GameSquare (NASDAQ:GAME) executives highlighted a “step change in profitability” in the company’s fiscal 2025 fourth quarter, pointing to portfolio streamlining, improved margins, and contributions from its recently acquired creative marketing platform, Klik, as key drivers. On the company’s year-end earnings call, CEO Justin Kenna and CFO Mike Munoz also discussed balance sheet changes, a digital asset treasury strategy, share repurchases, and reiterated pro forma guidance for fiscal 2026 that reflects the TubeBuddy acquisition.
Fourth-quarter results show revenue growth and positive adjusted EBITDA
Munoz said fourth-quarter revenue rose to $18.5 million from $7.6 million a year earlier, a 142% increase “primarily due to growth across our agency and owned and operated IP segments, including the full quarter contribution of Klik.”
Adjusted EBITDA was positive $1.7 million for the quarter, compared with a $3.1 million loss in the year-ago period. Kenna called the result “a key milestone for GameSquare,” adding that it demonstrated “the earnings power and scalability of our operating model.” He also noted that “when considering the contribution from TubeBuddy, our adjusted EBITDA would have been even stronger,” referring to the acquisition announced in February 2026.
How revenue broke down in Q4
In response to an analyst question about quarterly segment details, Munoz provided a breakdown of the company’s fourth-quarter revenue:
- $12.5 million from the agency segment, “which includes our talent agency, Klik”
- $4.2 million from owned and operated IP
- $1.2 million from SaaS and managed services
- $560,000 from digital asset treasury yield
Portfolio moves, acquisitions, and the creator-economy strategy
Kenna framed 2025 as an optimization year in which GameSquare “took decisive actions to streamline our business, strengthen our balance sheet, and build a more focused, scalable platform.” He highlighted divesting the company’s remaining stake in Phase Media, winding down Frankly Media, and acquiring Klik as major operational changes meant to sharpen focus and improve efficiency.
Kenna described the company’s positioning as “creator economy infrastructure,” built across four units that combine “data and analytics, a scaled creative talent network, integrated agency services, and proprietary owned and operated IP.” He said the company’s go-to-market approach increasingly centers on landing customers through technology and agency offerings and then expanding relationships across the broader ecosystem using creative media and talent capabilities.
On acquisitions, Kenna emphasized Klik’s talent scale and engagement, noting that Klik Creators “delivered 548 million views across YouTube alone in March of 2026” and has “a total of 123 million YouTube subscribers.” He said Klik has “approximately 85 active talent” and that GameSquare expects to add more creators in the coming months to expand its North American presence and drive higher-value brand partnerships.
Kenna also detailed the TubeBuddy acquisition from BEN Labs, calling it a “scaled creator technology layer” that adds SEO, analytics, and productivity tools “powered by proprietary AI.” Management provided TubeBuddy’s 2025 metrics on the call, stating that the business had $10.2 million in revenue, gross margin of over 88%, and an EBITDA margin of over 30%.
Balance sheet changes, digital asset strategy, and share repurchases
Kenna said the company raised approximately $85 million in gross proceeds through capital raises “at an average cost of $1.41 per share,” using the funds to pay off “essentially all existing debt” and end the year in a “significant net cash position.” Munoz added that as of Dec. 31, 2025, GameSquare had $52.0 million in cash, cash equivalents, and digital asset treasury assets (excluding NFTs), and $35.7 million of shareholders’ equity, up from $12 million at the end of the prior year.
Kenna also discussed the company’s “yield-focused digital asset treasury strategy,” saying management believes the approach has created a “differentiated and complementary earnings stream.” He noted that the company acquired digital assets including NFTs, “most notably the Cowboy Ape,” through an all-stock transaction priced at $1.50 per share. In the first quarter of 2026, GameSquare monetized its NFT positions, generating approximately $1.5 million in cash proceeds and 0.4 million ETH at the time of sale, which Kenna said was used along with treasury yield to repurchase stock.
Kenna said that from the start of the repurchase program in October 2025 through March 6, 2026, the company repurchased 5.06 million shares for $2.5 million at an average price of $0.49 per share. During the Q&A, he said the company still has board approval for an additional $2.5 million of repurchases and expects to remain active, with the pace depending in part on share price movement and broader market conditions.
2026 outlook, seasonality expectations, and early Q1 commentary
On a pro forma basis that includes TubeBuddy, Munoz said fourth-quarter pro forma revenue would have been $20.6 million and pro forma adjusted EBITDA would have been $2.3 million, or 11.2% of pro forma revenue.
Kenna reiterated the company’s previously announced fiscal 2026 annual guidance on a pro forma basis, calling for:
- Revenue of $85 million to $90 million
- Gross margins of 35% to 40%
- Adjusted EBITDA of over $5 million
Addressing seasonality, management said the back half of the year is typically stronger. Kenna described it as “40/60” between the first and second halves, adding that “Q1 is typically our weakest quarter and Q4 is typically our strongest,” though he also said Q1 2026 was “off to a historically strong start.”
In response to questions about what underpins the 2026 outlook and pipeline, Kenna said management views the guidance as conservative and cited strong early activity, including “a huge amount of activity” in creator deployment managed services. He also pointed to “nice flow on” in the FaZe esports business and said the company is entering 2026 with “more locked-in revenue than ever before” in its agency segment. He also referenced opportunities in new markets, including MENA, tied to increased esports investment around the Esports World Cup.
In closing remarks, Kenna acknowledged investor concern about the share price, calling it “the elephant in the room,” and said management shares shareholder frustration. He emphasized the company’s focus on executing its plan and building long-term value, and said he believes “things are going to start to turn here in 2026.”
About GameSquare (NASDAQ:GAME)
GameSquare Inc (NASDAQ: GAME) is a digital media and marketing company focused on the global gaming and esports industries. The company operates a network of online properties and community platforms that deliver editorial content, live event coverage, and video programming to enthusiasts and consumers. GameSquare’s offerings span both traditional gaming titles and competitive esports leagues, enabling advertisers and brand partners to engage with a diverse and highly engaged audience.
Through its flagship Enthusiast Gaming network, GameSquare oversees a portfolio of more than 35 websites and digital channels, including long-standing properties such as Destructoid, The Escapist and Daily Esports.
