GAME

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved record adjusted EBITDA of $1.0 million, signaling a transition to profitable growth through operating leverage and a higher-margin business mix. Gross margin expanded by nearly 20 percentage points to 49%, driven by the integration of high-margin SaaS assets like TubeBuddy and Stream Hatchet. The integrated platform strategy is successfully cross-selling services, combining creative marketing, talent management, and data analytics to secure larger, turnkey projects. Talent acquisition remains a core differentiator, with the signing of SypherPK expanding the total creator network to over 60 million followers. Strategic expansion into athlete and lifestyle creator categories is broadening audience reach beyond core gaming into adjacent high-value brand segments. Operational discipline and fixed expense management are allowing revenue scaling to translate directly into improved bottom-line performance. The company is evolving from a reactive RFP-based agency to a selective strategic partner for major IP owners like Marvel and Tencent. Reiterated full-year 2026 guidance of $85 to $90 million in revenue, a gross margin of 35% to 40%, and adjusted EBITDA of over $5 million., assuming approximately 60% of total annual revenue will occur in the second half. Second-half visibility is supported by a record level of 'locked-in' recurring revenue, estimated at approximately 70% of the target. Anticipates Q4 will be the largest quarter of the year due to seasonal events, holiday consumer spending, and late-year brand budget allocations. Initial commercialization of new AI-powered video ideation tools within TubeBuddy is expected to contribute to recurring technology revenue in the second half. International expansion efforts are focused on the UK and Middle East, prioritizing markets where existing platform capabilities can be leveraged profitably. Evolving capital allocation strategy involves opportunistically liquidating digital asset treasury (ETH) to fund share repurchases and high-return organic growth. Repurchased 8.8 million shares for approximately $4.1 million to date, reflecting management's view that the stock trades at a significant discount to underlying value. Seeking shareholder approval for a potential reverse stock split to maintain Nasdaq compliance and attract institutional investors with specific price mandates. Actively evaluating accretive M&A opportunities, specifically targeting intellectual property (IP) that can be directly monetized within the GameSquare ecosystem. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management cited high retention rates among Agency of Record (AOR) clients and major upcoming events like the Marvel Rivals finals in December. Noted that the business is seeing a 'flow-on effect' from late-year branded ad budgets and holiday-related consumer product sales. Average deal sizes have increased as the company moves toward more strategic, multi-service partnerships rather than isolated RFPs. Management highlighted that Click is expected to double its revenue this year by leveraging the broader GameSquare infrastructure and talent pipeline. Management stated they are 'extremely cognizant of dilution' and will only pursue acquisitions based on relative value rather than headline numbers. The current focus for M&A is acquiring IP that can be brought in-house to be directly monetized through their existing service segments.

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 10‑Q 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, 2026Time: 5:00 pm ETWebcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=HC4SUncR Investor RelationsAndrew BergerPhone: (216) 464-6400Email: [email protected] Media RelationsEmail: [email protected] 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)   GameSquare Holdings, Inc.Consolidated Statements of Operations and Comprehensive Loss (Quarterly information unaudited)   Management's use of Non-GAAP Measures This release contains certain financial performance measures, including "EBITDA" and "Adjusted EBITDA," that are not recognized under accounting principles generally accepted in the United States of America ("GAAP") and do not have a standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies. For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled "Reconciliation of Non-GAAP Measures" below. We believe EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define "EBITDA" as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense. Adjusted EBITDA We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define "Adjusted EBITDA" as EBITDA adjusted to exclude extraordinary items, non-recurring items and other non-cash items, including, but not limited to (i) share based compensation expense, (ii) transaction costs related to merger and acquisition activities, (iii) arbitration settlement reserves and other non-recurring legal settlement expenses, (iv) contract exit costs, primarily comprised of employee severance resulting from integration of acquired businesses, (v) impairment of goodwill and intangible assets, (vi) gains and losses on extinguishment of debt, (vii) change in fair value of assets and liabilities adjusted to fair value on a quarterly basis, (viii) gains and losses from discontinued operations, and (ix) net income (loss) attributable to non-controlling interest. Reconciliation of Non-GAAP Measures A reconciliation of Adjusted EBITDA to the most directly comparable measure determined under U.S. GAAP is set out below. (Unaudited) SOURCE: GameSquare Holdings, Inc. View the original press release on ACCESS Newswire

Company expects second quarter 2026 revenue to increase over 137% to at least $18.5 million Second quarter 2026 revenue expected to be up over 27% from first quarter 2026 revenue and up more than 17% from first quarter 2026 proforma revenue Momentum reflects strong demand from brands, publishers and creators across GameSquare's end-to-end platform FRISCO, TX / ACCESS Newswire / June 4, 2026 / GameSquare Holdings, Inc. (NASDAQ:GAME) ("GameSquare" or the "Company") today issued the following shareholder letter from Chief Executive Officer Justin Kenna. Dear Fellow Shareholders GameSquare is entering an important moment for the Company. Over the past several years, we have transformed the Company into a differentiated media, technology and entertainment platform at the heart of the creator economy and built specifically for the next generation of brand engagement. We have streamlined our portfolio, completed strategic acquisitions, expanded our capabilities, deepened our relationships with major brands and creators, and positioned GameSquare to participate in some of the most attractive growth areas across the creator economy, gaming, esports, youth culture and digital media. We believe the progress we are seeing in 2026 demonstrates that this strategy is working. Our sales pipeline is strengthening, our client relationships are expanding, our platform is becoming more valuable to brands and creators, and our recent acquisitions are beginning to contribute meaningfully to our growth profile. While our share price has not yet reflected the value we believe we are building, we are focused on execution, profitability and long-term shareholder value creation. With our annual meeting approaching and the second quarter nearing completion, we wanted to provide shareholders with an update on the momentum we are seeing in the business and why we remain confident in our ability to achieve our 2026 guidance. 2026 Second Quarter Update While our second quarter does not close until June 30, 2026, we are able to share some early observations about the growing trajectory of our business. For the second quarter of 2026 our revenue pipeline and closed deals are tracking meaningfully ahead of analyst estimates. Based on our current expectations, we believe revenue for the second quarter of 2026 will increase over 137% to at least $18.5 million. This expected growth reflects strength across multiple areas of our business, including expanded brand programs, continued demand from game publishers, higher levels of creator-led campaign activity and contributions from recent acquisitions. We are also seeing larger average deal size, increased repeat engagement from clients and growing demand for integrated solutions that combine data, creators, content, media, experiential activations and performance analytics. On a year-to-date basis, 2026 first half proforma revenue, including a full first quarter contribution of the February 20, 2026, TubeBuddy acquisition, is expected to be over $34.3 million. This represents an expected year-over-year increase in proforma revenue of at least 125%. Historically, approximately 60% of our revenue has occurred in the second half of the year. Based on our first half performance, current pipeline, client activity and visibility into upcoming programs, we remain confident in our full-year 2026 guidance of pro forma revenue of $85 million to $90 million, gross margin of 35% to 40%, and adjusted EBITDA of more than $5 million. Growing Market Interest in GameSquare's Ecosystem Our confidence is supported by the growing relevance of GameSquare's platform. Brands are looking for better ways to reach younger, digitally native and increasingly hard-to-reach audiences. Game publishers are seeking partners that can help them create culturally relevant campaigns, launch titles, activate communities and measure performance. Creators are looking for infrastructure, data, brand relationships and monetization opportunities that allow them to scale beyond content alone. GameSquare sits at the intersection of these trends. Our platform is designed to help brands, publishers and creators move through a connected ecosystem. We use data to identify opportunities, match brands with the right audiences and creators, activate campaigns, measure performance, and create new monetization opportunities. As more clients and creators engage with our platform, we believe the flywheel effect across the business becomes stronger We are seeing strong momentum in our creator deployment business, primarily due to the September 2025 acquisition of Click Media. This business is helping major game publishers reach audiences at scale by combining creator relationships, campaign execution and GameSquare's growing data capabilities. In the first half of 2026, we expect creator deployment to contribute approximately $5 million of revenue, compared to revenue of approximately $5.4 million in all of 2025. We are investing to expand the team, broaden into lifestyle categories and expect to build this into a $20 million-plus annual revenue vertical over time. We believe this is a clear example of how GameSquare can use its data-driven platform to help publishers and brands identify the right creators, activate audiences more efficiently and drive measurable outcomes. A related example is our work with The Boys, a leading creator collective that has expanded under GameSquare's management into a broader consumer brand. Hungryboy Hot Sauce, initially launched in November 2025 in H-E-B grocery stores, has since expanded into Spencer's and nearly 300 World Market stores. This success demonstrates our ability to help creators extend their influence beyond content into consumer products, retail distribution and additional monetization channels. GameSquare's platform is also attracting more and more brand partners. Programs such as Into the Zone for Epic Games and the Roblox Creator Showdown demonstrate our ability to develop original repeatable formats that can be monetized across multiple aspects of the GameSquare ecosystem. These properties bring together creators, publishers, brands, content media, live experiences, sponsorships, production and community engagement in a way that creates multiple high-value revenue opportunities across our platform. Importantly, these programs are a strong proof of our land and expand strategy. Across Into the Zone and Roblox Creator Showdown, we have developed multiple pieces of IP with our clients, supporting approximately 10 events globally in 2026 and generating approximately $5.5 million of revenue to date. We have already locked in events in the U.S., Germany and London with an event in Brazil coming, highlighting both the global production capabilities we have built and the opportunity to expand