Group 1 - The Annual Meeting of Stockholders for GameSquare Holdings, Inc. is being recorded [1] - Participants are advised that disclosing personal information will imply consent to the recording and use of that information [2] - Lou Schwartz, the President and Chairman of the Board of Directors, is leading the meeting [2]

Core Viewpoint - GameSquare Holdings, Inc. has initiated its first stock repurchase under a $5 million authorization, indicating a strategic move to enhance shareholder value [1] Group 1: Stock Repurchase Details - The company repurchased 833,124 shares of its common stock for a total of $599,148 [1] - The average price per share for the repurchase was approximately $0.7192 [1]

Core Points - GameSquare Holdings is urging shareholders to vote by October 6, 2025, for a statutory merger aimed at modernizing governance and simplifying corporate structure to support long-term growth [1] - The Click acquisition is highlighted as a strategic move to enhance access to talent and brand relationships, facilitating smarter capital allocation and strategic options [3] Financial Highlights - Click Management generated $12.4 million in revenue in 2024 and has completed over 545 commercial deals globally [5] - GameSquare anticipates Click will contribute $14.5 million in annualized pro forma revenue and approximately $1.2 million in annualized pro forma EBITDA in the second half of 2025, excluding operating synergies [5] - On a pro forma basis, GameSquare expects $36.8 million in revenue and $2.9 million in adjusted EBITDA for the second half of 2025 [5] - As of August 31, 2025, GameSquare holds $87.7 million in cash and on-chain assets, with less than $2 million in outstanding debt [5] - The consolidation of Sideqik into the Stream Hatchet offering is projected to reduce annual operating expenses by about $1.25 million [5]

Core Insights - GameSquare Holdings, Inc. has expanded its esports sponsorship deal with Rollbit, increasing annual revenue from $1.75 million to $3.25 million, marking one of the largest partnerships in esports history [1][2][3] Group 1: Partnership Details - The expanded partnership will deepen Rollbit's sponsorship of FaZe Clan's Counter-Strike team, featuring the Rollbit logo prominently on FaZe Clan Esports jerseys [2] - This agreement reflects Rollbit's commitment to the esports sector and its confidence in FaZe Clan's ongoing success [3] Group 2: Financial Impact - GameSquare's Web3 growth strategy has generated over $8 million in new annual revenue during Q3 2025, with expectations for continued revenue contributions from new partnerships [1][3] - The company has also secured additional partnerships, including a $2.0 million deal with Rekt Brands Inc. and a $2.5 million deal with Animecoin Foundation, further enhancing its revenue potential [3] Group 3: Strategic Vision - GameSquare aims to build sustainable, high-growth businesses at the intersection of culture and technology, leveraging its unique platform that integrates esports, media, and Web3 [3] - The company has developed an innovative treasury management program to enhance capital efficiency and generate yield, reinforcing its commitment to dynamic media operations [3]

Core Insights - Madison Square Garden Sports Corp. has announced a landmark partnership with GAME 7, marking GAME 7 as the first-ever jersey patch partner of the New York Rangers [1] Group 1 - The partnership will commence with the Rangers' centennial season in 2025-26 [1] - The collaboration will provide GAME 7 with year-round exposure across MSG's extensive sports and entertainment properties [1]

Core Insights - GameSquare Holdings, Inc. has launched an Ethereum treasury strategy aimed at generating onchain yield, with initial results showing a monthly yield of 7.84% as of August 31, 2025, significantly outperforming traditional staking yields [2][4] - The company has also initiated an NFT yielding program expected to enhance annualized yields and strengthen its position in onchain financial innovation [1][2] Financial Performance - As of July 31, 2025, GameSquare held 14,227.55 ETH valued at approximately $53.14 million, which increased to 15,731.07 ETH worth about $69.09 million by August 31, 2025 [2] - The company purchased 1,402.52 ETH on August 1, 2025, at a price of $3,565 per ETH [3] - The net asset value per share is reported at $0.78 based on a total of 98,361,398 shares outstanding [4] Strategic Initiatives - The NFT yielding program, managed by 1OF1 AG, commenced on September 1, 2025, and is anticipated to contribute positively to the company's annualized yields [1][2] - GameSquare has launched a dedicated website, holdings.gamesquare.com, to provide real-time updates on the value of its onchain assets, enhancing transparency for investors [4][6] Market Position - GameSquare's annualized yield of 7.84% is notably higher than Coinbase's staking yield of 1.89% and Ethereum's current staking yield, which is more than four times lower [4] - The company has eliminated all long-term debt during the third quarter, positioning itself for profitability through its onchain treasury management program [4]

Strategic Partnership - GameSquare Holdings 将购买价值 200 万美元的 REKT 代币 [1] - GameSquare 成为首家建立 REKT Treasury 的上市公司 (纳斯达克股票代码: GAME) [1] Market Impact - 该合作被视为 REKT 团队的重大新闻 [1]

[Executive Summary & Strategic Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Highlights) GameSquare is undergoing a transformative year, focusing on building a leading digital-first platform and targeting profitability by Q3 2025 [Key Business Developments & Strategic Initiatives](index=1&type=section&id=Key%20Business%20Developments%20%26%20Strategic%20Initiatives) GameSquare is transforming into a digital-first platform through divestitures, operational restructuring, strategic alliances, and investments in high-growth areas, aiming for profitability by Q3 2025 - 2025 is on track to be a transformative year for GameSquare, building a leading digital-first platform at the intersection of media, technology, esports, and onchain finance[2](index=2&type=chunk) - Completed divestiture of FaZe Media on April 1, 2025, restructured operations to streamline costs, formed a strategic alliance with GGTech Entertainment, and doubled down on high-growth areas across Experiences, Managed Services, and Technology[1](index=1&type=chunk)[2](index=2&type=chunk) - Launched a **$250 million** authorized onchain treasury management program, raising approximately **$90 million** in gross proceeds to strengthen the balance sheet and fund the initial phase[2](index=2&type=chunk) - Actively discussing with over **15 crypto-native organizations** for partnerships, expecting incremental, high-margin revenue streams starting **Q3** and building into **Q4**[3](index=3&type=chunk) - Targeting profitability for **2025 third quarter**, with the second half of 2025 positioned for revenue growth, enhanced margins, and reduced operating expenses[1](index=1&type=chunk)[4](index=4&type=chunk) [Treasury Management Update](index=2&type=section&id=Treasury%20Management%20Update) GameSquare established a strong financial position via its treasury management strategy, including significant Ethereum holdings, an NFT asset, and a yield strategy | Asset/Strategy | Details (as of Aug 13, 2025) | | :------------- | :----------------------------- | | ETH Holdings | 15,630.07 ETH | | Original Cost Basis (ETH) | $55 million | | Market Value (ETH) | $74.3 million | | Unrealized ETH Gains | ~$19.3 million | | NFT Holdings | CryptoPunk 5577 (purchased July 24, 2025 for $5.15M) | | NFT Yield Target | 6% to 10% annualized (managed by 1OF1 AG) | | Onchain Yield Strategy | Commenced Aug 1, 2025, targeting 8% to 14% annualized yields (with Dialectic) | | Total ETH + Cash | $99 million ($1.00 per share) | | Total Debt | $1.25 million | [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) GameSquare's financial performance shows decreased revenue but significantly reduced net losses and improved Adjusted EBITDA losses, reflecting operational efficiency [Three Months Ended June 30, 2025 (Q2 2025)](index=2&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20%28Q2%202025%29) Q2 2025 saw a revenue decrease but a substantial reduction in net loss and an improved Adjusted EBITDA loss, indicating progress in cost streamlining | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Revenue | $15.9 million | $17.8 million | -10.67% | | Gross Profit | $2.4 million | $2.5 million | -4.00% | | Net Loss Attributable to GameSquare | $3.0 million | $11.6 million | -74.14% | | Adjusted EBITDA Loss | $3.5 million | $4.2 million | -16.67% | | Adjusted EBITDA Loss % of Revenue | 22.1% | 23.4% | -1.3 ppts | [Six Months Ended June 30, 2025 (H1 2025)](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20%28H1%202025%29) H1 2025 experienced a slight revenue decline but achieved a notable increase in gross profit and a substantial reduction in net loss and Adjusted EBITDA loss | Metric | H1 2025 | H1 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Revenue | $30.6 million | $33.4 million | -8.38% | | Gross Profit | $5.8 million | $4.6 million | +26.09% | | Net Loss Attributable to GameSquare | $8.2 million | $16.9 million | -51.48% | | Adjusted EBITDA Loss | $6.5 million | $8.7 million | -25.30% | | Adjusted EBITDA Loss % of Revenue | 21.1% | 26.0% | -4.9 ppts | [Updated 2025 Outlook](index=3&type=section&id=Updated%202025%20Outlook) GameSquare anticipates a significantly stronger operating and financial trajectory in H2 2025, driven by its Ethereum-based treasury management and restructuring [Outlook Summary](index=3&type=section&id=Outlook%20Summary) GameSquare expects a stronger H2 2025 due to treasury management and restructuring, planning to reintroduce full-year guidance in Q3 2025 - Company expects to reintroduce full-year guidance in the **third quarter of 2025** due to strong performance from treasury management and restructuring[9](index=9&type=chunk) - Operating and financial trajectory in the **second half of 2025** is expected to be significantly stronger[9](index=9&type=chunk) - Combination of improving operating profile and onchain treasury strategy provides a powerful foundation for long-term growth and shareholder value creation[10](index=10&type=chunk) [Key Drivers for H2 2025 Performance](index=3&type=section&id=Key%20Drivers%20for%20H2%202025%20Performance) H2 2025 performance is driven by the Ethereum yield strategy, unrealized ETH gains, back-half revenue weighting, pipeline closures, and reduced operating expenses - Launch of Ethereum Yield Strategy on **August 1, 2025**, targeting annualized onchain yields of **8% to 14%**[11](index=11&type=chunk) - Unrealized ETH Gains of approximately **$19.3 million** as of **August 13, 2025**[11](index=11&type=chunk) - Approximately **60% of 2025 core revenue** expected in **H2**, with Agency and Teams revenue improving consolidated gross margin[11](index=11&type=chunk) - Pipeline opportunities shifted from Q2 are now on track to close, expecting meaningful sequential revenue growth in **Q3** and **Q4**[11](index=11&type=chunk) - Ongoing restructuring initiatives to lower operating expenses in **H2 2025**, with an additional **$5 million** in annualized savings starting **Q3**[11](index=11&type=chunk) [Company Information & Disclosures](index=4&type=section&id=Company%20Information%20%26%20Disclosures) This section provides details on GameSquare's conference call, company overview, and important forward-looking information disclosures [Conference Call Details](index=4&type=section&id=Conference%20Call%20Details) GameSquare Holdings, Inc. held a conference call on August 14, 2025, to discuss results, featuring CEO Justin Kenna, President Lou Schwartz, and CFO Mike Munoz - Conference call held on **August 14, 2025**, at **5:00 pm ET**, hosted by CEO Justin Kenna, President Lou Schwartz, and CFO Mike Munoz[12](index=12&type=chunk) [About GameSquare Holdings, Inc.](index=4&type=section&id=About%20GameSquare%20Holdings%2C%20Inc.) GameSquare is a media, entertainment, and technology company connecting brands with Gen Z, Gen Alpha, and Millennial audiences, also operating a blockchain-native Ethereum treasury management program - GameSquare (NASDAQ:GAME) is a cutting-edge media, entertainment, and technology company targeting **Gen Z, Gen Alpha, and Millennial audiences**[13](index=13&type=chunk) - Platform includes award-winning creative services, advanced analytics, and FaZe Clan, operating one of the **largest gaming media networks in North America**[13](index=13&type=chunk) - Operates a blockchain-native Ethereum treasury management program to generate onchain yield and enhance capital efficiency[13](index=13&type=chunk) [Forward-Looking Information](index=4&type=section&id=Forward-Looking%20Information) This section contains standard forward-looking statements regarding future performance, revenue, growth, profitability, and