Gamesquare Holdings, Inc. (GAME)
NASDAQ:GAME
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GameSquare Holdings
(NASDAQ:GAME)
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Rating:51Neutral
Price Target:
$0.46
▲(63.93% Upside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by weak financial performance (persistent losses, cash burn, and elevated leverage risk). This is partially offset by a more positive earnings-call outlook (reiterated FY2026 guidance and strong reported growth) and a mixed technical picture; valuation provides limited support due to negative earnings and no dividend yield.
Positive Factors
Gaming-focused business model & creator monetization
GameSquare's concentrated focus on gaming, creators and events drives structurally differentiated demand from advertisers targeting Gen Z/gamers. Large bookings (> $10M GSX) and creator-driven revenue (> $5M incremental) support recurring, higher-ticket campaigns and cross-sell opportunities, deepening client relationships and revenue durability.
Negative Factors
Sustained negative operating and free cash flow
Persistent negative OCF and FCF indicate the business consumes cash to run operations and invest. This structural cash burn necessitates continued external financing or asset sales, raises dilution and refinancing risk, and limits the company's ability to self-fund product expansion or absorb timing shocks over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Gaming-focused business model & creator monetization
GameSquare's concentrated focus on gaming, creators and events drives structurally differentiated demand from advertisers targeting Gen Z/gamers. Large bookings (> $10M GSX) and creator-driven revenue (> $5M incremental) support recurring, higher-ticket campaigns and cross-sell opportunities, deepening client relationships and revenue durability.
Read all positive factors
GameSquare Holdings (GAME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.52M
Dividend YieldN/A
Average Volume (3M)4.14M
Price to Earnings (P/E)―
Beta (1Y)1.64
Revenue Growth-39.62%
EPS Growth61.23%
CountryUS
Employees132
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.59
Shares Outstanding93,696,724
10 Day Avg. Volume1,796,432
30 Day Avg. Volume4,142,013
Financial Highlights & Ratios
PEG Ratio9.69
Price to Book (P/B)709.62
Price to Sales (P/S)562.25
P/FCF Ratio-331.70
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit2.22
Enterprise Value/Ebitda-6.05
Forecast
1Y Price Target
$1.50Price Target Upside435.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.13
Revenue Forecast (FY)$81.90M
GameSquare Holdings Business Overview & Revenue Model
Company Description
GameSquare Holdings, Inc. is an international digital media, entertainment and technology company. It engages in enabling global brands to connect with gaming and youth culture audiences. Its platform includes Code Red Esports Ltd., Cut+Sew (Zoned...
How the Company Makes Money
GameSquare primarily makes money by providing marketing and media services to brands that want to reach gaming audiences. Key revenue streams include: (1) Agency and marketing services: Fees from planning and executing gaming/esports-focused campa...
GameSquare Holdings Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 19, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum and substantial top-line growth (95% YoY), record bookings in the events business, meaningful strategic M&A that expands capabilities, a solid cash position and disciplined capital allocation including buybacks. Management reiterated confident FY2026 guidance and highlighted pro forma progress toward profitability (pro forma adjusted EBITDA loss narrowed to ~$0.7M and target of >$5M adjusted EBITDA for the year). Key challenges include a decline in gross margin percentage due to revenue mix, continued quarterly adjusted EBITDA losses (though improving on a pro forma basis), digital asset valuation volatility affecting net results, and dependence on seasonal back-half execution. Overall, positive growth and improving profitability trends outweigh the near-term margin and volatility headwinds.Positive Updates
Strong Revenue Growth
Reported Q1 revenue of $14.5M, up 95% year-over-year from $7.4M; pro forma Q1 revenue (including TubeBuddy) of $15.8M.
Negative Updates
Gross Margin Decline
Reported gross margin fell to 38.4% of sales in Q1 2026 from 42.5% in Q1 2025 (a decline of ~4.1 percentage points), attributed to revenue mix changes.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Reported Q1 revenue of $14.5M, up 95% year-over-year from $7.4M; pro forma Q1 revenue (including TubeBuddy) of $15.8M.
