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GameSquare Holdings
(NASDAQ:GAME)
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Rating:51Neutral
Price Target:
$0.42
▲(15.56% Upside)
Action:Reiterated
Date:08/17/26
Overall score is held down primarily by weak financial performance (large losses, persistent cash burn, and rising leverage) despite rapid revenue growth. Offsetting this, the earnings call indicates improving operating momentum with reiterated FY2026 guidance and better Q2 profitability metrics (adjusted EBITDA), while technicals are modestly positive. Valuation remains constrained by loss-based metrics (negative P/E) and the absence of a dividend yield.
Positive Factors
Rapid revenue growth with improving margins
Strong top-line expansion combined with substantial gross-margin improvement and positive adjusted EBITDA indicates better operating leverage. If sustained across acquisitions and agency operations, this could establish a more scalable earnings profile.
Negative Factors
Severe operating and net losses
The company has not yet converted rapid revenue growth into sustainable GAAP profitability. Very large operating and net losses could require continued restructuring, cost control, or external financing before growth produces durable shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid revenue growth with improving margins
Strong top-line expansion combined with substantial gross-margin improvement and positive adjusted EBITDA indicates better operating leverage. If sustained across acquisitions and agency operations, this could establish a more scalable earnings profile.
Read all positive factors
GameSquare Holdings (GAME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.98M
Dividend YieldN/A
Average Volume (3M)868.04K
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth-27.74%
EPS Growth48.59%
CountryUS
Employees144
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)-0.62
Shares Outstanding103,809,540
10 Day Avg. Volume886,994
30 Day Avg. Volume868,041
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)709.62
Price to Sales (P/S)562.25
P/FCF Ratio-331.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$1.38Price Target Upside281.94% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)-0.2
Revenue Forecast (FY)$82.93M
GameSquare Holdings Business Overview & Revenue Model
Company Description
GameSquare Holdings, Inc. operates as a media, entertainment, and technology company. The company transforms brands and publishers connect with Gen Z, Gen Alpha, and Millennial audiences. Its platform covers creative services, advanced analytics, ...
How the Company Makes Money
GameSquare generates revenue primarily by providing services and media/marketing solutions tied to gaming and esports. Key revenue streams typically include: (1) Brand and agency services: developing and executing marketing campaigns for advertise...
GameSquare Holdings Earnings Call Summary
Earnings Call Date:Aug 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
Overall the call conveys a positive operational and financial inflection: strong top‑line growth (137% YoY), substantial margin expansion (to 49%), and a return to positive adjusted EBITDA ($1.0M) signal improving underlying business performance and successful integration of acquisitions (Click, TubeBuddy, Stream Hatchet). Management reiterated confident guidance ($85–90M revenue, gross margin 35%–40%, adjusted EBITDA >$5M), highlighted a sizable locked‑in revenue base (~70%), healthy liquidity ($25.9M including digital assets), and active capital‑return actions. Principal risks discussed include persistent low public valuation leading to potential reverse split, dependence on a seasonally strong second half (historically ~60% of revenue), exposure to digital asset volatility, and incremental OpEx from acquisitions — but these are framed as manageable relative to the company’s operational momentum.Positive Updates
Record Revenue Growth
Total revenue of $18.5M in Q2 2026, a 137% year‑over‑year increase from $7.8M, driven primarily by acquisitions (Click, TubeBuddy) and growth across marketing agency and owned/IP segments.
Negative Updates
Share Price Undervaluation and Nasdaq Compliance Risk
Management repeatedly described the stock as 'undervalued' and is pursuing buybacks; shareholders will vote on Aug 13 to authorize the board to enact a potential reverse stock split if necessary to regain Nasdaq minimum bid price compliance — an indicator of market valuation pressure and a potential corporate action that may concern investors.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue Growth
Total revenue of $18.5M in Q2 2026, a 137% year‑over‑year increase from $7.8M, driven primarily by acquisitions (Click, TubeBuddy) and growth across marketing agency and owned/IP segments.
