Core Viewpoint - GameSquare Holdings, Inc. has repurchased a total of 1,038,787 shares of its common stock for $563,801, indicating a strategic move to enhance shareholder value through stock buybacks [1] Group 1: Share Repurchase Details - The average price paid per share during the repurchase was approximately $0.54 [1] - Following the repurchase, the company has approximately $3.3 million remaining under its current stock buyback authorization [1]

Core Insights - GameSquare Holdings is focused on connecting game publishers and brands with the growing gaming and esports communities, positioning itself for future growth and scalability [3][4] - The recent quarter is viewed as a significant turning point for the company, emphasizing a commitment to the creator economy and building momentum in the sales pipeline [4] - GameSquare has achieved a debt-free status and is focused on yield generation through its Digital Asset Treasury strategy, aiming for profitability by 2026 [4][5] Company Overview - The company aims to leverage its unique model to engage with large audiences in the gaming sector, indicating a strategic focus on the next generation of gaming [3] - GameSquare's efforts to integrate brands deeper into its ecosystem reflect a proactive approach to enhancing its market position [4] Financial Position - The company has successfully cleaned up its balance sheet, marking a significant improvement in its financial health by becoming debt-free [4] - GameSquare is optimistic about its sales pipeline and overall positioning for the latter half of the year and beyond, with a target of achieving profitability by 2026 [4]

GameSquare Holdings Conference Summary Company Overview - **Company**: GameSquare Holdings Incorporated - **Industry**: Gaming and Esports - **Market Cap**: Approximately $52 million as of the conference date [26] Key Points and Arguments 1. **Growth and Positioning**: GameSquare is focused on connecting game publishers and brands with gaming and esports communities, emphasizing its unique model designed for the next generation [2][3] 2. **Financial Performance**: The company reported a significant improvement in its financials, with Q3 being break-even and Q4 expected to be its first profitable quarter [5][23] 3. **Total Addressable Market (TAM)**: The video game market has a TAM exceeding $230 billion, with 60%-65% of revenue generated through influencers and creators, which is a primary focus for GameSquare [4][5] 4. **Debt-Free Status**: GameSquare has cleaned up its balance sheet and is now debt-free, allowing for a focus on yield generation and cash flow from its core operations [3][21] 5. **Creator Economy**: The company is doubling down on the creator economy, having acquired Click, a talent management business, which is expected to generate $15-$20 million in revenue by 2026 [10][11] 6. **Data and Analytics Leadership**: GameSquare's data analytics platform, Stream Hatchet, is positioned as a market leader, providing critical insights for major game publishers [8][9] 7. **Agency Services**: The agency services business, divided into Zoned and GSX, is a significant contributor to profitability, working with major brands like Epic Games and McDonald's [12][13] 8. **Intellectual Property (IP) Ownership**: GameSquare owns FaZe Esports and has co-ownership of the SpongeBob SquarePants IP, which provides access to large audiences and monetization opportunities [17][18] 9. **Digital Asset Strategy**: The company has a differentiated digital asset strategy, generating around $400,000 in monthly cash flow through its ETH yielding system [24][30] 10. **Future Projections**: GameSquare anticipates a revenue of approximately $37 million for the second half of the year and aims for a $100 million revenue business by 2026, with a projected 25% organic growth [27][28] Additional Important Information - **Client Relationships**: GameSquare has established significant relationships with over 200 brands, enhancing its ability to cross-sell services [19] - **Market Position**: The company claims to have no direct competitors in its end-to-end model within public markets, highlighting its unique approach [6][7] - **Management Team**: The management team includes experienced professionals from notable organizations, enhancing credibility and strategic direction [34] - **Stock Buyback Strategy**: GameSquare plans to continue stock buybacks, indicating confidence in its valuation and future growth [36] This summary encapsulates the key insights from the GameSquare Holdings conference, highlighting the company's strategic focus, financial health, and growth potential within the gaming and esports industry.

