Full Transcript: High Roller Technologies Q2 2026 Earnings Call

On Tuesday, High Roller Technologies (AMEX: ROLR ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

Access the full call at Summary High Roller Technologies reported a net revenue decrease of 52% year-over-year for Q2 2026, reflecting strategic shifts towards US prediction markets and reduced legacy activities. com, enhancing readiness for the ROLA platform launch. High Roller Technologies outlined eight critical work streams for the ROLA launch, emphasizing regulatory compliance, technology integration, and go-to-market strategies. Cash and cash equivalents increased significantly to $18 million by June 30, 2026, attributed to capital raising efforts, despite increased spending on new market entry.

Management expressed strong conviction in prediction markets as a central growth opportunity, with strategic marketing partnerships and expanded AI capabilities to drive customer acquisition. Full Transcript OPERATOR Good afternoon and welcome to the High Roller Technologies business update and second quarter 2026 results conference call. Today's call is being recorded. At this time, all participants are in a listen-only mode.

Joining us today are Seth Young, Chief Executive Officer, and Adam Feldman, Chief Financial Officer. As a reminder, today's call includes forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied by these statements. Investors are directed to the Company's SEC filings, including the sections captioned Risk Factors, for additional information.

The Company undertakes no duty to update forward-looking statements except as required by law. Today's call may also include discussion of non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are included in today's press release. With that, I'll turn the call over to Seth Young.

Please go ahead. Seth Young, Chief Executive Officer Thank you, Operator, and thank you to everybody joining us today. The second quarter was a period of sustained execution. On our Q1 call, we described the strategic foundation for our planned entry into US prediction markets.

Q2 was about doing the work, with coordinated execution across product, technology, compliance, and operations to advance the ROLA platform towards launch. com FCM. That completed a key regulatory step required for our planned commercial launch and moved us closer to bringing the Roller platform to market. com and brought our new brand to life with a free-to-trade prediction challenge.

Carrying a $25 million headline prize, the free-to-trade platform allowed us to begin engaging a US consumer base, gain marketing approvals on key customer acquisition platforms, and obtain data to sharpen our customer acquisition efforts. com and leaned further into our applied AI department, developing products both for internal use and for our emerging consumer value proposition. We were added to the Russell Microcap Index, enhancing our visibility amongst the investment community. com, Forever Network, and Leverage Game Media to expand audience reach and drive customer acquisition.

The remaining path to launch is clearly defined and progressing, and our conviction around prediction markets only continues to increase. Third-party estimates continue to illustrate the potential scale of this category. 5 trillion by 2030, which is roughly 50% above estimates published only a few months prior, and they noted that non-sports markets are growing faster than sports, the majority of contract trading volume by the end of the decade. And these are third-party estimates and they're not company forecasts.

The direction is consistent. Consumer participation, product breadth, and institutional attention are all gaining momentum, and those same estimates assume a $50 billion TAM by 2030. Our roots in regulated real-money online gaming and operating consumer platforms under regulatory supervision is the core of what our team has done for years. We're built for this.

Prediction markets are a distinct product with their own requirements, but the operating disciplines they demand are ones this organization already knows well. In that sense, we're extending proven capabilities into a new category, which is one of the many reasons we're confident we'll execute. I've been working towards launch a bit, so I want to spend a few minutes on what this actually involves, because bringing a regulated financial product from concept to live trading is demanding. It's detailed work and it largely happens behind the scenes and on a timeline that isn't always visible from the outside looking in.

It's worth noting that the cadence of our public announcements has not reflected the pace of work that has been occurring and continues to occur in real time. Working towards launch is a coordination across every department in the company and across all of our third-party partners and vendors. This is an effort that's well in hand, and it has been well in hand for months, but it's also a very sizable effort. The first work stream is regulatory and compliance implementation.

Receiving NFA approval was an important milestone, but the registration is the beginning of an ongoing regulatory obligation, not the end of the process. The second work stream is end-to-end technology integration. Under our collaboration agreement, High Roller is responsible for the customer-facing platform, including the mobile applications. Bringing a platform and all of its components from zero to launch is a complex and arduous process.

The third work stream is product and consumer experience. Our goal is to make event contracts understandable and engaging without sacrificing the disclosures and controls appropriate for a regulated financial product. The breadth of this category creates both opportunity and complexity. We have a tremendous amount of excitement about this work stream in particular, and product is an area that we feel, in time, will be in a leadership position.

Our immediate short-term goal now is launching to market with the goal of then iterating upon the product consistently. The fourth work stream is operational readiness. The commercial platform requires more than software. The good news is that with very little exception, our operating team is in place with operating procedures that are largely identical to those that we're already familiar with.

So this is really more about the translation of those procedures to the context of the prediction markets product. The fifth work stream is brand, community, pre-launch learning. Our free-to-trade challenge gave consumers a first look at the Roller brand and gave us an opportunity to observe how traders discover markets, engage with competition, respond to content, and respond to ad copy and creative. We're not presenting the challenge as a substitute for the regulated products, but it's a pre-launch engagement and learning environment that helps us test messaging and build awareness and begin establishing our community.

The sixth work stream is go-to-market activation. We intend to compete for customers from the outset. com, Forever Network, and Leverage Game Media are built to reach audiences already engaged with sports, finance, culture, and entertainment, among other things. These relationships are in addition to our marketing engine via Sky Up Media.

We'll be managing our performance marketing spend for direct consumer acquisition. Our approach at launch is deliberate. We intend to bring the product to market, put it in front of real consumers, and iterate rapidly from there, using live data and customer feedback to sharpen the experience and deepen engagement. In the period immediately following launch, we'll scale customer acquisition investment and step up that progress, leaning in as the product and the funnel demonstrate the engagement and economics that we expect.

