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GameSquare Holdings (GAME)
NASDAQ:GAME
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GameSquare Holdings (GAME) AI Stock Analysis

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GAME

GameSquare Holdings

(NASDAQ:GAME)

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Neutral 46 (OpenAI - 4o)
Rating:46Neutral
Price Target:
$0.50
▼(-7.41% Downside)
GameSquare Holdings' overall stock score is primarily impacted by its challenging financial performance, with high leverage and ongoing losses. Technical analysis indicates a bearish trend, while valuation metrics are weak due to negative earnings. However, the recent earnings call provided some optimism with strategic improvements and financial gains, slightly boosting the overall score.
Positive Factors
Gross Margin Improvement
The significant improvement in gross margin indicates enhanced operational efficiency and profitability, which can support long-term financial stability and competitiveness.
Digital Asset Strategy
The successful digital asset strategy provides a new revenue stream and financial flexibility, enhancing the company's ability to invest in growth and innovation.
Strong Revenue Growth
The robust revenue growth across multiple segments demonstrates the company's effective market positioning and potential for sustained expansion.
Negative Factors
High Leverage
The high leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth and respond to market changes.
Negative Cash Flow
Persistent negative cash flow challenges liquidity and could hinder the company's capacity to fund operations and strategic initiatives without additional financing.
Tariff Uncertainty
Tariff uncertainties can disrupt deal timing and revenue realization, impacting the company's ability to execute its strategic plans and achieve financial targets.

GameSquare Holdings (GAME) vs. SPDR S&P 500 ETF (SPY)

GameSquare Holdings Business Overview & Revenue Model

Company DescriptionGameSquare Holdings (GAME) is a leading gaming and esports company focused on creating, developing, and promoting gaming content and experiences. The company operates within the esports sector, providing a platform for competitive gaming while also engaging audiences through media, entertainment, and sponsorships. GameSquare is known for its innovative approach to integrating gaming with mainstream culture, offering a range of services including team management, event production, and content creation.
How the Company Makes MoneyGameSquare Holdings generates revenue through multiple streams, primarily from sponsorship and advertising partnerships, media rights, and event ticket sales. The company collaborates with various brands looking to reach the gaming audience, securing sponsorship deals that provide substantial income. Additionally, GameSquare earns revenue from the sale of media rights for its esports events, allowing broadcasters to air competitions. Another key revenue stream comes from ticket sales and merchandise during live events, further enhancing its financial performance. Partnerships with gaming publishers and technology companies also contribute to its earnings, providing access to new markets and promotional opportunities.

GameSquare Holdings Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
GameSquare demonstrated strong financial improvements with increased revenue and profitability, supported by strategic acquisitions and a robust digital asset strategy. However, challenges such as pro forma EBITDA loss, shareholder voting difficulties, and tariff-related uncertainties remain.
Q3-2025 Updates
Positive Updates
Significant Improvement in Gross Margin
Gross margin for the third quarter expanded sequentially by 20 percentage points to 49.4%, up from 15.3% in the second quarter, reflecting enhanced profitability.
Positive Net Income from Continuing Operations
GameSquare reported $5.9 million in net income from continuing operations in Q3 2025, compared to a net loss of $3.9 million in the same period a year ago.
Strong Revenue Growth
Revenue increased by 22% year-over-year to $11.3 million, driven by growth across technology, agency, and owned and operated IP segments.
Successful Digital Asset Treasury Strategy
The digital asset treasury strategy generated $600,000 of yield in the last 2 months of the quarter, with an unrealized gain of $9.3 million.
Acquisition of Click Management
GameSquare acquired Click Management, expecting it to contribute $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 had approximately $82 million in cash and digital assets, no debt, and shareholders' equity of $79 million.
Negative Updates
Pro Forma EBITDA Loss
GameSquare reported a pro forma EBITDA loss of $200,000 when including a full quarter of Click Management.
Challenges with Shareholder Voting
There is difficulty in reaching a quorum for shareholder votes due to the diverse shareholder base, which includes many new, retail, and foreign shareholders.
Impact of Tariff Uncertainty
Continued challenges with tariff uncertainties affecting timing of several large deals, particularly those involving companies headquartered in China.
Company Guidance
During the GameSquare Holdings 2025 Third Quarter Conference Call, the company provided a comprehensive update on its strategic and financial performance. Key metrics highlighted include a sequential increase in gross margin by 20 percentage points to 49.4% and a reduction in pro forma EBITDA loss to approximately $200,000, compared to a $3.5 million loss in the previous quarter. GameSquare reported $5.9 million in net income from continuing operations for the quarter. The company executed significant strategic actions, such as divesting FaZe Media, winding down Frankly Media, and acquiring Click Management, which contributed $14.5 million in annualized pro forma revenue and $1.2 million in pro forma EBITDA. Their digital asset treasury strategy, launched in July 2025, raised approximately $18 million for a yield-focused Ethereum model, generating $600,000 in yield over two months. The company holds 15,618 ETH, with a cost basis of $55.5 million and an unrealized gain of $9.3 million. As of September 30, 2025, GameSquare's balance sheet reflects $82 million in cash and digital assets, with no debt and shareholder equity of $79 million. The company also executed share buybacks, purchasing 833,124 shares at an average price of $0.72. 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.

