GameSquare Holdings Reports 2026 Second Quarter Results with Revenue up 137% YoY and Record Second Quarter Adjusted EBITDA
Gross margin of 49.0% in the second quarter of 2026, representing a year-over-year increase of 19.6 percentage points
Net loss of $10.6 million, includes $7.8 million in changes in unrealized loss and realized loss on digital assets and investments in ETH fund
Adjusted EBITDA of $1.0 million for the second quarter, driven by higher sales, strong gross margin expansion, and improved operating leverage
FRISCO, TX / ACCESS Newswire / August 10, 2026 / GameSquare Holdings, Inc. (NASDAQ:GAME), ("GameSquare", or the "Company"), today announced financial results for the three- and six-months ended June 30, 2026.
Justin Kenna, CEO of GameSquare stated, "GameSquare delivered a strong second quarter, which was ahead of plan, with positive results accelerating meaningfully from first quarter and year-over-year levels. Revenue increased 137% year-over-year to $18.5 million, gross margin expanded by nearly 20 percentage points to 49.0%, and adjusted EBITDA improved to a second quarter record of $1.0 million. These results reflect strong execution, underlying organic growth across our core businesses, the positive contribution from the recent Click and TubeBuddy acquisitions, and increasing operating leverage of our platform as our business scales."
Kenna added, "Revenue growth is being supported by strong bookings across GameSquare Experiences, expanding creator relationships and deeper engagements with global partners. Recent examples include the renewal and expansion of our relationship with Riot Games and Stream Hatchet's selection for a second consecutive year as a data and insights provider for the Esports World Cup, which demonstrate the value of our differentiated data, analytics and creator-intelligence capabilities. Our partnership with the U.S. Army and FaZe Esports' partnership with CORSAIR further demonstrate the breadth of our platform and our ability to connect leading brands and organizations with highly engaged gaming and esports audiences."
"Expanding our access to premium IP is an increasingly important component of GameSquare's strategy, strengthening the value and differentiation of our end-to-end commercial platform. We are pleased with the recent additions of World of Dance, the Esports Awards and The Mobies to our growing portfolio of commercial IP opportunities. Equally important, we continue to expand the scale and reach of our creator business. During the second quarter, Justin Miclat was appointed Chief Growth Officer of Click, and we added Steak, the second-largest Roblox creator, and SypherPK, one of the world's largest Fortnite creators, to our talent roster. As a result, Click's creator network now reaches more than 60 million followers across major social platforms," Kenna continued.
"Our strong year-to-date performance demonstrates the progress we are making and reinforces our confidence in GameSquare's operating model and growth strategy. As our recent acquisitions successfully integrate, we are building a stronger and more comprehensive platform that enables GameSquare to provide a broader range of services to both new and existing customers. With revenue growth accelerating, gross margins expanding and adjusted EBITDA turning positive, we believe we have established meaningful momentum and are well positioned to deliver a strong second half of 2026," Kenna concluded.
Reported results for the three months ended June 30, 2026, compared to June 30, 2025 (unaudited)
Revenue of $18.5 million, compared to $7.8 million
Gross profit of $9.0 million, compared to $2.3 million
Gross margin of 49.0%, compared to 29.4%
Net loss from continuing operations of $10.6 million (see following bullet), compared to $4.0 million.
The $10.6 million net loss in the second quarter of 2026 included a $7.8 million change in fair value loss on digital assets, $1.4 million change in fair value of contingent consideration, $0.7 million change in fair value of warrant liability and $0.6 million of one-time transaction costs related to M&A and other non-operating legal costs.
Positive adjusted EBITDA of $1.0 million, compared to an adjusted EBITDA loss of $3.2 million
Adjusted EBITDA was 5.2% of revenue, versus -40.5% of revenue
Reported results for the six months ended June 30, 2026, compared to June 30, 2025 (unaudited)
Revenue of $33.0 million, compared to $15.2 million
Gross profit of $14.7 million, compared to $5.4 million
Net loss from continuing operations of $28.2 million (see following bullet), compared to a net loss of $7.8 million
The $28.2 million net loss from continuing operations for the six months of 2026 included a $22.4 million change in fair value loss on digital assets, $1.4 million change in fair value of contingent consideration, and $1.6 million of one-time transaction costs related to the TubeBuddy acquisition, M&A and other non-operating costs.
