GameSquare (GAME) Q2 2026 earnings summary

Executive summary

• Revenue grew 137% year-over-year to $18.5 million in Q2 2026, with gross margin expanding by 19.6 percentage points to 49%.

• Adjusted EBITDA reached a record $1 million, marking a significant turnaround from a $3.2 million loss in the prior year period.

• Net loss was $10.6 million, impacted by $7.8 million in unrealized and realized losses on digital assets and investments.

• Growth was driven by acquisitions (Click, TubeBuddy), expanded talent roster, and strong execution across integrated platform services.

• The company is building recurring revenue streams and deepening relationships with major IP owners and global brands.

Financial highlights

• Q2 2026 revenue: $18.5 million (Q2 2025: $7.8 million); gross profit: $9.0 million (Q2 2025: $2.3 million).

• Gross margin: 49% (Q2 2025: 29.4%).

• Adjusted EBITDA: $1.0 million (Q2 2025: -$3.2 million); Adjusted EBITDA margin: 5.2% (Q2 2025: -40.5%).

• Net loss from continuing operations: $10.6 million (Q2 2025: $4.0 million), including $7.8 million in digital asset losses.

• Cash and digital asset treasury at quarter-end: $25.9 million.

Outlook and guidance

• Reiterated FY2026 guidance: revenue of $85–$90 million, gross margin of 35–40%, adjusted EBITDA over $5 million (excluding one-time items).

• Guidance reflects proforma inclusion of TubeBuddy as if acquired January 1, 2026.

• 70% of annual revenue is already locked in as of early Q3, providing strong visibility.

• Q4 expected to be the largest quarter, with 60% of annual revenue typically in the second half.

• Focus remains on converting pipeline into sustained positive adjusted EBITDA and cash flow.