GameSquare Holdings (GAME) AI Stock Analysis

• Market Cap: $80.43M
• Dividend Yield: N/A
• Average Volume (3M): 15.45M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 132
• Sector: Communication Services
• Sector Strength: 92
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): -0.08
• Shares Outstanding: 98,998,600
• 10 Day Avg. Volume: 4,753,849
• 30 Day Avg. Volume: 15,447,513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 2.76
• Enterprise Value/Ebitda: -0.81
• 1Y Price Target: $2.00
• Price Target Upside: 153.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 46 Neutral
• Price Target: $1.00 ▲(26.58% Upside)

GameSquare Holdings' overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and ongoing losses. While technical indicators and valuation metrics are also concerning, recent positive developments from earnings calls and corporate events provide some optimism. However, these are not enough to offset the significant financial challenges.

Positive Factors

Earnings

GameSquare Holdings, Inc. reported strong first-quarter results with revenue of $21.1 million, exceeding estimates and demonstrating the company's robust performance.

Future Growth

Management has maintained its 2025 revenue guidance of $100 million to $105 million, indicating strong projected growth and positive future prospects for the company.

Operational Efficiency

The divestiture of FaZe Media is expected to significantly improve cash operating expenses by $15 million annually and reduce full-year operating expenses by approximately 10%.

Negative Factors

Capital Requirement

Additional capital is projected to be required near the end of 2025.

Earnings Expectations

Despite the profitable FaZe Esports business, 4Q24 revenue of $23.5M and adjusted EBITDA loss of ($4.3M) were below expectations.

Net Loss

Despite the positive revenue performance, the company ended the first quarter with a net loss of $5.2 million and may require additional capital near the fourth quarter.

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 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 Financial Statement Overview

Summary

GameSquare Holdings faces significant financial challenges, with persistent losses and high leverage. Despite 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.85M	96.20M	52.00M	28.08M	33.35M	10.55M
Gross Profit	13.41M	15.27M	13.45M	9.66M	10.49M	7.17M
EBITDA	-45.61M	-51.00M	-19.03M	-14.52M	-19.03M	-11.25M
Net Income	-40.05M	-48.75M	-31.28M	-18.11M	-40.66M	-32.34M
Balance Sheet
Total Assets	44.09M	78.73M	64.71M	20.09M	57.20M	53.42M
Cash, Cash Equivalents and Short-Term Investments	4.70M	12.09M	2.95M	977.41K	15.31M	5.24M
Total Debt	9.57M	23.63M	15.82M	3.50M	11.46M	20.33M
Total Liabilities	49.63M	66.73M	46.35M	12.94M	41.90M	53.15M
Stockholders Equity	-5.54M	-2.94M	18.36M	7.16M	15.16M	45.91K
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	-1.08M	2.71M	14.07M	18.11K	92.03K	-364.83K
Financing Cash Flow	13.64M	37.97M	3.95M	6.30M	39.58M	16.34M

GameSquare Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.79 is below the 20-day moving average (MA) of 0.86, below the 50-day MA of 1.07, and below the 200-day MA of 0.87, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 41.24 is Neutral, neither overbought nor oversold. The STOCH value of 28.09 is Neutral, 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
Sector *	60 Neutral	$44.05B	4.50	-12.81%	4.08%	1.86%	-43.08%
SKLZ	58 Neutral	$157.69M	―	-40.15%	―	-18.41%	-61.67%
MYPS	52 Neutral	$129.11M	―	-12.32%	―	-13.95%	-75.02%
GAME	46 Neutral	$80.43M	―	-231.82%	―	―	―
GDC	―	$68.02M	―	-121.97%	―	―	―
MSGM	50 Neutral	$17.34M	630.91	31.90%	―	-2.69%	-114.02%
GMHS	―	$62.14M	6.00	4.14%	―	―	―

GameSquare Holdings Corporate Events

GameSquare Holdings Announces Early 2025 Annual Meeting

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.

GameSquare Holdings Announces Share Repurchase Program

On August 4, 2025, GameSquare Holdings announced the authorization of a share repurchase program, allowing the company to buy back up to $5 million worth of its common stock. This initiative is funded by proceeds from its Ethereum yield strategy, which commenced on August 1, 2025, and aims to generate annual yields of 8% to 14%. The repurchase program reflects GameSquare’s strategic focus on capital allocation and shareholder value, leveraging its Ethereum holdings to create a new revenue stream and enhance its market positioning.

GameSquare Holdings Issues Preferred Stock for NFT

On July 24, 2025, GameSquare Holdings entered into a Subscription Agreement with Robert Leshner, resulting in the issuance of 3,433.33 shares of Series A-1 Convertible Preferred Stock in exchange for a Crypto Punk non-fungible token valued at $5,149,995. This transaction, approved by the board on July 23, 2025, and facilitated by a waiver from Lucid Capital Markets, highlights GameSquare’s strategic financial maneuvers to strengthen its equity position while adhering to regulatory exemptions.

GameSquare Holdings Completes $61.5 Million Public Offering

On July 18, 2025, GameSquare Holdings, Inc. completed a public offering of 46,666,667 shares of common stock, raising approximately $61.5 million. The proceeds are intended for general corporate purposes, particularly cryptocurrency-related investments, including acquisitions, strategy development, and potential mergers and acquisitions. This move positions GameSquare to enhance its operations and strategic objectives in the digital assets and blockchain technology sectors.

GameSquare Holdings Raises $8.56M in Stock Offering

On July 8, 2025, GameSquare Holdings, Inc. entered into an underwriting agreement with Lucid Capital Markets, LLC to issue and sell shares of common stock and pre-funded warrants, raising approximately $8.56 million in gross proceeds. The offering closed on July 9, 2025, and the company plans to use the net proceeds for general corporate purposes, including strategic investments and acquisitions. The underwriter fully exercised its option, resulting in additional gross proceeds of $1,199,872.83. This move is expected to bolster GameSquare’s financial position and support its growth strategy in the gaming and digital media industry.

GameSquare Holdings Suspends Prospectus Supplement

On July 7, 2025, GameSquare Holdings, Inc. announced the suspension and termination of its prospectus supplement related to the company’s common stock, which was initially issued on June 27, 2025. This decision affects the At-The-Market Sales Agreement with ThinkEquity LLC, although the agreement itself remains in effect, and future sales will require a new prospectus filing with the SEC.

GameSquare Holdings Enters At-The-Market Sales Agreement

On June 27, 2025, GameSquare Holdings, Inc. entered into an At-The-Market Sales Agreement with ThinkEquity LLC, allowing the company to offer and sell shares of its Common Stock, valued at $0.0001 per share, up to an aggregate amount of $9,250,000. This move, facilitated through a shelf registration statement and prospectus supplement filed with the SEC, provides GameSquare with the flexibility to sell shares over time, potentially impacting its market operations and financial strategy.