OverActive Media Corp., parent company of esports organisations Movistar KOI and Toronto Ultra, has reported its financial results for the first quarter ended 31 March 2025, showing record revenues, improved margins, and progress across key markets.
The Toronto-based esports and entertainment company recorded a 37% year-over-year increase in revenue to $5.0 million, up from $3.7 million in Q1 2024. This growth was attributed to the full-quarter impact of the KOI and Movistar Riders acquisitions, strong performance in sponsorship and digital merchandise, and revenue generated from co-hosting the Call of Duty League (CDL) Major I in Madrid. These gains were partially offset by the planned exit from certain esports titles that previously contributed revenue.
Operating expenses declined 8% year-over-year to $4.9 million, down from $5.3 million. The reduction was driven by ongoing cost controls and the absence of one-time restructuring and acquisition-related expenses incurred in the previous year.
Comprehensive loss improved significantly, narrowing to $2.0 million compared to $4.5 million in Q1 2024. The improvement was supported by increased revenues, reduced expenses, and a $1.7 million foreign exchange gain related to Euro-denominated assets.
Gross profit stood at $2.6 million, representing a gross margin of 52%, down from 75% in the same period last year. The margin decline reflected a shift in revenue mix, with increased contributions from lower-margin influencer operations via KOI and Riders, and the absence of high-margin esports sticker sales seen in Q1 2024.
Adjusted EBITDA for the quarter showed a loss of $2.3 million, compared to a loss of $1.8 million in the prior year. The company noted that Q1 typically represents its weakest quarter seasonally, and expects sequential improvement through the remainder of the year.
As of 31 March 2025, OverActive reported $7.9 million in cash and cash equivalents and net working capital of $3.4 million. Construction-in-progress for the company’s planned Toronto venue remained at $2.1 million.
Operational Highlights
During the quarter, OverActive co-hosted the CDL Major I in Madrid with Movistar KOI, drawing over 12,000 fans to Madrid Arena and achieving a peak of 233,000 concurrent online viewers. Toronto Ultra, OverActive’s Call of Duty League team, received accolades at the 2024 Canadian Game Awards, winning both Esports Event of the Year (for Major III) and Esports Organisation of the Year.
The company also expanded into Latin America with the entry of Movistar KOI into the Free Fire League in Mexico, in partnership with Telefónica/Movistar Mexico. In Asia, Movistar KOI launched official channels on Chinese platforms Weibo and Bilibili, establishing OverActive’s presence in the region.
Toronto Ultra secured hosting rights for the 2025 CDL World Championship, to be held in Waterloo Region, Ontario – marking the first time the event will be staged outside the United States.
Developments Post-Q1
Following the quarter, OverActive hosted the first League of Legends EMEA Championship (LEC) “Roadtrip” at Madrid Arena, with more than 10,000 attendees and a peak online audience of 348,000.
Movistar KOI also achieved the highest peak viewership of any team during the 2025 LEC Spring Split, with over 490,000 concurrent viewers in its match against Karmine Corp.
Additionally, the company launched Fénix Club Gaming, its first subscription-based fan platform offering exclusive digital benefits. Early adoption exceeded internal projections, positioning it as a new recurring-revenue stream.
The company also renewed its partnership with Monster Energy through the end of FY 2025, maintaining its status as a global Tier-1 sponsor.
CEO and Co-Founder Adam Adamou stated that the Q1 performance “demonstrated the strength of our global model” and highlighted the company’s focus on predictable revenue streams, improved operating leverage, and disciplined cost control. OverActive reaffirmed its focus on reaching growth and profitability targets for 2025.