Core Insights - RITZ Crackers will return to the Big Game on February 8, 2026, with a 30-second advertisement during the third quarter, marking the third consecutive year for a Mondelz International snack brand to appear in this event [1][2][3] - The brand will launch a new football-shaped cracker ahead of the Big Game, maintaining its signature salty, buttery flavor in a playful new design, available in stores starting December 1, 2025 [2][5] - The 2026 advertisement aims to build on the success of the previous year's campaign, which introduced the RITZ Salty Club, and will feature a refreshed creative direction [3][4] Company Strategy - The RITZ Brand emphasizes its commitment to cultural relevance and impactful advertising, leveraging the Big Game as a platform to connect with consumers [4] - The new advertisement is part of a broader 360º multichannel campaign that includes paid media, social media, public relations, and retail strategies [4] Financial Context - Mondelz International reported net revenues of approximately $36.4 billion in 2024, positioning itself as a leader in the global snacking market with a diverse portfolio of iconic brands [7]

Acquisitions and Partnerships - GameSquare completed the acquisition of Click Management Pty Ltd for a base purchase price of $4.5 million, with potential earn-out payments of up to $3 million based on future performance[214]. - GameSquare's acquisition of FaZe Holdings, Inc. was completed on March 7, 2024, enhancing its position in the gaming and youth culture market[201]. - Click Management closed over 545 commercial deals globally in 2024, establishing a large English-speaking gaming roster with over 75 active talents[205]. - The Company has completed six acquisitions and divested three non-core assets from August 2020 to September 2025, focusing on organic growth and M&A opportunities[245]. Financial Performance - Revenue for the nine months ended September 30, 2025, was $26,542,646, an increase of 33.2% compared to $19,930,359 in 2024[249]. - Gross profit for the same period rose to $11,042,151, reflecting a 47.4% increase from $7,490,880 in 2024[249]. - Operating expenses decreased slightly to $21,806,679, down 1.5% from $22,143,783 in the previous year[249]. - Loss from continuing operations improved to $(10,764,528), a 26.5% reduction compared to $(14,652,903) in 2024[249]. - Net loss attributable to GameSquare Holdings, Inc. for the nine months was $(8,982,393), a significant improvement of 59.8% from $(22,358,971) in 2024[249]. - Revenue for the three months ended September 30, 2025, was $11,315,003, up 21.6% from $9,306,777 in 2024[249]. - Gross profit for the three months increased to $5,592,730, a 32.6% rise from $4,215,384 in 2024[249]. - Total other income for the nine months was $8,918,600, compared to a loss of $(605,796) in 2024, marking a substantial turnaround[249]. - The company reported a net loss of $(11,000,525) for the nine months, a 55.5% improvement from $(24,728,504) in 2024[249]. Revenue Streams - Owned and operated IP revenue increased to $8.6 million for the nine months ended September 30, 2025, compared to $7.7 million in 2024, a growth of 11.7%[255]. - Agency revenue rose to $9.9 million for the nine months ended September 30, 2025, from $8.3 million in 2024, marking a 19.5% increase[256]. - SaaS and managed services revenue surged to $7.5 million for the nine months ended September 30, 2025, compared to $3.9 million in 2024, an increase of 92.3%[257]. - DAT yield revenue was $0.6 million for the nine months ended September 30, 2025, compared to $0 for the same period in 2024, indicating successful launch[258]. Cash Flow and Capital Structure - The company raised approximately $8.56 million from the July 8, 2025 offering of 4,692,866 shares at $0.95 per share, after a 7% underwriting discount[219]. - The company raised approximately $61.5 million from the July 17, 2025 offering of 46,666,667 shares at $1.50 per share, after a 7% underwriting discount[222]. - The company raised gross proceeds of $89.6 million through three equity offerings in July 2025, including $75.3 million on July 18, 2025[304]. - Cash and restricted cash totaled $7.5 million as of September 30, 2025, a decrease from $13.1 million as of December 31, 2024[302]. - Net cash used in operating activities was $17.3 million for the nine months ended September 30, 2025, compared to $25.4 million in the prior year[307]. - Net cash used in investing activities was $61.8 million for the nine months ended September 30, 2025, primarily due to $57.1 million in digital asset purchases[308]. - Net cash provided by financing activities was $74.0 million for the nine months ended September 30, 2025, compared to $30.4 million in the prior year[310]. Compliance and Regulatory Matters - GameSquare received a Minimum Bid Price Notice from Nasdaq due to its common stock closing below the $1.00 minimum requirement for 30 consecutive business days[215]. - GameSquare has until March 9, 2026, to regain compliance with the Nasdaq Minimum Bid Price Requirement[216]. - The Company regained compliance with NASDAQ's minimum bid price requirements after maintaining a closing bid price of at least $1.00 per share for ten consecutive business days[234]. Strategic Initiatives - GameSquare's ETH-focused yield generation strategy includes an approved allocation of up to $250 million, with over $70 million already invested in ETH and other digital assets[202]. - GameSquare's Board approved a strategy to leverage crypto infrastructure for digital asset yield generation, indicating a forward-looking approach to financial growth[202]. - The Company authorized a share repurchase program allowing for the purchase of up to $5,000,000 of Common Stock, with no purchases made during the three months ended September 30, 2025[228]. - The Company has invested in its sales organization, leading to significant growth in requests for proposals within its agency businesses[246]. Accounting and Financial Reporting - The Company accounts for digital assets like NFTs as indefinite-lived intangible assets under ASC 350-30[340]. - Business combinations are recorded from the acquisition date, with excess consideration recognized as goodwill, requiring significant judgment and estimates[341]. - Long-lived assets, including intangible assets, are assessed for impairment at least annually or when indicators arise[342]. - Goodwill is tested for impairment annually or when there are indications of impairment, with qualitative assessments determining the necessity of further testing[343]. - The Company elected the Fair Value Option for convertible debt, recognizing it at fair value with changes reflected in earnings[345]. - Loss contingencies are estimated in accordance with ASC 450-20, requiring probable liability and reasonable estimability for accrual[346]. - The Company has no off-balance sheet arrangements that materially affect its financial condition or operations[347]. - Critical accounting policies and estimates remain unchanged during the nine months ended September 30, 2025[348]. - Recent accounting pronouncements are detailed in the Quarterly Report, assessing their potential impact on financial condition[349]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[350].