GameSquare Holdings Financial Statement Overview

Summary
GameSquare Holdings faces significant financial challenges, with persistent losses and high leverage. While there is some revenue growth, profitability and cash flow issues overshadow this positive aspect. The company needs to address its financial structure to improve stability and reduce risk.
Income Statement
30
Negative
GameSquare Holdings has shown some revenue growth, with a 7.49% increase in the latest year. However, profitability remains a significant concern, as evidenced by negative net profit margins (-50.68%) and EBIT margins (-57.16%). The company struggles with high operating losses, impacting overall financial health.
Balance Sheet
20
Very Negative
The balance sheet reveals a precarious financial position with negative stockholders' equity and a high debt-to-equity ratio of -8.04. This indicates substantial leverage and financial instability. The return on equity is positive at 16.59%, but this is due to negative equity, which is not a sustainable situation.
Cash Flow
25
Negative
Cash flow analysis shows negative operating cash flow and free cash flow, with a slight decline in free cash flow growth (-3.40%). The free cash flow to net income ratio is slightly above 1, indicating that cash flow is somewhat aligned with net income, but overall cash flow remains negative, posing liquidity challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue86.85M96.20M41.30M28.08M33.35M10.55M
Gross Profit13.41M15.27M10.10M9.66M10.49M7.17M
EBITDA-45.33M-51.00M-22.03M-15.60M-24.06M-21.76M
Net Income-40.05M-48.75M-31.28M-18.12M-40.66M-32.34M
Balance Sheet
Total Assets44.09M78.73M64.71M20.09M57.20M53.42M
Cash, Cash Equivalents and Short-Term Investments4.70M12.09M2.95M977.41K15.31M5.24M
Total Debt9.57M23.63M15.82M3.50M11.46M20.33M
Total Liabilities49.63M66.73M46.35M12.94M41.90M53.15M
Stockholders Equity-5.54M-2.94M18.36M7.16M15.16M45.91K
Cash Flow
Free Cash Flow-20.29M-30.64M-16.08M-11.40M-30.53M-13.76M
Operating Cash Flow-19.85M-30.57M-16.08M-11.37M-30.34M-13.09M
Investing Cash Flow-1.08M2.71M14.07M18.11K92.03K-364.83K
Financing Cash Flow13.64M37.97M3.95M6.30M39.58M16.34M

GameSquare Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.54
Price Trends
50DMA
0.64
Negative
100DMA
0.82
Negative
200DMA
0.80
Negative
Market Momentum
MACD
-0.04
Negative
RSI
47.14
Neutral
STOCH
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAME, the sentiment is Neutral. The current price of 0.54 is above the 20-day moving average (MA) of 0.53, below the 50-day MA of 0.64, and below the 200-day MA of 0.80, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.14 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GAME.

GameSquare Holdings Risk Analysis

GameSquare Holdings disclosed 28 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
55
Neutral
$16.12M30.3344.93%11.38%-94.39%
46
Neutral
$52.95M-52.37%
44
Neutral
$80.96M-14.82%-17.17%-51.88%
38
Underperform
$85.56M-41.47%-6.43%-85.63%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GAME
GameSquare Holdings
0.54
-0.36
-40.00%
GDC
GD Culture Group
4.76
2.53
113.45%
SKLZ
Skillz
5.59
-0.11
-1.93%
MYPS
PLAYSTUDIOS
0.64
-1.15
-64.25%
MSGM
Motorsport Games
2.79
1.43
105.15%
GMHS
Gamehaus Holdings
1.05
-10.17
-90.64%

GameSquare Holdings Corporate Events

GameSquare Holdings Reports Strong Q3 2025 Results
Nov 14, 2025

GameSquare Holdings, Inc. is a media, entertainment, and technology company that connects brands and publishers with Gen Z, Gen Alpha, and Millennial audiences through its comprehensive gaming media network.