successful programs into additional markets, formats and commercial relationships over time. GSX Demand Another example of our platform momentum is GameSquare Experiences, or GSX. GSX has become an important growth driver for GameSquare by connecting creators, content, data and live experiences into integrated campaigns for brands and video game publishers. In the first quarter of 2026, GSX generated more than $10 million in new bookings, a record for the division, driven by demand from leading video game publishers and global brands looking to connect with Gen Z and digital-first audiences. Since its establishment in the first quarter of 2024, GSX has scaled rapidly, increasing its recurring client base by more than 3x and growing revenue by approximately 14x. The division currently serves two of the largest video game publishers in the world, which we believe underscores its growing relevance within the global gaming ecosystem. GSX is also a strong example of how GameSquare bridges digital and physical engagement. The division develops campaigns that combine creator-led content, media strategy, consumer products, live events, hybrid experiences and large-scale experiential activations. By leveraging GameSquare's proprietary data and analytics capabilities, including Stream Hatchet, GSX is able to help clients identify audiences, activate creators and measure performance in ways that are both creative and data-driven. We believe GSX's growth reflects a broader shift in marketing budgets toward experiential, creator-led and performance-oriented campaigns. As brands seek authentic ways to reach next-generation audiences, GSX demonstrates the value of GameSquare's end-to-end platform and reinforces our confidence in the Company's long-term growth opportunity. International Expansion Approximately 25% of our current revenue has come from outside the U.S. market, but we believe international expansion represents a meaningful growth opportunity. Over the near term, we are focused on select opportunities in Europe, the Middle East and Asia, where gaming, esports, creator-led marketing and youth culture are becoming increasingly important to major brands and publishers. We are also producing multiple activations globally that coincide with some of the year's biggest cultural events. In addition, GameSquare will once again be well represented at the 2026 Esports World Cup, which will take place from July to August in Paris, France and will feature a record-breaking $75 million prize pool. Our international strategy is disciplined. We are focused on markets where we believe GameSquare's existing capabilities, brand relationships, data infrastructure and creator network can be extended efficiently and profitably. Launching New AI-Enabled Tools Innovation remains an important component of GameSquare's DNA. Later this year, we expect to formally launch new AI-enabled tools designed to increase engagement, improve campaign execution and further differentiate GameSquare's platform. Within Stream Hatchet, we have developed Creative Communities, a new solution that supports the creator marketing workflow from creator discovery and onboarding to activation, reporting and performance measurement. As creator marketing becomes more data-driven and performance-oriented, brands and agencies are looking for platforms that can help them identify the right creators, execute campaigns more efficiently and provide clear analytics in a single workflow. We believe Creative Communities represents the next step in Stream Hatchet's evolution from a data analytics platform into a broader creator marketing and performance platform. Data will be an increasingly important part of our strategy. We believe the combination of proprietary insights, creator relationships, brand demand and AI-enabled workflow tools can help GameSquare build a more scalable, higher-value platform over time. Importance of Shareholder Vote We understand that over the past several years, there have been a lot of changes to our model as we have optimized our business. However, we believe our second quarter and year-to-date financial performance demonstrate that our transformation is real and is gaining momentum. In October 2025, we published a shareholder letter stating that every structural upgrade, every acquisition, every divestiture is calibrated to create real shareholder value. But the continued success of our long-term strategic plan is contingent on governance that is modern, agile, and ready to guide a company. This remains true and we need shareholder support to continue to drive our business forward. By voting FOR our proposed resolutions, you are endorsing a bold future: You enable a streamlined corporate structure capable of faster decision-making. You validate the leadership team's vision. You ensure we have the flexibility to pursue capital raises, strategic partnerships, and growth initiatives without encumbrance. I understand that in periods of change, skepticism is natural. But I ask you to trust in what we are building, especially as momentum in our financial results grows. Looking Forward We are confident that GameSquare is at an important inflection point. Major brands are allocating more resources to creator-driven campaigns, gaming, esports and digital communities. Creators are becoming increasingly important media businesses. Game publishers are looking for partners that can drive awareness, engagement and measurable outcomes. At the same time, data, AI and performance analytics are becoming more important to how campaigns are planned, executed and measured. GameSquare is positioned at the intersection of these trends. We are building a profitable, scalable platform in a large and growing market. We have a committed team, strong client relationships, an expanding set of capabilities and growing confidence in our ability to deliver on our 2026 objectives. We look forward to reporting our full second quarter results in mid-August, at which point we will be able to speak more completely about the quarter and provide updated guidance for the remainder of the year. Thank you for your trust, your vote, and your belief in what we can achieve together. Sincerely, Justin KennaChief Executive OfficerGameSquare Holdings, Inc. 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 Statements: This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable securities legislation. 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 repurchases of its common stock, 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 and the Company continuing to attract qualified personnel to support its development requirements. 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 which are discussed in the Company's most recent MD&A. 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 Investor Relations Andrew BergerPhone: (216) 464-6400Email: [email protected] GameSquare Media Relations Chelsey Northern / The UntoldPhone: (254) 855-4028Email: [email protected] SOURCE: GameSquare Holdings, Inc. View the original press release on ACCESS Newswire

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET Chief Executive Officer — Justin Kenna Chief Financial Officer — Michael Munoz Need a quote from a Motley Fool analyst? Email [email protected] Justin Kenna: Thank you, and good afternoon to everyone joining us on today's call. I'm extremely proud of the progress GameSquare delivered in 2025 as the platform we've been building reached an important inflection point during the fourth quarter. Over the past year, we took decisive actions to streamline our business, strengthen our balance sheet and build a more focused, scalable platform, and our efforts reached a clear inflection point in the fourth quarter. Our fourth quarter results reflect a meaningful step change in profitability, driven by the success of our strategic investments, improved profitability across the business and the contribution from our recently acquired creative marketing platform, Click. As a result, we delivered positive adjusted EBITDA of $1.7 million, marking a key milestone for GameSquare and demonstrating the earnings power and scalability of our operating model. In fact, when considering the contribution from TubeBuddy, our adjusted EBITDA would have been even stronger, underscoring the immediate accretive benefit of the transaction. More broadly, our performance highlights the strength of the integrated ecosystem we've built, combining data and analytics, a scaled creative talent network, integrated agency services and proprietary owned and operated IP. 2025 was all about optimizing our model. As a result, GameSquare strengthened its position as the entry point for the creator economy and expanding our land and expand strategy. While GameSquare's roots are in gaming, what we've really built is creator economy infrastructure. Across our 4 units, we offer what no single competitor can, tools that power creator growth, managed creator networks, full-service campaign execution and one of the most recognized creator-led brands in the world. For any brand looking to reach, understand or activate within the creator economy, GameSquare is where they can enter. As our platform has evolved, so has our go-to-market strategy. Today, we're operating with a more integrated and intentional approach that reflects the full capabilities of GameSquare's end-to-end ecosystem. At the front end, we are increasingly focused on landing new customer relationships through our technology and agency businesses. These offerings provide measurable performance-driven solutions that align closely with how brands are allocating spend in today's digital and creator economy. They also create a strong entry point into the GameSquare platform, allowing us to demonstrate value quickly and establish long-term partnerships. From there, our model is designed to expand relationships across our broader ecosystem. By leveraging our creative media and selling capabilities, we are able to deepen engagement and deliver more comprehensive integrated solutions for our clients. This land and expand strategy is a key driver of our current and future growth model. It enables us to build higher quality, more durable customer relationships while improving revenue visibility and increasing lifetime value. As our platform continues to scale, we believe this approach will drive more efficient customer acquisition, stronger cross-selling opportunities and ultimately higher margin growth over time. With that as context, I'd like to step back and review the actions we took throughout 2025, and more importantly, how those actions have fundamentally repositioned GameSquare for profitable growth and improved operating performance in 2026 and beyond. Throughout 2025, we executed a deliberate strategy to optimize our business model, rationalize our portfolio and build a differentiated end-to-end platform that is both scalable and resilient. Significant actions during the year include divesting our remaining stake in FaZe Media, winding down Frankly Media and acquiring Click. These operational moves have sharpened our focus, improved efficiency and created a more powerful and unified platform that is purpose-built for scale with multiple durable revenue streams working together. Simultaneously, we fortified our financial foundation through a series of opportunistic capital raises at an average cost of $1.41 per share that raised gross proceeds of approximately $85 million. Through the proceeds of these transactions, we paid off essentially all existing debt, ended the year in a significant net cash position and meaningfully strengthened our capital structure. These moves position GameSquare with the strongest, most flexible balance sheet in our history. It provided us with the financial strength and agility to both invest in growth and navigate dynamic market conditions. In parallel, we deployed a portion of our capital into high-performing yield-focused digital asset treasury strategy. While on-chain markets have experienced increased volatility more recently, we believe our disciplined yield-focused approach, combined with the strength of our core operating business has created a differentiated and complementary earnings stream for GameSquare. As part of our initial on-chain strategy, we also acquired a portfolio of digital assets, including NFTs, most notably the Cowboy Ape, which was acquired through a strategic all-stock