GameSquare (NASDAQ:GAME) reported a sharply higher first-quarter revenue total and reiterated its full-year 2026 outlook, as management said recent acquisitions and growth in its creator, agency and experiential businesses are beginning to broaden the company’s platform.
Chief Executive Justin Kenna said GameSquare’s first-quarter results were “in line with our expectations” during what he described as the company’s seasonally slowest period. He pointed to organic contributions from the integrated business as well as early benefits from recent acquisitions, including Click, its creator marketing intelligence business, and TubeBuddy, an AI-enabled software and workflow platform for creators and brands.
Revenue Nearly Doubles in the First Quarter
Chief Financial Officer Mike Munoz said total revenue for the first quarter of 2026 was $14.5 million, up 95% from $7.4 million in the prior-year period. He said the increase was primarily due to the acquisitions of Click and TubeBuddy, as well as growth in the company’s marketing agency operating segment.
Gross profit was $5.6 million, or 38.4% of sales, compared with $3.2 million, or 42.5% of sales, a year earlier. Munoz attributed the year-over-year decline in gross margin percentage to changes in revenue mix.
Adjusted EBITDA was a loss of $1.1 million, compared with a loss of $1.6 million in the same period last year. On a pro forma basis, including a full-quarter contribution from TubeBuddy, revenue was $15.8 million and adjusted EBITDA was a loss of $0.7 million, or 4.2% of pro forma revenue.
As of March 31, GameSquare had $35.9 million in cash, cash equivalents and digital asset treasury assets. Munoz said the company has “excellent liquidity” to pursue strategic initiatives, invest in its operating platform and return capital to shareholders.
Creator Economy Acquisitions Drive Platform Expansion
Kenna said the TubeBuddy acquisition, announced in February, added search engine optimization, workflow analytics and AI-powered productivity tools used by creators and digital publishers. He described the deal as part of an evolving acquisition strategy focused on operating assets expected to be accretive to earnings.
The company also announced the appointment of Justin Miclat as chief growth officer of Click and the addition of several creators to Click’s roster, including Steak, described by Kenna as the second-largest Roblox creator. Kenna said the newly added talent is expected to generate more than $5 million of incremental annualized revenue.
Kenna said Click is positioned to deliver what the company expects to be “the largest quarter in its history” in the second quarter, citing the creator additions and Miclat’s appointment. He also highlighted Hungryboy Hot Sauce, a brand from YouTube collective The Boys, which launched in November 2025 at H-E-B grocery stores and has expanded to Spencer’s and nearly 300 World Market stores.
GSX Bookings and Publisher Work Add Momentum
GameSquare Experiences, or GSX, generated record first-quarter 2026 bookings of more than $10 million, according to Kenna. He said demand came from video game publishers and global brands seeking campaigns aimed at Gen Z and digital-first audiences.
Kenna said GameSquare is seeing larger agency opportunities, with average deal size increasing and 70% of programs now exceeding $200,000. He also said the company has doubled the number of opportunities above $1 million.
During the quarter, the company renewed Zoned’s partnership with Dairy MAX for a fourth year and expanded its partnership with Capcom to support the global launch of Resident Evil: Requiem. Kenna also cited FaZe Esports’ win at The Six Invitational 2026, which included $1 million in prize money and contributed to first-quarter revenue.
Kenna said programs for Capcom, Ubisoft and other game publishers generated approximately $2.2 million of first-quarter revenue, and he expects that area to be a major contributor in the second quarter and the back half of 2026.
The company is also developing original intellectual property formats, including Into The Zone, Epic Games-related programs and the Roblox Creator Showdown. Kenna said Into The Zone and Roblox Creator Showdown are supporting approximately 10 events globally in 2026 and have generated approximately $5.5 million of revenue to date.
Guidance Reiterated as Q2 Activity Picks Up
GameSquare reiterated its 2026 pro forma annual guidance, which includes its plans for TubeBuddy. The company expects:
- Revenue of $85 million to $90 million;
- Gross margins of 35% to 40%;
- Adjusted EBITDA of more than $5 million.
In response to a question from Maxim Group analyst Jack Vander Aarde, Kenna said much of the company’s revenue is tied to seasonality, with activity increasing in the second quarter and second half of the year. Responding to Northland Securities analyst Greg Gibas, Kenna said a 40% first-half and 60% second-half revenue cadence remained a fair way to think about the year.
Kenna also said GameSquare had already exceeded first-quarter revenue in the second quarter with about six weeks remaining in the period. He said request-for-proposal activity and brand campaign activity had increased “enormously” over the prior couple of months after a slower start to the year.
Capital Allocation, Buybacks and Digital Assets
Kenna said the company completed its largest monthly share repurchase to date in April, buying back nearly 2.3 million shares for approximately $1 million at an average price of about $0.44 per share. Since initiating the program in October 2025, GameSquare has repurchased 11.3 million shares for approximately $3.5 million at an average price of about $0.47 per share. The company had approximately $11.4 million remaining under its current authorization after the April activity.
On digital assets, Kenna said GameSquare does not consider itself a digital asset treasury company “in the traditional sense.” He said the company’s digital asset approach is a cash management strategy, including generating yield from ETH held through Dialectic, while keeping the operating business as the priority. He said GameSquare has not been selling ETH recently, after previously selling some ETH at a gain to pay off long-term debt.
Kenna also discussed the company’s June 18 annual meeting, where shareholders will vote on governance and corporate structure updates, including eliminating supermajority voting requirements, declassifying the board, increasing authorized shares and other changes. He emphasized that increasing authorized shares does not mean shares are being issued or that dilution is automatic.
“We are very much on track,” Kenna said in closing remarks, adding that second-quarter activity is “really pleasing” and that the company is making progress toward its 2026 plan.
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.
