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Leaf Mobile Inc (TSE:EAGR)
TSX:EAGR

Leaf Mobile Inc (EAGR) AI Stock Analysis

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TSE:EAGR

Leaf Mobile Inc

(TSX:EAGR)

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Neutral 43 (OpenAI - 5.2)
Rating:43Neutral
Price Target:
C$0.31
▼(-2.50% Downside)
Overall score is weighed down primarily by deteriorating financial performance (widening losses and negative free cash flow) and a bearish technical trend (below key moving averages with negative MACD). Valuation is also constrained by negative earnings and no dividend data, while balance-sheet leverage remains a relative positive but not enough to offset the operating weakness.

Leaf Mobile Inc (EAGR) vs. iShares MSCI Canada ETF (EWC)

Leaf Mobile Inc Business Overview & Revenue Model

Company DescriptionLeaf Mobile Inc., through its subsidiaries, develops and publishes free-to-play casual mobile games worldwide. It owns and operates GameKit, a software platform for casual or idle narrative driven game development, as well as engages in the sale of in-game virtual items and advertising. The company was incorporated in 2018 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyLeaf Mobile Inc generates revenue primarily through a free-to-play model, which includes in-app purchases and advertising. Players can download and play the games for free, but they have the option to purchase virtual goods or currency to enhance their gaming experience. This microtransaction model is a significant revenue stream, as it encourages user spending on game enhancements, character upgrades, and customizations. Additionally, the company monetizes its games through in-game advertisements, partnering with ad networks to display ads to users. These ads can be in the form of banners, interstitials, or rewarded video ads, where users can earn in-game rewards by watching advertisements. Strategic partnerships with other gaming companies and platforms also contribute to Leaf Mobile's revenue, expanding their distribution channels and user base.

Leaf Mobile Inc Earnings Call Summary

Earnings Call Date:Nov 14, 2024
(Q3-2024)
|
% Change Since: |
Next Earnings Date:Apr 01, 2026
Earnings Call Sentiment Positive
The earnings call reflects a largely positive sentiment, with multiple highlights including revenue growth, profitable game launches, increased cash reserves, and strategic partnerships. The only notable lowlight was the impact of share buybacks on cash reserves, which is seen as a strategic investment by the company.
Q3-2024 Updates
Positive Updates
Revenue Growth
Achieved a top line revenue of $21.4 million, marking a 3% growth year-over-year and a 4% growth quarter-over-quarter.
Positive Impact of Power Rangers Mighty Force
The launch of Power Rangers Mighty Force led to an increase in daily active users and positive revenue-to-user acquisition spend ratio, making it the highest-ARPDAU game in the portfolio.
Increased Cash Balance and Profitability
Ended Q3 with $8.3 million in cash, an 11% increase from Q2, and achieved eighth consecutive quarter of net profit over $2.5 million.
Strong Season Pass Revenue
Increased the cadence of season passes, resulting in a 40% increase in revenue across several games.
Successful Cross-Platform Event
The Intergalactic Friendship Day crossover event led to significant organic traffic increase and was one of the top-performing ARPDAU events.
Entry into Epic Games Store
Partnership with Epic Games Store to offer games with a favorable revenue-sharing model, promising to boost revenue.
Expansion of RuPaul's Drag Race Franchise
Announcement of RuPaul's Drag Race Match Queen, showing promising player retention and building on the previous success.
Negative Updates
Share Buyback Impact on Cash Balance
Spent over $2 million on share buybacks, which impacted the cash balance although the company sees it as a strategic move.
Company Guidance
During the Q3 2024 earnings call for East Side Games Group, the company reported a top-line revenue of $21.4 million, marking a 3% year-over-year and 4% quarter-over-quarter growth, alongside an adjusted EBITDA of $2.56 million with a 12% margin. The company maintained robust metrics, including an average daily active user count of 236,000, a stickiness rate of 24%, and an ARPDAU of $0.99. The quarter also saw the launch of Power Rangers Mighty Force, which quickly became the highest-ARPDAU game in their portfolio. East Side Games ended the quarter with an $8.3 million cash balance, a significant increase from the previous quarter, and continued its share buyback program, purchasing over 2 million shares at an average price of $0.66. The company announced strategic initiatives like launching on the Epic Games Store and the development of new games, including RuPaul's Drag Race Match Queen, set for release in early 2025.

