OverActive Media, the publicly listed owner of Movistar KOI and Toronto KOI, reported a 40% year-over-year decline in second-quarter revenue and repeated that its available cash was insufficient to fund 12 months of planned operations.
Revenue fell to C$5.03 million in the three months ended June 30, 2026, from C$8.36 million a year earlier. Gross profit declined 46% to C$2.18 million, while gross margin narrowed to 43% from 48%.
The company reduced operating expenses by 17% to C$4.29 million through lower roster, team and corporate payroll and other operating-cost reductions. Those savings did not offset the decline in gross profit. Adjusted EBITDA loss widened to C$2.00 million from C$1.02 million, and net loss reached C$3.09 million compared with C$2.97 million in the prior-year quarter.
Why It Matters
The headline issue is liquidity, not just the revenue decline. OverActive ended the quarter with C$2.21 million in cash, down 56% year over year, and said that balance was not enough to fund the next 12 months of planned operations.
The company also raised about C$2.45 million in secured debt at 12% interest. That buys time, but it also makes future financing and repayment terms central to the outlook.
What Changed
Revenue fell to C$5.03 million from C$8.36 million a year earlier. Gross profit fell 46% to C$2.18 million, while the adjusted EBITDA loss widened to C$2.00 million despite a 17% reduction in operating expenses.
Management attributed part of the decline to two live events in Q2 2025 that did not repeat: LEC on the Road in Madrid and the Call of Duty League Championship Weekend in Canada. It also pointed to lower league revenue after exiting VCT EMEA in late 2025.
For the first half of 2026, revenue fell 22% to C$10.39 million. Gross margin improved to 52% from 50%, while net loss narrowed 16% to C$5.58 million. First-half adjusted EBITDA loss was C$3.43 million, broadly in line with C$3.29 million a year earlier.
What to Watch
- Cash balance, operating cash use and any additional borrowing or related-party financing in the next filing.
- Whether the secured debt and cost reductions extend the stated operating runway without another major contraction.
- Recurring league, sponsorship and team revenue after the effect of one-off events and league exits is separated out.
