GameSquare (NASDAQ:GAME) Announces Quarterly Earnings Results

GameSquare (NASDAQ:GAME) announced its quarterly earnings results on Monday. The entertainment company reported ($0.11) earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of $18.48 million during the quarter. GameSquare had a negative net margin of 96.06% and a positive return on equity of 6.47%.

Here are the key takeaways from GameSquare’s conference call:

• Q2 revenue rose 137% year over year to $18.5 million, while gross margin expanded to 49% from 29.4% and adjusted EBITDA improved to a record $1.0 million from a $3.2 million loss.
• Management cited strong second-half visibility, with approximately 70% of revenue already booked or locked in, a 100% renewal rate for agency-of-record clients, and major programs involving Marvel Rivals, Roblox, Tencent, TikTok, and others.
• GameSquare reiterated 2026 pro forma guidance for revenue of $85 million-$90 million, gross margin of 35%-40%, and adjusted EBITDA above $5 million, while expecting Q4 to be its largest quarter and operating expenses to remain relatively stable.
• The company has repurchased more than 8.8 million shares for approximately $4.1 million and plans to continue buybacks when management believes the stock is undervalued, while selectively monetizing digital-asset holdings to fund higher-return opportunities.
• GameSquare faces Nasdaq’s minimum bid-price requirement and will ask shareholders to authorize a potential reverse stock split, highlighting continued share-price and listing-related risk despite management’s confidence in the business.

GameSquare Price Performance

Shares of NASDAQ GAME traded up $0.02 during mid-day trading on Wednesday, hitting $0.41. 1,104,372 shares of the company’s stock traded hands, compared to its average volume of 3,961,364. The company’s 50-day moving average is $0.38 and its two-hundred day moving average is $0.37. The company has a market capitalization of $42.71 million, a P/E ratio of -0.67 and a beta of 1.56. GameSquare has a 1 year low of $0.23 and a 1 year high of $0.97.

Insider Buying and Selling

In related news, insider & Silver Ventures Ltd. Blue purchased 620,100 shares of the company’s stock in a transaction that occurred on Tuesday, May 26th. The stock was bought at an average price of $0.43 per share, for a total transaction of $266,643.00. Following the completion of the transaction, the insider owned 5,853,274 shares in the company, valued at approximately $2,516,907.82. The trade was a 11.85% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Corporate insiders own 6.80% of the company’s stock.

Hedge Funds Weigh In On GameSquare

Several large investors have recently modified their holdings of GAME. XTX Topco Ltd bought a new stake in GameSquare in the second quarter worth $38,000. Virtu Financial LLC lifted its holdings in shares of GameSquare by 167.6% in the 4th quarter. Virtu Financial LLC now owns 200,255 shares of the entertainment company’s stock worth $77,000 after acquiring an additional 125,428 shares during the last quarter. Jane Street Group LLC purchased a new position in shares of GameSquare during the 4th quarter worth about $153,000. Geode Capital Management LLC boosted its stake in shares of GameSquare by 23.9% during the 2nd quarter. Geode Capital Management LLC now owns 213,914 shares of the entertainment company’s stock worth $186,000 after purchasing an additional 41,196 shares during the period. Finally, UBS Group AG grew its holdings in GameSquare by 275,329.0% during the 3rd quarter. UBS Group AG now owns 1,669,100 shares of the entertainment company’s stock valued at $1,133,000 after purchasing an additional 1,668,494 shares during the last quarter. Institutional investors own 64.25% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have commented on GAME shares. Weiss Ratings raised shares of GameSquare from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, July 9th. Zacks Research raised GameSquare from a “strong sell” rating to a “hold” rating in a report on Monday, June 8th. Wall Street Zen upgraded GameSquare to a “hold” rating in a research report on Saturday, April 25th. Finally, ThinkEquity began coverage on GameSquare in a research note on Monday, June 8th. They set a “buy” rating for the company. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold”.

GameSquare Company Profile

GameSquare Inc (NASDAQ: GAME) is a digital media and marketing company focused on the global gaming and esports industries. The company operates a network of online properties and community platforms that deliver editorial content, live event coverage, and video programming to enthusiasts and consumers. GameSquare’s offerings span both traditional gaming titles and competitive esports leagues, enabling advertisers and brand partners to engage with a diverse and highly engaged audience.

Through its flagship Enthusiast Gaming network, GameSquare oversees a portfolio of more than 35 websites and digital channels, including long-standing properties such as Destructoid, The Escapist and Daily Esports.