Leaf Mobile Inc Financial Statement Overview

Summary
Leaf Mobile Inc demonstrates a mixed financial performance with strengths in operational efficiency and capital structure. However, declining revenues, profitability challenges, and inconsistent cash flow generation highlight potential risks. The company's lack of debt is a positive aspect, yet achieving stable revenue growth and profitability remains critical for future success.
Income Statement
Leaf Mobile Inc experienced fluctuating revenues with a negative trajectory, as seen in the TTM (Trailing-Twelve-Months) data showing a decline from the previous year. Gross profit margin remains relatively healthy, yet net profit margin is negative, indicating challenges in achieving profitability. The EBITDA margin suggests some operational efficiency improvements, but overall earnings remain under pressure.
Balance Sheet
The balance sheet is relatively stable with no debt, which is a positive aspect. However, a declining equity base and a decrease in total assets highlight potential risks. Return on equity remains negative, reflecting challenges in generating shareholder returns. The equity ratio is strong, indicating a solid capital structure.
Cash Flow
Cash flow from operations shows improvement, yet free cash flow growth is inconsistent. The free cash flow to net income ratio is positive, which indicates cash generation capacity, but operating cash flow to net income is volatile. This inconsistency in cash flow generation could pose challenges for future investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue78.17M83.12M86.98M116.28M93.19M31.09M
Gross Profit47.80M50.77M54.33M59.71M59.91M2.02M
EBITDA145.04K9.25M12.11M22.76M4.70M20.45M
Net Income-11.85M-925.21K86.67K10.76M-1.88M-4.34M
Balance Sheet
Total Assets57.04M62.57M69.46M80.25M82.35M21.01M
Cash, Cash Equivalents and Short-Term Investments3.21M7.55M5.24M5.71M9.24M7.20M
Total Debt1.99M0.000.00870.00K131.20K305.59K
Total Liabilities18.74M15.71M20.57M31.73M58.31M10.19M
Stockholders Equity38.30M46.86M48.88M48.52M24.03M10.82M
Cash Flow
Free Cash Flow-5.98M4.18M912.05K5.91M-86.22K2.29M
Operating Cash Flow1.80M8.38M1.57M10.02M1.02M2.37M
Investing Cash Flow-7.08M-4.21M-660.94K-4.12M8.02M1.11M
Financing Cash Flow172.94K-1.86M-1.33M-9.49M-4.21M3.69M

Leaf Mobile Inc Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.32
Price Trends
50DMA
0.34
Negative
100DMA
0.38
Negative
200DMA
0.41
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
45.71
Neutral
STOCH
37.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EAGR, the sentiment is Negative. The current price of 0.32 is above the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.34, and below the 200-day MA of 0.41, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:EAGR.

Leaf Mobile Inc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
44
Neutral
C$1.27M-50.00-109.52%
43
Neutral
C$23.10M-2.05-26.04%-6.22%-439.10%
43
Neutral
C$23.89M-2.38-3.78%88.40%
41
Neutral
C$7.16M-0.06-183.15%-53.67%-127.21%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:EAGR
Leaf Mobile Inc
0.31
-0.26
-45.61%
TSE:PLAY
Playground Ventures Inc
0.02
-0.02
-42.86%
TSE:EPY
ePlay Digital
0.01
0.00
0.00%
TSE:EGLX
Enthusiast Gaming Holdings
0.05
-0.09
-65.38%
TSE:VRTS
Wondr Gaming Corp
0.02
<0.01
33.33%

Leaf Mobile Inc Corporate Events

Business Operations and StrategyStock BuybackFinancial DisclosuresProduct-Related Announcements
East Side Games Group Expands Match-Genre Portfolio Amidst Strategic Investments
Neutral
Nov 13, 2025

East Side Games Group reported its Q3 2025 financial results, highlighting a strategic focus on expanding its Match-genre portfolio with the launch of two new titles, RuPaul’s Drag Race Match Queen and Squishmallows Match. Despite a 6% year-over-year revenue decline, the company saw a sequential revenue increase and significant growth in core revenue, driven by new game launches. The company is investing heavily in marketing to drive long-term growth, with expectations of recouping these investments in the coming quarters. The launch of new games has provided valuable insights for future development, with both titles showing strong initial performance and engagement. The company remains committed to balancing growth investments with shareholder returns through share repurchases.

The most recent analyst rating on (TSE:EAGR) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Leaf Mobile Inc stock, see the TSE:EAGR Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
East Side Games Group to Release Q3 2025 Financial Results
Neutral
Nov 8, 2025

East Side Games Group announced it will release its third quarter 2025 financial results on November 13, 2025, followed by a webcast and conference call to discuss its performance with investors. This announcement underscores ESGG’s commitment to transparency and engagement with its stakeholders, potentially impacting its market positioning as it continues to expand its gaming portfolio and explore new monetization strategies.

The most recent analyst rating on (TSE:EAGR) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Leaf Mobile Inc stock, see the TSE:EAGR Stock Forecast page.

Financial Disclosures
East Side Games Group to Release Q3 2025 Financial Results
Neutral
Nov 7, 2025

East Side Games Group announced it will release its third quarter 2025 financial results on November 14th, 2025, followed by a webcast and conference call to discuss its performance. This announcement is significant for stakeholders as it provides insights into the company’s financial health and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:EAGR) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on Leaf Mobile Inc stock, see the TSE:EAGR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025