May 14th, 2026

The call conveyed strong commercial momentum and substantial top-line growth (95% YoY), record bookings in the events business, meaningful strategic M&A that expands capabilities, a solid cash position and disciplined capital allocation including buybacks. Management reiterated confident FY2026 guidance and highlighted pro forma progress toward profitability (pro forma adjusted EBITDA loss narrowed to ~$0.7M and target of >$5M adjusted EBITDA for the year). Key challenges include a decline in gross margin percentage due to revenue mix, continued quarterly adjusted EBITDA losses (though improving on a pro forma basis), digital asset valuation volatility affecting net results, and dependence on seasonal back-half execution. Overall, positive growth and improving profitability trends outweigh the near-term margin and volatility headwinds.

Company Guidance

GameSquare reiterated its 2026 pro‑forma guidance (including TubeBuddy) for revenue of $85–$90 million, gross margins of 35%–40% and adjusted EBITDA of more than $5 million; management said Q1 supports that outlook with reported Q1 revenue of $14.5M (up 95% YoY) and pro‑forma Q1 revenue of $15.8M, reported gross profit of $5.6M (38.4% margin) with gross profit dollars up ~77% (~$2.4M), a reported adjusted EBITDA loss of $1.1M (including TubeBuddy a $656K loss) and a pro‑forma adjusted EBITDA loss of $0.7M (4.2% of pro‑forma revenue). They cited a strong balance sheet with $35.9M in cash and digital assets, ongoing buybacks (April repurchase ~2.3M shares for ~$1M at ~$0.44 avg; 3.0M shares repurchased total for ~$3.5M at ~$0.47 avg with ~$11.4M remaining authorization), the February all‑stock TubeBuddy acquisition, record GSX Q1 bookings of >$10M, creator additions expected to add >$5M of incremental annualized revenue, and ~ $5.5M of revenue to date from Into the Zone/Roblox IP across ~10 events as key drivers of confidence in achieving the guidance.