-monetized audience. The player mindset increasingly shapes how consumer behavior well beyond gaming itself. Our opportunity is to help brands apply the principles that drive participation, progression, and engagement inside games to marketing programs across digital platforms and channels. We believe this positions Super League to help partners create more relevant, effective, and measurable consumer experiences.

A final note, we continue to explore opportunities related to digital assets and are encouraged by recent stabilization and announcements validating the long-term potential of the sector. Examples include Fannie Mae's support of Bitcoin and USDC-backed mortgage products, the SEC's approval of the New York Stock Exchange's tokenized securities framework, as well as Nasdaq's proposal to trade and settle securities in tokenized form, and broader regulatory support for digital financial infrastructure. While our approach remains thoughtful and disciplined, these developments, combined with the depth of crossover between gaming audiences and digital currency holders, continue to reinforce the potential of participation-driven digital economies and related ownership ecosystems. Most importantly, as we look ahead, we remain focused on disciplined execution across the business.

We are doing what we said we would do, strengthening the business, improving the quality and predictability of our revenue model, expanding our capabilities, and positioning Super League to participate more meaningfully in large and growing markets. We still have important work ahead of us, but today the priority is execution, not stabilization, a phase now behind us. We believe shareholders will increasingly see our continued progress down this path reflected in our operating and financial results in the fiscal quarters ahead. Thank you. With that, I'll turn it back to the operator for Q&A.

Thank you so much. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for your questions. Our first question has come from the line of James Kisner with Water Tower Research. Please proceed with your questions.

Thanks for taking my questions. Just first, you know, pointing at 3 new clients year to date, that's pretty notable. Can you just kinda drill down a bit on that? Like, what's really driving that momentum, you know, particular offerings or customer verticals, or just any other way you'd like to talk about it?

Thanks for the question. I think we have been successful with our education process in helping brands understand the opportunities to get in front of what we are, you know, now really emphasizing our gamified consumers, both within gaming environments and beyond. The industry at large is also getting more attention, and that has been aided by a lot of the work done by platforms such as Roblox. As a result, there are more agencies and marketing executives who see the opportunity to be in front of an audience that is otherwise hard to influence and reach. We are assembling a more clear set of solutions, and it seems to really be paying dividends.

That's helpful. On gross margin, it looks you had a nice improvement here sequentially. Just, I think you mentioned mix and a more disciplined delivery model. Can you just kinda say more about that, like perhaps what in mix is improving and, you know, or maybe what costs you're controlling and, you know, what are kinda the biggest levers to improve gross margin from here?

There are really a couple of key items here. One is we are beginning to be more focused on the delivery of turnkey packages. We have built a handful of reusable elements that help us bring what our brand partners find to be custom solutions, but are not built from scratch each time by our execution team. These reusable components allow us to be much more efficient. We also have begun adding more media solutions into our packages, which typically bring us a higher margin because of the minimal execution costs associated with bringing those to life.

I would say the increasing breadth of our opportunity to not just bring people into immersive platforms or mobile, but also CTV, PC, and web games, gives us a chance to weave together a program for a client that meets our margin goals a little bit more consistently without compromising and, in fact, enhancing the potential outcome for our partners.

That's helpful. Last one, I'll pass it. Just on Misfits, congrats on closing that. Can you kind of like talk about the integration plan there and perhaps, you know, how soon we might see a, you know, a positive impact or, you know, from the opportunities from that acquisition?

I appreciate that. Misfits Ads business is a terrific addition to Super League. We have already brought the team on board and are starting to use their capabilities and their tools. Coming with Misfits was a very exciting pipeline of partnerships, both active and in sort of a setup for future business. We will see an impact in the second quarter. There are revenue-generating deals that have already moved over to Super League as part of the acquisition. The deals are profitable, as we said. The acquisition itself is a profitable acquisition and accretive acquisition on EBITDA, cash-based EBITDA basis.

We anticipate being able to share some of that progress and contribution, when we report on Q2.

Great. Thank you very much. I'll pass it.

Thank you so much. As a reminder, if you'd like to ask a question, please press star one on your telephone keypad. Our next questions come from the line of Rommel Dionisio with Aegis Capital. Please proceed with your questions. Rommel, may you please see if you're self muted, please.

