GameSquare Holdings, Inc. (GAME) Earnings
GameSquare Holdings, Inc. is expected to report next earnings on August 13, 2026 (in NaN days), with a consensus EPS estimate of $-0.03. GAME has beaten EPS estimates in 2 of its last 9 reported quarters (average surprise +20.9% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 14, 2026 | $-0.04 | $-0.02 | +50.0% | $16M | +6.0% |
| Nov 13, 2025 | $-0.03 | $-0.03 | +0.0% | $11M | -56.9% |
| Aug 14, 2025 | $-0.10 | $-0.11 | -10.0% | $16M | -46.6% |
| May 15, 2025 | $-0.23 | $-0.13 | +43.5% | $21M | -29.8% |
| Nov 14, 2024 | $-0.14 | $-0.14 | +0.0% | $26M | -0.3% |
| Aug 14, 2024 | $-0.09 | $-0.26 | -188.9% | $29M | +19.1% |
| May 20, 2024 | $-0.29 | $-0.39 | -34.5% | $18M | +29.4% |
| Nov 15, 2023 | $-0.19 | $-0.43 | -126.3% | $16M | — |
| Aug 14, 2023 | — | $-0.32 | — | $14M | — |
| Apr 17, 2023 | — | $-0.45 | — | $9M | — |
| Jan 16, 2023 | — | $-1.40 | — | $10M | -11.3% |
| Nov 29, 2022 | $-0.09 | $-2.64 | -2833.3% | $11M | -57.9% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q1 FY2026 · May 14, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Strategic Position & Acquisition Progress - GameSquare delivered in-line 1Q 2026 results during the seasonally slowest quarter of the year, building on organic growth and early benefits from the recent acquisitions of Click (creator marketing/talent) and TubeBuddy (AI creator software). - Acquisitions have expanded the company's position in the creator economy, creating an integrated end-to-end platform that connects brands, creators, publishers, and audiences, combining proprietary data, technology, creator relationships, and gaming expertise. - Recent key talent additions include Justin Miklat as Chief Growth Officer of Qlik, and leading creators such as Stake, which strengthen the company's ability to scale high-value talent and deliver integrated solutions for brand partners. Commercial Momentum & Client Wins - Across the agency business, average deal size is increasing: 70% of current programs are valued over $200,000, and the number of $1 million-plus opportunities has doubled, with large clients increasingly leveraging multiple segments of GameSquare's ecosystem. - GSX secured record 1Q bookings driven by demand from leading global video game publishers and brands targeting Gen Z and digital-first audiences, and serves many of the largest video game publishers in the world. - Key client partnership wins and renewals include a fourth annual renewal of DairyMax, expanded partnership with Capcom to support the global launch of *Resident Evil Requiem*, and multiple locked-in global events for Epic Games and Roblox. - Qlik delivered strong early success with Hungry Boys Hot Sauce, a consumer product launched in November 2025 that has now expanded to nearly 300 retail locations across the U.S., demonstrating the ability to convert creator influence into scalable consumer product revenue. - International expansion is progressing, with meaningful commercial opportunities developing in the Middle East and Asia, and multiple global event activations planned for 2026, including activations tied to the 2026 Esports World Cup. Capital Allocation & Governance - GameSquare maintains a disciplined capital allocation strategy focused on driving growth, improving profitability, and creating long-term shareholder value, with priority given to high-return investments, strategic accretive M&A, and opportunistic share repurchases when the company believes its stock is undervalued. - As of March 31, 2026, the company held $35.9 million in cash, cash equivalents, and digital asset treasury assets, providing strong liquidity for strategic initiatives. - Through April 2026, GameSquare has repurchased 7.3 million shares for $3.5 million (average price of $0.47 per share) under its repurchase program, with approximately $11.4 million remaining in authorization following the April 2026 expansion. - The 2026 annual stockholder meeting will be held virtually on June 18, with a proposal to amend the certificate of incorporation to update governance structures (eliminate supermajority voting, declassify the board, increase authorized shares) that provides long-term strategic flexibility without immediate dilution or share issuance.
Guidance
- Management reaffirms its previously announced full-year 2026 pro forma guidance, including total revenue in the range of $85 million to $90 million, gross margins between 35% and 40%, and adjusted EBITDA of over $5 million. - The company expects the historical revenue cadence of 40% of full-year revenue in the first half and 60% in the second half to hold in 2026, with 2Q 2026 revenue already exceeding the entire 1Q 2026 revenue with six weeks remaining in the quarter. - Qlik is expected to deliver its largest ever quarter in 2Q 2026, following the addition of new high-value creators. - New Creator Communities platform from Stream Hatchet is expected to begin generating revenue in the back half of 2026. - Meaningful international revenue from Middle East opportunities is expected to begin flowing in 2Q 2026 and the back half of 2026, while Asian market revenue is expected to impact results starting in 4Q 2026 and 2027.
