High Roller Technologies, Inc. 2026 Q2 Earnings Call

Please go ahead. Thank you, operator, and thank you to everybody joining us today.

The second quarter was a period of sustained execution. On our Q1 call, we described the strategic foundation for our planned entry into U.S. prediction markets. Q2 was about doing the work with coordinated execution across product, technology, compliance, and operations to advance the ROLR platform towards launch. In Q2, we achieved an important regulatory milestone as we were approved as a member of the National Futures Association and registered as a guaranteed introducing broker under our arrangement with the Crypto.com FCM. That completed a key regulatory step required for our planned commercial launch and moves us closer to bringing the ROLR platform to market. In Q2, we also acquired ROLR.com and brought our new brand to life with a Free-To-Trade Prediction Challenge carrying a $25 million headline prize.

The free-to-trade platform allowed us to begin engaging a U.S. consumer base, gain marketing approvals on key customer acquisition platforms, and obtain data to sharpen our customer acquisition efforts at the point of real-money launch. We continued the product and technology integration with Crypto.com and leaned further into our applied AI department, developing products both for internal use and for our emerging consumer value proposition. We were added to the Russell Microcap Index, enhancing our visibility amongst the investment community. We finalized our definitive collaboration agreement with Crypto.com, and we finalized our strategic marketing agreements with Lines.com, Forever Network, and Leverage Game Media to expand audience reach and drive customer acquisition. The remaining path to launch is clearly defined and progressing, and our conviction around prediction markets only continues to increase. Third-party estimates continue to illustrate the potential scale of this category.

In late July, Macquarie estimated that annual contract trading volume could reach approximately $1.5 trillion by 2030, which is roughly 50% above estimates published only a few months prior. They noted that non-sports markets are growing faster than sports, represent the majority of contract trading volume by the end of the decade. Now, these are third-party estimates, and they're not company forecasts. The direction is consistent. Consumer participation, product breadth, and institutional attention are all gaining momentum, and those same estimates assume a $50 billion TAM by 2030. Our roots in regulated real-money online gaming and operating consumer platforms under regulatory supervision is the core of what our team has done for years. We're built for this. Prediction markets are a distinct product with their own requirements, but the operating disciplines they demand are ones this organization already knows well.

In that sense, we are extending proven capabilities into a new category, which is one of the many reasons we are confident we will execute to success. Now, I have said working towards launch a bit, so I want to spend a few minutes on what this actually involves, because bringing a regulated financial product from concept to live trading is demanding. It is detailed work, and it largely happens behind the scenes and on a timeline that is not always visible from the outside looking in. It is worth noting that the cadence of our public announcements has not reflected the pace of work that has been occurring and continues to occur in real time.

Working towards launch, quote-unquote, "is a coordination across every department in the company and across all of our third-party partners and vendors." This is an effort that is well in hand, and it has been well in hand for months, but it is also a very sizable effort. The first workstream is regulatory and compliance implementation. Receiving NFA approval was an important milestone, but the registration is the beginning of an ongoing regulatory obligation, not the end of a process. The second workstream is end-to-end technology integration. Under our collaboration agreement, ROLR is responsible for the customer-facing platform, including the mobile applications. Now, bringing a platform and all of its components from zero to launch is a complex and arduous process. Third workstream is product and consumer experience. Our goal is to make event contracts understandable and engaging without sacrificing the disclosures and controls appropriate for a regulated financial product.

The breadth of this category creates both opportunity and complexity. We have a tremendous amount of excitement about this workstream in particular, and product is an area that we feel in time will be in a leadership position. Our immediate short-term goal now is launching to market with the goal of then iterating upon the product consistently. The fourth workstream is operational readiness. The commercial platform requires more than software. The good news is that with very little exception, our operating team is in place with operating procedures that are largely identical to those that we are already familiar with. This is really more about the translation of those procedures to the context of the prediction markets product. The fifth workstream is brand, community, pre-launch learning.

Our Free-To-Trade Prediction Challenge gave consumers a first look at the ROLR brand and gave us an opportunity to observe how traders discover markets, engage with competition, respond to content, and respond to ad copy and creative. We are not presenting the challenge as a substitute for the regulated product, but it is a pre-launch engagement and learning environment that helps us test messaging and build awareness and begin establishing our community. The sixth workstream is go-to-market activation. We intend to compete for customers from the outset. Our partnerships with Lines.com, Forever Network, and Leverage Game Media are built to reach audiences already engaged with sports, finance, culture, and entertainment, among other things. These relationships are in addition to our marketing engine via Spike Up Media, who will be managing our performance marketing spend for direct consumer acquisition. Our approach at launch is deliberate.

We intend to bring the product to market, put it in front of real consumers, and iterate rapidly from there, using live data and customer feedback to sharpen the experience and deepen engagement in the period immediately following launch. We'll scale customer acquisition investment and step up that progress, leaning in as the product and the funnel demonstrate the engagement and economics that we expect. This is about building a durable, competitive product efficiently, capturing early learning while directing capital towards the channels and features that prove out. The seventh work stream is applied AI. We have a number of products in development that we're highly confident will resonate with the prediction market consumer. We're very excited to share more information about these at the right time. This is a very exciting work stream for us. The eighth work stream is launch sequencing.

We'll ensure that the required pieces meet our standards and those of our partners and the regulators before we go live. I mentioned before that we have a target launch date. We remain on track for that timing. It is imperative that we deliver a stable, compliant, and high-quality customer experience. We'll manage our prediction markets rollout deliberately, monitor performance closely, and expand based on operating data and customer feedback as we build on this foundation for long-term scale. With that, I'll turn the call over to Adam to review the second quarter financial results.

Adam? Thank you, Seth, and good afternoon, everyone.

The second quarter reflects a business in deliberate transition. Our reported results include the effects of a purposeful reduction in certain legacy activities, alongside the investments required to prepare ROLR for entry into the U.S. prediction markets vertical. For the second quarter ended June 30, 2026, net revenues were $2.8 million compared to $5.8 million for the second quarter of 2025, a decrease of $3 million or 52%. The decrease primarily reflects our exit from certain online casino markets, a more focused marketing strategy, and our increasing emphasis on the prediction markets opportunity. Total operating expenses were $5.3 million compared with $6.9 million in the prior year period, a decrease of $1.6 million or 22%. Direct operating costs declined substantially, and advertising and promotional expense were also lower year-over-year.

These reductions were partially offset by higher general and administrative costs as we invest in regulatory, professional, other launch-related capabilities. Loss from operations was $2.5 million, compared with a loss from operations of $1.1 million in the second quarter of 2025. Although total operating expenses declined, the year-over-year reduction in legacy revenue and our ramping up of investment into our planned prediction market entry results in a larger operating loss. Net loss from continuing operations was $2.3 million or $0.22 per common share, compared with a net loss from continuing operations of $1.2 million or $0.14 per common share in the prior year period. Adjusted EBITDA was negative $1.8 million, compared with a negative adjusted EBITDA of $0.2 million for the second quarter of 2025.