GameSquare (US:GAME)2025-11-13 21:38Financial 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]