Leaf Mobile Inc (EAGRF) Q2 2026 Earnings Report

The call emphasized a strategic pivot toward profitability and capital efficiency with concrete operational and product wins (positive adjusted EBITDA, improved stickiness, successful A/B tests, D2C gains, and potential platform fee reductions). At the same time, the company faces near-term top-line pressure from reduced UA spend, a $3.0M legal payment schedule, and ongoing bank debt/covenant considerations. Management has taken balancing actions (capital raise, new banking relationship) and plans to reaccelerate UA with disciplined payback targets, suggesting recovery potential.

Guidance focuses on improving adjusted EBITDA and disciplined cash management while materially expanding user-acquisition spend beginning mid‑August to target a 60‑day payback window (up from a prior 30‑day ROAS focus); the company reported Q2 revenue of $10.3M, adjusted EBITDA of $1.36M (13.2% margin), DAU of 118,872, ARPDAU of $0.95 and a stickiness (DAU/MAU) of 29.6% (+22% YoY), with D2C share rising to 13% from 11% in Q1. Management raised $2.95M in Q2, settled litigation for $3M ( $1M paid, remainder in four $500k semi‑annual payments), aims to eliminate bank debt aided by a new banking relationship starting mid‑August, and expects upside from Google Play’s Level Up (platform fees potentially cut from 30% to as low as 20% for IAP and 10% on the first $1M per game effective Oct 1, 2026); product A/B wins included an 8% revenue lift from a Bud Farm secondary season pass and a 26% ARPDAU increase in the U.S. for Cheech & Chong Bud Farm.