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GameSquare Holdings Reports 2026 Second Quarter Results with Revenue up 137% YoY and Record Second Quarter Adjusted EBITDA

(Positive)
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GameSquare Holdings (NASDAQ:GAME) reported Q2 2026 revenue of $18.5 million, up 137% year-over-year from $7.8 million. Gross margin rose to 49.0% from 29.4%, and adjusted EBITDA reached a record second-quarter profit of $1.0 million versus a $3.2 million loss a year earlier.

The quarter showed a net loss from continuing operations of $10.6 million, heavily influenced by $7.8 million of fair value losses on digital assets and related items. For the first six months of 2026, revenue was $33.0 million with an adjusted EBITDA loss of $0.1 million, significantly improved from a $5.7 million loss.

GameSquare repurchased 2.8 million shares in Q2 and a further 1.0 million shares in July, totaling over 8.8 million shares repurchased since October 2025. The company reiterated 2026 guidance for proforma revenue of $85–$90 million, gross margin of 35%–40%, and adjusted EBITDA above $5 million.

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Positive

  • Q2 2026 revenue $18.5M, up 137% YoY from $7.8M
  • Q2 gross margin 49.0%, up from 29.4% year-over-year
  • Q2 adjusted EBITDA +$1.0M vs -$3.2M prior year
  • Six‑month revenue 2026 $33.0M vs $15.2M in 2025
  • Proforma six‑month 2026 adjusted EBITDA +$0.3M, 0.9% margin
  • Share repurchases 8.8M+ shares for ~$4.1M since Oct 2025
  • Deferred revenue up 35.0% vs Dec 31, 2025
  • 2026 guidance reiterated $85–$90M revenue, 35%–40% gross margin, >$5M adjusted EBITDA

Negative

  • Q2 2026 net loss $10.6M vs $4.0M prior year
  • Six‑month 2026 net loss $28.2M vs $7.8M prior year
  • Digital asset losses $22.4M fair value loss in six months 2026
  • Cash balance $2.1M plus $2.4M restricted at June 30, 2026
  • Total liabilities $49.0M vs total assets $58.9M at June 30, 2026
  • Promissory notes payable current $12.1M vs $2.0M at Dec 31, 2025
  • Shareholders' equity $9.9M, down from $35.7M at Dec 31, 2025

News Explained

Preliminary June 30 figures show $2.1 million cash against $45.0 million current liabilities, alongside $23.5 million digital assets and 102.4 million common shares.

GameSquare reported preliminary, unaudited second-quarter results and updated its balance sheet as of June 30, 2026: it had $2.1 million of cash, $2.4 million of restricted cash, $23.5 million of digital assets, and 102,371,390 common shares outstanding. That gives existing holders a current view of the company’s liquidity, asset mix, and share base.

The figures remain subject to customary quarter-end procedures and the independent auditor’s review, so the company says the eventual Form 10-Q could report changes.

At June 30, 2026, current liabilities were $45.0 million versus $40.5 million of current assets; total liabilities were $49.0 million and shareholders’ equity was $9.9 million.

The next Form 10-Q for the quarter ended June 30, 2026 is the specified milestone for resolving whether these preliminary balances change.

Market Reaction – GAME

+5.06% $0.41 10.0x vol
15m delay
+5.06% Vs previous close
+23.0% Peak in 4 min
$0.41 Last Price
$0.36 $0.52 Day Range
$41.93M Market Cap
10.0x Rel. Volume

Following this news, GAME has gained 5.06%, reflecting a notable positive market reaction. Argus tracked a peak move of +23.0% during the session. Our momentum scanner has triggered 42 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $0.41. Trading volume is exceptionally heavy at 10.0x the average, suggesting very strong buying interest.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Market Context

The stock is up +6.3% following this news. GameSquare's prior Q2 2026 scheduling notice was followed...
Analysis

The stock is up +6.3% following this news. GameSquare's prior Q2 2026 scheduling notice was followed by a 2.33% 24-hour move. A strong positive response to these results would contrast with that limited historical anchor, while the digital-asset loss remained a sourced risk.