Shareholder Meetings
GameSquare Holdings Adjourns Annual Stockholders Meeting
Neutral
Nov 6, 2025

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.

Shareholder Meetings
GameSquare Holdings Adjourns Annual Stockholder Meeting
Neutral
Oct 7, 2025

On October 7, 2025, GameSquare Holdings convened its 2025 Annual Meeting of Stockholders but adjourned it due to a lack of quorum. The meeting will reconvene virtually on November 4, 2025, to vote on proposals outlined in the proxy statement. The company continues to solicit votes from stockholders and encourages those who haven’t voted to do so by October 31, 2025.

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.

Legal ProceedingsM&A Transactions
GameSquare Holdings Gains Court Approval for Settlement
Neutral
Sep 26, 2025

GameSquare Holdings, Inc. recently received final court approval for a settlement agreement related to its acquisition of FaZe Holdings, Inc. This approval, granted on September 22, 2025, resolves the Shareholder Derivative Litigation and confirms GameSquare’s financial responsibilities as outlined in the settlement agreement.

The most recent analyst rating on (GAME) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.

Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
GameSquare Holdings Acquires Click Management for Growth
Positive
Sep 11, 2025

On September 10, 2025, GameSquare Holdings announced the acquisition of Click Management, a leading talent management firm, for $8.5 million plus contingent earnouts. This acquisition is expected to enhance GameSquare’s profitability and strengthen its position in the creator economy by expanding its talent management platform. Additionally, GameSquare is discontinuing its programmatic advertising solutions provider, Frankly Media, to focus on high-growth areas, which aligns with its strategy to optimize operations and improve profitability. The company also received a Nasdaq Minimum Bid Price Notice, giving it until March 9, 2026, to regain compliance with the minimum bid price requirement.

The most recent analyst rating on (GAME) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.

Gamesquare Holdings’ Earnings Call Highlights Strategic Wins
Sep 1, 2025

During the recent earnings call, Gamesquare Holdings, Inc. conveyed a predominantly positive sentiment, highlighting several significant achievements. The company celebrated the successful launch of its Ethereum treasury strategy, which has already generated substantial unrealized gains. Additionally, Gamesquare has made strides in cost reduction and boasts a strong sales pipeline. However, challenges such as a decline in revenue and the impact of tariffs on deal closures were also acknowledged. Overall, the positive developments, including strategic partnerships and a share repurchase program, were emphasized as outweighing the challenges faced.

Shareholder Meetings
GameSquare Holdings Announces Early 2025 Annual Meeting
Neutral
Aug 27, 2025

GameSquare Holdings, Inc. has announced that its annual meeting of stockholders for 2025 will be held on October 7, 2025, a date that is more than 30 days earlier than the anniversary of the 2024 meeting. This change affects the deadlines for stockholder proposals and nominations, which must now be submitted by September 10, 2025, to be included in the proxy materials, and by September 27, 2025, for nominations for director positions.

The most recent analyst rating on (GAME) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on GameSquare Holdings stock, see the GAME Stock Forecast page.

Gamesquare Holdings Reports Q2 2025 Financial Results
Aug 15, 2025

Gamesquare Holdings, Inc. is a digital media, entertainment, and technology company that connects global brands with gaming and youth culture audiences through its diverse platform of services, including esports talent management, marketing, and analytics. In its latest earnings report for the quarter ending June 30, 2025, Gamesquare Holdings reported a decrease in revenue to $15.85 million from $17.83 million in the same period last year, alongside a net loss of $3.02 million, a significant improvement from the $12.00 million loss in the previous year. Key financial metrics highlighted a gross profit of $2.43 million, with operating expenses totaling $7.15 million, leading to a loss from continuing operations of $4.72 million. The company also noted a comprehensive loss of $3.57 million, reflecting foreign currency translation adjustments. Looking forward, Gamesquare Holdings faces challenges related to its liquidity and ongoing losses but remains focused on achieving profitable operations and exploring financing options to support its strategic initiatives.

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.Date of analysis: Nov 19, 2025