Core Insights - GameSquare Holdings, Inc. reported a quarterly loss of $0.03 per share, aligning with the Zacks Consensus Estimate, and an improvement from a loss of $0.14 per share a year ago [1] - The company's revenues for the quarter ended September 2025 were $11.32 million, missing the Zacks Consensus Estimate by 57.78%, and down from $26.41 million year-over-year [2] - GameSquare's shares have declined approximately 35% since the beginning of the year, contrasting with the S&P 500's gain of 16.5% [3] Financial Performance - The company has surpassed consensus EPS estimates only once in the last four quarters [1] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $29.2 million, and -$0.12 on revenues of $93 million for the current fiscal year [7] Market Outlook - The earnings outlook and management's commentary during the earnings call will be crucial for assessing the stock's immediate price movement [3][4] - The Zacks Rank for GameSquare is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The gaming industry is currently ranked in the bottom 40% of over 250 Zacks industries, which may negatively impact the stock's performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $11.3 million, a 22% increase from $9.3 million in Q3 2024, driven by growth across technology, agency, and owned IP segments [20][21] - Gross margin expanded to 49.4% in Q3 2025, up from 45.3% in Q3 2024, and significantly higher than 15.3% in Q2 2025 [21][22] - Net income from continuing operations was reported at $5.9 million, compared to a net loss of $3.9 million in the same period last year [23] Business Line Data and Key Metrics Changes - The agency segment generated $5.4 million, while owned-and-operated IP contributed $3.7 million, SaaS and managed services brought in $1.7 million, and yield from the Digital Asset Treasury (DAT) was $600,000 [46] - The acquisition of Click Management is expected to contribute $14.5 million in annualized pro forma revenue and approximately $1.2 million in annualized pro forma EBITDA for the second half of 2025 [9] Market Data and Key Metrics Changes - GameSquare's partnerships with brands like Ubisoft and DairyMax reflect a strong market presence and growing commercial relationships [11] - The company has seen increased activity and a stronger pipeline, indicating a positive sentiment in the market despite ongoing tariff uncertainties affecting some deals [30] Company Strategy and Development Direction - GameSquare is focused on achieving profitability, streamlining operations, and driving higher-margin revenue opportunities across its core media technology and esports businesses [5] - The Digital Asset Treasury strategy aims to build a sophisticated yield-generating Ethereum treasury, enhancing the company's financial flexibility and shareholder value [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering a new growth chapter, supported by a stronger platform and expanding total addressable market (TAM) [5] - The company anticipates over 20% annual organic revenue growth in 2026, with a focus on sustainable growth and operating leverage [26] Other Important Information - As of September 30, 2025, GameSquare had approximately $82 million in cash and digital assets, no outstanding debt, and shareholders' equity of $79 million [17] - The company has initiated a share buyback program, repurchasing 833,124 shares at an average price of approximately $0.72 [17] Q&A Session Summary Question: Discussion on share buyback strategy - Management confirmed plans to aggressively pursue share buybacks, believing the stock is undervalued and expressing frustration over current share prices [27][28] Question: Update on macroeconomic environment and deal activity - Management noted an uptick in activity and a strong pipeline, with expectations for a busy Q4, despite ongoing tariff issues affecting some deals [30] Question: Clarification on organic revenue growth expectations - Management provided insights into the drivers of expected 20% organic revenue growth, highlighting strong client retention and expanding contracts with major partners [31][32] Question: Details on the Ethereum treasury strategy and risk management - Management assured that a robust risk management strategy is in place for the Ethereum treasury, emphasizing a cash management approach rather than aggressive accumulation of assets [39][40] Question: Inquiry about gross margin sustainability - Management indicated that while Q3 margins were higher than normal, a normalized gross margin of around 40% is expected moving forward, influenced by the mix of business [43][44]