Segment performance
Total Company: 1Q 2026 reported total revenue was $14.5 million, a 95% year-over-year increase from $7.4 million in 1Q 2025. Pro forma total revenue including a full quarter contribution from TubeBuddy was $15.8 million. Reported gross profit was $5.6 million (38.4% of revenue), compared to $3.2 million (42.5% of revenue) year-over-year, with the slight margin decline driven by a shift in product mix following acquisitions. Reported adjusted EBITDA loss was $1.1 million, an improvement from a $1.6 million loss in 1Q 2025; pro forma adjusted EBITDA loss including TubeBuddy was $0.7 million (4.2% of pro forma revenue). GSX (Experiences Division): Generated record 1Q 2026 bookings of over $10 million. 1Q 2026 revenue from publisher launch support services was approximately $2.2 million, and original IP programming (Into the Zones, Roblox Creator Showdown) is currently tracking to generate approximately $5.5 million in full-year 2026 revenue. Click (Creator Marketing & Talent): Qlik (Click) added several high-profile creators including Stake (the second largest Roblox creator), with new additions expected to generate $5 million in incremental annualized revenue. Qlik is positioned to deliver its largest ever quarter in 2Q 2026. TubeBuddy (AI Creator Software): Acquired in an all-stock transaction in February 2026, added an accretive scale technology layer to GameSquare's platform; included in full 1Q 2026 pro forma results. Stream Hatchet (Data & Creator Platform): Recently launched the new AI-powered Creator Communities end-to-end creator marketing platform, expected to begin generating revenue in the second half of 2026. Phase Esports: Won the 2026 Phase 1-6 Invitational for the second consecutive year, taking home $1 million in prize money which contributed to 1Q 2026 revenue.
Risks & headwinds
- Forward-looking statements are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from projected outcomes, including risks detailed in the company's 10-K filing for the quarter ended March 31, 2026. - The company faces inherent seasonality, with the first quarter historically being the lowest revenue quarter of the year, and demand for brand campaigns can be impacted by macroeconomic uncertainty. - The creator and gaming industries are highly competitive, requiring consistent investment to attract and retain top-tier creators and clients. - Holding digital assets creates exposure to price volatility, which can lead to unrealized losses that impact reported net income, though the company has not sold its holdings for operating purposes and uses digital assets as part of a diversified cash management strategy. - M&A activity carries execution risk, and the company faces constraints on using equity as acquisition currency due to its current perceived undervaluation in public markets.
Analyst Q&A
Q: How is GameSquare leveraging its growing events pipeline, including activations tied to major cultural moments like the Esports World Cup and upcoming major game releases? /
A: GSX (the events division) works hand-in-hand with the core agency business to combine digital strategy with in-real-life activations post-COVID. The company already has significant locked-in revenue from multiple events with Epic Games and Roblox across the U.S. and international markets, including unannounced activations around the 2026 Esports World Cup. The expanded commercial team is proactively pursuing opportunities around large gaming and cultural tentpole moments, building a healthy pipeline that carries upside beyond already locked-in revenue, with most activity concentrated in 2Q and the back half of the year consistent with historical seasonality.
Q: What is GameSquare's current digital asset strategy following recent regulatory progress in the space, and how does it interact with the core operating business? /
A: GameSquare holds digital assets as a cash management strategy rather than operating as a crypto-focused business; unrealized price volatility has impacted reported net income in past periods, but the company has not sold holdings aside from early ETH sales to pay off long-term debt, leaving it with a clean balance sheet today. The company generates yield on its holdings through Dialectic, and diversifies between ETH, stablecoins, and cash to fund share repurchases and operating growth. The digital asset strategy has directly benefited the core business, generating close to $8 million in new revenue from Web3 clients seeking to reach Web2 audiences, and the company remains bullish while prioritizing growth of its core operating business.
Q: What is the current stage of international expansion in the Middle East and Asia, and when will it contribute to revenue? /
A: International expansion has grown organically as existing clients demand global activations. Middle East opportunities are more advanced, with active discussions with major brands in Riyadh and a strategic partnership that will deliver revenue to 2Q and the back half of 2026. Expansion in Asia is at an earlier stage, with active discussions across esports, licensing, and events, but meaningful revenue contribution is not expected until 4Q 2026 or 2027.
Q: What are GameSquare's current capital allocation priorities between integrating recent acquisitions, share repurchases, and M&A? /
A: The top priority is scaling the core operating business and proving full-year 2026 profitability, which management is confident the company will deliver. Share repurchases will continue opportunistically, as management believes the current share price significantly undervalues the business. M&A remains opportunistic: there is strong inbound interest from attractive medium-sized creator economy assets (with $10-$40 million in revenue and 10-20% EBITDA margins) that lack capital access, but any deal must be accretive to earnings, not dilutive to shareholders, and deliver relative value given the company's current undervaluation.