High Roller Technologies (NYSEAMERICAN:ROLR) is counting on its newly launched U.S. prediction markets platform to drive growth in 2027, as revenue from its online casino business continues to decline following market exits.
On its third-quarter earnings call, the company said net revenue fell 51% year over year to $2.4 million, while its net loss widened to $2.8 million. The quarter ended September 30, before the October 21 public launch of ROLR, its real-money prediction markets platform.
Chief Executive Officer Seth Young said prediction markets could transform High Roller’s revenue profile over time. Chief Financial Officer Adam Felman said the fourth quarter will be the first to include revenue from the business.
Prediction Markets Enter Commercial Phase
ROLR began an invitation-only beta on September 15, allowing the company to test account funding, trading, settlement and customer support before opening to eligible U.S. customers. Its iOS app followed on November 9. Young said High Roller expects to launch an Android app before the end of 2026, subject to app store approval.
The company plans to expand its customer base through partnerships with Lines.com, Forever Network and Leverage Game Media, as well as performance marketing and customer acquisition partner Spike Up. Young said High Roller will assess channels based on conversion, customer quality, retention and revenue relative to cost.
Asked by Alliance Global Partners analyst Brian Kinstlinger about early customer acquisition costs and marketing lessons, Young said it was too early to provide specific metrics. He described the prediction markets business as competitive and said the company was ramping up partnerships, investing in effective channels and cutting those that do not work.
Young also said the company plans a new product release before the end of the month, but did not disclose details. He noted that High Roller had registered with the National Futures Association as a commodity trading advisor ahead of the planned release.
In response to a question from Dawson James Securities analyst Carlo Corzine about future growth milestones, Young did not commit to releasing customer or trading figures. He said the company hopes to have an understanding of its unit economics when it reports fourth-quarter results.
Casino Contraction Weighs on Results
Felman attributed the third-quarter revenue decline primarily to exits from certain casino markets and changes in marketing strategy as High Roller directed more resources toward prediction markets. Average revenue per unique depositing customer rose to $507 from $242 a year earlier, he said, reflecting a focus on higher-value players.
High Roller also plans to cease operations in New Zealand on December 1 rather than participate in the country’s new licensing process. Felman said casino revenue is expected to decline further from December, with the full effect beginning in the first quarter of 2027.
Third-quarter operating expenses fell 8% to $5.1 million. Direct operating costs declined to $0.8 million from $2 million, partly offset by higher advertising and promotions spending and higher general and administrative costs ahead of the ROLR launch.
The operating loss widened to $2.7 million from $0.7 million a year earlier. The $2.8 million net loss, or $0.25 per diluted share, compared with net income of $3.7 million, or $0.39 per diluted share, in the prior-year quarter. Felman said the earlier period included a $3.6 million income tax benefit and $0.8 million of income from discontinued operations.
Adjusted EBITDA, a non-GAAP measure, was negative $2.1 million, compared with negative $0.2 million a year earlier.
Cash Position and Licensing Plans
For the first nine months of 2026, revenue fell 46% to $8.6 million, and the company reported a $7.1 million net loss. Cash used in operating activities rose to $8.9 million from $4.5 million a year earlier, while investing activities used $3.6 million, primarily reflecting investment in ROLR.
High Roller had $13.4 million in cash and cash equivalents, excluding restricted cash, at September 30 and no outstanding borrowings. Felman said the company believes its cash is sufficient to fund operations and meet obligations for at least the next 12 months under its current operating plan.
The CFO also addressed amended first- and second-quarter reports filed in October. He said a correction involving a non-cash expense reduced previously reported first-quarter and first-half net losses by approximately $1 million, without affecting revenue, cash flows, stockholders’ equity or adjusted EBITDA.
Separately, High Roller is exploring a potential futures commission merchant application after forming a subsidiary, ROLR FCM LLC, and engaging Connamara Technologies for advice. The company is not currently registered as an FCM, and Young cautioned that the timing and outcome of any application are uncertain.
High Roller currently operates as a guaranteed introducing broker through Crypto.com. Young said that relationship is exclusive for 24 months from April 2026, but prospective FCM operations would not be subject to that exclusivity if High Roller pursued and obtained the license. A planned partnership with ProphetX could expand available event contracts if that occurs, he said.
About High Roller Technologies (NYSEAMERICAN:ROLR)
High Roller Technologies, Inc. is an online gaming company that operates real-money casino platforms and related digital gaming services. Its business is focused on providing customers with internet-based casino games, including slots, table games and live-dealer experiences, through its online brands. The company operates brands including High Roller Casino and 777 Casino, offering a range of gaming products designed for desktop and mobile users. Its platforms generally support multiple payment methods and are intended to provide access to online casino entertainment in markets where the company is licensed or otherwise permitted to operate.
