OverActive Media Q2 2026 Revenue Down 40%, Increasing Concerns on Liquidity

OverActive Media Corp. (OAM.V), the parent company of Movistar KOI, saw its stock price drop by 35% after reporting a sharp decline in revenue during Q2 2026. More concerning, however, was the Canadian company’s statement that its cash resources were not sufficient to fund its planned operations for the next 12 months.

Trading on the TSX Venture Exchange, the company’s stock price is currently CAD$0.095 (€0.059) after hitting a 52-week low of CAD$0.085 (€0.053). It remains approximately 77% below its 52-week high of CAD$0.415 (€0.257). Its market capitalization currently stands at approximately CAD$12.35 million (€7.66 million).

According to the financial results reported by the company, revenue fell to CAD$5.03 million (€3.12 million) from CAD$8.36 million (€5.18 million) in the same period a year earlier. While cost of sales also declined, it did not fall as quickly as revenue. Gross margin was consequently affected, narrowing from 48% to 43%.

The net loss was CAD$3.09 million (€1.92 million), similar to the CAD$2.97 million (€1.84 million) loss in the same period in 2025. This was partly due to a reduction in operating expenses as OverActive lowered its roster, team and corporate payroll costs, generating almost CAD$900,000 (€558,000) in savings.

Those savings were partially offset by an 18% increase in general and administrative expenses to CAD$782,000 (€485,000), with restructuring costs remaining at similar levels compared with the prior-year quarter.

The adjusted EBITDA loss widened to CAD$2 million (€1.24 million) from CAD$1.02 million (€632,000). Unlike the net loss, adjusted EBITDA excludes depreciation and share-based compensation. Its deterioration therefore gives a clearer indication of how the decline in gross profit outweighed the company’s operating-cost savings.

As the parent company of MKOI, OverActive Media operates both as an esports-team owner and a wider media and entertainment company. Aside from MKOI, OverActive owns Toronto KOI, which competes in the Call of Duty League.

Outside competition, OverActive runs sponsorship and partnership programs, merchandise, original content and fan experiences. Its portfolio includes a digital media agency, influencer agency, content-production studio and live-events business. Last year, it also launched ActiveVoices, its proprietary AI-powered global content-distribution platform.

With this in mind, the company divides its activities into two operating segments: Team Operations and Business Operations.

Team Operations covers the revenue and expenses directly connected to OverActive’s esports rosters. Its income includes league-share distributions from the LEC and CDL, performance-related payments and tournament prize winnings. While revenue from this segment represents only a fraction of the company’s total, it fell 48% to CAD$602,000 (€373,000) during Q2.

Business Operations, which covers sponsorships, merchandise, agency work, content and live events, recorded a similar decline. Revenue fell 39% to CAD$4.43 million (€2.75 million), while gross profit dropped 46% to CAD$1.66 million (€1.03 million).

So, what caused such a sharp decline in revenue? The biggest difference was the absence of the Call of Duty League Championship Weekend. Hosted outside the United States for the first time in 2025, the event was operated by OverActive Media in Kitchener, Canada, and provided a substantial contribution to the prior-year quarter.

This is reflected in the geographical breakdown. Revenue generated in North America fell 78% to CAD$641,000 (€397,000) from CAD$2.96 million (€1.84 million), reflecting the absence of a comparable event this year. European revenue also declined, but more moderately, falling 19% to CAD$4.39 million (€2.72 million).

It is also worth noting that Movistar KOI lost league-related revenue from VALORANT following the termination of its partnership agreement with Riot Games in September 2025. The departure, however, allowed the company to reduce its team payroll, explaining part of the improvement in operating costs.

According to the report, revenue is currently concentrated among a small number of counterparties. Two customers generated more than one-third of Q2 revenue, while three customers accounted for 35% of trade receivables at the end of June. The timing of payments from major league and commercial partners can therefore materially affect the company’s cash flow.

OverActive ended Q2 with CAD$2.21 million (€1.37 million) in cash, down 49% from CAD$4.35 million (€2.70 million) at the end of 2025. Current assets amounted to CAD$7.8 million (€4.84 million), while current liabilities stood at CAD$11.47 million (€7.11 million), creating a working-capital deficit of CAD$3.68 million (€2.28 million). That deficit was more than CAD$2.2 million (€1.36 million) higher than six months earlier.

In simpler terms, OverActive does not currently have enough short-term assets to cover the bills and other obligations falling due within the next year. The company has CAD$8 million (€4.96 million) in contractual payments due during that period, including CAD$7.19 million (€4.46 million) in trade payables and accrued liabilities. Its available cash covers less than one-third of that amount.

Although the company reports more than CAD$60 million (€37.20 million) in total assets, these do not provide enough immediate liquidity to meet its short-term obligations. Around 80% consists of goodwill and intangible assets, which are generally difficult to convert into cash.

To support its position, the company completed secured promissory-note arrangements totalling approximately CAD$2.45 million (€1.52 million) with entities controlled by its chairman and another director, Spanish shareholders and another lender.

The notes, however, carry annual interest of 12%, further increasing financing costs. Financing activities already produced a net cash outflow of CAD$695,000 (€431,000) after debt, interest and lease repayments during the first half of the year.

In other words, OverActive is in an uncertain position where it cannot guarantee that it has sufficient funds to operate for the next 12 months. While this does not mean the company is insolvent, it will need to find additional financing, improve cash generation from its business activities or reduce its costs further.

In the report, the company said it expected revenue, gross profit and adjusted EBITDA to improve during the second half of 2026. Q3 includes MKOI’s participation in the Esports World Cup, the team’s Roadtrip in Madrid and the Bell Esports Challenge, giving the company opportunities to generate prize money, ticketing, sponsorship, merchandise and production revenue.

However, the financial contribution may be more limited than initially expected. After a disappointing showing during the LEC Summer regular season, Movistar KOI will miss its own LEC Roadtrip.

While the team can still qualify for the Summer Playoffs and retain a path to Worlds, its absence from Madrid may remove some of the potential upside from merchandise and ticket sales, as well as local sponsor activations.

Competitive results have also limited the prize-money contribution. During the EWC, OverActive’s teams received combined gross prize pools of US$120,000 (€103,000) after competing across Teamfight Tactics, Call of Duty and League of Legends. In comparison, French organization Karmine Corp earned US$340,000 (€292,000) for finishing second in the EWC League of Legends tournament alone.

The company has also reported signing or renewing deals with Bell, Idealo and Philips, while Toronto KOI will announce its new Call of Duty roster during the Video Game Live Expo in October. The question now is whether OverActive can generate cash quickly enough to stabilize its balance sheet and reduce its dependence on high-interest financing.