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GameSquare Holdings Reports 2026 First Quarter Results with Revenue up 95.0% Year-over-Year

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GameSquare (NASDAQ: GAME) reported Q1 2026 revenue of $14.5 million, up 95% year-over-year from $7.4 million. Gross profit was $5.6 million with 38.4% margin. Net loss from continuing operations was $17.6 million, including a $14.6 million digital asset fair value loss and $1.1 million TubeBuddy transaction costs.

Adjusted EBITDA loss improved to $1.1 million versus $2.6 million. Proforma Q1 2026 revenue was $15.8 million with 43.1% gross margin and a $0.7 million adjusted EBITDA loss. The company reaffirmed 2026 guidance of $85–$90 million proforma revenue and over $5 million adjusted EBITDA, and highlighted stock repurchases, new creator talent, and the TubeBuddy acquisition.

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Positive

  • Q1 2026 revenue rose 95% year-over-year to $14.5 million
  • Proforma Q1 2026 revenue reached $15.8 million with 43.1% gross margin
  • Adjusted EBITDA loss narrowed to $1.1 million, or -7.6% of revenue
  • Proforma adjusted EBITDA loss reduced to $0.7 million, or -4.2% of revenue
  • 2026 guidance reaffirmed: $85–$90 million revenue and over $5 million adjusted EBITDA
  • Q1 2026 stock buyback of 2.07 million shares for $0.75 million
  • Total 7.35 million shares repurchased for $3.6 million since October 2025
  • Approximately $11.4 million remains under the current repurchase authorization
  • New creator talent expected to add over $5 million incremental annualized revenue
  • TubeBuddy acquisition adds AI-enabled creator software and recurring subscription revenue potential
  • Digital assets and cash totaled $35.9 million, or $0.37 per share, at March 31, 2026

Negative

  • Q1 2026 gross margin declined to 38.4% from 42.5% year-over-year
  • Net loss from continuing operations increased to $17.6 million
  • $14.6 million fair value loss on digital assets impacted Q1 2026 results
  • $1.1 million one-time TubeBuddy transaction costs reduced Q1 2026 earnings
  • Adjusted EBITDA remained negative at $1.1 million in Q1 2026
  • Cash balance was $2.4 million plus $1.8 million restricted cash at March 31, 2026
  • Exposure to volatile digital asset values may affect future reported results

News Market Reaction – GAME

-17.00%
31 alerts
-17.00% Session close to close
+5.8% Peak Tracked
-29.5% Trough Tracked
$47.63M Market Cap
0.3x Rel. Volume

In the May 15 session, GAME declined 17.00%, reflecting a significant negative market reaction. Argus tracked a peak move of +5.8% during that session. Argus tracked a trough of -29.5% from its starting point during tracking. Our momentum scanner triggered 31 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -17.0% in the session following this news. A negative reaction despite strong top-...
Analysis

The stock dropped -17.0% in the session following this news. A negative reaction despite strong top-line growth to $14.5 million and improved adjusted EBITDA loss of $1.1 million would fit a pattern where positive updates have not always translated into lasting gains. The Q1 net loss of $17.6 million, including a $14.6 million digital asset loss, and reliance on volatile crypto treasury assets totaling $35.9 million could amplify concerns. Investors have also seen prior guidance reiterations without immediate re-rating, which could reinforce downside pressure.

Key Figures

Q1 2026 revenue: $14.5 million Q1 2025 revenue: $7.4 million Q1 2026 net loss: $17.6 million +5 more
8 metrics
Q1 2026 revenue $14.5 million Reported revenue for three months ended March 31, 2026
Q1 2025 revenue $7.4 million Prior-year quarter revenue for comparison
Q1 2026 net loss $17.6 million Net loss from continuing operations Q1 2026
Digital asset loss $14.6 million Change in fair value loss on digital assets in Q1 2026
Q1 2026 adjusted EBITDA ($1.1 million) Adjusted EBITDA loss, -7.6% of revenue
2026 revenue guidance $85–$90 million Full-year 2026 proforma revenue guidance reiterated
Digital assets + cash $35.9 million ETH, altcoins, yield interests and cash at March 31, 2026
Shares repurchased to date 7.35 million shares Total repurchased for $3.6 million since October 2025

