High Roller Technologies Q2 Earnings Call Highlights

High Roller Technologies reported lower second-quarter revenue and a wider operating loss as it reduced certain legacy online casino activities while investing in the planned launch of its ROLR U.S. prediction markets platform. Net revenue for the quarter ended June 30 fell 52% to $2.8 million from $5.8 million a year earlier. Chief Financial Officer Adam Felman said the decline primarily reflected the company’s exit from certain online casino markets, a more focused marketing strategy and its increasing emphasis on prediction markets. “The second quarter reflects a business in deliberate transition,” Felman said, describing the period as one in which the company continued to reduce legacy activities while funding the regulatory, technology and operational work needed for its new platform. Total operating expenses declined 22% year over year to $5.3 million, from $6.9 million. Direct operating costs and advertising and promotional expenses decreased, although those reductions were partly offset by higher general and administrative spending related to regulatory, professional and launch-readiness capabilities. Loss from operations was $2.5 million, compared with a $1.1 million operating loss in the prior-year quarter. Net loss from continuing operations was $2.3 million, or $0.22 per share, compared with $1.2 million, or $0.14 per share, a year earlier. Adjusted EBITDA was negative $1.8 million, compared with negative $0.2 million in the second quarter of 2025. For the first six months of 2026, High Roller used $5.9 million in operating cash flow, compared with $4.4 million in the comparable 2025 period. Cash used in investing activities totaled $1.9 million, versus $0.3 million a year earlier. Felman said about $1.6 million of the increase was associated with the company’s planned entry into prediction markets, including capitalized software development and licensing-related expenditures. Cash and cash equivalents, excluding restricted cash, stood at $18 million as of June 30, up from $2.1 million at the end of 2025. Stockholders’ equity rose to $29.6 million from $9.6 million, primarily due to capital raised during the first quarter, partially offset by operating and investment spending. Chief Executive Officer Seth Young said High Roller achieved a regulatory milestone during the quarter by becoming a member of the National Futures Association and registering as a guaranteed introducing broker through its arrangement with Crypto.com FCM. Young said the approval completed a key step required for the company’s planned commercial launch of ROLR. The company also finalized its collaboration agreement with Crypto.com, acquired the ROLR.com domain and introduced the ROLR brand through a Free-To-Trade Prediction Challenge featuring a $25 million headline prize. Young said the free-to-trade offering was not intended to replace the regulated commercial product, but to provide a pre-launch e...