Hello? Hello?

We can hear you now.

Yeah. Sorry.

Hi, Rommel.

Thank you. Sorry about that. Hi. Sorry about that, guys. Matt, I wonder if you could just discuss the privacy building cross-selling opportunities. Obviously, the Misfits acquisition is new, but in prior acquisitions, you know, I wonder if you could just describe to what extent that's helped benefit the top line and, you know, the prospect for that going forward, especially with the Misfits acquisition now closed. Thank you.

Sure. Thank you, Rommel. I'm very excited. We are seeing an increasing amount of interest from partners in being in more than one channel with their campaigns. You know, earlier on in our life cycle, a partner would come to us, a brand would come to us and want to be active in a single platform, such as Roblox or Minecraft. The excitement about the results we've been able to show over the years has emboldened more brand partners to look at cross-channel opportunities. They are now coming to us and looking for either a cross-channel media solution.

In fact, we had one brand ask us to run a program for them across five different channels, that is just for media, turnkey media, which is a terrific area for us, as I mentioned earlier, a high-margin opportunity. But even when partners are coming to us now to activate inside a platform like Roblox or Fortnite, we are bringing influencers from YouTube or TikTok into that program. We are bringing a mobile media buy into that program. You know, we're really starting to see that brands understand this gamified consumer lives in multiple places, and being able to surround that segment as part of their campaign has an increasingly positive impact on the results we can deliver.

Thank you so much.

Thank you. There are no further questions at this time. I'd like now like to hand the call back over to Matt Edelman for any closing comments.

Thank you again, everyone, for your time and your questions. As we continue through 2026, our focus is clear: executing against the strategy we laid out, strengthening the quality and predictability of our business, and translating operational progress into long-term shareholder value. We are encouraged by the momentum beginning to emerge across the business and believe the coming quarters will increasingly reflect the progress we have made in building the new Super League. Have a happy Friday.

Thank you so much. This does conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.

Greetings, and welcome to the Super League fourth quarter and full year 2025 conference call. Please note this conference is being recorded. Before we begin, I'd like to caution listeners that comments made by management during this call may include forward-looking statements within the meaning of applicable securities laws. These statements involve material risks and uncertainties, and actual results could differ from those projected in any forward-looking statements due to numerous factors. For a description of these risks and uncertainties, please see Super League's financial statements in MD&A for the fourth quarter and full year 2025 ended December 31st, 2025, available on EDGAR. Important qualifications regarding forward-looking statements are also contained in Super League's earnings release distributed yesterday afternoon and is also available on EDGAR.

Furthermore, the content of this conference call contains time-sensitive information, accurate only as of today, March 27th, 2026. Super League undertakes no obligation to revise or otherwise update any statements to reflect events or circumstances after the date of this call. I would now like to turn the conference call over to Matt Edelman, President and Chief Executive Officer. Matt, please go ahead.

Thank you very much. Good morning. Thank you to all for joining us. I'm pleased to share our quarterly and annual results, business updates, and operational highlights for the fourth quarter and fiscal year 2025, and our strategic outlook and priorities for 2026. Super League today is a fundamentally different company than it was a year ago, with a strong foundation positioned to scale. Super League helps businesses grow by executing advertising and branded content programs designed to reach and influence people who play video games, one of the largest and most under-monetized consumer segments in modern media and culture. We generate revenue by delivering these programs for brands and agencies across gaming and digital platforms, combining proprietary interactive ad formats, immersive experiences, creator content, strategic campaign services, and data-driven insights to improve marketing performance. 2025 was a defining year.

For April through December, we simplified our capital structure, streamlined our cost base, strengthened our balance sheet, and refined our operating model. With a debt-free balance sheet, more than $14 million in capital as of December 31, and the removal of the going concern language from our auditor's report, we have established the stability to execute with focus and the flexibility to pursue meaningful growth. Building on this, we recently announced the execution of a definitive agreement to acquire the Misfits Ads Division from Misfits Gaming Group, a profitable unit we expect to increase revenue, expand margins, and cement our path towards cash basis EBITDA profitability. Closing remains subject to stockholder approval. With this strategic move, we will be supersizing Super League's ability to drive measurable marketing outcomes for our partners.