Key Figures

Revenue: $18.5 million Gross margin: 49.0% Net loss: $10.6 million +5 more
8 metrics
Revenue $18.5 million Q2 2026; up 137% year-over-year
Gross margin 49.0% Q2 2026; versus 29.4% in Q2 2025
Net loss $10.6 million Q2 2026 continuing operations
Digital-asset fair-value loss $7.8 million Included in Q2 2026 net loss
Adjusted EBITDA $1.0 million Q2 2026; versus a $3.2 million loss in Q2 2025
2026 revenue guidance $85 million to $90 million Annual pro forma guidance reiterated
2026 adjusted EBITDA guidance Over $5 million Annual guidance reiterated
Shares repurchased 2.8 million shares for $1.2 million Q2 2026

Historical Context

5 past events · Latest: Aug 06 (Positive)
Pattern 5 events
Date Event Sentiment 24h Move Catalyst
Aug 06 Partnership announcement Positive +0.0% Azuki creator-marketing partnership produced no 24-hour price change.
Aug 04 Earnings scheduling notice Neutral +2.3% Q2 2026 results date announcement preceded a 2.33% 24-hour gain.
Jul 23 Share repurchase update Positive -9.8% July repurchases and remaining authorization preceded a 9.77% decline.
Jul 22 Product launch Positive -1.4% TubeBuddy AI tool launch preceded a 1.42% decline.
Jul 16 Data-provider selection Positive -8.7% Stream Hatchet's EWC selection preceded an 8.67% decline.

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

Pattern Detected

Recent positive or operational announcements were followed by mostly negative or flat 24-hour reactions, indicating frequent divergence from the announcement sentiment.

Key Terms

adjusted ebitda, non-gaap measures, contingent consideration, warrant liability
4 terms
adjusted ebitda financial
"Adjusted EBITDA of $1.0 million for the second quarter"
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.
non-gaap measures financial
"This release includes measures that are not in accordance with U.S."
Financial results that companies present using formulas or adjustments different from standard accounting rules (GAAP) to highlight what management considers the business’s ongoing performance. Investors care because these figures can make trends or profitability look clearer—like showing a car’s fuel efficiency after removing unusual trips—but they can also hide one‑time costs or aggressive assumptions, so comparing them with GAAP numbers helps judge reliability.
contingent consideration financial
"$1.4 million change in fair value of contingent consideration"
Contingent consideration is an additional payment agreed when one company buys another that will be paid later only if specific future targets are met, such as revenue, profit, or regulatory milestones. It matters to investors because it shifts risk between buyer and seller and affects the acquiring company's future cash flow and reported value — like promising a bonus after results are proven.
warrant liability financial
"$0.7 million change in fair value of warrant liability"
Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.

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

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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, 2026
Time: 5:00 pm ET
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=HC4SUncR

Investor Relations
Andrew Berger
Phone: (216) 464-6400
Email: ir@gamesquare.com

Media Relations
Email: pr@gamesquare.com

About GameSquare Holdings, Inc.

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

To learn more, visit www.gamesquare.com.

Forward-Looking Information

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the Company's future performance, revenue, growth and profitability; and the Company's ability to execute on its current and future business plans. These forward-looking statements are provided only to provide information currently available to us and are not intended to serve as and must not be relied on by any investor as, a guarantee, assurance or definitive statement of fact or probability.

Forward-looking statements are necessarily based upon a number of estimates and assumptions which include, but are not limited to: the Company's ability to grow its business and being able to execute on its business plans, the success of Company's vendors and partners in their provision of services to the Company, the Company being able to recognize and capitalize on opportunities, the Company continuing to attract qualified personnel to support its development requirements, the continued development, acceptance and adoption of digital assets; the availability, security and functionality of digital asset custody solutions and related infrastructure, the liquidity and stability of digital asset markets, the Company's ability to manage the significant price volatility associated with digital assets, and the ability of the Company and its service providers to maintain adequate cybersecurity protections and safeguard digital assets from theft, loss or unauthorized access. These assumptions, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements.

Such factors include, but are not limited to: the Company's ability to achieve its objectives, the Company successfully executing its growth strategy, the ability of the Company to obtain future financings or complete offerings on acceptable terms, failure to leverage the Company's portfolio across entertainment and media platforms, dependence on the Company's key personnel and general business, economic, competitive, political and social uncertainties. These risk factors are not intended to represent a complete list of the factors that could affect the Company. Additional information regarding risks and uncertainties that could affect the Company is included in the Company's filings with the U.S. Securities and Exchange Commission, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. GameSquare assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

 

GameSquare Holdings, Inc.
Consolidated Balance Sheets
(Unaudited)