transaction priced at $1.50 per share. During the first quarter of 2026, we monetized our NFT positions, generating proceeds of approximately $1.5 million in cash and $0.4 million in Ape at the time of the sale as we actively optimize our treasury allocation. These proceeds were used in combination with the yield we received from our treasury strategy to repurchase our stock. Since we initiated the program in October of 2025 and through March 6, 2026, we have repurchased a total of 5.06 million shares for $2.5 million at an average price of $0.49 per share. We view these repurchases as a highly attractive use of capital, particularly given our confidence in the intrinsic value of the business, and they reflect a disciplined and balanced approach to capital allocation. Overall, we view our treasury management strategy as a dynamic and opportunistic capital allocation lever. As market conditions evolve, we will continue to actively allocate capital, deploying or monetizing assets where we believe we can maximize risk-adjusted returns and drive long-term shareholder value. At the same time, I want to emphasize that our core operating business remains the foundation of GameSquare and our primary focus as we move into 2026. So let's look at our core operating business in a bit more detail. Our priorities in 2025 were focused on achieving profitability, streamlining operations and driving higher-margin revenue opportunities across our core media, technology and esports businesses. I'm pleased to report that we made significant progress and achieved every one of these strategic priorities and in many cases, exceeded them. During the fourth quarter, we successfully executed against several of our 2025 strategic actions. Reported revenue on a year-over-year basis increased by 142% and gross margin expanded year-over-year by approximately 20 percentage points to 45.9%. The combination of revenue growth, expanding gross margins and disciplined cost control drove a more powerful financial model. Along these lines, we delivered positive adjusted EBITDA of $1.7 million for the fourth quarter, marking a key milestone for GameSquare and demonstrating the earnings power and scalability of our operating model. The continued improvements to profitability throughout 2025 reflected the second quarter divestiture of FaZe Media, the wind down of Frankly Media in the third quarter of 2025 and the contributions of our improved balance sheet. As we noted in September, we discontinued the operations of Frankly Media, a legacy programmatic advertising solutions provider. The closing of Frankly reflects our strategic shift toward optimizing our business model by exiting noncore, lower-margin operations. This decision also aligns with our goal of eliminating operating losses and cash burn while concentrating on high-growth areas such as agency, media and technology. M&A remains a key component of our growth plan. During the third quarter, we acquired Click Management, a leading talent management firm founded in Australia with a growing U.S. presence. Regularly named as one of the top digital creator agencies by Business Insider and recently awarded Best Talent Management Agency by industry body, AiMCO, Click creators delivered 548 million views across YouTube alone in March of 2026, and currently has a total of 123 million YouTube subscribers. Click has assembled one of the largest English-speaking gaming rosters with approximately 85 active talent. It is important to note that talent is at the core of today's creator economy and bringing Click into the GameSquare family accelerates our long-term strategy. Together, GameSquare and Click will expand the company's reach into creator-led brand partnerships and activations, accelerate growth opportunities within GameSquare's media, agency and experiences ecosystem and drive immediate cost and revenue synergies by integrating Click throughout GameSquare's existing platform. We are actively leveraging Click's platform to aggressively expand our talent roster. Over the coming months, we expect to add high-impact creators, materially expanding our North American presence and enhancing our ability to drive higher-value brand partnerships, increase campaign volume and improve monetization across our platform. This momentum reflects the strength of Click's platform and our ability to consistently attract and retain top-tier talent in an increasingly competitive market. More recently, in February 2026, we announced the acquisition of TubeBuddy from BENlabs in an all-stock transaction. TubeBuddy provides powerful search engine optimization, workflow analytics and productivity tools powered by proprietary AI, which are used by creators and digital publishers to grow, manage and monetize their content. The acquisition adds a scaled creative technology layer to our technology platform, which we believe will accelerate our strategy to build an integrated ecosystem spanning content, community data and performance marketing. TubeBuddy is a high-performing asset. For 2025, TubeBuddy had revenue of $10.2 million, gross margin of over 88% and an EBITDA margin of over 30%. We are excited by the operational and financial opportunities that TubeBuddy represents. Importantly, the accretive acquisition of TubeBuddy demonstrates the evolution of our M&A strategy. As our scale increases and our capabilities expand, we are focused on pursuing compelling operating assets that we expect to be accretive to earnings. With the addition of TubeBuddy, GameSquare's platform includes an AI-enabled software platform with proven tools embedded into creator workflows, anticipated increase to recurring software and subscription revenue, first-party creator and channel data capabilities, powerful cross-platform brand and performance marketing solutions creates new integration opportunities across GameSquare's media, esports and creator networks. Our strategy is designed to leverage our existing relationships with some of the world's leading and most forward-looking brands while also building on the momentum we generated through key customer wins in 2025. Across our platform, we partner with some of the world's most recognized brands, including LEGO, Paramount and TurboTax, alongside leading gaming publishers such as Roblox, Epic Games, Capcom and Ubisoft. These engagements highlight our ability to deliver integrated creator-led campaigns at scale. Within our technology and data platform, Stream Hatchet continued to strengthen its position as a trusted partner to brands, publishers and creators. We saw strong customer retention and expansion, including renewals with Riot Games, Activision Blizzard and Electronic Arts, reinforcing the value of our data and analytics capabilities. We also continue to expand our capabilities with new AI-powered tools, and we were selected as an official data provider for the Esports World Cup. In our agency and brand partnerships business, we executed integrated campaigns for leading global brands and publishers, including Capcom, Roblox, World of Dance, Dairy MAX, Jack in the Box, the Dallas Cowboys, Mastercard and Paramount. Within our talent platform, we recently announced new partnerships with H-E-B, while our own media IP and experiential assets drove growth with a new licensing agreement with SpongeBob SquarePants and the production of the 2025 100 Thieves Block Party. Finally, we continue to expand our relationships across broader gaming ecosystem, including a new management services agreement with Ubisoft. These wins reflect the expanding value of our integrated platform. We are landing customers through our technology and agency capabilities and expanding those relationships across our broader ecosystem, driving higher-value engagements and more durable revenue streams over time. Over the past several months, we have made several strategic leadership additions and organizational changes designed to enhance execution, drive revenue growth and improve operational discipline. We recently appointed Doug Rosen as Chief Commercial and Strategy Officer, where he is responsible for leading our global commercial strategy and driving revenue growth across the platform. Doug brings deep experience from leading media and gaming organizations and his focus on building scalable, repeatable revenue streams and integrated go-to-market execution is directly aligned with our strategic priorities. In addition, we appointed Amaree Tanawong as Chief Operating Officer, further strengthening our operational leadership. Amaree brings nearly 2 decades of experience across strategy, finance and operations, including leadership roles at YouTube and other high-growth media platforms. In her role, she is focused on driving operational scalability, executional discipline and supporting the launch of new revenue initiatives across our integrated ecosystem. We also continue to evolve our organizational structure to better align with our platform strategy. This includes the promotion of Paul Ioakim to Head of Agency, bringing together our agency capabilities under a unified leadership structure to deliver a more cohesive integrated solutions for our clients. These leadership updates reflect a deliberate effort to align our organization with our long-term strategy, enhancing our ability to scale efficiently, drive revenue growth and execute with discipline as we enter 2026. As you can see, 2025 was a transformative year for GameSquare. We took decisive actions to streamline the business, strengthen our balance sheet and build a more focused, scalable platform. Those efforts are now translating into improved operating performance and a clear step change in profitability. Importantly, we believe we are still in the early stages of realizing the full earnings potential of the platform as we move into 2026. So with this overview, I'd like to turn the call over to Mike to review our 2025 fourth quarter financial results. Mike? Michael Munoz: Thanks, Justin. Our reported results for the fourth quarter reflect the successful strategies underway to drive profitable growth. Comparing our 2025 fourth quarter reported results to the prior year, total revenue was $18.5 million compared to $7.6 million. The 142% year-over-year increase in revenue was primarily due to growth across our agency and owned and operated IP segments, including the full quarter contribution of Click. Reported gross margin for the 2025 fourth quarter was $8.5 million or 45.9% of sales compared to $2.0 million or 25.8% of sales for the same period last year. The 20.1 percentage point improvement in gross margin reflects the ongoing efforts to improve profitability and the margin contribution of our digital asset treasury strategy. Adjusted EBITDA for the 2025 fourth quarter was $1.7 million profit compared to $3.1 million loss for the same period last year. The $4.8 million improvement reflects the strategies we are pursuing to drive profitable sales. On a pro forma basis, which includes the contribution of TubeBuddy, revenue was $20.6 million and pro forma adjusted EBITDA was $2.3 million or 11.2% of pro forma revenue. We believe pro forma sales and adjusted EBITDA demonstrate the accretive contribution TubeBuddy will have on our financial performance. As of December 31, 2025, we had cash and cash equivalents and digital asset treasury assets, excluding NFTs of $52.0 million. We ended the quarter with $35.7 million of shareholders' equity compared to $12 million at the end of the last year. As you can see, GameSquare has a strong financial position with excellent liquidity to pursue strategic initiatives, invest in our operating platform and return capital to shareholders. So with this overview, I'll turn the call back over to Justin. Justin Kenna: Thanks, Mike. As you can see, the progress we are making has fundamentally reshaped the company. Over the past year, we've expanded margins, streamlined our cost structure, rationalized our platform, fully cleaned up and strengthened our balance sheet and added a highly scalable growth engine through Click and TubeBuddy. The result is a business that is meaningfully stronger, more focused and more scalable than it was even a few quarters ago. Our balance sheet is healthy. Our strategic priorities are fully funded, and we are entering 2026 with clear operating momentum across every part of the platform. We are winning new programs, expanding relationships with leading