Our advantage lies in our understanding of both the gaming ecosystem and the player mindset, enabling brands and media agencies to connect with the right consumers through the right creative at the right time in the right places. That customer demand is reflected through our continued successes with iconic brands. During the fourth quarter, we initiated programs with Regal Cinemas and H&R Block, both of which launched in the first quarter of 2026, and expanded our relationship with Panda Express following a successful multi-quarter engagement. We also supported key launches for Paramount+, including Starfleet, and for Paramount Games with SpongeBob: Patty Pursuit 2, and continued our in-game work with partners such as Google, Logitech, Juicy Drop from Bazooka, and the USGA. In addition, we collaborated with Disney around the theatrical release of Zootopia 2.

This activity includes both new client demand and returning business and is beginning to revive our financial performance. Q4 2025 was our strongest revenue quarter of the year, up 32% over Q3 2025 and close to the prior year quarter's revenue level, despite operating with a significantly reduced team. Quarterly gross margins were higher than one year prior, and cash basis pro forma OpEx costs were down 44% year-over-year. For the full year, we improved pro forma cash basis EBITDA by 31% compared to 2024, including a 56% improvement in Q4 alone. Pro forma cash basis OpEx decreased by $5.3 million or 29% from the prior year period, reflecting the positive impact of strategic cost reduction and optimization efforts in fiscal year 2025.

At the same time, we improved gross margin to 40% for the year, up from 38% in 2024, reflecting a more disciplined approach to how we structure and deliver programs. Net operating results for 2025 improved by 23%. GAAP net loss for Q4 2025 and fiscal year 2025 were impacted by significant one-time accounting-related non-cash debt fair value mark-to-market and extinguishment charges, primarily associated with our debt and capitalization table restructuring, totaling $6.3 million and $8.5 million, respectively. Based on our cash position and current plans, we do not expect to raise capital to fund operations in the foreseeable future.

While we have not yet achieved our most important financial objective, cash basis EBITDA profitability, these results demonstrate that the work we undertook in 2025 has established a stronger and more durable operating foundation. We expect the progress made over the past year to translate into more visible benefits beginning in Q2 2026, with cash basis EBITDA profitability within reach by year-end. Among our most impactful advances have been the diversification of our revenue base and the increased clarity in how the business is structured and delivered. A year ago, the majority of our business was concentrated in a single platform. Today, that concentration has been reduced with our revenue mix more balanced across Roblox, Minecraft, Fortnite, and mobile playable ads.

The strategic deals we completed earlier in 2026 helped establish a more integrated operating framework, bringing together a platform and data function, advertising and marketing solutions, and a new strategic properties initiative into a cohesive model. Each reinforces the others, forming the early stages of a growth flywheel. Taking a step back, the opportunity in front of us remains significant. Excuse me. We operate at the intersection of a $316 billion U.S. digital advertising market and a 200 million person U.S. gaming population. In the U.S., according to Newzoo and eMarketer, consumers spend approximately 11.8 hours per week playing video games, nearly as much time as they spend on social media and watching television and streaming. Yet while annual advertising in these channels exceeds $150 billion combined, total yearly spend in gaming remains under $10 billion.

That gap, the under-monetized gaming demographic, represents Super League's opportunity. Equally important, a growing share of marketing decision-makers now comes from a generation that grew up playing online video games, millennials. That shift is already influencing how brands think about engaging consumers, and we believe it creates a long-term tailwind for our business. A core tenet of our strategy is that when people play video games, they are their most authentic selves. They act with agency, express identity more freely, and engage in ways that reveal what motivates them. That informs our data advantage as we combine gameplay-derived behavioral signals with broader market intelligence and psychographic insights to better understand how and why consumers respond to content. That understanding allows us to help brands design more effective campaigns, not just within gaming environments, but across the full digital landscape.

