Key Moments:
- NorthStar Gaming has increased Q3 2025 revenue by 4% year over year, reaching $6.9 million
- Gross margin for Q3 2025 rose 14% to $2.4 million, with margin percentage climbing to 34.7%
- The company has cautioned that liquidity issues could impact its ability to meet debt obligations
Quarterly Revenue Rises as VIP Strategy and Cost Controls Take Effect
NorthStar Gaming has reported growth in both revenue and margin for the third quarter of 2025, as it continues to refine its operational approach. For the period ending September 30, 2025, the company posted revenue of $6.9 million, up 4% over the same quarter last year. Gross margin improved to $2.4 million, reflecting a 14% increase and producing a gross margin percentage of 34.7%, compared to 31.7% in the prior-year period. Profit before marketing and other expenses reached $0.2 million, reversing a $0.5 million loss reported for Q3 2024.
Cost Reductions and Focus on High-Value Players
General and administrative expenses stayed above $2 million but fell 16% year over year. Marketing costs, although still exceeding $2 million, were cut by 21% as NorthStar Gaming shifted its focus toward acquiring higher-value players. According to the company, these measures have driven greater efficiency and led to a revenue mix with better long-term value projections from its user base.
CEO and Chair Michael Moskowitz said year-over-year growth in both revenue and gross margin reflected ongoing operational improvements aimed at enhancing customer experience while moderating expenses. He added that the company continues to innovate across its platform as the Ontario iGaming market evolves.
Platform Developments and Market Expansion
During the quarter, NorthStar introduced The Boost, a new content site that delivers sports and casino insights, scores, and commentary. The initiative seeks to broaden NorthStar’s reach, support customer acquisition in Ontario, and strengthen the brand’s presence in Alberta, where government preparations for iGaming are underway.
The company also updated its casino lobby to better showcase top-performing titles and deepen user personalization. Seasonal events including the Grand Slots Showdown, the NorthStar Blackjack Championship, and NFL-themed free-to-play competitions were launched to drive user engagement.
NorthStar operates NorthStar Bets in Ontario and provides managed services to NorthStarBets.com, which is licensed by the Kahnawake Gaming Commission and owned by the Conseil des Abénakis de Wôlinak.
Year-to-Date Performance Strengthens, but Liquidity Concerns Surface
In the first nine months of 2025, NorthStar Gaming generated $23.3 million in revenue, marking a 17% increase over the prior-year period. Managed services revenue reached $1.9 million, up 138%. Gross margin for the period rose 32% to hit $8.9 million and accounted for 38.2% of total revenue. Profit before marketing and other expenses stood at $1.5 million, turning around a $0.6 million loss in the corresponding period in 2024.
Despite these financial improvements, NorthStar has flagged a potential liquidity shortfall that could impede its ability to meet both operating and marketing expenses, as well as fulfill debt obligations. The company noted the risk of breaching certain debt covenants and has initiated discussions with its lender. Should a breach occur, NorthStar may need to make operational changes, seek further debt, or secure additional equity financing to maintain business continuity and growth.
| Financial Metric | Q3 2025 | Year-on-Year Change | First 9 Months 2025 | Year-on-Year Change |
|---|---|---|---|---|
| Revenue | $6.9 million | +4% | $23.3 million | +17% |
| Gross Margin | $2.4 million | +14% | $8.9 million | +32% |
| Gross Margin % | 34.7% | Up from 31.7% | 38.2% | — |
| Profit before marketing/other expenses | $0.2 million | From -$0.5 million | $1.5 million | From -$0.6 million |
| Managed Services Revenue | — | — | $1.9 million | +138% |
- Author
Daniel Williams