business plans, subject to risks and uncertainties - News release contains forward-looking statements regarding future performance, revenue, growth, profitability, and business plans[15](index=15&type=chunk) - Forward-looking statements are based on estimates and assumptions, subject to known and unknown risks and uncertainties, which may cause actual results to differ materially[15](index=15&type=chunk) - Readers should not place undue reliance on forward-looking statements, and the Company assumes no obligation to update them except as required by law[15](index=15&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present GameSquare's balance sheets and statements of operations, reflecting changes in assets, liabilities, and net loss [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and liabilities from December 31, 2024, to June 30, 2025, resulting in a shift to a shareholders' deficit | Balance Sheet Item | June 30, 2025 | December 31, 2024 | Change | | :----------------- | :------------ | :---------------- | :----- | | Total Assets | $44,087,793 | $78,730,447 | -$34,642,654 | | Total Liabilities | $49,630,176 | $66,726,199 | -$17,096,023 | | Total Shareholders' Equity | $(5,542,383) | $12,004,248 | -$17,546,631 | | Cash | $4,697,832 | $12,094,950 | -$7,397,118 | | Accounts Receivable, net | $12,954,496 | $21,330,847 | -$8,376,351 | | Goodwill | $5,557,551 | $12,704,979 | -$7,147,428 | | Intangible Assets, net | $5,231,027 | $15,265,736 | -$10,034,709 | [Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) The statements of operations show a significantly improved net loss for Q2 and H1 2025 compared to prior years, partly due to net income from discontinued operations | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $15,852,706 | $17,829,175 | $30,583,937 | $33,406,699 | | Gross Profit | $2,426,454 | $2,521,294 | $5,790,080 | $4,590,642 | | Net Loss | $(3,018,346) | $(12,003,141) | $(10,192,082) | $(17,264,089) | | Net Loss Attributable to GameSquare Holdings, Inc. | $(3,018,346) | $(11,613,551) | $(8,173,950) | $(16,874,499) | | Net Income (Loss) from Discontinued Operations | $3,020,335 | $(2,342,513) | $108,531 | $(533,355) | | Loss per common share (basic and diluted) | $(0.08) | $(0.38) | $(0.22) | $(0.71) | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section explains GameSquare's use of non-GAAP financial measures like EBITDA and Adjusted EBITDA to provide a clearer view of underlying business performance [Management's Use of Non-GAAP Measures](index=8&type=section&id=Management%27s%20Use%20of%20Non-GAAP%20Measures) GameSquare uses non-GAAP measures like EBITDA and Adjusted EBITDA to assess performance, excluding non-recurring or non-cash expenses for a clearer business view - Company uses non-GAAP measures (**EBITDA, Adjusted EBITDA**) to assess performance, excluding expenses not reflective of underlying business or one-time/non-recurring items[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk) - EBITDA is defined as net income (loss) before depreciation and amortization, income taxes, and interest expense[21](index=21&type=chunk) - Adjusted EBITDA further excludes extraordinary, non-recurring, and non-cash items such as share-based compensation, transaction costs, restructuring costs, impairment, and fair value changes[22](index=22&type=chunk) [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This reconciliation details adjustments from net loss to Adjusted EBITDA for Q2 and H1 2025 and 2024, including interest, depreciation, share-based payments, and transaction costs | Reconciliation Item | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(3,018,346) | $(12,003,141) | $(10,192,082) | $(17,264,089) | | Interest expense | $(44,590) | $192,257 | $4,968 | $627,385 | | Amortization and depreciation | $302,360 | $564,346 | $558,825 | $1,182,368 | | Share-based payments | $5,616 | $602,139 | $34,614 | $1,021,367 | | Transaction costs | $547,188 | $1,037,044 | $1,292,565 | $2,130,464 | | Restructuring costs | $165,328 | $- | $782,541 | $- | | Gain on disposition of subsidiary | $(3,020,335) | $- | $(2,721,953) | $(3,009,891) | | Loss from discontinued operations | $- | $2,342,513 | $2,613,422 | $3,543,246 | | **Adjusted EBITDA** | **$(3,495,651)** | **$(4,165,198)** | **$(6,454,379)** | **$(8,695,287)** |