We expect this audience intelligence to become an important driver of scale and profitability as we shift toward more repeatable and transactional forms of revenue. Over the past six months, we've demonstrated growing demand for these solutions. The next phase is improving unit economics while continuing to increase volume. The acquisition of the Misfits Ads Division will be a natural extension of this strategy. A profitable business already, it will add programmatic revenue capabilities, rewarded video technology, and preferred access to inventory across a growing portfolio of popular Roblox games. In 2026, we have the opportunity to generate approximately 50% of the amount of our 2025 net revenue solely from the Misfits Ads Division pipeline, customer base, and capabilities. Additionally, when we've collaborated with Misfits on brand programs that cross over our combined offerings, deal size has increased 20%-30%.

Looking at 2026, we are encouraged by what we're seeing so far. We expect Q1 2026 revenue to be ahead of Q1 2025. During the quarter, we closed eight returning clients and initiated discussions with 17 new accounts. Our pipeline remains consistent with where it was one year ago, with our average deal size remaining above $200K despite operating with a smaller team. At the same time, we want to be clear that the full financial impact of the changes we've made is not yet reflected in our reported results. We expect Q2 2026 to begin to show more meaningful progress as the benefits of the transformation we began one year ago and completed in October 2025 truly take hold. As a final note, we continue to actively evaluate opportunities related to digital assets.

Given market developments in Q4 2025, we are approaching this thoughtfully while remaining optimistic about the long-term potential. In closing, 2025 was the year we set out to reshape Super League and delivered on that commitment. As we look ahead, our focus is on translating that progress into consistent financial performance. This is the new Super League. We plan to maintain a lower cost structure, expand scalable, repeatable revenue streams, and remain in a position that enables disciplined execution. Against that backdrop, our market value represents approximately 1/3 of our year-end cash position. We believe that does not fully reflect our capital strength or the progress we've made. We appreciate your continued support as we move forward on a more credible path. Thank you. I'll turn it back to the call operator.

Thank you. Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for your questions. Our first questions come from the line of James Kisner with Water Tower Research. Please proceed with your questions.

All right. Thanks for taking my question. I got a couple for you. First, just regarding cash-based EBITDA profitability, can you kind of talk about the progression towards that as you move through 2026?

Sure thing, James. Thanks for the question. Nice to talk to you. I would think about 2026 in three phases. First, in Q1, we still expect to see some lag from the demands of the restructuring work we did in 2025. We've reset the cost structure, but the revenue engine is still rebuilding. Our numbers likely won't reflect the full benefit of the changes we've made at that time. Second, as we move into Q2, we expect to see a more visible inflection. That's when we believe the combination of a stronger pipeline and early contributions from our more scalable offerings will have a better chance of showing up more clearly in our performance. In the second half of the year, really the third phase, it will be all about delivery.

We anticipate operating with a lower cost base on an ongoing basis, increasing, you know, our repeatable revenue. Then, of course, subject to stockholder approval, we will have the full integration of the Misfits Ads Division. That's when we would expect the business to benefit from accelerating revenue and margin contribution. That'll come from, you know, again, a jolt from the Misfits team, their tech and the pipeline that is really, we think, can deliver on the promise of the transaction.

you know, when you—I guess when you step back, our confidence in the path comes from the fact that the heavy lifting on the cost side is already done, and our focus is now on building revenue from that base, from that foundation. That's what really puts EBITDA profitability in sight by the end of the year.

Very helpful. Actually, you mentioned Misfits. My second question regards that acquisition. Can you just kinda give a little more texture on how this kind of accelerates or enhances your kind of overall strategy? And then if you can maybe quantify in some way the kind of financial metrics around that business, either maybe historical revenue or gross margin or cash-based EBITDA profile, any kinda help us out there.

Sure. The business opportunity really is as a result of a lot of collaboration that we've enjoyed with the Misfits Gaming Group over time. The result has been a nice consistent increase in the size of the deals that we were able to bring into Super League when collaborating with the Misfits ads team. We had an opportunity to pull the common businesses together, and at the same time, the Misfits Gaming Group will maintain their own and continue to fully own the Roblox games in their portfolio, and be a commercial partner going forward.

The benefits of the transaction are that we are consolidating complementary businesses that bring multiple forms of and sources of revenue together that have already proven to work well in the market. We will also have access to the Roblox game portfolio for the purposes of brand partnerships. That is an advantage when you are the primary or sole group that can reach such a significant audience based on the popularity of those games. While we don't provide full guidance, we do expect the net revenue contribution from the Misfits people and assets that we're acquiring, again, subject to stockholder approval. We expect the net revenue to equal approximately 50% of the net revenue that we achieved on our own in 2025.

