Allied Gaming & Entertainment reported third‑quarter 2025 results that saw revenue fall 15% to $1.8 million and a net loss of $5.4 million, or $0.14 per share, compared with a $2.2 million revenue and $4.0 million loss in the same quarter a year earlier.
The revenue decline was driven largely by a sharp drop in in‑person arena event revenue, which accounts for a significant portion of the company’s live‑event segment. Esports and mobile‑gaming revenues remained relatively flat, but the loss of ticket sales and sponsorships from arena events offset any gains in those areas.
Total costs and expenses rose to $9.2 million, up from $3.3 million a year earlier, largely because of a $4.4 million increase in legal and professional fees related to a dispute with a dissident shareholder. Adjusted EBITDA fell to a $2.0 million loss from a $0.1 million loss in Q3 2024, underscoring the impact of the one‑time legal charges on operating performance.
Cash and short‑term investments stood at $56.0 million at the end of September, down from $71.5 million at the end of 2024, while working capital fell to $36.7 million from $64.3 million. In a strategic move to diversify its portfolio, the company completed the acquisition of Saiju School, a Japanese secondary‑education institution, positioning it to integrate technology‑driven curricula into its education platform.
James Li, Chairman and CEO, said the company is now “laser focused on advancing our strategic initiatives as we close out the year” after resolving the shareholder dispute. While the company did not provide new guidance, the leadership emphasized a commitment to cost discipline and the expansion of its technology‑enabled education and gaming offerings.
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