Historical Context

5 past events · Latest: May 12 (Neutral)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
May 12 Conference presentation Neutral -3.0% Announcement of participation at LD Micro Invitational XVI investor conference.
May 11 Earnings timing update Neutral -5.3% Notification of Q1 2026 earnings release date and follow-up webcast.
Apr 27 Bookings update Positive -6.8% Record Q1 2026 bookings of over $10 million at GSX division.
Apr 23 Industry data report Neutral +0.4% Stream Hatchet live-streaming trends report with viewership benchmarks.
Apr 22 Share repurchase update Positive +32.9% Largest monthly buyback to date and recap of cumulative repurchases.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent fundamentally positive updates (bookings strength, buybacks) often saw mixed or negative next-day moves, with the notable exception of a large positive reaction to April’s repurchase announcement.

Recent Company History

Over the last few months, GameSquare has highlighted several milestones, including record Q1 2026 bookings of over $10 million at GSX and its largest monthly share repurchase of nearly 2.3 million shares in April 2026. It has also expanded investor outreach via conferences and streaming-industry reports. Despite these updates, share-price reactions have been inconsistent, with some positive corporate actions met by short-term declines. Today’s detailed Q1 2026 earnings and outlook update fits into an ongoing narrative of growth initiatives, buybacks, and efforts to showcase the integrated creator platform.

Key Terms

adjusted ebitda, proforma, gross margin, altcoins, +4 more
8 terms
adjusted ebitda financial
"and more than $5 million of adjusted EBITDA, subject to the risks and uncertainties"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
proforma financial
"On a proforma basis, which takes into account the Company's plans with the TubeBuddy"
Proforma describes financial numbers that have been adjusted to show how results would look under a specific scenario or after excluding certain items, like one-time costs or a recent acquisition. Investors use proforma figures as a “what-if” snapshot to compare performance on a more apples-to-apples basis, but they should note which adjustments were made because these tuned figures can make results look clearer than the unadjusted reality.
gross margin financial
"Gross margin of 38.4%, compared to 42.5%"
Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.
View in glossary
altcoins financial
"The Company had $1.6 million of altcoins on its balance sheet at March 31, 2026"
Alternative cryptocurrencies other than Bitcoin, often created to offer different features, uses, or technical tweaks to digital money. Think of them as different brands of electronic cash or apps built on similar technology; some aim for faster payments, privacy, or support for automatic contracts. Investors care because altcoins can offer higher returns or diversification but carry higher volatility, lower liquidity, and greater regulatory and project‑risk than established digital assets.
digital assets financial
"included a $14.6 million change in fair value loss on digital assets"
Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.
View in glossary
restricted cash financial
"Cash at March 31, 2026, was $2.4 million, with an additional $1.8 million in restricted cash."
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
non-gaap financial
"This release includes measures that are not in accordance with U.S. generally accepted accounting principles ("Non-GAAP measures")."
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
View in glossary
treasury management financial
"GameSquare's Treasury Management Assets at March 31, 20261:"
Treasury management is a company's day‑to‑day handling of cash, short‑term investments, borrowing and financial risks to make sure bills are paid, excess cash is used wisely, and exposure to things like interest rates or foreign currencies is controlled. Think of it as running the company's checking account and emergency fund so operations keep flowing. For investors, strong treasury management signals that a company can meet obligations, fund growth without costly surprises, and protect value in changing markets.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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: ir@gamesquare.com

Media Relations
Chelsey Northern / The Untold
Phone: (254) 855-4028
Email: pr@gamesquare.com

 

About GameSquare Holdings, Inc.

GameSquare (NASDAQ:GAME) is a cutting-edge media, entertainment, and technology company transforming how brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. With a platform that spans award-winning creative services, advanced analytics, and FaZe Esports, one of the most iconic gaming organizations, we operate one of the largest gaming media networks in North America. As a digital-native business, GameSquare provides brands with unparalleled access to world-class creators and talent, delivering authentic connections across gaming, esports, and youth culture. Complementing our operating strategy, GameSquare has developed an innovative treasury management program designed to generate yield and enhance capital efficiency, reinforcing our commitment to building a dynamic, high-performing media company at the intersection of culture, technology, and next-generation financial innovation.