brands and publishers, scaling our creator network and continuing to innovate across our operating businesses. We are also positioning the company for our next phase of growth. We are advancing our talent strategy with an expected addition that will bring meaningful creator relationships onto our platform. We plan to extend our agency and platform capabilities to drive growth in the U.S. and internationally, while pursuing opportunities to expand our reach into some of the largest, most high-profile gaming markets. We believe these actions will drive new revenue streams in 2026 and beyond and further establish GameSquare as a scaled leader in the global creator economy. On a pro forma basis, which reflects our plans for the TubeBuddy business, we are reiterating our previously announced annual guidance for fiscal year 2026. We expect revenue in the range of $85 million to $90 million, gross margins of 35% to 40% and adjusted EBITDA of over $5 million. Our outlook reflects continued strong organic growth and the durability of the improved margin profile we established exiting 2025. With the structural efficiencies we have implemented and the operating discipline now embedded across the organization, we believe we are well positioned to scale profitability as the business grows. We are excited about the opportunities ahead and confident in our ability to deliver sustained value for our shareholders. So with this overview, Mike and I are happy to take your questions. Operator, please open up the call to questions. Thanks all. Operator: [Operator Instructions] The first question comes from Jack Codera with Maxim Group. Jack Codera: This is Jack Codera calling in for Jack Vander Aarde. It was nice to see the guidance. Given all the acquisitions and divestitures, are you able to give any color as to what you expect for seasonality going forward, maybe like a very rough percentage range for each quarter? Justin Kenna: Yes, I can take that one, Mike. I'd say probably less so than quarter-by-quarter, Jack. I think the easiest way to think about it is really that the back half of the year is generally a little stronger for a number of reasons, added brand spend ramps a little. We have more activity in the esports market. You have holiday buying formats and consumer product and so forth. I wouldn't say it's extreme in terms of seasonality, but I think the easiest way to think about it is 40-60 in terms of sort of 40% to the first half of the year, 60% to the back half of the year. Within that, I would generally say that Q1 is typically our weakest quarter and Q4 is typically our strongest. But there can be some fluctuation within that. But the easiest way to think about seasonality is 40-60 on a H1, H2 basis. I would sort of preface that by saying Q1 is off to a historically strong start. We have been very busy closing out the year-end orders. So we haven't closed the books there yet, but we certainly feel really, really comfortable about Q1 and the activity that we saw within that quarter. Jack Codera: Okay. That's great to hear. And I saw the revenue segmentation for the full year, but I recognize that, that was kind of adjusting for some of these acquisitions and divestitures. Are you able to provide just the revenue segments for the fourth quarter specifically, kind of where the revenues fell into those segments for that quarter -- for the quarter? Michael Munoz: I can take that one, Justin, if you want. Yes. So I know the quarterly segment disclosure isn't included in our financials, but of our $18.5 million of revenue, $4.2 million was from our owned and operated IP segment, $12.5 million was from our agency segment, which includes our talent agency, Click. $1.2 million was from our SaaS and managed services segment and then $560,000 was from our digital asset treasury yield. Operator: The next question comes from Greg Gibas with Northland Securities. Gregory Gibas: I wanted to, I guess, maybe follow up. You mentioned a strong start to Q1 in terms of the performance there. Maybe more broad, what kind of gives you guidance in your 2026 outlook? And could you maybe speak to the growth pipeline of opportunities as it stands today? Justin Kenna: Yes. Yes, I'll take that one, Mike. I would say, Greg, we feel really, really comfortable in terms of guidance. We believe that these are really conservative numbers. As mentioned, Q1 is off to an extremely positive start. Some of the areas of sort of growth and I would say, outsized growth into 2026, I think to look for. Certainly, our creative deployment business has had an enormous Q1. It's a really big area of growth for us. And we talked in the earnings call a little bit about being the entry point to the creator economy. And what we've been able to do through our creator platform and our data business is really layer those together and have a huge competitive advantage in helping game publishers and brands execute creator deployment campaigns at real scale. We saw a huge amount of activity there within Q1 of the year, and that's certainly going to be a large growth area for us in 2026 off of what we did there in 2025. It's been a bit of an area of focus for us, something we're investing into and certainly taking advantage of. So I'd look to that area as certainly being a big contributor into Q1 and the remainder of the year. We had really nice sort of flow on within our esports business. We spoke last year about really professionalizing the esports space. We've moved our FaZe Esports business to our headquarters in Dallas. And with that, there's some inventory that we've been able to sell against it's been really healthy, and we're seeing one of the very few sort of profitable North American esports businesses. So expect that to be a nice contributor also into Q1. Our agency business continues to go from strength to strength. You can see there in the numbers in Q4. But yes, the most pleasing part of that is just entering 2026 with more locked-in revenue than ever before, right? So certainly, we're still out there looking for new business, but I'd say with our current client mix and recurring revenue base. So Q1, we feel really, really good about, off to a great start to the year. In terms of sort of guidance, I think some of the areas of outsized growth that aren't necessarily baked into those numbers are sort of opportunities into new markets. MENA is certainly one for us. We've talked about it before. There's been obviously increased investment into the esports space with the Esports World Cup and everything going on over in Riyadh, there's some really interesting opportunities for us there. We spoke about the talent and creative space. We're just scraping the surface in terms of the growth into the U.S. I think the acquisition of Click and the business that they built with Australian talent and now growing that U.S. space has been incredible. We have an incredible foundation and now it's really about pouring gasoline on that. So these are some of the areas I look for outsized growth for us to really sort of hit and exceed guidance, which we very much believe we will do so. But yes, in terms of Q1, I'd say really healthy mix of revenue, but certainly, I'd look for a big sort of contribution from that creative deployment managed services space that I mentioned. Gregory Gibas: Great. That's very helpful. I appreciate the color there and good to hear. If I could secondarily ask about kind of capital allocation going forward. And maybe just starting with your stance on M&A, how profiles of future M&A would be relative or similar, I guess, to your acquisitions of Click and TubeBuddy more recently or different in any deliberate way? And maybe as it relates to just capital allocation, maybe, wondering if you're willing to maybe discuss your stance on share buybacks going forward, considering you've been active the last several quarters. Justin Kenna: Yes, happy to touch on both. So yes, I think that profile Greg, is certainly similar to assets that we're looking at. I think we touched on it. I think really, our focus would be within the technology, performance marketing, media, gaming space, really in, call it, $10 million to $50 million of revenue, 5% to 20% EBITDA margins. It's really the businesses that we're looking at. I think, again, to reiterate, in the past, we acquired some really valuable assets, but assets that were burning cash. We've moved beyond that. We've now got to profitability, and we want to scale it. So we're only looking at assets that are accretive. We realized the challenge that exists with really trading where we trade today and obviously, using equity as currencies is challenging. So really, the way that we look at these M&A opportunities is relative value deals. And what I would say is while there's challenges not only for us but many in the micro-cap space in today's markets, within the gaming industry more broadly, we have a great reputation. We get a lot of inbound on M&A for these sort of small to medium-sized stand-alone companies that lack access to capital and liquidity. We're a really nice home. And within that, I think a lot of people see the longer-term vision and understand that we're undervalued today, but hey, 1 plus 1 could equal 5 here, and we believe in the long-term vision. So long story short, Greg, I'd say that profile of company is certainly what we're looking at. But we are very cognizant of dilution. We are obviously working to increase share price. But within that, we'll continue to be opportunistic within M&A, but certainly from a relative value type deal. Again, if you look at TubeBuddy, that was exactly what that deal was, right? 5 million shares to a company that did $10 million in revenue or 30% EBITDA margin. It's basically unheard of. And that's finding a partner that really believes in the long-term vision. So we continue to be active within M&A, but certainly more opportunistic until share price really starts to move. And then on share buybacks, I think we've been using the yield we've been generating from our [indiscernible] to buy back shares. We bought back obviously, over 5 million shares. We have space currently from our current sort of approval from the Board to do another $2.5 million worth. We will continue to buy back stock. Whether we get more aggressive on the buyback or not remains to be seen. And that will really come down to how the share price moves off the back of profitability, continued catalysts that we have coming. What I would say is we are really excited, I'd say, by the progress that we've made and by what lays in front of us. We understand how undervalued we are. We're equally impatient. We share shareholders' frustration. And so we will continue to look to buy back stock. and really depending on how -- obviously, there's macro factors at play as well. But depending on how the stock starts to move based off of the catalysts we have coming here over the next 3 to 6 months, we'll really determine how aggressive we are on that front. Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Justin Kenna for any closing remarks. Please go ahead. Justin Kenna: Yes. I just want to say thanks, everybody, for joining today and certainly for the continued support. Again, I think it's the elephant in the room, it's certainly our share price. And I just wanted to reiterate that we share the frustration around where the share price sits today. But we really do view this in terms of a longer-term play and building really long-term value for shareholders. What I would say, we've talked about hitting profitability in the back half of '25 for some time. We did a lot of work to get there. I'm really proud of the team and want to really give applause to all of our team. We've got a really dedicated workforce who works extremely hard. So I just wanted to give a huge shout out to all of our staff. But yes, I feel really, really good about the progress that we've made in terms of doing the things that we say we will do, and we feel really strongly about where we're headed in 2026. So again, I just wanted to thank everybody who joined the call and our shareholders for their continued support. We're not going to leave any stone unturned in terms of continued progress in growth and ensuring that we drive value for shareholders. And we really believe that things are going to start to turn here in 2026. But thank you, everyone, for joining the call. We're really excited to touch base again and report back on our progress with our Q1 results in very short order here. So I look forward to that, and thanks for joining the call. Cheers. Operator: This brings to a close GameSquare's 2025 Fourth Quarter Financial Results Conference Call. You may disconnect your lines. Thank you for participating, and have a pleasant day. Before you buy stock in GameSquare, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GameSquare wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. GameSquare (GAME) Q4 2025 Earnings Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, May 14, 2026 at 5 p.m. ET Chief Executive Officer — Justin Kenna Chief Financial Officer — Michael Munoz Need a quote from a Motley Fool analyst? Email [email protected] Justin Kenna: Thank you, and good afternoon to everyone joining us on today's call. GameSquare is off to a solid start in 2026. Our first quarter results were in line with our expectations during what is typically the seasonally slowest period of the year, and we're excited by the momentum we're seeing across our platform. Our performance reflects the organic contribution of the integrated business that we've built as well as the early benefits of recent acquisitions, including Click, our creator marketing and talent business and TubeBuddy, our AI-enabled software and workflow platform for creators and brands. We believe these acquisitions have meaningfully expanded our position in the creator economy, providing our customers with a single entry point for reaching these audiences. Click gives us a deeper ability to identify, manage, deploy and monetize high-value creators for brand and publisher campaigns, while TubeBuddy adds a scaled technology layer that supports creators and digital publishers with workflow analytics, optimization and AI-enabled tools. Together, these capabilities strengthen our ability to connect brands, creators, publishers and audiences through a more complete and differentiated platform. We are seeing clear evidence that GameSquare's platform is resonating with larger clients and driving bigger opportunities. Within GSX and our broader agency business, average deal size is increasing with 70% of programs now over $200,000, and we've doubled the number of $1 million-plus opportunities. These are larger programs and larger clients, and they are increasingly pulling in multiple parts of our ecosystem, including creators, content, media, data, experiential production and live activations. Importantly, we believe that this validates GameSquare's strategy to serve as a gateway into the creator economy, combining proprietary data, technology, creator relationships and gaming expertise to help brands reach digital native audiences in more authentic, measurable and scalable ways. We are also continuing to execute a disciplined capital allocation strategy focused on driving growth, improving profitability and creating long-term shareholder value. That includes investing behind the areas of the business where we see the greatest return potential, pursuing strategic M&A and evaluating opportunistic share repurchases when we believe that the market is not appropriately valuing our business. We continue to expand the talent, technology and capabilities that make GameSquare unique. The recent addition of Justin Miclat as Chief Growth Officer of Click, together with the signing of leading creators such as Steak and others, further strengthens our position at the center of the creator economy. Combined with Click and TubeBuddy, these additions enhance our ability to scale high-value talent, create new monetization opportunities and deliver more integrated solutions for brand partners. We are excited with the direction that we're headed and believe that GameSquare is increasingly well positioned to deliver against our 2026 plan. With that as a background, I'll use my time today to review our first quarter performance, discuss the progress that we're making across the business and provide an update on our expectations for the year ahead. During the first quarter, we executed against several important strategic priorities and delivered strong financial results that were in line with our expectations. Reported revenue on a year-over-year basis increased by 95% and gross profit dollars expanded year-over-year by nearly 77% or by $2.4 million. The combination of revenue growth and higher gross profit continues to support the development of a more scalable financial model. Along these lines, we also improved our first quarter adjusted EBITDA loss year-over-year on a pro forma basis. Including the contribution from TubeBuddy, our adjusted EBITDA loss was just $656,000, which was consistent with our expectations for the seasonally slowest quarter of the year. Importantly, these results demonstrate the continued progress that we're making toward a full year of profitability. As a reminder, in February 2026, we announced the acquisition of TubeBuddy from BetLabs in an all-stock transaction. TubeBuddy provides powerful search engine optimization, workflow analytics and productivity tools powered by proprietary AI, which are used by creators and digital publishers to grow, manage and monetize their content. The acquisition adds a scale creative technology layer to our technology platform, which we believe will accelerate our strategy to build an integrated ecosystem, spanning content, community, data and performance marketing. Importantly, the accretive acquisition of TubeBuddy demonstrates the evolution of our M&A strategy. As our scale increases and our capabilities expand, we are focused on pursuing compelling operating assets that we expect to be accretive to earnings. Just this morning, we announced the appointment of Justin Miclat as Chief Growth Officer of Click and added several major creators to Click's roster, including Steak, the second largest Roblox creator. The newly added talent is expected to generate more than $5 million of incremental annualized revenue while enhancing GameSquare's ability to connect leading creators with global brands through its integrated platform spanning talent management, data analytics, creative services and experiential activations. These additions provide several important benefits to GameSquare. First, Steak and other recently added creators expand our reach. Secondly, Justin brings a proven track record of scaling and monetizing leading digital talent. Thirdly, these additions create profitable creator-driven revenue streams with attractive operating leverage. And finally, they reinforce GameSquare's ability to consistently attract and retain top-tier talent in an increasingly competitive market. Adding high-impact creators materially expands our presence and enhances our ability to drive higher-value brand partnerships, increase campaign volume and improve monetization across our platform. These positive trends reflect the strength of our platform and our ability to consistently attract and retain top-tier talent in an increasingly competitive market. Our integrated platform is driving strong momentum as we provide valuable solutions that connect brands, creators and consumers at scale. One of the clearest examples of this progress was the performance of our GameSquare Experiences division, or GSX, which generated record first quarter 2026 bookings of more than $10 million. This performance was driven by continued demand from leading video game publishers and global brands seeking to connect with Gen Z and digital-first audiences through authentic measurable campaigns. Importantly, GSX currently serves many of the largest video game publishers in the world, underscoring the relevance of our platform within the global gaming ecosystem. GSX is a strong example of how GameSquare's integrated platform is translating into real commercial momentum. The division brings together creators, content data, media strategy, consumer products and large-scale experiential execution to help bridge digital influence with real-world engagement. During the quarter, GSX executed a range of live events, hybrid experiences and digital-first campaigns designed to connect online and offline communities. Other recent customer and partnership wins further validate the growing momentum we are seeing across GameSquare's ecosystem. During the quarter, we announced the fourth annual renewal of Zoned's long-standing partnership with Dairy Max, reflecting the continued value we are delivering to recurring brand partners. We also expanded our partnership with Capcom to support the global launch of Resident Evil Requiem, the newest title in the globally recognized Resident E franchise. In addition, we continue to see strong execution across FaZe Esports. FaZe won the Six Invitational 2026, paying over $1 million in prize money, which contributed to revenue in the first quarter. This marks the second consecutive year that FaZe Esports has earned the title of World Champion, and we believe it is powerful validation of FaZe's position at the top of global competitive gaming. Now, on to Q2. Positive first quarter trends recently accelerated, and we are encouraged by the growing momentum we are seeing early in the second quarter and the visibility we are building for the balance of the year. We believe our integrated platform is resonating with brands and publishers as they increasingly look for measurable creative-led solutions that combine digital reach, real-world engagement and authentic connections with Gen Z, Gen Alpha and millennial audiences. Recent wins include the continued expansion of our work with several leading global video game publishers. We've already started multiple new programs that are expected to contribute to second quarter sales, while also building a broader pipeline of opportunities for the second half of the year. These programs reflect the increasing demand we see for GameSquare's ability to combine creative content, live experiences, media, data and production into integrated campaigns that engage both digital and IRL audiences. In addition to the momentum we are seeing with individual publisher programs, we are also building a strong track record helping leading game publishers and brands launch, promote and extend engagement around major titles and gaming communities. This includes identifying and procuring the right creators, developing the creative strategy and helping deploy campaigns across content, media, live experiences and community channels. During the first quarter of 2026, this area of the business generated approximately $2.2 million of revenue. This includes recent programs for Capcom, Ubisoft and other leading game publishers. We expect this to be a major contributor into Q2 and certainly in the back half of 2026. We are also gaining strong traction in what we view as an important IP creation opportunity for brands and publishers. Programs such as Into the Zone for Epic Games and the Roblox creator Showdown demonstrate our ability to develop original repeatable formats that can be monetized across multiple aspects of the GameSquare ecosystem. These properties bring together creators, publishers, brands, content media, live experiences, sponsorships, production and community engagement in a way that creates multiple high-value revenue opportunities across our platform. Importantly, these programs are a strong proof of our land and expand strategy. Across Into the Zone and Roblox creator Showdown, we have developed multiple pieces of IP with our clients, supporting approximately 10 events globally in 2026 and generating approximately $5.5 million of revenue to date. We have already locked in events in the U.S., Germany and London with an event in Brazil coming, highlighting both the global production capabilities we have built and the opportunity to expand successful programs into additional markets, formats and commercial relationships over time. We are also seeing strong momentum at Click. With the recent addition of several high-profile creators, Click is positioned to deliver, what we expect in Q2, to be the largest quarter in its history. The timing of these additions, combined with the appointment of Justin Miclat gives us added confidence in our ability to scale talent, improve monetization and drive higher-value brand partnerships with a focus on the U.S. market. A recent example of Click's growth is the expansion of hungryboy Hot Sauce, the viral hot sauce brand