June 30,
2026

December 31,
2025

Assets
Cash

$

2,101,751

$

4,604,781

Restricted cash

2,361,254

1,769,552

Accounts receivable, net

11,322,606

8,733,159

Digital assets

23,454,063

5,987,720

Government remittances

284,081

343,488

Prepaid expenses and other current assets

936,001

771,902

Total current assets

40,459,756

22,210,602

Investments

137,023

383,503

Investment in ETH fund

377,438

41,374,063

Promissory note receivable, non-current

549,000

549,000

Property and equipment, net

106,456

114,054

Goodwill

8,619,295

5,912,230

Intangible assets, definite lived, net

7,451,752

5,414,452

Intangible assets, indefinite lived

-

1,945,962

Right-of-use assets

1,187,597

1,398,515

Total assets

$

58,888,317

$

79,302,381

Liabilities and Shareholders' Equity
Accounts payable

$

20,795,772

$

21,929,984

Accrued expenses and other current liabilities

4,818,818

6,788,876

Players liability account

47,535

47,535

Deferred revenue

5,334,418

3,952,295

Current portion of operating lease liability

458,186

441,485

Promissory notes payable, current

12,100,000

2,000,000

Warrant liability

376

1,626,832

Contingent purchase consideration, current

1,433,000

-

Deferred purchase consideration

-

3,996,548

Arbitration reserve

-

93,041

Total current liabilities

44,988,105

40,876,596

Contingent purchase consideration, non-current

2,279,224

807,000

Deferred tax liability

810,704

810,704

Operating lease liability

925,361

1,154,341

Total liabilities

49,003,394

43,648,641

Commitments and contingencies (Note 17)
Series A-1 convertible preferred stock ($0.0001 par value, 50,000,000 authorized, 0 and 3,433 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)

-

3,924,296

Common stock ($0.0001 par value, 500,000,000 shares authorized, 102,371,390 and 98,066,751 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively)

10,237

9,807

Additional paid-in capital

201,264,994

195,158,882

Treasury stock

(205,628

)

(580,715

)

Accumulated other comprehensive loss

(558,330

)

(586,991

)

Non-controlling interest

-

-

Accumulated deficit

(190,626,350

)

(162,271,539

)

Total shareholders' equity

9,884,923

35,653,740

Total liabilities and shareholders' equity

$

58,888,317

$

79,302,381

 

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

Three months ended June 30,

Six months ended June 30,

2026

2025

2026

2025

Revenue

$

18,475,300

$

7,788,519

$

33,010,922

$

15,227,643

Cost of revenue

9,425,530

5,497,023

18,356,970

9,778,222

Gross profit

9,049,770

2,291,496

14,653,952

5,449,421

Operating expenses:
General and administrative

5,194,140

3,565,333

9,633,787

7,272,958

Selling and marketing

2,422,819

1,416,813

4,565,833

2,752,574

Research and development

682,531

671,614

1,293,333

1,325,667

Depreciation and amortization

536,648

252,174

966,898

456,305

Contract exit costs

9,477

103,507

160,332

720,720

Other operating expenses

1,915,142

547,188

3,086,839

1,292,565

Total operating expenses

10,760,757

6,556,629

19,707,022

13,820,789

Loss from continuing operations

(1,710,987

)

(4,265,133

)

(5,053,070

)

(8,371,368

)

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

(279,492

)

116,316

(608,593

)

142,902

Change in fair value of convertible debt carried at fair value

-

(5,561

)

-

327,916

Change in fair value of warrant liability

(726,189

)

(17,731

)

(66,806

)

(12,384

)

Arbitration settlement reserve

(39,634

)

(66,217

)

(11,842

)

(10,634

)

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

(7,828,414

)

-

(22,420,563

)

-

Yield on digital assets

(119,987

)

-

(151,888

)

-

Other income (expense), net

177,043

204,323

174,450

130,859

Total other income (expense), net

(8,816,673

)

231,130

(23,085,242

)

578,659

Loss from continuing operations before income taxes

(10,527,660

)

(4,034,003

)

(28,138,312

)

(7,792,709

)

Income tax expense

(83,050

)

-

(83,050

)

-

Net income (loss) from continuing operations

(10,610,710

)

(4,034,003

)

(28,221,362

)

(7,792,709

)

Net income (loss) from discontinued operations

(39,129

)

1,015,657

(133,449

)

(2,399,373

)

Net loss

(10,649,839

)

(3,018,346

)

(28,354,811

)

(10,192,082

)

Net loss attributable to non-controlling interest

-

-

-

2,018,132

Net loss attributable to GameSquare Holdings, Inc.

