GameSquare Holdings, Inc. Q4 FY2025 earnings call

• In 2025, took decisive actions to streamline business, strengthen balance sheet, build focused scalable platform. Divested remaining stake in FaZe Media, wound down Franklin Media, acquired Klitz, Qlik, and TubeBuddy. Fortified financial foundation through capital raises, paid off debt, ended year in net cash position. Deployed capital into digital asset treasury strategy, monetized NFT positions, repurchased shares. Core operating business focused on achieving profitability, streamlining operations, driving higher margin revenue. Made progress in 2025, exceeded strategic priorities. Appointed new leadership to enhance execution, drive revenue growth, improve operational disciplines.

Fourth quarter results showed positive adjusted EBITDA of $1.7 million. Revenue for the quarter was $18.5 million. Of this, 4.2 million was from owned and operated IP segment, 12.5 million from agency segment (includes talent agency Click), 1.2 million from SaaS and managed services segment, and 560,000 from digital asset treasury yield. Year-over-year revenue increased by 142%, gross margin expanded by approximately 20 percentage points to 45.9%. TubeBuddy had revenue of $10.2 million, gross margin over 88%, and EBITDA margin over 30% in 2025.

• Reiterating annual guidance for fiscal year 2026: expect revenue in range of $85 to $90 million, gross margins 35 to 40%, adjusted EBITDA over $5 million. Outlook reflects strong organic growth and improved margin profile. Believes well positioned to scale profitability as business grows.

Q: Given acquisitions and divestitures, what to expect for seasonality going forward?

A: Back half of year generally stronger, 40 - 60 on H1, H2 basis. Q1 typically weakest, Q4 strongest, but some fluctuation. Q1 off to strong start with busy year end orders.

Q: Revenue segments for fourth quarter?

A: 4.2 million from owned and operated IP, 12.5 million from agency segment (includes Click), 1.2 million from SaaS and managed services, 560,000 from digital asset treasury yield.

Q: What gives guidance in 2026 outlook and growth pipeline?

A: Q1 off to positive start. Creative deployment a big growth area with large queue line. Phase esports business moved to Dallas, profitable. Agency business strong with more locked in revenue. Opportunities in MENA, talent and creative space in US.

Q: Capital allocation, M&A profile and share buybacks?

A: M&A focus on technology, performance marketing, media, gaming space, 10 - 50 million revenue, 5 - 20% EBITDA margins, relative value deals. Continue to be opportunistic in M&A. Continue to buy back stock, depending on share price movement off profitability and catalysts.