GameSquare Holdings (GAME) AI Stock Analysis

• Market Cap: $37.46M
• Dividend Yield: N/A
• Average Volume (3M): 1.02M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 132
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.07
• Shares Outstanding: 98,380,770
• 10 Day Avg. Volume: 703,714
• 30 Day Avg. Volume: 1,022,162
• PEG Ratio: 0.01
• Price to Book (P/B): -7.84
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -0.75
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 2.40
• Enterprise Value/Ebitda: -1.01
• 1Y Price Target: $3.00
• Price Target Upside: 689.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.06
• Revenue Forecast (FY): $80.05M

• Rating: 53 Neutral
• Price Target: $0.45 ▲(18.95% Upside)

The score is held back primarily by weak trailing financial performance (declining revenues, large losses, and negative operating cash flow) and a bearish technical setup (below key moving averages with negative MACD). Offsetting these, the earnings call conveyed notable recent operational improvement, a strong no-debt balance sheet, and constructive 2026 growth/profitability targets, supporting a mid-range score.

Positive Factors

Gross Margin Improvement

The significant improvement in gross margin reflects enhanced profitability and operational efficiency, which can support long-term financial stability.

Digital Asset Strategy

The successful digital asset strategy provides a new revenue stream, enhancing financial flexibility and supporting future growth initiatives.

Acquisition of Click Management

The acquisition strengthens GameSquare's market position by expanding its revenue base and enhancing its service offerings in the esports sector.

Negative Factors

Declining Revenue

Declining revenues indicate challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.

Pro Forma EBITDA Loss

Ongoing EBITDA losses suggest operational inefficiencies and financial strain, which could hinder the company's ability to invest in growth.

Tariff Uncertainty

Tariff uncertainties pose risks to revenue generation and strategic partnerships, potentially disrupting business operations and growth.

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), Complexity Gaming, Fourth Frame Studios, Mission Supply, Frankly Media, Stream Hatchet, and Sideqik. The company was founded on April 8, 2011and is headquartered in Frisco, TX.

How the Company Makes Money

GameSquare Holdings generates revenue through multiple streams, primarily by leveraging its expertise in the esports industry. Key revenue sources include sponsorship and advertising deals with brands looking to reach gaming audiences, as well as partnerships with esports teams and leagues. The company also earns income from hosting and organizing gaming events and tournaments, which attract both participants and viewers. Additionally, GameSquare capitalizes on content creation and distribution through digital platforms, enabling further monetization opportunities via media rights and merchandise sales. Strategic partnerships with major gaming and entertainment brands enhance its market presence and contribute significantly to its earnings.

GameSquare Holdings Financial Statement Overview

Summary

Financial statements indicate stress: revenue decline (-17.39% TTM), low gross margin (19.17% TTM), and very negative net margin (-49.30% TTM). Positives include very low leverage (debt-to-equity 0.02 TTM), but profitability remains weak (ROE -208.53% TTM) and operating cash flow is negative (OCF to net income -0.55 TTM).

Income Statement

GameSquare Holdings has faced significant challenges in its income statement metrics. The company experienced a negative revenue growth rate of -17.39% TTM, indicating a decline in sales. Gross profit margin stands at 19.17% TTM, which is relatively low, and the net profit margin is deeply negative at -49.30% TTM, reflecting substantial losses. EBIT and EBITDA margins are also negative, further highlighting operational inefficiencies. Overall, the income statement reveals a struggling financial performance with declining revenues and profitability.

Balance Sheet

The balance sheet of GameSquare Holdings shows mixed results. The debt-to-equity ratio is low at 0.02 TTM, indicating minimal leverage, which is a positive aspect. However, the return on equity is negative at -208.53% TTM, suggesting that the company is not generating returns for its shareholders. The equity ratio is not explicitly provided, but the company's equity position has improved from previous periods. While the low leverage is a strength, the negative ROE highlights ongoing profitability issues.