To learn more, visit www.gamesquare.com.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the 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)

March 31, 2026

December 31, 2025

Assets
Cash

$

2,357,661

$

4,604,781

Restricted cash

1,837,998

1,769,552

Accounts receivable, net

10,692,528

8,733,159

Digital assets

22,836,912

5,987,720

Government remittances

317,364

343,488

Prepaid expenses and other current assets

798,193

771,902

Total current assets

38,840,656

22,210,602

Investments

137,023

383,503

Investment in ETH fund

10,680,541

41,374,063

Promissory note receivable, non-current

549,000

549,000

Property and equipment, net

113,073

114,054

Goodwill

8,619,295

5,912,230

Intangible assets, definite lived, net

7,980,779

5,414,452

Intangible assets, indefinite lived

-

1,945,962

Right-of-use assets

1,294,152

1,398,515

Total assets

$

68,214,519

$

79,302,381

Liabilities, Mezzanine Equity and Shareholders' Equity
Accounts payable

$

20,625,627

$

21,929,984

Accrued expenses and other current liabilities

7,012,480

6,788,876

Players liability account

47,535

47,535

Deferred revenue

5,770,860

3,952,295

Current portion of operating lease liability

449,749

441,485

Promissory notes payable, current

9,500,000

2,000,000

Warrant liability

967,429

1,626,832

Deferred purchase consideration

66,399

3,996,548

Arbitration reserve

65,249

93,041

Total current liabilities

44,505,328

40,876,596

Contingent purchase consideration, non-current

2,353,517

807,000

Deferred tax liability

810,704

810,704

Operating lease liability

1,041,033

1,154,341

Total liabilities

48,710,582

43,648,641

Commitments and contingencies (Note 17)
Series A-2 redeemable convertible preferred stock ($0.0001 par value, 50,000,000 authorized, 5,000,000 and 0 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

1,769,744

-

Total Mezzanine equity

1,769,744

-

Series A-1 convertible preferred stock ($0.0001 par value, 50,000,000 authorized, 3,433 shares issued and outstanding as of March 31, 2026 and December 31, 2025)

3,924,296

3,924,296

Common stock ($0.0001 par value, 100,000,000 shares authorized, 95,761,215 and 98,066,751 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

9,577

9,807

Additional paid-in capital

194,335,860

195,158,882

Treasury stock

-

(580,715

)

Accumulated other comprehensive loss

(559,029

)

(586,991

)

Non-controlling interest

-

-

Accumulated deficit

(179,976,511

)

(162,271,539

)

Total shareholders' equity

17,734,193

35,653,740

Total liabilities, mezzanine equity and shareholders' equity

$

68,214,519

$

79,302,381

 

GameSquare Holdings, Inc.
Consolidated Statements of Operations and Comprehensive Loss
(Quarterly information unaudited)

Three months ended March 31,

2026

2025

Revenue

$

14,503,721

$

7,439,124

Cost of revenue

8,931,440

4,281,199

Gross profit

5,572,281

3,157,925

Operating expenses:
General and administrative

4,439,647

3,707,625

Selling and marketing

2,143,014

1,335,761

Research and development

610,802

654,053

Depreciation and amortization

430,250

204,131

Contract exit costs

150,855

617,213

Other operating expenses

1,171,697

745,377

Total operating expenses

8,946,265

7,264,160

Loss from continuing operations

(3,373,984

)

(4,106,235

)

Other income (expense), net:
Interest income (expense)

(329,101

)

26,586

Change in fair value of convertible debt carried at fair value

-

333,477

Change in fair value of warrant liability

659,383

5,347

Arbitration settlement reserve

27,792

55,583

Realized and change in unrealized gain (loss) on digital assets and investment in ETH fund

(14,592,149

)

-

Other income (expense), net

(2,593

)

(73,464

)

Total other income (expense), net

(14,236,668

)

347,529

Loss from continuing operations before income taxes

(17,610,652

)

(3,758,706

)

Income tax expense

-

-

Net income (loss) from continuing operations

(17,610,652

)

(3,758,706

)

Net income (loss) from discontinued operations

(94,320

)

(3,415,030

)

Net loss

(17,704,972

)

(7,173,736

)

Net loss attributable to non-controlling interest

-

2,018,132

Net loss attributable to GameSquare Holdings, Inc.

