Toronto, Ontario — November 27, 2025 — Leads & Copy — NorthStar Gaming Holdings Inc. (TSXV: BET) (OTCQB: NSBBF) has released its financial results for the three- and nine-month periods ending September 30, 2025, with all figures in Canadian dollars.
According to Michael Moskowitz, Chair and CEO of NorthStar, the company has maintained its track record of year-over-year growth in both revenue and gross margin in the third quarter. Moskowitz added that the company continues to strengthen the business with solid KPIs and ongoing innovation to attract and retain customers, and that the team has been implementing operational improvements that are improving the player experience while reducing operating expenses.
Financial highlights for Q3 2025 include revenue reaching $6.9 million, a 4% increase from $6.6 million in Q3 2024, which includes $0.8 million of managed services revenue, an increase of 167% from $0.3 million in Q3 2024. Revenues increased despite the higher than customary player-friendly outcomes of the quarter.
Gross margin was $2.4 million, a 14% increase from $2.1 million in Q3 2024, with the gross margin percentage increasing to 34.7% of revenue, up from 31.7% in Q3 2024. Profit before marketing and other expenses was $0.2 million in Q3 2025, an improvement of $0.7 million compared to a loss of $0.5 million in Q3 2024, marking the fourth consecutive quarter of positive profit before marketing and other expenses.
G&A expense was $2.2 million in Q3 2025, a decrease of 16% from $2.6 million in Q3 2024, representing 31.6% of revenue compared to 39.4% in Q3 2024. Marketing expense was $2.3 million in Q3 2025, a decrease of 21% from $2.9 million in Q3 2024, representing 32.6% of revenue compared to 42.9% in Q3 2024, with the company continuing to optimize its marketing investments to reduce costs and attract high value players.
Financial highlights for YTD 2025 include revenue reaching $23.3 million, a 17% increase from $20.0 million in YTD 2024, which includes $1.9 million of managed services revenue, an increase of 138% from $0.8 million in YTD 2024. Gross margin was $8.9 million, a 32% increase from $6.8 million in YTD 2024, with the gross margin percentage increasing to 38.2% of revenue, up from 33.9% in YTD 2024.
Profit before marketing and other expenses was $1.5 million in YTD 2025, an improvement of $2.2 million compared to a loss of $0.6 million in YTD 2024. G&A expense was $7.37 million in YTD 2025, a decrease of 1% from $7.42 million in YTD 2024, as savings realized throughout the G&A category were partially offset by $0.3 million of one-time expenses incurred in Q2 2025 associated with the restatement of prior financial results and disclosure review.
As a percentage of revenue, G&A decreased to 31.6% in YTD 2025 compared to 37.1% a year earlier, with management taking steps during the second half of 2025 to further reduce G&A through various initiatives, the full impact of which will likely be realized in 2026. Marketing expense of $9.4 million decreased 8% from $10.2 million in YTD 2024 and represented 40.4% of revenue compared to 51.0% in YTD 2024.
Recent operating highlights include the launch of The Boost, a website which showcases NorthStar’s premium sports and casino content, targeting a wider audience to help accelerate customer acquisition in Ontario. The company’s fall marketing campaign extended the “Exceptionally Canadian” theme to maximize awareness during the seasonally busy fourth quarter. NorthStar was recognized at the recent Clio Sports Awards, winning a Silver Award for its “SwiftBets” campaign and a Shortlist Award for its “Debatable Billboards” campaign.
NorthStar also built on its lead in online tournaments with a robust slate of fall events, implemented enhancements to its onboarding process which have led to 9% faster registration times, and launched Phase One of the new Casino lobby.
Mr. Moskowitz said that the third quarter of 2025 represented overall growth in NorthStar’s revenue, adding that looking ahead to 2026, the company has adjusted its strategy to focus on a disciplined approach to optimize player acquisition and retention where these investments align with the company’s financial resources and market conditions. As a result, management expects more moderate top-line growth driven by continued enhancements to the player experience and by prudent allocation of marketing and operating expenses.
The company’s unaudited condensed consolidated interim financial statements for Q3 2025 includes a going concern statement, citing that continued revenue growth is dependent on the company’s ability to maintain adequate liquidity to support marketing and customer acquisition initiatives. Based on current forecasts, the company’s cash flow and liquidity position may not be sufficient to fund operating expenditures and meet certain debt-related covenants with its senior lender without further action. Management has developed a cash flow forecast for the period to December 31, 2026 which indicates that the company can continue to meet its obligations as they come due, however there is a risk that the company may breach certain debt-related covenants, and management has initiated discussions with the lender regarding these matters.
The comparative results for the three- and nine-month periods ended September 30, 2024 have been restated in the company’s financial statements and the corresponding Q3 2025 MD&A to include additional merchant fees and player bonus expenses which were not captured in the previously published financial statements. Additional details regarding the company’s financial outlook, liquidity and associated risks are described in the company’s Q3 2025 MD&A. For additional information, please refer to the Q3 2025 Financial Statements and the corresponding Q3 2025 MD&A, available on SEDAR+ and on the company’s website.
Corey Goodman
Chief Development Officer
647-530-2387
investorrelations@northstargaming.ca
Source: NorthStar Gaming Holdings Inc.