from YouTube Collective of The Boys, which launched in November of 2025 across HGV grocery stores and has since expanded to Spencer's and nearly 300 World Market stores. This success highlights our ability to convert creator influence into scalable consumer products, retail distribution and incremental monetization opportunities. We expect to add additional commercially relevant creators to our platform during the second quarter, further expanding a talent ecosystem built to drive brand partnerships, consumer products, content and experiential revenue. Within Stream Hatchet, we recently launched Creative Communities, which is a new way of handling the entire creator marketing process in one place from creative discovery and onboarding to activation and reporting. As campaigns become more data-driven and performance-focused, companies are looking for platforms that can manage creator discovery, drive positive campaign execution and provide performance analytics in a single workflow. Creator Communities represents the next step in Stream Hatchet's evolution from a data analytics platform into a broader creator marketing platform. We expect this new AI-enabled platform to begin generating revenue in the back half of 2026. Finally, we are seeing growth from brands and video game publishers across the globe. This includes meaningful opportunities across the Middle East and Asia within our agency business. As I mentioned before, our events business is producing multiple activations globally that coincide with some of the year's biggest cultural events. In addition, GameSquare will once again be well represented at this year's esports World Cup, which will take place from July to August and will feature a record-breaking $75 million prize pool. As you can see, we believe that we are well positioned for a strong second quarter and an even bigger second half of 2026. We are attracting and retaining leading brand and publisher relationships, scaling creator-led and experiential offerings and converting our position in gaming and youth culture into measurable commercial opportunities. With increasing visibility into the second quarter and the back half of the year, we remain extremely confident in our ability to execute against our full year sales and profitability outlook. Before I turn the call over to Mike, I want to briefly mention our upcoming Annual Meeting of Stockholders, which will be held virtually on June 18, 2026. Stockholders of record as of April 23, 2026, are eligible to vote. Your vote is important. In addition to the routine matters being voted on, stockholders are being asked to approve a proposal that would allow us to restate our certificate of incorporation and make several governance and corporate structure updates. These include eliminating supermajority voting requirements, to amend our certificate of incorporation, declassifying our Board of Directors, increasing the number of authorized shares and making other nonmaterial changes. I want to emphasize that we believe this proposal is important to GameSquare's continued evolution as a public company. Importantly, we understand there may be some misconceptions around the proposal, particularly as it relates to the increase in authorized shares. Increasing authorized shares does not mean these shares are being issued nor does it mean the company is automatically diluting stockholders. Rather, it is intended to provide GameSquare with appropriate flexibility to support our long-term strategy, including potential strategic opportunities, growth investments, balance sheet management and other corporate purposes that may create value over time. We are asking shareholders to take a few minutes to review the proxy materials and vote their shares. Whether you own a large position or a small position, your vote matters and helps ensure your shares are represented at the annual meeting. We appreciate the continued support of our stockholders and encourage everyone eligible to vote to do so as soon as possible. So with this overview, I'd like to turn the call over to Mike to review our 2026 first quarter financial results. Mike? Michael Munoz: Thanks, Justin. Our reported results for the first quarter of 2026 reflect the successful strategies underway to drive profitable growth. Comparing our 2026 first quarter reported results to the prior year, total revenue was $14.5 million compared to $7.4 million. The 95% year-over-year increase in revenue was primarily due to the acquisition of Click and TubeBuddy as well as large growth in our marketing agency operating segment. Reported gross margin for the 2026 first quarter was $5.6 million or 38.4% of sales compared to $3.2 million or 42.5% of sales for the same period last year. The slight year-over-year decline in gross margin was due to the change in revenue by product mix. Adjusted EBITDA for the 2026 first quarter was $1.1 million loss compared to $0.6 million loss for the same period last year. The $1.5 million improvement reflects the strategies we are pursuing to drive profitable sales. On a pro forma basis, which includes a full quarter contribution of TubeBuddy, revenue was $15.8 million and pro forma adjusted EBITDA loss was just $0.7 million or 4.2% of pro forma revenue. We believe pro forma sales and adjusted EBITDA demonstrate the accretive contribution TubeBuddy will have on our financial performance. As of March 31, 2026, we had cash and cash equivalents and digital asset treasury assets of $35.9 million. GameSquare has a strong financial position with excellent liquidity to pursue strategic initiatives, invest in our operating platform and return capital to shareholders. With that overview, I'll turn the call back over to Justin. Justin Kenna: Thanks, Mike. We continue making progress scaling our business, growing sales and improving profitability. We also remain focused on balancing investment in growth with disciplined actions to create long-term shareholder value. In April, we completed our largest monthly repurchase to date, buying back nearly 2.3 million shares for approximately $1 million at an average price of approximately $0.44 per share. Since initiating the program in October of 2025, we repurchased 3 million shares for approximately $3.5 million at an average price of approximately $0.47 per share. Following April's repurchase activity, we had approximately $11.4 million remaining under our current authorization, which was expanded on April 14, 2026. We believe recent repurchases reflect both the strength of our balance sheet and our conviction that at current trading levels, GameSquare's share price does not reflect the underlying value of the business that we are building. As a result, we expect to remain opportunistic and disciplined in using our authorization while continuing to invest behind the growth opportunities across our platform. We are also positioning the company for our next phase of accelerating growth. We are advancing our talent strategy with the addition of meaningful creator relationships that will add $5 million of incremental annualized revenue to our business. We plan to extend our agency and platform capabilities to drive growth in the U.S. and internationally while pursuing opportunities to expand our reach into some of the largest, most high-profile gaming markets. We believe these actions will drive new revenue streams in 2026 and beyond and further establish GameSquare as a scaled leader in the global creator economy. Based on the momentum we see across the platform, our confidence in the year is increasing, and we are encouraged by how the second quarter is shaping up. On a pro forma basis, which reflects our plans for the TubeBuddy business, we are reiterating our previously announced annual guidance for fiscal year 2026. We expect revenue in the range of $85 million to $90 million with gross margins of 35% to 40% and adjusted EBITDA of over $5 million. Our outlook reflects continued organic growth and improving year-over-year profitability. With the structural efficiencies we have implemented and the operating discipline now embedded across the organization, we believe we are well positioned to scale profitability as the business grows. We are excited about the opportunities ahead and confident in our ability to deliver sustained value for our shareholders. So with this overview, Mike and I are happy to take questions. Operator, please open the call up to questions. Thank you. Operator: [Operator Instructions] The first question comes from Jack Vander Aarde with Maxim Group. Jack Vander Aarde: Okay. Good to see all the moving pieces seem to be coming together and congrats on the maintained pro forma outlook. Justin, there's a lot to -- you covered a lot of ground there. I'm trying to figure out where I want to start. In terms of the events side of the business, it sounds like there's quite a bit of things mapped out for the rest of this year and with the World Cup coming up as well. With all these new businesses you've acquired including your agency kind of pipeline here, how are you looking at capitalizing and making the most of your events pipeline, including maybe World Cup and other major flagship game releases such as even GTA knock on wood down the road? Justin Kenna: Yes. I think it's a great question, Jack. GSX was really formed in 2025, I think the growth of the GSX business has been incredibly pleasing. I think really, it was borne out of an extension of Zoned, our agency business and the 2 partner together hand-in-hand, right? Like being able to -- post-COVID being able to mix that digital strategy with IRL has been extremely important. So to be able to have multiple locked-in events with Epic Games and Roblox and doing new IP with them on both fronts, not only just here in the U.S., but also internationally is incredibly pleasing. To your point around how we sort of think about moving forward, I think we've got a lot of locked-in revenue there between those 2 major publishers, which is exciting. It also includes some activations around the World Cup. So that hasn't been announced yet. So it's more of a watch this space, but we certainly do. And I think something that we're doing a lot better in bolstering our commercial team is getting out in market really proactively, right, around a lot of these large cultural tentpole moments. So seeing from the gaming space that might be things like GDC, TwitchCon, other big opportunities, but also, obviously, in the U.S. with the World Cup around NFL and Super Bowl with the Olympics coming, we've been really proactive with inventory in pitching not only our current client base, but also new clients. And that's starting to translate into a really healthy sort of revenue pipeline. So yes, really pleased about how that's progressing. The GSX team working hand-in-hand with Zoned and being able to build out digital strategy but also bring them to life with those experiential and large IRL activations is really pleasing. I would reiterate that our numbers, we're pleased with Q1. But really, for most of those who are tracking the story, there's real seasonality in our business. So a lot of that activity is picking up into Q2 and the back half of the year. So what's really pleasing, Jack, and why we're so confident in these numbers is a lot of that revenue is locked in, right? And so we're seeing a lot of sort of increased activity. We're getting a lot of RFPs at the moment. And so we think there's real upside from there. But certainly, we've got really healthy lock-in revenue, not just around game launches and with game publishers, but as we mentioned, around World Cup and some of the big large cultural moments. Jack Vander Aarde: Okay. Great to hear there. And maybe if I could just shift gears, the digital asset strategy. I'm not sure if you've had a chance to digest, but there was some progress made on the Clarity Act in the news today. Can you maybe just touch on your overall digital asset strategy with Dialectic and kind of any thoughts on looking at digital assets to be integrated throughout your core business? Justin Kenna: Yes absolutely. So yes, there's been a few catalysts. I think that we see towards the end of last year and start of this year, the markets were hit. And for anybody reviewing the financial statements, obviously, that's the large majority of the net loss, right? The unrealized losses from the fluctuation in those crypto numbers. We haven't