$

(10,649,839

)

$

(3,018,346

)

$

(28,354,811

)

$

(8,173,950

)

Comprehensive loss, net of tax:
Net loss

$

(10,649,839

)

$

(3,018,346

)

$

(28,354,811

)

$

(10,192,082

)

Change in foreign currency translation adjustment

699

(547,983

)

28,661

(385,457

)

Comprehensive loss

(10,649,140

)

(3,566,329

)

(28,326,150

)

(10,577,539

)

Comprehensive loss attributable to non-controlling interest

-

-

-

2,018,132

Comprehensive loss

$

(10,649,140

)

$

(3,566,329

)

$

(28,326,150

)

$

(8,559,407

)

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

$

(0.11

)

$

(0.10

)

$

(0.29

)

$

(0.21

)

From discontinued operations

(0.00

)

0.03

(0.00

)

(0.01

)

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

$

(0.11

)

$

(0.08

)

$

(0.30

)

$

(0.22

)

Weighted average common shares outstanding - basic and diluted

94,909,415

38,968,089

96,115,061

37,850,112

 

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 June 30,

Six months ended June 30,

2026

2025

2026

2025

Net loss

$

(10,649,839

)

$

(3,018,346

)

$

(28,354,811

)

$

(10,192,082

)

Interest (income) expense, net

279,492

(116,316

)

608,593

(142,902

)

Income tax expense

83,050

-

83,050

-

Amortization and depreciation

536,648

252,174

966,898

456,305

Share-based payments

331,855

5,616

859,541

34,614

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

7,828,414

-

22,420,563

-

Transaction costs

551,985

547,188

1,642,830

1,292,565

Legal settlement

4,450

-

4,450

-

Arbitration settlement reserve

39,634

66,217

11,842

10,634

Contract exit costs

9,477

103,507

160,332

720,720

Gain on shares issued for AP settlement

(177,555

)

-

(177,555

)

-

Change in fair value of contingent purchase consideration

1,358,707

-

1,439,559

-

Change in fair value of warrant liability

726,189

17,731

66,806

12,384

Change in fair value of convertible debt carried at fair value

-

5,561

-

(327,916

)

Loss (gain) on disposition of subsidiary

-

(3,020,335

)

-

(2,721,953

)

Loss from discontinued operations

39,129

2,004,678

133,449

5,121,326

Adjusted EBITDA

$

961,636

$

(3,152,325

)

$

(134,453

)

$

(5,736,305

)

SOURCE: GameSquare Holdings, Inc.



View the original press release on ACCESS Newswire

FAQ

What were GameSquare (NASDAQ:GAME) Q2 2026 financial results?

GameSquare reported Q2 2026 revenue of $18.5 million, 137% higher year-over-year, with gross margin of 49.0% and adjusted EBITDA of $1.0 million. According to GameSquare, net loss from continuing operations was $10.6 million, impacted mainly by fair value losses on digital assets and related items.

How much did GameSquare (GAME) revenue grow year-over-year in Q2 2026?

GameSquare’s Q2 2026 revenue grew 137% year-over-year, reaching $18.5 million compared with $7.8 million in Q2 2025. According to GameSquare, this increase reflects organic growth, contributions from the Click and TubeBuddy acquisitions, and stronger bookings across GameSquare Experiences and creator-focused businesses.

What guidance did GameSquare (NASDAQ:GAME) give for full-year 2026?

For 2026, GameSquare reiterated guidance for $85–$90 million in revenue, gross margin of 35%–40%, and adjusted EBITDA of over $5 million on a proforma basis. According to GameSquare, this outlook assumes TubeBuddy as if acquired on January 1, 2026 and excludes certain one-time expenses.

How many shares has GameSquare repurchased under its buyback program as of August 7, 2026?

As of August 7, 2026, GameSquare had repurchased over 8.8 million shares of common stock for nearly $4.1 million, at an average price of about $0.46. According to GameSquare, approximately $10.9 million remained available under its current repurchase authorization.

What was GameSquare’s adjusted EBITDA margin in Q2 2026?

GameSquare’s adjusted EBITDA margin in Q2 2026 was 5.2% of revenue, based on adjusted EBITDA of $1.0 million on $18.5 million of revenue. According to GameSquare, this compares with a -40.5% adjusted EBITDA margin in the prior-year quarter, reflecting improved operating leverage.

How are digital assets and ETH positions affecting GameSquare’s 2026 results?

Digital assets significantly impacted results, with a $22.4 million fair value loss on digital assets in the first half of 2026. According to GameSquare, the company held 15,080.51 ETH and total ETH, Altcoin investments, and cash of $25.9 million as of June 30, 2026.

What do GameSquare’s Q2 2026 balance sheet and liquidity look like for GAME investors?

At June 30, 2026, GameSquare reported $58.9 million in total assets and $49.0 million in total liabilities, with shareholders’ equity of $9.9 million. According to GameSquare, cash totaled $2.1 million plus $2.4 million in restricted cash, alongside sizeable digital asset holdings.