Mr. Adam Adamou reports

OVERACTIVE MEDIA REPORTS RECORD FIRST QUARTER 2026 REVENUE; ADJUSTED EBITDA LOSS NARROWS 43%

Overactive Media Corp. has released its results for the three-month period ended March 31, 2026.

First quarter revenue grew 7 per cent to a company-record $5.4-million, gross margin expanded to 59 per cent from 52 per cent, and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss narrowed 43 per cent to $1.3-million, reflecting a higher-margin commercial mix and a leaner cost base. The company reduced underlying operating costs and, subsequent to quarter-end, closed a secured debt financing for aggregate gross proceeds of approximately $1.95-million.

The company's condensed consolidated interim financial statements and management discussion and analysis for the three-month period ended March 31, 2026, are available on the company's website and under the company's profile on SEDAR+. Unless otherwise specified, all amounts are in Canadian dollars.

Chief executive officer commentary

"This was a strong start to the year," said Adam Adamou, chief executive officer and co-founder of Overactive Media. "We grew revenue 7 per cent, expanded gross margin to 59 per cent from 52 per cent, and cut our adjusted EBITDA loss by 43 per cent year over year. Our higher-margin commercial business is carrying more of the company, our cost base is leaner, and the gap to profitability is closing. We are executing the plan we set out, and the numbers are showing it."

Mr. Adamou continued: "Our brands also delivered on the global stage. Movistar KOI brought roughly 15,000 fans to LEC Versus in Barcelona, Toronto KOI reached the podium at the Call of Duty League, and we were named official national team partner for Canada alongside Esport Canada at the Esports Nations Cup in Riyadh. After quarter-end, we closed a secured financing that strengthens our balance sheet, and we expect our highest-margin league and digital revenue to build through the year, as it does each year. We stay focused on reaching profitability."

First quarter 2026 financial highlights:

• Revenue grew 7 per cent to a record first-quarter $5.4-million, up from $5-million in Q1 2025. Growth was led by business operations, with higher commercial activity across sponsorships, partnerships, agency services, content production and live events. This more than offset lower team operations revenue, which reflected the timing of revenue recognition and the company's exit from the Valorant Champions Tour (VCT) league.
• Gross profit climbed 22 per cent to $3.2-million from $2.6-million, and gross margin expanded to 59 per cent from 52 per cent year over year, a seven-percentage-point improvement, driven by a stronger contribution from business operations, improved performance across agency and live event activities, and lower cost of sales from operational efficiencies.
• Operating costs declined to $4.8-million from $4.9-million. Excluding $300,000 of restructuring costs that did not recur in the prior-year quarter, underlying operating costs fell approximately 9 per cent, reflecting lower corporate payroll, roster and team payroll, and team operations costs, partially offset by higher commercial and marketing activity.
• Adjusted EBITDA loss narrowed 43 per cent to $1.3-million from $2.3-million, driven by higher business operations gross profit, lower underlying operating costs and improved operating efficiency.
• Net loss narrowed 32 per cent to $2.5-million from $3.7-million, reflecting higher gross profit, lower operating costs and lower share-based compensation, partially offset by higher finance costs and other expenses.
• Liquidity: The company ended the quarter with $5.1-million in cash, up from $4.4-million at Dec. 31, 2025. Subsequent to quarter-end, on April 30, 2026, the company completed a secured debt financing for aggregate gross proceeds of approximately $1.95-million, further strengthening its liquidity position.

First quarter 2026 operating highlights:

• Overactive Media was named official national team partner for Canada in conjunction with Esport Canada, with Movistar KOI named official co-team partner for Spain, at the Esports Nations Cup in Riyadh, Saudi Arabia.
• Movistar KOI hosted LEC Versus in Barcelona, Spain, before approximately 15,000 fans, finishing third.
• Movistar KOI secured new partnerships with Idealo and Philips for the 2026 season.
• Toronto KOI finished third at the Call of Duty League Major II tournament.

Subsequent to quarter-end:

• On April 30, 2026, the company completed a secured debt financing for aggregate gross proceeds of approximately $1.95-million, consisting of four secured promissory notes and the issuance of 9,797,000 common share purchase warrants. Proceeds will be used for general working capital purposes.
• Toronto KOI signed a new partnership with Video Game Live Expo (VGLX) for a weekend event scheduled for October, 2026.
• Toronto KOI finished third at the Call of Duty League Major III tournament.
• Movistar KOI hosted its Spring Roadtrip in Madrid, Spain, with approximately 12,000 fans.

Conference call details

Overactive Media will be hosting a first quarter 2026 earnings conference call on Thursday, May 28, 2026, at 8:30 a.m. Eastern Time.

To access the conference call, please register on-line and enter your phone number to receive an instant automated callback.

To dial directly to be entered into the call by an operator, please dial 1-416-945-7677 or, for international callers, 1-888-699-1199.

The conference call will be webcast live in its entirety at 8:30 a.m. Eastern Time and will be archived for 90 days following the call.

Links to SEDAR+ filings and press releases are available on the investor website.

Telephonic replay

Call details:  1-289-819-1450

Encore replay entry code:  95772 followed by the number sign

Encore replay expiration date:  June 4, 2026

About Overactive Media Corp.

Overactive Media is a premier global e-sports and entertainment company for today's generation of fans, headquartered in Toronto, Canada, with operations in Madrid, Spain, and Berlin, Germany. Overactive delivers premium experiences by operating top-tier competitive teams and complementary business units across media, content and live events, including Movistar KOI in the League of Legends EMEA Championship and Toronto KOI in the Call of Duty League.

We seek Safe Harbor.