been selling it. Like we talked about last time, we sold early on in the game position to pay off our long-term debt. So again, to reiterate from a long-term debt perspective, we're clear that we've got a really clean balance sheet now. We're pretty bullish. I think there's a number of indicators on sort of moving up here. Like you mentioned there, Jack. But again, I would reiterate, we don't consider ourselves a gap in the traditional sense. There's a number of entities that have acquired Bitcoin or even they're holding crypto into perpetuity. For us, from a balance sheet perspective, it's a cash management strategy, like we talked about, obviously, generating yield off of the E that we hold through Dialectic. But we have a very clear strategy in diversifying into stablecoin that we can generate yield off of and into cash where we want to buy back our shares or invest in growth assets. Our priority is our operating business while remaining bullish in the digital asset space. And again, I would kind of reiterate that flywheel approach that I just don't think others have, right, which is our digital asset strategy has really benefited the core operating business. We've yielded close to $8 million in revenue and new deals from -- since we launched the [indiscernible] with [indiscernible], Zuki and [indiscernible], these Web3 companies that are trying to access Web2 audiences. So we remain bullish. There's a lot of opportunity for our operating business to drive revenue. We've got a great relationship with Dialectic who return higher than market yields. But in saying that, we'll continue to be opportunistic and look at ways to drive value for our shareholders, right? And I think we've shown that in buying back our shares through accretive M&A transactions. We remain bullish in the space, Jack, but our priority, I think, as we've shown, is our operating business, and we're extremely bullish about being able to scale that. Jack Vander Aarde: Okay. Great. And maybe if I could just ask one more. And this could be for Mike as well. Just kind of looking at -- as your business scales, you're definitely a global business now, and you have a lot of events, a lot of different verticals that you're involved with, especially with these acquisitions now. You touched on the Middle East and Asia. Just curious to get a sense of how material are these other regions in the world? Are we in the early innings of this kind of ramp-up? Just touch on all the different things you're involved with in the Middle East and Asia or just a highlight of a couple. Justin Kenna: Yes. I can touch on that. Mike can certainly add any color if you would like. I would say that there will be certainly news to come here in the near term. We have a strategic partnership in the Middle East where there will be some more details to come, and I would expect revenue to flow into Q2 and certainly into the back half of the year. I would say that our opportunities in the Middle East are more advanced than those in Asia currently. We're just more early stage, but we are actively having discussions with a number of boots on the ground in China currently, and there's certainly opportunities in multiple facets of our business from esports and partnering with FaZe and licensing that brand into our event capability, which is really grown organically, right, through Roblox and Epic and a lot of the clients we work with, they want to be activating globally. So that's been really organic and really positive. But in terms of, I'd say, meaningful kind of revenue flow and how advanced these discussions are, Middle East, much more so than Asia at this stage. We're in very active talks with some of the biggest automotive brands in Riyadh and in the Kingdom and trade shows, airlines. There's a real pipeline there, active conversations, and we expect that to kind of be upside revenue into Q2 and certainly in the back half of the year. But I think there's a lot of opportunities in Asia as well. And that's -- I would expect that realistically, Jack, be a Q4 and 2027 impact on the P&L. Jack Vander Aarde: Okay. Great. And I said that was my last question. Just one more for clarity. Going forward now, starting with the second quarter, are we now on a steady kind of apples-to-apples basis now given all the acquisitions that have been integrated and divestitures? Is now 2Q a clean compare for the rest of this year? Michael Munoz: 2Q will have like a full quarter contribution of TubeBuddy, but it's still year-over-year, right, Q2 of '25, it's -- those results are going to exclude Click and TubeBuddy. Operator: The next question comes from Greg Gibas with Northland Securities. Gregory Gibas: Justin, you spoke to the broader pipeline of opportunities you're seeing heading into the second half of the year. In terms of maybe annual revenue cadence, is the 40%, 60% split between first half, second half expectations still pretty fair? And maybe tied to that, could you speak to the overall brand campaign spend environment or outlook as we move into your seasonally stronger quarters, perhaps as it relates to demand trends you saw in 2025? Justin Kenna: Yes. I can touch on both. I think, Greg, high level, that's the right way to think about things is sort of 40% first half of the year, 60% second half of the year, that's historically been correct, and we would expect it to be similar. In saying that, we would expect Q2 to be materially larger than Q1 and can confidently say that we've already exceeded revenue for Q1 and Q2 with what are we 6 weeks to go. So we're in really good shape. I think again, there might be a misconception that the company has gone backwards here from a big Q4 with profitability into Q1. But as you and anyone following the story in this space know, there is seasonality and not just sort of first half to back half, like Q1 is historically the lowest quarter, and you'll see that by the amount of revenue growth that we've had year-on-year, and we are really making progress. But the pleasing part is a lot of that revenue is sort of locked in. In terms of activity, I'd say it's picking up really aggressively. Start of the year was a little slow. It is generally, but I think there was a bit of uncertainty and fear out in the brand sort of spend market. We've been seeing that pick up enormously over the last couple of months. RFP inflow, just yes, a lot more activations, a lot more campaigns going on. I'd say a lot more activity than this time last year, probably not just the macro factors, it's also a combination of us growing our team and having more people out there and really growing and expanding our capabilities and services. But yes, I think macro conditions right now are really quite pleasing in this space. But yes, Q2 is shaping up really well. Back half of the year is shaping up well. And yes, we're certainly on track to hit our numbers. Gregory Gibas: That's great. Nice to hear about those accelerated client wins early in Q2 here, and I appreciate that insight into the kind of trends and seasonality. As kind of changing gears, your M&A outlook for the foreseeable future, is the integration of recent acquisitions and utilizing cash for share repurchases more of a priority right now? Or would you say M&A is still a key focus? Just trying to get a sense of maybe your capital allocation priorities. Justin Kenna: I would say the key focus is our core business and getting it to scale, which we're starting to. I think we're getting a lot more efficient and really proving out that profitability thesis. And I think to do that, we need to prove our profitability for the year, which we're extremely confident we will do. In saying that, certainly, as we've mentioned, we will look to continue to repurchase our shares. We're extremely undervalued, and we want to fix that. And certainly, putting our money where our mouth is helps there, but obviously, that first piece of proving out profitability also helps. As it pertains to M&A, I think we're getting a huge amount of inbound. It is certainly, I would say, a buyers market right now, especially in our space. So a lot of really interesting medium-sized assets from technology to performance marketing to media assets. I'd say, in the sort of $10 million to $40 million range, 10% to 20% EBITDA that don't have access to capital, don't have access to liquidity that could fit in really well within our ecosystem. So we're definitely looking, Greg, always at how do we get better, how do we get to scale. But how do we do so in a way that doesn't dilute shareholders is accretive and makes sense, right, where we can hopefully get multiples in public markets here as markets start to give us a few green light. So the way we think about those, one, has to be accretive. We're not looking at anything being cash. But two, it needs to be relative value. we're not going to go and give a company what they might expect top line because our equity is undervalued. And we do like to use equity currency in those deals. We've got a strong balance sheet. So obviously, there's some flexibility there. So yes, we'll remain to be opportunistic on the M&A front. I wouldn't say that it's a priority. I think our priority in our operating business is proving out the cash flow thesis it's getting to scale. But we do have a fair bit of inbound on the M&A front. But I would say, again, really cognizant of dilution, really cognizant of shareholder value. And those deals really do need to be relative value, and we're very clear on the upfront. But I think there's a lot of people who see the value of what we're building, 1 plus 1 equaling 5 and wanting to be a part of this into the future. So certainly remaining opportunistic on that front. Operator: This concludes the question-and-answer session. I would like to turn the conference back over to Justin Kenna for any closing remarks. Please go ahead. Justin Kenna: Thank you. Yes. I just want to say thanks, everyone, for joining. I think that Q1 is very much in line with where we expected to be. I think Q2 activity is really, really pleasing. And if anything, we're a little ahead of where we thought we might be. So we are very, very much on track. We're making great progress, and we're very excited to sort of catch up and give those updates to all of you. But yes, certainly making great progress and appreciate the support. So thanks, everyone, for dialing in. Cheers. Operator: This brings to a close GameSquare's 2026 First Quarter Financial Results Conference Call. You may disconnect your lines. Thank you for participating, and have a pleasant day. Before you buy stock in GameSquare, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GameSquare wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!* Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. 