OverActive Media, the parent company of Movistar KOI and Toronto KOI, released its financial results for the period ending September 30, 2025, detailing the financial impact of its terminated VALORANT Champions Tour (VCT) EMEA agreement and its subsequent strategic shift to focus on core franchised titles.
The company reported a 14% year-over-year revenue increase for the third quarter of 2025, alongside a 3% reduction in operating expenses, as the company continues to refine its esports portfolio and invest in new software-driven revenue streams.
The quarter saw revenue rise to $7.8 million, up from $6.9 million in Q3 2024, driven primarily by growth in Events and Agencies. However, a heavier reliance on event production led to a lower gross margin of 52%, compared to 72% in the prior year. Operating expenses fell to $5.5 million. The company also recorded a comprehensive loss of $3.0 million, which included an approximate $0.8 million impairment charge related to its exit from the VALORANT Champions Tour (VCT) EMEA.
The termination of the VCT EMEA agreement was initiated by Riot Games, which cited a breach of the team’s contractual obligations. According to Ibai Llanos, Co-Owner of Movistar KOI, the decision was influenced by the team’s underperformance both competitively and commercially.
This development prompted OverActive’s strategic reassessment of its competitive holdings. The company is now concentrating resources on its core franchises: League of Legends in Europe, Call of Duty in North America, and Free Fire in Mexico. All teams are now unified under the global KOI brand. This portfolio rationalisation is expected to positively impact Adjusted EBITDA and operating cash flow starting in 2026.
Chief Executive Officer Adam Adamou commented on the strategic shift, stating, “Following the termination of our VALORANT Champions Tour EMEA agreement, we are concentrating resources on our core franchises… All core titles are now either franchised or licensed properties that provide revenue share, participation in digital item revenue, live events, content and co-streaming opportunities at a reasonable cost.”
The quarter also marked the launch of ActiveVoices, an AI-driven language localisation platform. Positioned as a move towards subscription-based and software-driven revenue, the platform is designed to translate, dub, and distribute content instantly across multiple languages. OverActive anticipates ActiveVoices will become a more meaningful contributor to recurring digital revenue over time.
Subsequent to the quarter’s end, OverActive announced a leadership change in its finance department. Chief Financial Officer Rikesh Shah will leave the company on November 30, 2025. He has been replaced on an interim basis by Louis Zhang, who was appointed as Executive Vice President, Finance and Interim CFO effective November 17, 2025.
When compared to the previous quarter, where OverActive reported a 26% revenue growth in Q2 2025, the Q3 growth rate has moderated. The company’s year-to-date performance remains strong, with revenue for the first nine months of 2025 up 24% to $21.2 million. To strengthen its liquidity position after the quarter closed, the company secured $2.0 million in debt financing from entities controlled by members of its Board of Directors.
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