Shares of High Roller Technologies, Inc. (ROLR Quick QuoteROLR - Free Report) have declined 27.6% since reporting first-quarter 2026 results against the S&P 500 index’s 0.1% return. Over the past month, the stock has slumped 31.8%, underperforming the S&P 500’s 5% advance.

High Roller reported first-quarter 2026 net revenues of $3.4 million, down 35% from $5.2 million in the prior-year quarter, reflecting the company’s deliberate exit from certain markets and sharply reduced customer acquisition spending in its online casino business.

Net loss from continuing operations improved to $3 million, or 29 cents per share, from $3.7 million, or 44 cents per share, a year earlier. Adjusted EBITDA loss narrowed to $1.3 million from $3 million in the year-ago quarter, while the adjusted EBITDA margin improved to negative 38% from negative 57%.

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Revenue Trends & User Metrics

The company’s net gaming revenue decline was led by lower activity across key geographies. Finland remained the largest market, contributing $2.1 million, or 63% to gaming revenues, compared with $3.1 million a year earlier. Revenues from New Zealand fell to $729,000 from $1.2 million, while Canada contributed $463,000 versus $511,000 last year. Revenues from Norway dropped to zero after the company exited that market.

Operational metrics also weakened significantly. Quarterly active users declined to 11,213 from 29,946 a year earlier, while unique depositing customers fell to 8,533 from 27,289. Total wagers dropped to $74.4 million from $153.3 million in the prior-year period. User deposits were approximately $12 million, down from nearly $23 million in the first quarter of 2025. Despite the decline in activity, average revenues per user increased to $394 from about $190 a year earlier, suggesting the company focused on higher-value customers.

Expense Reductions & Profitability Efforts

High Roller reduced total operating expenses by 28% year over year to $6.4 million. Direct operating costs excluding related parties fell 52% to $1.1 million, aided by efficiencies in payment fees, game provider costs and affiliate revenue sharing. Advertising and promotion expenses also dropped sharply, falling to $347,000 from $2.8 million in the prior-year quarter as the company implemented a more targeted marketing strategy.

General and administrative expenses rose 36% to $4.5 million, primarily because of $1-million warrant expenses tied to a January 2026 financing transaction. Foreign exchange transaction losses narrowed to $72,000 from $178,000 in the year-ago period.

Management said the company’s revised strategy emphasizes operational discipline and prioritizing more profitable opportunities over aggressive customer acquisition. Chief executive officer Seth Young said the company “continued to reshape High Roller around a more focused, better-capitalized, high-upside growth strategy.”

Liquidity & Capital Position

The company’s balance sheet strengthened significantly during the quarter following equity financing activity. Cash and restricted cash totaled $23.1 million as of March 31, 2026, up from $2.7 million at the end of 2025. Working capital improved to $18.1 million, turning back from a deficit of $3.7 million as of Dec. 31, 2025.

During the first quarter, High Roller completed a $1-million private placement with Saratoga Casino Holdings and raised additional $25 million through a registered direct offering priced at $13.21 per share. Management said proceeds are earmarked for sales and marketing, geographic expansion, product diversification and general corporate purposes. The company also reported no debt at the quarter-end.

Strategic Expansion Into Prediction Markets

Management highlighted its planned entry into regulated U.S. prediction markets as a major growth initiative. In April, High Roller entered a collaboration agreement with Crypto.com Derivatives North America to launch an event-based prediction market offering in the United States. Under the agreement, the company plans to act initially as a guaranteed introducing broker while developing a mobile-based technology platform through which users can access prediction contracts.

The company also established “ROLR” as its consumer-facing prediction market brand and acquired ROLR.com as the digital destination for the platform. Additional partnerships were announced with Lines.com, Forever Network and Leverage Game Media to support marketing and customer acquisition efforts. High Roller also appointed a head of applied artificial intelligence to oversee initiatives involving compliance automation, personalization and customer engagement.

Management cited industry forecasts suggesting prediction market trading volumes could exceed $325 billion in 2026, positioning the business as a potentially significant long-term growth driver.

Other Developments

In the quarter, High Roller continued restructuring its business portfolio following the Dec. 31, 2025, divestiture of the CasinoRoom.com domain. In exchange, the company acquired Happy Hour Solutions Limited, which holds an Estonian gaming license. The company said that the divestiture represented a strategic shift away from its legacy CasinoRoom.com operations as it concentrates on its HighRoller.com, Fruta.com and Kassuuu.com brands, and expands into prediction markets.