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Client wins have accelerated early in the second quarter supporting expected strength in second quarter and second half of 2026 sales FRISCO, TX / ACCESS Newswire / May 14, 2026 / GameSquare Holdings, Inc. (NASDAQ:GAME), ("GameSquare", or the "Company"), today announced financial results for the three months ended March 31, 2026. Justin Kenna, CEO of GameSquare stated, "GameSquare is off to a solid start in 2026, delivering first quarter results that were in line with our expectations during what is typically the seasonally slowest period of the year. Our performance reflects the increasing contribution of the integrated platform we have built, the expanding benefits of recent acquisitions, and the investments we are making in our go-to-market strategy. Importantly, recent sales activity reinforces the value of our solutions and our ability to connect brands, creators, and audiences across the global creator economy." Kenna continued, "We continue to evaluate opportunistic share repurchases, strategic M&A, and investments that can strengthen our platform, expand our creator ecosystem, and drive profitable growth. The recent additions of Justin Miclat and the popular creator "Steak" further enhance our ability to identify, recruit, monetize, and deploy influential creator talent with highly engaged audiences and meaningful brand appeal. These additions deepen our creator network, expand the commercial opportunities we can bring to brand partners, and reinforce the value of our integrated platform. One example has been our growing relationship with Capcom, where we supported the launch of their Resident Evil™ Requiem title in the first quarter of 2026 that became Capcom's most successful launch in the franchise to date. Another recent example is Hungryboy Hot Sauce, the viral hot-sauce brand from YouTube collective The Boys, which launched in November 2025 across H-E-B grocery stores and has since expanded to Spencer's and nearly 300 World Market stores. This success highlights our ability to convert creator influence into scalable consumer products, retail distribution, and incremental monetization opportunities. We expect to add additional commercially relevant creators to our platform during the second quarter, further expanding a talent ecosystem built to drive brand partnerships, consumer products, content, and experiential revenue." "Sales momentum has accelerated early in the second quarter, supported by expanded programs with several of the top video game publishers, recent creator additions, and growing opportunities across all aspects of our business. These wins leverage GameSquare's full platform, including talent, creative, media, data, and experiential production, and provide increased visibility into our expected second quarter performance and second half growth. Based on current expectations, recent creator additions, and the Company's current operating plan, we are reaffirming our full year 2026 guidance of $85 million to $90 million in proforma revenue and more than $5 million of adjusted EBITDA, subject to the risks and uncertainties described below," Kenna concluded. Reported results for the three months ended March 31, 2026, compared to March 31, 2025 (unaudited) Revenue of $14.5 million, compared to $7.4 million Gross profit of $5.6 million, compared to $3.2 million Gross margin of 38.4%, compared to 42.5% Net loss from continuing operations of $17.6 million (see following bullet), compared to $3.8 million. The $17.6 million net loss in the first quarter of 2026 included a $14.6 million change in fair value loss on digital assets and $1.1 million of one-time transaction costs related to the TubeBuddy acquisition Adjusted EBITDA loss of $1.1 million, compared to an adjusted EBITDA loss of $2.6 million Adjusted EBITDA was -7.6% of revenue, versus -34.7% of revenue Proforma* results for the three months ended March 31, 2026 (unaudited) Revenue of $15.8 million Gross profit of $6.8 million Gross margin of 43.1% Adjusted EBITDA loss of $0.7 million, or -4.2% of proforma revenue * Proforma financial results include TubeBuddy for the 2026 first quarter. All quarterly financial information and proforma is unaudited. Stock Repurchases During the first quarter, GameSquare repurchased 2.07 million shares of its common stock for $0.75 million, representing an average price of approximately $0.36 per share. As of May 13, 2026, GameSquare has repurchased 7.35 million shares of its common stock for $3.6 million, representing an average price of approximately $0.47 since the Company's repurchase program started in October 2025. The Company has approximately $11.4 million remaining under its current authorization. Strategic Talent Additions On May 14, 2026, GameSquare announced the appointment of Justin Miclat as Chief Growth Officer of its wholly owned subsidiary Click and the addition of several major creators to Click's roster, including Steak, the second-largest Roblox creator, which further strengthens GameSquare's position as a scaled platform at the center of the creator economy. The newly added talent is expected to generate more than $5 million of incremental annualized revenue, while enhancing GameSquare's ability to connect leading creators with global brands through its integrated platform spanning talent management, data analytics, creative services, and experiential activations. These additions add the following benefits to GameSquare's platform: Expands creator reach: Adds Steak and other top creators across gaming's largest platforms. Adds proven leadership: Justin Miclat brings a track record of scaling and monetizing leading digital talent. Increases revenue visibility: Recently added talent is expected to generate over $5 million of incremental annualized revenue. Deepens brand opportunities: Creates more inventory and audience reach for creator-led campaigns. Supports scalable growth: Adds creator-driven revenue streams with attractive operating leverage. TubeBuddy Acquisition On February 20, 2026, GameSquare entered into an asset purchase agreement with BENlabs to acquire TubeBuddy, an AI-enabled software and workflow platform for creators and brands focused on optimizing YouTube channel performance and audience growth. The addition of TubeBuddy enhances GameSquare's technology stack, expands direct relationships with creators, and creates new opportunities for data-driven brand partnerships and monetization. With the addition of TubeBuddy, GameSquare's platform includes: An AI-enabled software platform with proven tools embedded into creator workflows Anticipated increase to recurring software and subscription revenue First-party creator and channel data capabilities Powerful cross-platform brand and performance marketing solutions Expands opportunities across GameSquare's media, esports, and creator network According to company estimates, TubeBuddy has helped more than 10 million creators on their YouTube journeys. Its technology is designed to help creators grow faster, increase per-video views, and drive stronger subscriber growth. TubeBuddy also serves major media companies and global publishers. 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. GameSquare's Treasury Management Assets at March 31, 20261: Ethereum ("ETH") Assets: The Company held 15,502.70 ETH, 5,435.25 of which was in its onchain yield strategy with Dialectic. Altcoin Assets: The Company had $1.6 million of altcoins on its balance sheet at March 31, 2026, in $Anime and $Rekt Coin. Total Digital Asset Treasury Assets + Cash: The Company had $35.9 million in ETH, Altcoin investments, interests in the Dialectic onchain yield strategy and cash, or $0.37 per share as of March 31, 2026. Cash at March 31, 2026, was $2.4 million, with an additional $1.8 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: May 14, 2026 Time: 5:00 pm ET Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=lSzKJbOc Investor Relations Andrew Berger Phone: (216) 464-6400 Email: [email protected] Media Relations Chelsey Northern / The Untold Phone: (254) 855-4028 Email: [email protected]   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 applicable securities legislation. 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 which are discussed in the Company's most recent MD&A. 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)   GameSquare Holdings, Inc. Consolidated Statements of Operations and Comprehensive Loss (Quarterly information unaudited)   Management's use of Non-GAAP Measures This release contains certain financial performance measures, including "EBITDA" and "Adjusted EBITDA," that are not recognized under accounting principles generally accepted in the United States of America ("GAAP") and do not have a standardized meaning prescribed by GAAP. As a result, these measures may not be comparable to similar measures presented by other companies. For a reconciliation of these measures to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled "Reconciliation of Non-GAAP Measures" below. We believe EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define "EBITDA" as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense. Adjusted EBITDA We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define "Adjusted EBITDA" as EBITDA adjusted to exclude extraordinary items, non-recurring items and other non-cash items, including, but not limited to (i) share based compensation expense, (ii) transaction costs related to merger and acquisition activities, (iii) arbitration settlement reserves and other non-recurring legal settlement expenses, (iv) contract exit costs, primarily comprised of employee severance resulting from integration of acquired businesses, (v) impairment of goodwill and intangible assets, (vi) gains and losses on extinguishment of debt, (vii) change in fair value of assets and liabilities adjusted to fair value on a quarterly basis, (viii) gains and losses from discontinued operations, and (ix) net income (loss) attributable to non-controlling interest. Reconciliation of Non-GAAP Measures A reconciliation of Adjusted EBITDA to the most directly comparable measure determined under U.S. GAAP is set out below. (Unaudited) SOURCE: GameSquare Holdings, Inc. 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This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GameSquare Holdings Inc (NASDAQ:GAME) reported a 95% year-over-year increase in revenue for Q1 2026, driven by acquisitions and growth in their marketing agency segment. The company has successfully integrated acquisitions like Qlik and TubeBuddy, enhancing their position in the creator economy and expanding their technological capabilities. GameSquare's GSX division achieved record first-quarter bookings of over $10 million, showcasing strong demand from video game publishers and global brands. The company is executing a disciplined capital allocation strategy, focusing on growth, profitability, and shareholder value, including strategic M&A and share repurchases. GameSquare is expanding its global presence, with strategic partnerships and opportunities in the Middle East and Asia, and is well-positioned for a strong second quarter and beyond. Despite revenue growth, GameSquare reported an adjusted EBITDA loss of $1.1 million for Q1 2026, indicating ongoing profitability challenges. The company's gross margin declined slightly year-over-year, from 42.5% to 38.4%, due to changes in revenue mix. There is significant seasonality in GameSquare's business, with Q1 being the slowest quarter, which may impact financial stability. The integration of recent acquisitions is still ongoing, and full year-over-year comparisons will not be possible until Q2 2026. GameSquare's digital asset strategy involves risks, as fluctuations in crypto markets have contributed to net losses, and the company remains cautious about its digital asset holdings. Warning! GuruFocus has detected 6 Warning Signs with GAME. Is GAME fairly valued? Test your thesis with our free DCF calculator. Q: With the World Cup and other major events coming up, how is GameSquare planning to capitalize on its events pipeline? A: Justin Kenna, CEO: GSX was formed in 2025 and has shown significant growth. We have locked-in revenue with major publishers like Epic Games and Roblox, and are actively pitching to new clients around large cultural events like the World Cup. This proactive approach is translating into a healthy revenue pipeline, with much of the revenue already locked in for the year. Q: Can you elaborate on GameSquare's digital asset strategy and its integration with the core business? A: Justin Kenna, CEO: Our digital asset strategy is a cash management approach, generating yield through Dialectic. We focus on diversifying into stablecoins and cash to support share buybacks and growth investments. This strategy has yielded $8 million in revenue from partnerships with Web3 companies, benefiting our core operating business. Q: How significant are the opportunities in the Middle East and Asia for GameSquare? A: Justin Kenna, CEO: Opportunities in the Middle East are more advanced than in Asia. We have strategic partnerships in the Middle East, expecting revenue to flow into Q2 and the back half of the year. In Asia, discussions are in early stages, with potential impact expected in Q4 2026 and 2027. Q: Is Q2 2026 a clean comparison period given the recent acquisitions? A: Mike Munoz, CFO: Q2 will include a full quarter contribution from TubeBuddy, but year-over-year comparisons will exclude Click and TubeBuddy from Q2 2025 results. Q: What is the focus of GameSquare's capital allocation strategy moving forward? A: Justin Kenna, CEO: Our priority is scaling the operating business and proving profitability. We are also focused on share repurchases due to undervaluation. While M&A is not a priority, we remain opportunistic, looking for accretive deals that fit well within our ecosystem without diluting shareholders. For the complete transcript of the earnings call, please refer to the full earnings call transcript.