Super League Enterprise (NASDAQ:SLE) reported second-quarter 2026 gross revenue of approximately $3 million, essentially unchanged from both the prior-year period and the first quarter, as the company cited a challenging advertising environment. Despite flat gross revenue, the gaming media and advertising company reported sequential improvements in net revenue, gross margin and operating performance.
Chairman, President and Chief Executive Officer Matt Edelman said advertising budgets and brand priorities were affected during the quarter by World Cup-related spending, tariff uncertainty, geopolitical events including the Iran war, and evolving Roblox policies affecting certain brand activations.
Margins and operating performance improve
Net revenue rose 16% sequentially to approximately $1.24 million in the second quarter from $1.08 million in the first quarter. Gross margin increased to 41% from 36% in the prior quarter.
Adjusted EBITDA improved by approximately 20% from the prior-year period, with a loss of roughly $1.7 million compared with a loss of approximately $2.1 million a year earlier. Edelman said the improvement reflected attention to revenue quality, operational efficiency and cost management.
The company also reported higher utilization of its implementation team. The portion of cost-of-goods team capacity devoted to billable client work increased approximately 30% from the first quarter, according to Edelman.
Super League said it integrated the Misfits Ads assets acquired in May without increasing its overall cost base. Total headcount remained below the level before the acquisition, Edelman said.
During the question-and-answer session, Edelman said the company was likely close to the operating-expense baseline needed to support a path toward adjusted EBITDA breakeven and profitability. He said the company would continue seeking efficiencies, particularly by shifting more personnel activity toward revenue-generating and billable work.
Misfits acquisition broadens advertising offerings
Edelman said the Misfits transaction added programmatic advertising and turnkey media capabilities that are lower-lift operationally, generally higher-margin and potentially more predictable than Super League’s traditional request-for-proposal-driven business.
The company recently launched a youth and family marketplace intended to provide advertisers access to kid-safe gaming media through programmatic buying or managed services. Edelman described programmatic revenue as more predictable rather than recurring, noting that inventory can be purchased daily and budgets can be adjusted quickly.
“If it’s starting to work, it becomes a bit of a staple for a client,” Edelman said, adding that Super League acquired several partnerships using the inventory and is expanding the range of inventory available to brands.
The company also has added business and inventory partners spanning connected TV, mobile, PC, console, web, and creator and community platforms including YouTube, TikTok and Discord. Edelman said Super League is increasingly presenting itself as a single solution for advertisers seeking audience-based campaigns across multiple gaming and digital-media channels rather than selling individual products.
Connected-TV inventory is available through a gaming application present in 100 million U.S. households, according to Edelman. The application allows users to play television-based games and watch gaming content, largely from YouTube. He said the inventory offers standard media placements and custom advertising opportunities, including opportunities for streaming and entertainment applications seeking downloads and usage on connected televisions.
Pipeline, sales organization and liquidity
Weighted pipeline per seller reached approximately $2.8 million at the end of the second quarter, up from approximately $1.78 million reported at the end of the first quarter. Edelman attributed the increase to new sales leadership, a broader product set and the pipeline acquired through the Misfits transaction.
The company said client win rates are improving and renewal activity remains strong, citing USGA, Logitech, GoGo squeeZ and Regal Cinemas as examples. Super League also closed six first-time clients during the second quarter and through the date of the call in the third quarter. One of those clients was Dodge, which selected Super League for an inaugural Fortnite program.
Beginning late in the second quarter, Super League rebuilt its revenue team under Executive Vice President of Revenue Anthony Alexander. Edelman said Alexander has approximately 15 years of senior revenue leadership experience in gaming media, including programmatic advertising and data-driven sales strategy. The company also added sellers in Los Angeles, New York and Chicago.
Super League ended the quarter with approximately $6.7 million in cash and investments, compared with approximately $475,000 as of June 30 of the prior year. The company also eliminated its remaining preferred stock during the quarter. Edelman said Super League had eliminated debt last year and believes its existing liquidity is sufficient to fund operations for the foreseeable future without raising additional capital for the operating business.
Fourth-quarter profitability objective remains
Looking ahead, management said its priorities are to convert the commercial pipeline into revenue, improve revenue quality and margins, maintain cost discipline, and further integrate Misfits Ads capabilities.
Super League reiterated its objective of achieving adjusted EBITDA profitability in the fourth quarter. Edelman said reaching that goal depends primarily on converting a larger volume of opportunities through the company’s broader product set and upgraded sales and strategy teams, while maintaining its current cost discipline.
“We have more work to do, particularly in translating the commercial momentum we are building into sustained revenue growth,” Edelman said. “But we believe the underlying business is getting stronger.”
About Super League Enterprise (NASDAQ:SLE)
Super League Enterprise, Inc creates and publishes content and media solutions across immersive platforms in the United States and internationally. The company offers access to audiences who gather in immersive digital spaces to socialize, play, explore, collaborate, shop, learn, and create. It also provides a range of development, distribution, monetization, and optimization capabilities designed to engage users through dynamic and energized programs. Its proprietary cloud-based platform offers dynamic media technology; metaverse game experience and tournament technology; and fully remote production and livestream broadcast technology.