Cash Flow

Cash flow metrics for GameSquare Holdings indicate ongoing challenges. The operating cash flow to net income ratio is negative at -0.55 TTM, showing that the company is not generating positive cash flow from its operations. Free cash flow to net income ratio is close to 1, suggesting that free cash flow is almost equivalent to net income, but both are negative. Despite a slight improvement in free cash flow growth at 11.50% TTM, the overall cash flow situation remains weak, with negative operating cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.75M	96.20M	41.30M	28.08M	33.35M	10.55M
Gross Profit	13.76M	15.27M	10.10M	9.66M	10.49M	7.17M
EBITDA	-32.57M	-51.00M	-22.03M	-15.60M	-24.06M	-21.76M
Net Income	-35.37M	-48.75M	-31.28M	-18.12M	-40.66M	-32.34M
Balance Sheet
Total Assets	121.12M	78.73M	64.71M	20.09M	57.20M	53.42M
Cash, Cash Equivalents and Short-Term Investments	6.01M	12.09M	2.95M	977.41K	15.31M	5.24M
Total Debt	1.58M	23.63M	15.82M	3.50M	11.46M	20.33M
Total Liabilities	42.38M	66.73M	46.35M	12.94M	41.90M	53.15M
Stockholders Equity	78.74M	-2.94M	18.36M	7.16M	15.16M	45.91K
Cash Flow
Free Cash Flow	-21.81M	-30.58M	-16.08M	-20.69M	-30.58M	-13.14M
Operating Cash Flow	-22.03M	-30.57M	-16.08M	-20.61M	-30.40M	-13.02M
Investing Cash Flow	-61.82M	2.71M	14.07M	13.45M	92.03K	-364.83K
Financing Cash Flow	80.88M	37.97M	3.95M	-326.60K	39.58M	16.34M

GameSquare Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.38 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.47, and below the 200-day MA of 0.74, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 18.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GAME.

GameSquare Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSGM	65 Neutral	$23.81M	44.78	44.93%	―	11.38%	-94.39%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
GAME	53 Neutral	$37.46M	-0.37	-52.37%	―	―	―
GMHS	49 Neutral	$52.50M	―	―	―	―	―
MYPS	46 Neutral	$80.01M	-2.12	-14.82%	―	-17.17%	-51.88%
SKLZ	45 Neutral	$55.90M	-0.76	-48.34%	―	-8.99%	-117.83%

GameSquare Holdings Corporate Events

GameSquare Expands Justin Kenna’s Role and Compensation Package

On January 16, 2026, GameSquare Holdings’ board appointed its current chairman and chief executive officer, Justin Kenna, as president of the company, formalizing his expanded leadership role under an amended and restated employment agreement effective January 1, 2026. The three-year agreement, with automatic one-year renewals, sets Kenna’s initial annual base salary at $660,000 with scheduled increases, establishes eligibility for an annual bonus of up to $400,000 tied to performance, and provides significant equity-based compensation including an immediately vesting grant of 500,000 RSUs and recurring annual grants of RSUs and stock options, along with standard benefits and severance protections in the event of termination without cause, reinforcing leadership stability and aligning executive incentives with shareholder interests.

The most recent analyst rating on (GAME) stock is a Hold with a $0.47 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.

GameSquare Holdings Announces Leadership Transition and New Chairman

On December 31, 2025, GameSquare Holdings, Inc. entered into a separation agreement under which Chairman and President Lou Schwartz resigned from all roles at the company and its subsidiaries, receiving $250,000 in fixed compensation, accelerated vesting of 174,324 restricted stock units, vested options to purchase 653,570 shares, up to nine months of company-paid COBRA coverage, and continued indemnification, while agreeing to provide business advisory services through July 31, 2026 under a new advisor arrangement that includes standard releases, confidentiality, non-disparagement and cooperation terms. Also on December 31, 2025, the board named Chief Executive Officer Justin Kenna as Chairman of the Board, consolidating leadership under an executive with a track record in building esports revenue and valuations at FaZe Clan, in a move the company said did not stem from any disagreement with Schwartz and that underscores a continuity-focused transition for investors and other stakeholders.

The most recent analyst rating on (GAME) stock is a Hold with a $0.45 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.

GameSquare Holdings Annual Meeting Outcomes on December 4, 2025

GameSquare Holdings, Inc. held its 2025 Annual Meeting of Stockholders on December 4, 2025, after obtaining a court order to establish a quorum. During the meeting, two Class I directors were reelected, and the appointment of Kreston GTA as the independent auditor was ratified. However, a proposal to approve a merger agreement aimed at restating the Certificate of Incorporation failed to receive sufficient votes.

The most recent analyst rating on (GAME) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.

GameSquare Holdings Adjourns Annual Stockholders Meeting

On November 4, 2025, GameSquare Holdings, Inc. attempted to hold its 2025 Annual Meeting of Stockholders but was unable to proceed due to insufficient shares being represented to form a quorum. The meeting has been adjourned and will reconvene virtually on December 4, 2025, to address the proposals outlined in the proxy statement filed with the SEC. During the adjournment, the company will continue to solicit votes from stockholders regarding these proposals.

The most recent analyst rating on (GAME) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.