GameSquare Holdings, Inc. Q2 FY2025 earnings call

• GameSquare launched a crypto-native treasury management strategy with over $19M in unrealized gains from ETH holdings since July. - Completed divestiture of FaZe Media, simplifying business and reducing working capital. - Operating businesses (SaaS, agency, media, owned IP, FaZe Clan Esports) delivering strong performance. - Stream Hatchet secured large contracts like for Monster Hunter Wilds and Tom Clancy's Rainbow Six Siege, launched AI-based solution. - GameSquare Experiences launched collegiate esports program and managed 100 Thieves Summer Block Party. - Active discussions with over 15 crypto-native organizations for potential deals. - Board approved $5M share repurchase program funded by treasury strategy proceeds.

In the 2025 second quarter, consolidated revenue was $15.9 million, down 11% year-over-year primarily due to reduced programmatic advertising revenue. Gross margin was $2.4 million (15.3% of sales) in Q2 2025 compared to $2.5 million (14.1%) in the same period last year. Trailing 12-month revenue is over $71.5 million. The crypto-native treasury management strategy launched in July has generated over $19 million in unrealized gains as of August 13, 2025, with 15,630 ETH held having a market value of $74.3 million.

• Plan to reintroduce full-year guidance in Q3 2025. - Expect Q3 revenue higher than Q2, Q4 building on that growth. - Ongoing restructuring to lower operating expenses by $5M annualized by end of Q3. - Crypto space deals like Azuki $2.5M win expected to contribute.

• Volatility in crypto market, but strategy designed to balance with diversified revenue streams. - Dependence on successful execution of treasury and operating strategies. - Uncertainty around macro factors affecting deal timings (e.g., tariffs).

Q: Follow-up on Q2 revenue performance, timing of deals A: Justin Kenna talks about tariffs, programmatic revenue slowdown, but deals on track, Azuki deal as an example Q: Timing of crypto opportunities, guidance timing, restructuring savings A: Justin discusses restructuring efforts, crypto deals expected in back half, Q3/Q4 results