Q2 Results for NorthStar Led by Double-Digit Revenue Growth
Posted on: August 13, 2025, 08:19h.
Last updated on: August 14, 2025, 10:37h.
- Double-digit revenue growth for NorthStar according to Q2 results
- Toronto-based company planning expansion into Alberta
- Gross margin increases 25% in Q2
NorthStar Gaming Inc. today announced its Q2 2025 financial results for the three-month and six-month period ended June 30, 2025, highlighted by double-digit revenue growth and record gross margin.
15% Increase in Revenue
NorthStar owns and operates NorthStar Bets, a Toronto-based casino and sportsbook platform.
Revenue was CAD $8.5 million in Q2, a 15% increase from $7.4 million in Q2 2024. Gross margin was $3.5 million, a 25% increase from $2.8 million in Q2 2024.
An area of efficiency that the company highlighted was marketing spend – $3.1 million in Q2, a 16% decrease year over year, representing 35.8% of revenue compared to 48.8% in Q2 2024.
Ontario Market Matures
“Our team maintained our pattern of solid year-over-year growth, led by managed services revenue more than doubling over the second quarter of last year,” said Michael Moskowitz, Chair and CEO of NorthStar. “Operating leverage driven by continued growth of the business has led to gross margin continuing to outpace revenue growth, with Q2 2025 gross margin percentage reaching an all-time high of 40.8%, advancing our path to profitability.
Ongoing innovation and efficiency in our marketing program is enabling us to drive growth while at the same time reducing operating expenses as a percentage of revenue.”
Marketing Efficiencies
It was much the same looking at the six-month numbers – revenue was $16.4 million, a 23% increase from $13.4 million in YTD 2024. Gross margin was $6.5 million, a 39% increase from $4.7 million in YTD 2024. Marketing expense of $7.2 million decreased 3% from $7.4 million in YTD 2024 and represented 43.7% of revenue compared to 55.1% in YTD 2024.
“We expect to continue to deliver solid year-over-year growth in the coming quarters, driven by steady improvement in our business fundamentals and KPIs,” said Moskowitz. “We have continued with our focus on financial discipline and prudent cost management to maintain our progress towards profitability.
NorthStar Plans Alberta Launch
“As the Ontario market matures, we are excited by growth opportunities in other regions of Canada through our managed services business and the anticipated introduction of regulatory frameworks in provinces such as Alberta.”
The Alberta market is set to launch, likely in early 2026. The Ontario market currently sits at 50 licensed operators and 86 gaming websites.
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