Adjusted EBITDA loss of $0.1 million, compared to a loss of $5.7 million
Adjusted EBITDA loss was -0.4% of revenue, versus -37.7% of revenue last year
Proforma* results for the six months ended June 30, 2026 (unaudited)
Revenue of $34.3 million
Gross profit of $15.9 million
Gross margin of 46.3%
Adjusted EBITDA of $0.3 million, or 0.9% of proforma revenue
* Proforma financial results include TubeBuddy for the 2026 six months. All financial information and proforma is unaudited.
The financial information contained in this release reflects preliminary, unaudited results for the quarter ended June 30, 2026. These preliminary results have been prepared by management and are subject to the completion of customary quarter-end accounting procedures and the completion of the review of the Company's interim financial statements by its independent registered public accounting firm. As a result, the financial information presented herein may change and the Company's actual results and financial condition as reported in its Quarterly Report on Form 10âQ for the quarter ended June 30, 2026 may differ from the information presented in this release.
Stock Repurchases
During the second quarter, GameSquare repurchased 2.8 million shares of its common stock for $1.2 million, representing an average price of approximately $0.43 per share. In July 2026, GameSquare repurchased an additional 1.0 million shares of its common stock for $0.4 million, representing an average price of approximately $0.38 per share.
As of August 7, 2026, GameSquare has repurchased over 8.8 million shares of its common stock for nearly $4.1 million, representing an average price of approximately $0.46 since the Company's repurchase program started in October 2025. The Company has approximately $10.9 million remaining under its current authorization.
2026 Outlook
On a proforma basis, which takes into account the Company's plans with the TubeBuddy business as if it was acquired on January 1, 2026, the Company is reiterating its previously announced annual financial guidance for fiscal year 2026. The Company's annual guidance for 2026 includes:
Revenue of $85 million to $90 million
Gross margin of 35% to 40%
Adjusted EBITDA of over $5 million
Adjusted EBITDA guidance excludes items such as transaction costs, impairments, and other one-time expenses, and that a reconciliation is not provided due to forward-looking uncertainty and unreasonable efforts.
Balance Sheet Highlights at June 30, 2026:
Ethereum ("ETH") Assets1: The Company held 15,080.51 ETH
Deferred revenue: Increased 35.0% from December 31, 2025, reflecting the Company's technology and SaaS revenue growth.
Cash and cash equivalents: The Company had $25.9 million in ETH, Altcoin investments, and cash, or $0.25 per share as of June 30, 2026. Cash at June 30, 2026, was $2.1 million, with an additional $2.4 million in restricted cash.
1 Digital asset values are subject to significant volatility and are valued based on market prices as of the reporting date.
Use of Non-GAAP Financial Measures
This release includes measures that are not in accordance with U.S. generally accepted accounting principles ("Non-GAAP measures"). These Non-GAAP measures should be viewed in addition to, and not as a substitute for, the Company's reported GAAP results, and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. GameSquare's management uses these Non-GAAP measures for internal budgeting and forecasting purposes and to evaluate GameSquare's financial performance. GameSquare's management believes the presentation of these Non-GAAP measures is useful to investors for comparing prior periods and analyzing ongoing business trends and operating results. For further information regarding these Non-GAAP measures, please refer to the tables presenting reconciliations of our Non-GAAP results to our U.S. GAAP results and the "Management's use of Non-GAAP Measures" that accompany this press release.
Conference Call Details
Justin Kenna, CEO, and Mike Munoz, CFO, are scheduled to host a conference call with the investment community. Analysts and interested investors can join the call via the details below:
Date: August 10, 2026
Time: 5:00 pm ET
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=HC4SUncR
Investor Relations
Andrew Berger
Phone: (216) 464-6400
Email: ir@gamesquare.com
Media Relations
Email: pr@gamesquare.com
About GameSquare Holdings, Inc.
GameSquare (NASDAQ:GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Esports, one of the most iconic gaming organizations, we operate one of the largest gaming media networks in North America. As a digital-native business, GameSquare provides brands with unparalleled access to world-class creators and talent, delivering authentic connections across gaming, esports, and youth culture. Complementing our operating strategy, GameSquare has developed an innovative treasury management program designed to generate yield and enhance capital efficiency, reinforcing our commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation.
To learn more, visit www.gamesquare.com.
Forward-Looking Information
This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's future performance, revenue, growth and profitability; and the Company's ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability.
Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's ability to grow its business and being able to execute on its business plans, the success of Company's vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities, the Company continuing to attract qualified personnel to support its development requirements, the continued development, acceptance and adoption of digital assets; the availability, security and functionality of digital asset custody solutions and related infrastructure, the liquidity and stability of digital asset markets, the Company's ability to manage the significant price volatility associated with digital assets, and the ability of the Company and its service providers to maintain adequate cybersecurity protections and safeguard digital assets from theft, loss or unauthorized access. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements.
Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company. Additional information regarding risks and uncertainties that could affect the Company is included in the Company's filings with the U.S. Securities and Exchange Commission, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
GameSquare Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)
June 30, | December 31, | |||||||
Assets | ||||||||
Cash | $ | 2,101,751 | $ | 4,604,781 | ||||
Restricted cash | 2,361,254 | 1,769,552 | ||||||
Accounts receivable, net | 11,322,606 | 8,733,159 | ||||||
Digital assets | 23,454,063 | 5,987,720 | ||||||
Government remittances | 284,081 | 343,488 | ||||||
Prepaid expenses and other current assets | 936,001 | 771,902 | ||||||
Total current assets | 40,459,756 | 22,210,602 | ||||||
Investments | 137,023 | 383,503 | ||||||
Investment in ETH fund | 377,438 | 41,374,063 | ||||||
Promissory note receivable, non-current | 549,000 | 549,000 | ||||||
Property and equipment, net | 106,456 | 114,054 | ||||||
Goodwill | 8,619,295 | 5,912,230 | ||||||
Intangible assets, definite lived, net | 7,451,752 | 5,414,452 | ||||||
Intangible assets, indefinite lived | - | 1,945,962 | ||||||
Right-of-use assets | 1,187,597 | 1,398,515 | ||||||
Total assets | $ | 58,888,317 | $ | 79,302,381 | ||||
Liabilities and Shareholders' Equity | ||||||||
Accounts payable | $ | 20,795,772 | $ | 21,929,984 | ||||
Accrued expenses and other current liabilities | 4,818,818 | 6,788,876 | ||||||
Players liability account | 47,535 | 47,535 | ||||||
Deferred revenue | 5,334,418 | 3,952,295 | ||||||
Current portion of operating lease liability | 458,186 | 441,485 | ||||||
Promissory notes payable, current | 12,100,000 | 2,000,000 | ||||||
Warrant liability | 376 | 1,626,832 | ||||||
Contingent purchase consideration, current | 1,433,000 | - | ||||||
Deferred purchase consideration | - | 3,996,548 | ||||||
Arbitration reserve | - | 93,041 | ||||||
Total current liabilities | 44,988,105 | 40,876,596 | ||||||
Contingent purchase consideration, non-current | 2,279,224 | 807,000 | ||||||
Deferred tax liability | 810,704 | 810,704 | ||||||
Operating lease liability | 925,361 | 1,154,341 | ||||||
Total liabilities | 49,003,394 | 43,648,641 | ||||||
Commitments and contingencies (Note 17) | ||||||||
Series A-1 convertible preferred stock ($0.0001 par value, 50,000,000 authorized, 0 and 3,433 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) | - | 3,924,296 | ||||||
Common stock ($0.0001 par value, 500,000,000 shares authorized, 102,371,390 and 98,066,751 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively) | 10,237 | 9,807 | ||||||
Additional paid-in capital | 201,264,994 | 195,158,882 | ||||||
Treasury stock | (205,628 | ) | (580,715 | ) | ||||
Accumulated other comprehensive loss | (558,330 | ) | (586,991 | ) | ||||
Non-controlling interest | - | - | ||||||
Accumulated deficit | (190,626,350 | ) | (162,271,539 | ) | ||||
Total shareholders' equity | 9,884,923 | 35,653,740 | ||||||
Total liabilities and shareholders' equity | $ | 58,888,317 | $ | 79,302,381 | ||||
GameSquare Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Quarterly information unaudited)
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Revenue | $ | 18,475,300 | $ | 7,788,519 | $ | 33,010,922 | $ | 15,227,643 | ||||||||
Cost of revenue | 9,425,530 | 5,497,023 | 18,356,970 | 9,778,222 | ||||||||||||
Gross profit | 9,049,770 | 2,291,496 | 14,653,952 | 5,449,421 | ||||||||||||
Operating expenses: | ||||||||||||||||
General and administrative | 5,194,140 | 3,565,333 | 9,633,787 | 7,272,958 | ||||||||||||
Selling and marketing | 2,422,819 | 1,416,813 | 4,565,833 | 2,752,574 | ||||||||||||
Research and development | 682,531 | |||||||||||||||