GameSquare 2025 Q2 Earnings 74.9% Net Loss Improvement

GameSquare (GAME) reported its Q2 2025 earnings on August 15, 2025, delivering a 74.9% reduction in net loss compared to the same quarter a year ago. The company’s revenue, however, fell short of prior year levels by 11.1%, to $15.85 million, while earnings per share improved significantly, narrowing losses by 78.9%.

Revenue

GameSquare’s Q2 2025 revenue declined to $15.85 million, a 11.1% decrease from $17.83 million in Q2 2024. The company’s SaaS and advertising segment led the revenue breakdown with $11.84 million, followed by the Agency segment with $2.21 million and the Teams segment contributing $1.81 million.

Earnings/Net Income

GameSquare significantly improved its earnings performance in Q2 2025, with a loss of $0.08 per share, representing a 78.9% improvement over the $0.38 per share loss in the prior year. The company’s net loss also shrank to $3.02 million, a 74.9% reduction from $12 million in Q2 2024. Despite this progress, the company continues to face financial challenges, having reported losses for eight consecutive years in the same quarter.

Price Action

GameSquare’s stock has experienced significant downward pressure, with a 1.13% drop in a single trading day, a 7.97% decline for the week, and a sharp 41.07% month-to-date fall.

Post Earnings Price Action Review

Historically, a strategy of buying GameSquare shares on the day of its quarterly earnings release and holding for 30 days has yielded mixed results over the past three years. In Q2 2025, despite a 27.94% revenue miss, the stock rose 12.4% year-to-date following the report. Earlier in Q1 2025, the stock reacted positively to an improved earnings surprise, delivering a 43.48% beat. In contrast, Q2 2024 showed modest gains amid a less severe revenue miss. The success of the strategy often depends on market sentiment and how expectations adjust post-announcement. With Q2 2025 showing a significant miss and a revenue outlook skewed toward the back half of the year, the 30-day strategy appears more cautious.

CEO Commentary

Justin Kenna, CEO, attributed the revenue shortfall in Q2 to delayed deals and a slowdown in programmatic advertising. However, he highlighted a 16% year-over-year improvement in adjusted EBITDA and a 120 bps gross margin expansion, achieved through cost-cutting and restructuring efforts. Kenna emphasized the company’s Ethereum-based treasury strategy as a key differentiator, generating $19 million in unrealized gains and $74.3 million in ETH value. He expressed confidence in stronger revenue growth in Q3 and Q4, driven by strong pipelines, new partnerships, and high-margin crypto-related contracts such as the $2.5 million Azuki deal.

Guidance

Looking ahead, Kenna outlined expectations for a stronger second half of 2025, with Q3 revenue expected to exceed Q2 and Q4 building on that momentum. He noted that 60% of 2025 revenue is projected to come in the second half. The company anticipates further cost savings of $5 million by Q3 and expects Ethereum yield returns of 8%–14% from its Dialectic strategy and 6%–10% from NFTs. Full-year guidance will be updated in Q3, incorporating the impact of treasury initiatives and ongoing restructuring.

Additional News

In Nigeria, the Punch newspaper reported on several developments on August 15, 2025. Political tensions arose as the Labour Party and APGA accused each other of attempting to rig Anambra State’s by-elections. Meanwhile, a significant drop in Nigeria’s inflation rate to 21.88% in July was announced by the National Bureau of Statistics. In entertainment, veteran Nollywood actor Chief Kanran passed away at the age of 70. Businesswise, the Dangote Group pledged full medical support for the injured sister of Big Brother Naija contestant Phyna.