$

(17,704,972

)

$

(5,155,604

)

Comprehensive loss, net of tax:
Net loss

$

(17,704,972

)

$

(7,173,736

)

Change in foreign currency translation adjustment

27,962

162,526

Comprehensive loss

(17,677,010

)

(7,011,210

)

Comprehensive loss attributable to non-controlling interest

-

2,018,132

Comprehensive loss

$

(17,677,010

)

$

(4,993,078

)

Income (loss) per common share attributable to GameSquare Holdings, Inc. - basic and assuming dilution:
From continuing operations

$

(0.18

)

$

(0.10

)

From discontinued operations

(0.00

)

(0.04

)

Loss per common share attributable to GameSquare Holdings, Inc. - basic and assuming dilution

$

(0.18

)

$

(0.14

)

Weighted average common shares outstanding - basic and diluted

97,334,103

36,719,712

 

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)


Three months ended March 31,


2026

2025

Net loss

$

(17,704,972

)

$

(7,173,736

)

Interest (income) expense, net

329,101

(26,586

)

Income tax expense

-

-

Amortization and depreciation

430,250

204,131

Share-based payments

527,686

28,998

Realized and change in unrealized (gain) loss on digital assets and investment in ETH fund

14,592,149

-

Transaction costs

1,090,845

745,377

Arbitration settlement reserve

(27,792

)

(55,583

)

Contract exit costs

150,855

617,213

Change in fair value of contingent purchase consideration

80,852

-

Change in fair value of warrant liability

(659,383

)

(5,347

)

Change in fair value of convertible debt carried at fair value

-

(333,477

)

Loss (gain) on disposition of subsidiary

-

298,382

Loss from discontinued operations

94,320

3,116,648

Adjusted EBITDA

$

(1,096,089

)

$

(2,583,980

)

SOURCE: GameSquare Holdings, Inc.



View the original press release on ACCESS Newswire

FAQ

How did GameSquare (NASDAQ: GAME) perform financially in Q1 2026?

GameSquare reported Q1 2026 revenue of $14.5 million, up from $7.4 million a year earlier. According to GameSquare, gross profit was $5.6 million with 38.4% margin, and net loss from continuing operations was $17.6 million, including significant digital asset fair value impacts.

Why did GameSquare report a $17.6 million net loss from continuing operations in Q1 2026?

The Q1 2026 net loss of $17.6 million was largely driven by non-operating items. According to GameSquare, results included a $14.6 million change in fair value loss on digital assets and $1.1 million of one-time TubeBuddy transaction costs, alongside an adjusted EBITDA loss.

What 2026 financial guidance did GameSquare (GAME) reaffirm on May 14, 2026?

GameSquare reaffirmed 2026 guidance for proforma revenue of $85 million to $90 million and adjusted EBITDA of over $5 million. According to GameSquare, expected gross margin is 35% to 40%, with guidance excluding transaction costs, impairments, and other one-time expenses due to forecasting uncertainty.

What stock repurchase activity has GameSquare reported and how much authorization remains?

In Q1 2026, GameSquare repurchased 2.07 million shares for $0.75 million at about $0.36 per share. According to GameSquare, cumulative buybacks since October 2025 total 7.35 million shares for $3.6 million, with approximately $11.4 million remaining under the current repurchase authorization.

How is the TubeBuddy acquisition expected to impact GameSquare's creator platform and revenue?

TubeBuddy adds an AI-enabled software and workflow platform designed to optimize YouTube performance. According to GameSquare, the deal should expand recurring software and subscription revenue, deepen creator relationships, and support data-driven brand partnerships and cross-platform marketing across its media, esports, and creator network.

What revenue impact does new creator talent like Steak have on GameSquare (GAME)?

Recently added creators, including Steak, are expected to generate more than $5 million of incremental annualized revenue. According to GameSquare, these additions expand creator reach, increase revenue visibility, deepen brand campaign opportunities, and add scalable creator-driven revenue streams with attractive operating leverage on its integrated platform.

What digital asset holdings did GameSquare report as of March 31, 2026?

GameSquare held 15,502.70 ETH, including 5,435.25 ETH in an onchain yield strategy, plus $1.6 million of altcoins. According to GameSquare, total digital asset treasury assets and cash were $35.9 million, or $0.37 per share, with $2.4 million cash and $1.8 million restricted cash.