GameSquare (NASDAQ:GAME) reported second-quarter 2026 revenue of $18.5 million, up 137% from $7.8 million in the prior-year period, as the company cited contributions from its Click and TubeBuddy acquisitions along with growth in its marketing agency and owned intellectual property businesses.
Gross margin rose to $9 million, or 49% of sales, from $2.3 million, or 29.4% of sales, a year earlier. Adjusted EBITDA was positive $1 million, compared with an adjusted EBITDA loss of $3.2 million in the second quarter of 2025.
Acquisitions and creator platform
Kenna said the company’s recently acquired Click talent-management business and TubeBuddy creator technology platform are contributing to its integrated creator-economy strategy. Click provides creative marketing, campaign execution and talent-management services, while TubeBuddy provides workflow, analytics, optimization and AI-enabled tools for creators and publishers.
During the quarter, Click signed gaming creator SypherPK, who reaches more than 20 million followers and subscribers across YouTube, Twitch, Instagram and other platforms, according to Kenna. The company said Click’s creator network now reaches more than 60 million followers across major social platforms after the addition of SypherPK and Roblox creator Steak.
Kenna also pointed to a partnership involving UFC athlete Max Holloway and marketplace Whatnot as an example of Click expanding beyond gaming into athlete and lifestyle talent. He said the company sees opportunities to monetize talent through brand partnerships, content, commerce, sponsorships and live experiences.
TubeBuddy began actively marketing a new AI-powered video ideation tool in early July. Kenna said new subscriber growth increased by approximately 10% following the marketing launch, while users who activated the feature converted to paid subscriptions at roughly 10 times the rate of users who did not activate it. The tool uses creators’ channel data, audience comments and identity to provide personalized recommendations, he said.
Commercial pipeline and second-half outlook
Management said it expects a seasonally stronger second half, noting that historically about 60% of annual revenue has been generated during the back half of the year. Kenna said GameSquare has more revenue locked in than at prior points in the company’s history, including agency-of-record and retainer relationships.
In response to an analyst question, Kenna said approximately 70% of the company’s revenue in its current outlook was booked or locked in, compared with an estimated roughly 30% two or three years ago. He also said average deal sizes have increased and that GameSquare has become more selective in pursuing client work, focusing on larger and more strategic projects.
The company reiterated its fiscal 2026 guidance, on a pro forma basis reflecting its plans for TubeBuddy, for:
- Revenue of $85 million to $90 million;
- Gross margin of 35% to 40%; and
- Adjusted EBITDA of more than $5 million.
Kenna said management considered raising guidance but chose to maintain its existing outlook. He said the company expects the fourth quarter to be its largest quarter of the year, with certain major projects potentially spanning the third and fourth quarters. Management does not anticipate a material increase in operating expenses during the second half compared with the second quarter, he added.
Among projects expected to support second-half results are a new influencer-marketing relationship with Tencent; production of the first Innovation Awards at the Roblox Developer Conference; a Red Bull event featuring SypherPK; a renewed relationship with Rekt for 2027; expanded FaZe Esports activity; and TikTok-related creator and community activations tied to an NBA gaming crossover event in Los Angeles.
Marvel event and client relationships
Following the end of the quarter, GameSquare produced the Marvel Rivals Ignite 2026 mid-season finale, a four-day global esports event in Los Angeles. Kenna said the company handled event design, broadcast, tournament operations, venue logistics, sponsorship integration, talent management and measurement through Stream Hatchet.
The event generated approximately 699,000 hours watched and peak concurrent viewership of 54,600, according to management. It was distributed across 64 channels in more than five languages. Kenna said the event could support additional work as the Marvel Rivals competitive season progresses toward its Ignite Grand Finals later this year.
The company said its agency-of-record clients have maintained a 100% renewal rate through 2026 to date. Its content division is on track for a record year, supported by work for TurboTax, HyperX, Roblox and Marvel Rivals, management said.
Capital allocation and listing compliance
Kenna said GameSquare has begun opportunistically monetizing portions of its Ethereum holdings, while maintaining optimism about the long-term potential of ETH and other digital assets. The company plans to weigh potential returns from digital assets, share repurchases, organic investments and strategic opportunities when allocating capital.
Since the start of its repurchase program, GameSquare has bought back more than 8.8 million shares for approximately $4.1 million, including 2.8 million shares in the second quarter and an additional 1 million shares in July, Kenna said.
Management also said stockholders are scheduled to vote at an Aug. 13 special meeting on whether to authorize the board to enact a potential reverse stock split, if needed, to regain compliance with Nasdaq’s minimum bid price requirement. Kenna said a reverse split could also provide flexibility to establish a share price that may be more accessible to certain institutional investors.
Regarding acquisitions, Kenna said GameSquare is evaluating several potential transactions that could help the company gain scale, but emphasized that management is focused on avoiding dilution and would consider only accretive deals. He added that obtaining additional intellectual property, either through ownership or partnerships with IP holders, remains an area of interest.
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.