They are a profitable team, so that would be profitable net revenue that drops, you know, profitable results to our EBITDA line.

No, that's helpful. Just last one for me. Just in gross margins, it's up a bit year-over-year. I'm just kinda wondering how much of that is kinda structural and sustainable, and how you're gonna think about gross margin progression as you reach cash flow or for cash basis EBITDA profitability. Thanks.

Yeah, it's another great question, something we think about and work on regularly. Based on the seasonality in the advertising industry, there's a lot more money spent in Q4 by brands and agencies, and they push partners like Super League and others to really honor volume discounts. It's fairly typical for companies on the receiving end of that to see compressed margins in Q4, which we have seen year-over-year compared to the prior quarters in the same year. We do think we will continue to be able to maintain the margins that we have seen in the earlier quarters of the past couple of years, so in between that 40%-45% range.

We definitely hope that our full-year gross margin can get, you know, closer to the 45% rather than the 40% that we achieved for 2025. It's a constant focus and something we believe will benefit from some of the scalable offerings and the opportunity to drive up some of the programmatic revenue sources that, you know, we're starting to see, and that the Misfits Ads Division also is bringing into the company with the anticipated and hopeful close of that transaction.

All right. Thanks very much.

Thank you.

Thank you. Our next questions come from the line of Rommel Dionisio with Aegis Capital. Please proceed with your questions.

Yeah, good morning. Thanks for taking my question. Matt, in your prepared comments, you talked about the diversification of your revenue stream. I wonder specifically with regards to mobile gaming, could you talk about, you know, looking back at 2025, the growth that you saw in that business as a percentage of your total revenues and kind of the key factors driving potential further growth in 2026 and beyond? Thank you.

Absolutely, Rommel. Thanks for the question. Nice to hear your voice. You know, we have been purposefully focused on diversifying our revenue streams really for the past year, and that has a lot to do with being a little bit too dependent on a single platform, which was Roblox, you know, back in 2023 and 2024. Mobile gaming is a spectacular, large and lucrative category in the advertising space. There are 200 million people in the U.S. who play mobile games, and we have a very strong partnership with a company you've heard us talk about named AdArcade. Their patented playable ad solution outperforms every other type of ad creative that could otherwise appear in mobile video inventory in mobile games. It's called rewarded video inventory.

It appears in between the levels you're playing. That product continues to drive a great deal of interest. The demand continues to increase, and that has helped a great deal with diversification. In Q4, I believe that the mobile playables got up to, you know, well over 25% of our revenue and ended the year for 2025 at about 20%. And you may recall that earlier in the year, we, you know, we really were aiming for 20%-25% from that product line for the whole year. At the same time, Roblox revenue diminished to under 40% of our revenue.

The biggest additional piece came from a combination of work across Fortnite and Minecraft, which collectively ended up at about 30%. We were able to continue to show steady growth in both of those areas as well. We believe we will have further diversification in 2026. In addition to those platforms, we are in interesting and encouraging discussions to expand our early entry into the connected TV space, which happens to be another area where the Misfits Ads team has had some success. We'll help that expansion, another place where we have strong compatibility. We also believe there are opportunities in the web gaming space and in the PC gaming space.

We're hoping for, you know, a nice, multi-tiered, diverse revenue base that is even stronger in 2026.

That's great. Thanks for the additional color, Matt.

You're welcome.

Thank you. Our next questions come from the line of Jack Vander Aarde with Maxim Group. Please proceed with your questions.

Okay, great. Good morning. Hi, Matt. Congrats on the recent momentum and continued progress towards positive EBITDA. You know, Matt, I guess I just want to touch on the fourth quarter revenue and then the first quarter kind of outlook and just back to the gross margin comments as well. Are we at a point now? I guess it's fair to say that the revenue is coming a lot from mobile, obviously Roblox as well as playing off factors in there as well. But are you expecting to see that natural gross margin return back above 40% in the first half of this year?