分组1 - GameSquare Holdings, Inc. reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.10, but an improvement from a loss of $0.26 per share a year ago, indicating a -10.00% earnings surprise [1] - The company posted revenues of $15.85 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 27.94%, and down from $28.59 million in the same quarter last year [2] - GameSquare Holdings, Inc. shares have increased by approximately 12.4% since the beginning of the year, outperforming the S&P 500's gain of 10% [3] 分组2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The estimate revisions trend for GameSquare Holdings, Inc. was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $27 million, and for the current fiscal year, it is -$0.36 on revenues of $100.1 million [7] 分组3 - The gaming industry, to which GameSquare Holdings, Inc. belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Another company in the gaming industry, GDEV Inc., is expected to report quarterly earnings of $0.26 per share, reflecting a year-over-year decline of 67.9%, with revenues projected at $89.35 million, down 15.6% from the previous year [9]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $15.8 million, down 11% year-over-year from $17.8 million, primarily due to a reduction in programmatic advertising revenue [18] - Gross margin for Q2 2025 was $2.4 million, or 15.3% of sales, compared to $2.5 million, or 14.1% of sales, for the same period last year [18] - Adjusted EBITDA loss for Q2 2025 was $3.5 million, an improvement from a loss of $4.2 million in the previous year [18] Business Line Data and Key Metrics Changes - The company completed the divestiture of Faze Media, selling its remaining 25.5% stake for over $39 million, simplifying operations and reducing working capital requirements [6] - The agency business is experiencing an accelerating demand environment, with a strong sales pipeline and expectations for significant revenue growth in Q3 and Q4 [8][9] Market Data and Key Metrics Changes - The company holds 15,630 ETH with a current market value of $74.3 million, reflecting a significant unrealized gain since the launch of its treasury management strategy [3][16] - The company is in active discussions with over 15 crypto-native organizations, representing potential deal values in the eight figures [11] Company Strategy and Development Direction - GameSquare aims to build a leading digital-first platform at the intersection of media, technology, gaming, and on-chain finance, with a focus on profitability and higher-margin revenue opportunities [3][5] - The company is pursuing a three-pronged crypto-native growth strategy, including an Ethereum-based treasury strategy targeting annualized yields of 8% to 14% [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that Q2 revenue was slightly below expectations due to macroeconomic factors, including tariffs affecting large deals with global gaming companies [28][29] - The company expects meaningful sequential growth in Q3 and Q4, supported by new wins and expansion with existing partners, with approximately 60% of 2025 revenue expected to be generated in the second half of the year [21][22] Other Important Information - The company has identified an additional $5 million in annualized savings from restructuring efforts, expected to contribute in Q3 [5][23] - A share repurchase program has been approved, allowing the company to buy back up to $5 million of its common stock, funded by the net proceeds of its on-chain yield strategy [17] Q&A Session Summary Question: Can you provide more color on the revenue performance being lighter than expected? - Management identified three main factors: macroeconomic impacts from tariffs, a slowdown in programmatic advertising revenue, and a renewed focus on the crypto space with active conversations ongoing [28][29][34] Question: What is the timing of the opportunities in the crypto space? - Management indicated that there are numerous active conversations and expects material results in the back half of the year, with several deals anticipated to close soon [36][44] Question: Where do you expect to derive additional restructuring savings from? - Management mentioned consolidating technology platforms and pulling out efficiencies within the business as key areas for additional savings [38][39]