This is about building a durable, competitive product, efficiently capturing early learning while directing capital towards the channels and features that prove out. The seventh work stream is applied AI. We have a number of products in development that we're highly confident will resonate with the prediction market consumer. We're very excited to share more information about these at the right time.

It's a very exciting work stream for us. The eighth work stream is launch sequencing. We'll ensure that the required pieces meet our standards and those of our partners and the regulators before we go live. Now, I mentioned before that we have a target launch date.

We remain on track for that timing. It is imperative that we deliver a stable, compliant, and high-quality customer experience. We'll manage our prediction markets rollout deliberately, monitor performance closely, and expand based on operating data and customer feedback as we build on this foundation for long-term scale. With that, I'll turn the call over to Adam to review the second quarter financial results.

Adam Feldman, Chief Financial Officer Thank you, Seth, and good afternoon, everyone. The second quarter reflects a business in deliberate transition. Our reported results include the effects of a purposeful reduction in certain legacy activities alongside the investments required to prepare ROLA for entry into the US prediction markets vertical. 0 million, or 52%.

The decrease primarily reflects our exit from certain online casino markets, a more focused marketing strategy, and our increasing emphasis on the prediction market opportunity. 6 million, or 26%. Direct operating costs declined substantially, and advertising and promotional costs were also lower year over year. These reductions were partially offset by higher general and administrative costs as we invested in regulatory, professional, and other launch-related capabilities.

1 million in the second quarter of 2025. Although total operating expenses declined, the year-over-year reduction in legacy revenue and our ramping up of investment into our planned prediction market entry resulted in a larger operating loss. 14 per common share, in the prior-year period. 2 million for the second quarter of 2025.

4 million in the prior-year period. The increase primarily reflects the implementation of our revised strategy and our entry into the new market. 3 million in the prior-year period. 6 million of the year-over-year increase was attributable to investment associated with our planned entry into prediction markets, including capitalized software development and licensing-related expenditures.

1 million at December 31, 2025. 6 million at year-end 2025. The strengthening of the balance sheet primarily reflects the capital raised during the first quarter, partially offset by operating and investment spending during the first half. We continue to monitor liquidity and capital deployment closely.

Our current priorities are completing the ROLA technology integration, finalizing the implementation of compliance and operating requirements, preparing the product and customer support organization, and funding measured go-to-market activity. Our capital allocation priority remains the disciplined completion and launch of the ROLA US prediction markets platform. We intend to stage spending against milestones and operating data rather than build a cost structure in advance of demonstrable need. With that, I'll turn the call back to Seth.

Seth Young, Chief Executive Officer Thank you, Adam. High Roller is entering the next stage of its transformation. com, and a conviction that prediction markets could become a defining opportunity for this company. com brand, built a strategic marketing ecosystem, expanded our applied AI capabilities, launched the free-to-trade challenge, received NFA membership approval and guaranteed introducing broker registration, and advanced the technology and operating work required for commercial launch.

Prediction markets are our central growth priority, and we have a tremendous amount of conviction around the scale and timing of this opportunity. We're equally committed to building responsibly. The platforms that earn consumer trust, operate reliably, and adapt to the evolving regulatory framework will be the ones positioned to create durable value. We look forward to providing further updates as we complete final launch work streams and subsequently announce our commercial launch.

Thank you for attending today's call, and thank you for your continued interest and support in High Roller. At this time, we'll be happy to take questions. OPERATOR At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad.

A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Thank you. Our first question is from Brian Kinstinger with Alliance Global Partners. Brian Kinstinger, Analyst at Alliance Global Partners Hi, Seth. Great.

Thanks for taking my questions. Can you talk about the free-to-trade challenge? Maybe how many users did you have, what was engagement like, and what are the lessons learned from this exercise, particularly as you looked at the player data? Seth Young, Chief Executive Officer Hi, Brian, glad to see your name in the queue.

Happy to take the question and tangentially appreciate you putting up coverage on the company, with a great price target, mind you. Yeah, the free-to-trade campaign was a great opportunity for us to roll out the brand, unveil our new logos, start engaging prospective traders for our real-money product launch in the future. And what we learned was really what our consumers were responding to in terms of ad copy and creative, which effectively helps reduce breakage upon a real-money launch when we really go and spend a heavier amount of capital on customer acquisition, trader acquisition.

So we really learned a lot about trading proclivities, what our prospective consumers may engage with. Ultimately it helped us build a great interest list and start a great community as we trend towards that commercial launch. We haven't released specific numbers, but I can tell you that we've been pleased internally with the results of the campaign. Brian Kinstinger, Analyst at Alliance Global Partners Great.

I have a couple more. You mentioned a number of steps that need to be taken, some you've already accomplished. What are the most time-consuming and critical pieces Roller needs to accomplish between now and launch, and is the biggest one getting yourself ready to meet compliance? Is that what I heard?

Seth Young, Chief Executive Officer You heard quite a bit that we put out there about what it takes to take a regulated financial product effectively from concept to launch. You know, remembering that we're still in many ways built for this as a regulated online casino business moving to the public prediction market space. Historically we haven't owned and operated our technology or built our own tech. So I'd say we have some really interesting news coming out about this.

The lift has largely been product and technology and managing the third-party dependencies and integrations that we have with our vendors and partners. It's just a very heavy lift. It's tedious and difficult. The great news is that we have amazing teams on it, great people on it, and everybody's working hand in hand.

We're really confident in our ability to hit our target launch date, and we're very excited right now. We really want to get launched, get to market. It's a very exciting time.