If you could just speak to the core revenue drivers and then also just that gross margin sort of seasonality, that'd be helpful.

Sure. It's a good question. I think, you know, consistent with some of my comments, I think the likelihood is that we will start to see the gross margin return, you know, to sort of a healthy 40%+. You know, probably more like Q2. Less likely in Q1. I suspect we'll have a little bit of a lag in Q1 from, you know, some of the, you know, kind of remaining challenges of pulling out of the corporate transition period last year. After we get through that, you know, that sort of part of our history, the way we've designed our offerings going forward is quite encouraging.

We think not only, you know, going to be more scalable, but continue to keep us with a healthy gross margin. While we still anticipate late-year 2026 compression for the reasons I mentioned, you know, just a few minutes ago, our hope and our goal is, as I said, to really be above 40% for the year, even if we start a little bit slow because of some of the lag.

Got it. That's really helpful color, Matt. And then, you know, maybe kind of a larger question here is just shifting on to your acquisition strategy. You know, you recently acquired Let's Bounce. So you have a stake in a Roblox game, and now you've obviously announced plans to acquire Misfits. Maybe just have two questions. Can you just speak on your acquisition strategy in general? And just, you know, what else are you looking at if you're actively opportunistic in the acquisition space? And then also just for Misfits, how does this fit into Super League's sort of revenue model specifically, but then also more of the strategic psychology of play model that you've been emphasizing more recently? Thanks.

I appreciate the question. You know, you're clearly paying attention, which is always fun to hear that, you know, a company's efforts to get our perspective out there is being heard. Thank you for that. We have, with the stockholder approval we are hoping for around the Misfits Ads Division, we really wanna focus on integrating that team, integrating their capabilities, their pipeline, their partnerships, their technology, and stay focused on leveraging the benefits of that transaction to their fullest.

While we will continue to keep our eyes out for potential M&A opportunities, the best thing that we can accomplish over the course of the next, you know, several quarters, is to prove that this was a smart acquisition and that the moves we made earlier this year to start to set up our updated operating framework have been the right decisions and the right moves. We do think that they have put Super League in a much stronger position following putting the corporation in a much more stable state. Our goal is to prove that this is, you know, the main step that gets us to that point of cash-based EBITDA profitability.

On our way there, as we prove it out and hopefully the market, you know, responds to that progress, that would be a more likely time when we would consider, you know, additional M&A opportunities. Right now we're gonna have our nose to the grindstone here and really focus. As it relates to the fit, which is I think a little bit of what you were asking about, you know, the Misfits Ads Division has some existing programmatic revenue that they have begun to you know scale at an early level over the past year.

You know, they're a smaller team than we are, but the package that they've put together is based on specific targeting that requires, you know, a good grasp of data. The work we're doing to create, you know, that data advantage and the ability to, you know, take some of our sales energy and put it towards that same programmatic offering, we think is going to be a particularly exciting growth area for the company. We also have the opportunity to expand a piece of technology that Misfits has been using, including in partnerships with us, that runs rewarded video in certain gaming platforms.

That also requires, you know, knowing your audience so that you're putting, you know, the right rewarded video in front of the right players, in the right channels and platforms. Once again, taking, you know, what we are starting to develop as the psychology of play and really the psychographic signals that you can pick up from gameplay and that we're pulling in through a terrific data partnership with a company we've talked about named Solsten. That puts us in a really exciting position because not only do we have more signals to direct advertising, but we have more signals to help ensure that the creative we're bringing to market is the right creative.

Excellent. Well, I appreciate the color there, Matt. Best of luck to you. I look forward to tracking the story.

Okay. Thank you, Jack.

Thank you so much. That does conclude our question and answer session. With that, I'd like to hand the call back over to Matt Edelman for any closing comments.

Thank you again everyone for your time and for your questions. As we move through 2026, as you just heard me share, our focus is clear, executing against the opportunity in front of us and translating the progress we've made into stronger, more consistent results. We are committed to building a business that creates long-term value for our shareholders and to ensuring that our story is understood by a broader investor audience. You are going to be hearing from me and seeing me a lot this year as we share our exciting progress in the quarters ahead. Have a happy Friday.

Thank you so much. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.