GameSquare (GAME -8.19%), a digital media and technology company focused on gaming, youth culture, and digital assets, reported results for Q2 2025 on August 14, 2025. The most significant news from the release was a nearly 11% year-over-year drop in GAAP revenue for the three months ended June 30, 2025, compared to the same period in 2024, and a major miss versus analyst expectations, offset by notable steps in restructuring and the launch of a new onchain treasury initiative. Revenue (GAAP) reached $15.9 million, well below the $21.5 million analyst estimate, representing a 26% shortfall. However, the company posted a net loss per share of $(0.08) (GAAP), a marked improvement over its $(0.38) result in the prior year. While top-line figures lagged, management highlighted a path toward profitability and cash generation through restructuring, cost control, and new digital finance strategies.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $(0.08) | $(0.15) | $(0.38) | 78.9 % |
| Revenue (GAAP) | $15.9 million | $21.5 million | $17.8 million | (10.7 %) |
| Gross Profit | $2.4 million | $2.5 million | (4.0 % decrease) | |
| Net Loss Attributable to GameSquare | $(3.0 million) | $(11.6 million) | 74.1 % decrease | |
| Adjusted EBITDA | $(3.5 million) | $(4.2 million) | -16.7 % |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q3 2024 earnings report.
Company Overview and Recent Focus
GameSquare’s operations span several business lines linked by a central focus on digital engagement and gaming culture. Its subsidiaries include Code Red Esports Ltd. Complexity Gaming, and Stream Hatchet.
The company has lately shifted toward driving profitability and operational efficiency. That includes the reduction of non-core operations, investments in technology-driven solutions, and a new onchain treasury management program that leverages digital assets for yield generation. Key drivers of success are cost controls, the ability to create value from new digital initiatives, and successful partnerships with global brands and crypto-native organizations.
Quarter in Detail: Financials, Strategy, and Restructuring
The most notable shift during the period was the drop in revenue, which fell from $17.8 million (GAAP) in Q2 2024. Management completed the divestiture of FaZe Media on April 1, 2025, and continued its ongoing business transformation. Despite the revenue decline, net loss attributable to GameSquare (GAAP) narrowed sharply to $3.0 million, down from $11.6 million in the prior-year quarter. Gross profit also held relatively steady, moving only slightly lower to $2.4 million (GAAP).
Operating expenses (GAAP) declined year over year, from $8.7 million to $7.15 million, signaling tangible results from cost management actions taken since late 2024. Management estimates that an additional $5 million in annualized operating savings will take effect starting in Q3 2025, continuing the pattern of tightening expenses. Adjusted EBITDA loss, which excludes one-off charges and depreciation, improved to $(3.5 million) from $(4.2 million) a year earlier, with the adjusted EBITDA margin improving as well.
The strategic divestiture of FaZe Media delivered a one-time gain of $3.0 million (GAAP), contributing positively to bottom-line results. This sale aligns with the company’s pivot to focus on what it deems high-growth verticals: Experiences, Managed Services, and Technology. However, the earnings report did not provide granular detail on how each of these segments performed, pointing to limited financial disclosure at the business-unit level in the restructuring phase.
Perhaps the biggest operational change was the launch of a large-scale onchain treasury management strategy using Ethereum, targeting annualized yields between 8% and 14% as of August 1, 2025. As of August 13, 2025, the company reported holding $99 million in combined cryptocurrency, non-fungible tokens (NFTs), and cash, including 15,630.07 Ethereum tokens and a CryptoPunk NFT. Reported unrealized gains on these assets totaled $19.3 million as of August 13, 2025, but remain subject to cryptocurrency price volatility. The company’s management described this as “the strongest financial position in its history,” There was no dividend paid or announced for the period. GAME does not currently pay a dividend.
Looking Ahead: Outlook and Watchpoints
Looking ahead, management is aiming for companywide profitability starting in Q3 2025. Management forecasts that roughly 60% of core 2025 revenue will be generated in the back half of the year, reflecting seasonality in the media and esports business. No formal full-year revenue or earnings guidance was issued, but management indicated it plans to reintroduce guidance once it has a clearer view of the impact from recent restructuring and treasury operations.
Investors will want to keep a close eye on revenue trends from now through the end of the fiscal year, and watch for updates on crypto partnership wins and onchain treasury performance. The magnitude of the second-quarter revenue miss was significant, and future operating performance will depend on successful execution in Experiences, Managed Services, and Technology, as well as continued cost savings. Management's ambitions to convert onchain asset gains into dependable operating returns and profitability remain unproven and will likely be scrutinized in the second half of the year.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