Read all positive updates
Company Guidance
GameSquare reiterated pro forma FY2026 guidance of $85–90 million revenue, 35–40% gross margin and adjusted EBITDA of over $5 million, citing strong Q2 results (revenue $18.5M, +137% YoY; gross margin $9.0M or 49% of sales; adjusted EBITDA $1.0M vs. a $3.2M loss a year ago) and a robust pipeline; management said roughly 70% of booked revenue is locked in, historically ~60% of revenue falls in H2, cash + digital asset treasury totaled $25.9M at June 30, and the company has repurchased >8.8M shares for about $4.1M (2.8M in Q2, 1M in July). Product and M&A tailwinds cited to support the outlook include TubeBuddy’s ~10% increase in new subscribers since early July, activated users converting to paid at roughly 10× the rate of non‑activated users, and a near‑90% (≈88%) margin for the SaaS business.GameSquare Holdings Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
32
Negative
Cash Flow
16
Very Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 62.75M | 45.00M | 96.20M | 41.30M | 28.08M | 33.35M |
| Gross Profit | 28.29M | 19.52M | 15.27M | 10.10M | 9.66M | 10.49M |
| EBITDA | -39.89M | -27.94M | -51.00M | -22.03M | -15.60M | -24.06M |
| Net Income | -60.28M | -40.10M | -48.75M | -31.28M | -18.12M | -40.66M |
Balance Sheet | ||||||
| Total Assets | 58.89M | 79.84M | 81.95M | 64.71M | 42.69M | 67.46M |
| Cash, Cash Equivalents and Short-Term Investments | 4.46M | 6.37M | 13.15M | 2.99M | 8.65M | 15.64M |
| Total Debt | 13.48M | 3.60M | 22.70M | 15.06M | 8.27M | 11.32M |
| Total Liabilities | 49.00M | 44.19M | 69.95M | 46.35M | 26.81M | 41.90M |
| Stockholders Equity | 9.88M | 35.65M | 12.00M | 18.36M | 15.89M | 25.42M |
Cash Flow | ||||||
| Free Cash Flow | -20.18M | -76.28M | -30.58M | -16.08M | -11.96M | -30.58M |
| Operating Cash Flow | -20.47M | -18.40M | -30.57M | -16.08M | -11.92M | -30.40M |
| Investing Cash Flow | -59.35M | -60.33M | 2.71M | 14.07M | 18.11K | 92.03K |
| Financing Cash Flow | 77.82M | 72.66M | 37.97M | 3.95M | 6.84M | 39.58M |
GameSquare Holdings Technical Analysis
Positive
0.36
Price Trends
0.38
Positive
0.40
Positive
0.41
Negative
Market Momentum
<0.01
Negative
57.72
Neutral
65.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GAME, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.38, and below the 200-day MA of 0.41, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 65.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $7.12B | 34.18 | 8.04% | ― | 11.20% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $220.62M | 3.07 | -60.77% | ― | ― | ― | |
54 Neutral | $27.31B | -26.75 | -288.77% | ― | 41.33% | 0.75% | |
51 Neutral | $42.98M | -0.66 | -169.57% | ― | -27.74% | 48.59% | |
50 Neutral | $957.36M | -3.44 | 82.92% | 10.87% | 5.84% | -421.33% | |
49 Neutral | $67.46M | -1.45 | -20.93% | ― | -13.26% | -46.97% |
* Communication Services Sector Average
GAME
GameSquare Holdings
0.41
-0.44
-51.58%
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GameSquare Holdings Corporate Events
Business Operations and StrategyShareholder MeetingsStock Split
GameSquare Holders Approve Flexible Reverse Stock Split Plan
Neutral
Aug 14, 2026
On August 13, 2026, GameSquare Holdings, Inc. held a Special Meeting of stockholders at which approximately 58.59% of eligible common shares were represented, constituting a quorum. Shareholders approved an amendment authorizing the board to imple...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
GameSquare Simplifies Capital Structure and Governance Framework
Positive
Jun 22, 2026
On June 18, 2026, GameSquare Holdings completed an internal merger with its wholly owned subsidiary GameSquare Merger Sub 3, with GameSquare surviving as the continuing corporation and all Merger Sub 3 shares cancelled. Concurrently, all outstandi...
Business Operations and StrategyFinancial Disclosures
GameSquare Highlights Rapid Growth in Creator-Led Media Platform
Positive
Jun 4, 2026
On June 4, 2026, GameSquare told shareholders it has evolved into a differentiated media, technology and entertainment platform at the center of the creator economy, after streamlining its portfolio and completing strategic acquisitions. Its ecosy...
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.