Financial Performance - Net income from continuing operations for Q3 2025 was $5.9 million, compared to a net loss of $3.9 million in Q3 2024[7] - Revenue for Q3 2025 reached $11.3 million, a 21.5% increase from $9.3 million in Q3 2024[7] - Gross margin improved to 49.4%, up from 45.3% year-over-year[7] - Revenue for the three months ended September 30, 2025, was $11,315,003, representing a 21.5% increase from $9,306,777 in the same period of 2024[18] - Gross profit for the nine months ended September 30, 2025, was $11,042,151, up from $7,490,880 in 2024, indicating a 47.5% increase[18] - The net loss for the three months ended September 30, 2025, was $808,443, a significant improvement from a net loss of $7,464,415 in the same period of 2024[18] - Adjusted EBITDA for the three months ended September 30, 2025, was $(604,377), compared to $(887,774) in 2024, showing a reduction in losses[22] - The comprehensive loss for the three months ended September 30, 2025, was $(738,372), compared to $(7,104,411) in 2024, indicating a substantial decrease in losses[18] Balance Sheet and Assets - The balance sheet as of September 30, 2025, showed $81.5 million in DAT assets and cash, with no debt and shareholders' equity of $78.7 million[1] - GameSquare held 15,618 ETH valued at $64.5 million, with an unrealized gain of $9.3 million in Q3 2025[3] Operational Efficiency - GameSquare's adjusted EBITDA loss narrowed to $0.6 million, representing 5.3% of revenue, compared to a loss of $0.9 million or 9.5% of revenue in Q3 2024[7] - Total operating expenses for the three months ended September 30, 2025, were $7,985,890, compared to $7,359,256 in 2024, reflecting an increase of 8.5%[18] - Research and development expenses for the three months ended September 30, 2025, were $519,275, up from $450,637 in 2024, indicating a 15.2% increase[18] Shareholder Actions - GameSquare repurchased 833,124 shares for $599,148, averaging approximately $0.72 per share under a $5 million authorization[3] - The weighted average common shares outstanding for the three months ended September 30, 2025, were 87,949,202, significantly higher than 31,270,253 in 2024[18] Strategic Initiatives - The acquisition of Click Management is expected to enhance profitability and expand operational capabilities[2] - GameSquare's digital asset treasury strategy generated a yield of $0.6 million since its inception on August 1, 2025[3] Restructuring and Charges - The company incurred restructuring charges of $(1,535,097) for the three months ended September 30, 2025, compared to $330,167 in 2024[18] - The company reported a loss from continuing operations before income taxes of $5,946,781 for the three months ended September 30, 2025, compared to a loss of $3,935,539 in 2024[18]

Core Insights - GameSquare Holdings, Inc. reported a net income from continuing operations of $5.9 million for Q3 2025, indicating a positive financial performance [1] - The gross margin increased by 20.0% sequentially to 49.4%, reflecting improved operational efficiency [1] - The balance sheet as of September 30, 2025, is the strongest in the company's history, with $81.5 million in DAT assets and cash, no debt, and shareholders' equity of $78.7 million [1] - Management anticipates continued positive momentum in Q4 2025, suggesting confidence in ongoing growth [1] - CEO Justin Kenna emphasized that 2025 is a defining year for GameSquare, with third-quarter results confirming the effectiveness of the company's strategy [1]

Core Viewpoint - GameSquare Holdings, Inc. is set to release its third-quarter 2025 financial results on November 13, 2025, after market close [1] Financial Results Announcement - The financial results will be available on the investor website [1]