GameSquare Holdings — Second Quarter 2026 Earnings Summary

Financial Performance

• Q2 2026 revenue reached $18.5 million, a 137% year-over-year increase compared to $7.8 million in Q2 2025.
• Gross profit for Q2 2026 was $9.0 million, up from $2.3 million in the prior year period.
• Gross margin expanded to 49.0% in Q2 2026, an increase of 19.6 percentage points from 29.4% in Q2 2025.
• Net loss from continuing operations for Q2 2026 was $10.6 million, compared to a loss of $4.0 million in Q2 2025.
• The Q2 2026 net loss included $7.8 million in unrealized and realized losses on digital assets and investments in the ETH fund.
• Adjusted EBITDA for Q2 2026 was a positive $1.0 million, a significant improvement from an adjusted EBITDA loss of $3.2 million in Q2 2025.
• Adjusted EBITDA margin for Q2 2026 was 5.2% of revenue, compared to -40.5% in the prior year period.
• For the six months ended June 30, 2026, revenue was $33.0 million, up from $15.2 million in the same period of 2025.
• Six-month 2026 net loss from continuing operations was $28.2 million, compared to $7.8 million in 2025.
• Six-month 2026 adjusted EBITDA was a loss of $0.1 million, an improvement from a loss of $5.7 million in 2025.
• Proforma results for the six months ended June 30, 2026 (including TubeBuddy) showed revenue of $34.3 million, gross profit of $15.9 million, a gross margin of 46.3%, and adjusted EBITDA of $0.3 million.
• As of June 30, 2026, the company held 15,080.51 ETH, with total cash, cash equivalents, and digital assets valued at $25.9 million ($0.25 per share).
• Deferred revenue increased 35.0% from December 31, 2025, reflecting technology and SaaS revenue growth.
• Promissory notes payable increased to $12.1 million from $2.0 million as of December 31, 2025.

Guidance and Future Outlook

• The company reiterated its full-year 2026 proforma financial guidance, assuming the TubeBuddy acquisition occurred on January 1, 2026.
• Full-year 2026 guidance includes revenue between $85 million and $90 million.
• Full-year 2026 guidance includes a gross margin between 35% and 40%.
• Full-year 2026 guidance includes adjusted EBITDA of over $5 million.
• Management expressed confidence in delivering a strong second half of 2026, citing accelerating revenue growth, expanding gross margins, and positive adjusted EBITDA.

Business Segments and Product Lines

• Revenue growth is supported by strong bookings in GameSquare Experiences, expanding creator relationships, and deeper engagements with global partners.
• The company renewed and expanded its relationship with Riot Games.
• StreamHatchet was selected for a second consecutive year as the data and insights provider for the Esports World Cup.
• The company added World of Dance, the Esports Awards, and The Mobies to its portfolio of commercial IP opportunities.
• Click appointed Justin Miclat as Chief Growth Officer.
• The Click creator network now reaches over 60 million followers across major social platforms, including new additions Steak (second-largest Roblox creator) and SypherPK (one of the world's largest Fortnite creators).
• FaZe Esports announced a partnership with CORSAIR.
• The U.S. Army partnership continues to demonstrate the platform's ability to connect brands with gaming audiences.

Market and Competitive Landscape

• GameSquare operates one of the largest gaming media networks in North America, serving Gen Z, Gen Alpha, and Millennial audiences.
• The company highlights its differentiated data, analytics, and creator-intelligence capabilities as key competitive advantages.
• The company's strategy focuses on expanding access to premium IP to strengthen the value and differentiation of its end-to-end commercial platform.

Risks and Challenges

• Digital asset values are subject to significant volatility, impacting financial results through unrealized and realized gains or losses.
• Forward-looking statements involve assumptions regarding the ability to grow the business, execute on plans, and the continued development and adoption of digital assets.
• Risks include the liquidity and stability of digital asset markets, cybersecurity threats, and the ability to manage price volatility.
• The company notes that preliminary results are unaudited and subject to change upon completion of accounting procedures and independent review.

Management Commentary and Tone

• CEO Justin Kenna described the second quarter as "ahead of plan" with positive results accelerating meaningfully from the first quarter and year-over-year levels.
• Management attributed results to strong execution, underlying organic growth, the positive contribution from Click and TubeBuddy acquisitions, and increasing operating leverage.
• Kenna stated the company is "well positioned to deliver a strong second half of 2026" and reinforced confidence in the operating model and growth strategy.

Other Key Points

• During the second quarter, GameSquare repurchased 2.8 million shares for $1.2 million (average price ~$0.43).
• In July 2026, the company repurchased an additional 1.0 million shares for $0.4 million (average price ~$0.38).
• As of August 7, 2026, the company had repurchased over 8.8 million shares for nearly $4.1 million (average price ~$0.46) since the program started in October 2025.
• The company has approximately $10.9 million remaining under its current stock repurchase authorization.
• The company holds a treasury management program designed to generate yield and enhance capital efficiency through digital assets.
• The 2026 net loss included $1.4 million in changes in fair value of contingent consideration, $0.7 million in warrant liability changes, and $0.6 million in one-time transaction costs related to M&A and legal matters.
• Six-month 2026 net loss included $22.4 million in fair value loss on digital assets and $1.6 million in one-time transaction costs related to the TubeBuddy acquisition.