Gamesquare Holdings, Inc. ((GAME)) has held its Q3 earnings call. Read on for the main highlights of the call.
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GameSquare Holdings, Inc. recently held its earnings call, revealing a generally positive sentiment with notable financial improvements. The company showcased increased revenue and profitability, driven by strategic acquisitions and a robust digital asset strategy. However, challenges such as pro forma EBITDA loss, shareholder voting difficulties, and tariff-related uncertainties were also highlighted.
Significant Improvement in Gross Margin
GameSquare reported a remarkable improvement in its gross margin for the third quarter, which expanded sequentially by 20 percentage points to 49.4%, up from 15.3% in the second quarter. This increase reflects enhanced profitability and operational efficiency.
Positive Net Income from Continuing Operations
The company achieved a positive net income from continuing operations, reporting $5.9 million in Q3 2025. This marks a significant turnaround from a net loss of $3.9 million in the same period a year ago.
Strong Revenue Growth
GameSquare’s revenue saw a substantial increase of 22% year-over-year, reaching $11.3 million. This growth was driven by advancements across technology, agency, and owned and operated IP segments.
Successful Digital Asset Treasury Strategy
The digital asset treasury strategy proved successful, generating $600,000 of yield in the last two months of the quarter. Additionally, the strategy resulted in an unrealized gain of $9.3 million, showcasing the company’s effective management of digital assets.
Acquisition of Click Management
GameSquare’s acquisition of Click Management is expected to contribute significantly to the company’s financials, with an anticipated $14.5 million in annualized pro forma revenue and approximately $1.2 million in annualized pro forma EBITDA.
Robust Balance Sheet
As of September 30, 2025, GameSquare maintained a robust balance sheet with approximately $82 million in cash and digital assets, no debt, and shareholders’ equity of $79 million, indicating strong financial health.
Pro Forma EBITDA Loss
Despite the positive developments, GameSquare reported a pro forma EBITDA loss of $200,000 when including a full quarter of Click Management, highlighting ongoing challenges in achieving profitability.
Challenges with Shareholder Voting
The company faces difficulties in reaching a quorum for shareholder votes due to a diverse shareholder base, which includes many new, retail, and foreign shareholders, complicating governance processes.
Impact of Tariff Uncertainty
Tariff uncertainties continue to pose challenges, affecting the timing of several large deals, particularly those involving companies headquartered in China, which could impact future revenue streams.
Forward-Looking Guidance
Looking ahead, GameSquare projects a 20% annual organic revenue growth for 2026, supported by strong gross margins and targeting high single-digit to low double-digit adjusted EBITDA margins. The company plans to continue leveraging its strategic acquisitions and digital asset strategies to drive growth.
In summary, GameSquare Holdings, Inc.’s earnings call highlighted a positive trajectory with significant financial improvements and strategic initiatives. While challenges remain, the company’s forward-looking guidance suggests continued growth and profitability, making it a company to watch in the coming year.