Read all positive updates
Company Guidance
GameSquare reiterated its 2026 pro‑forma guidance (including TubeBuddy) for revenue of $85–$90 million, gross margins of 35%–40% and adjusted EBITDA of more than $5 million; management said Q1 supports that outlook with reported Q1 revenue of $14.5M (up 95% YoY) and pro‑forma Q1 revenue of $15.8M, reported gross profit of $5.6M (38.4% margin) with gross profit dollars up ~77% (~$2.4M), a reported adjusted EBITDA loss of $1.1M (including TubeBuddy a $656K loss) and a pro‑forma adjusted EBITDA loss of $0.7M (4.2% of pro‑forma revenue). They cited a strong balance sheet with $35.9M in cash and digital assets, ongoing buybacks (April repurchase ~2.3M shares for ~$1M at ~$0.44 avg; 3.0M shares repurchased total for ~$3.5M at ~$0.47 avg with ~$11.4M remaining authorization), the February all‑stock TubeBuddy acquisition, record GSX Q1 bookings of >$10M, creator additions expected to add >$5M of incremental annualized revenue, and ~ $5.5M of revenue to date from Into the Zone/Roblox IP across ~10 events as key drivers of confidence in achieving the guidance.GameSquare Holdings Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
24
Negative
Cash Flow
14
Very Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 45.00M | 96.20M | 41.30M | 28.08M | 33.35M |
| Gross Profit | 19.52M | 15.27M | 10.10M | 9.66M | 10.49M |
| EBITDA | -9.71M | -51.00M | -22.03M | -15.60M | -24.06M |
| Net Income | -40.10M | -48.75M | -31.28M | -18.12M | -40.66M |
Balance Sheet | |||||
| Total Assets | 79.84M | 81.95M | 64.71M | 42.69M | 67.46M |
| Cash, Cash Equivalents and Short-Term Investments | 6.37M | 13.15M | 2.99M | 8.65M | 15.64M |
| Total Debt | 3.60M | 22.70M | 15.06M | 8.27M | 11.32M |
| Total Liabilities | 44.19M | 69.95M | 46.35M | 26.81M | 41.90M |
| Stockholders Equity | 35.65M | 12.00M | 18.36M | 15.89M | 25.42M |
Cash Flow | |||||
| Free Cash Flow | -76.28M | -30.58M | -16.08M | -20.69M | -30.58M |
| Operating Cash Flow | -18.40M | -30.57M | -16.08M | -20.61M | -30.40M |
| Investing Cash Flow | -60.33M | 2.71M | 14.07M | 13.45M | 92.03K |
| Financing Cash Flow | 72.66M | 37.97M | 3.95M | -326.60K | 39.58M |
GameSquare Holdings Technical Analysis
Negative
0.28
Price Trends
0.40
Negative
0.38
Positive
0.50
Negative
Market Momentum
>-0.01
Positive
45.81
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAME, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.43, below the 50-day MA of 0.40, and below the 200-day MA of 0.50, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAME.
GameSquare Holdings Risk Analysis
GameSquare Holdings disclosed 57 risk factors in its most recent earnings report. GameSquare Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GameSquare Holdings Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $20.23M | 3.77 | 153.14% | ― | 82.97% | 21220.00% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | $71.15M | -1.91 | -15.65% | ― | -15.86% | -16.59% | |
59 Neutral | $56.73M | 11.60 | 13.22% | ― | ― | ― | |
51 Neutral | $38.52M | -0.74 | -166.36% | ― | -39.62% | 61.23% | |
48 Neutral | $146.24M | -2.38 | -55.16% | ― | 21.25% | -77.13% |
* Communication Services Sector Average
GAME
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GMHS
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GameSquare Holdings Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
GameSquare Expands Stock Repurchase Program, Signals Profit Confidence
Positive
Apr 14, 2026
On April 10, 2026, GameSquare’s board amended the company’s bylaws to lower the stockholder quorum requirement for meetings from a majority of eligible votes to one-third, a move aimed at mitigating the growing impact of brokerage firm...
Delistings and Listing ChangesRegulatory Filings and Compliance
GameSquare Gets Nasdaq Extension to Regain Listing Compliance
Negative
Mar 11, 2026
On March 10, 2026, GameSquare Holdings, Inc. received a second notice from Nasdaq granting the company an additional 180 days, until September 7, 2026, to regain compliance with the exchange’s $1.00 minimum bid price requirement. The extensi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.