GameSquare (NASDAQ:GAME) Chief Executive Officer Justin Kenna said the company is positioned to grow revenue and profitability by serving as a bridge between game publishers, consumer brands and gaming-focused creator communities.
Speaking during a company presentation, Kenna described GameSquare as an entry point into the creator economy, with operations spanning data and analytics, creator talent, agency services and owned intellectual property. He said the company sits at the intersection of several large markets, including digital advertising, video games and online gaming audiences.
Management Outlines 2026 Targets
Kenna said GameSquare is targeting 2026 revenue of $85 million to $90 million, with gross margins of 35% to 40% and more than $5 million in operating profit. He said the company is on track after its first-quarter results and current second-quarter trends to exceed an $85 million estimated revenue figure.
The CEO said GameSquare has grown significantly since he became chief executive in January 2021, when the company had annualized revenue of about $10 million. He said the company expects to reach $85 million in revenue and profitability, representing roughly 8x revenue growth from 2021 to 2026.
Kenna also noted seasonality in the business, describing revenue as weighted toward the second half of the year, with stronger third and fourth quarters driven by advertising spending, holiday merchandising, consumer products, events and esports activity. He said first-quarter revenue was close to $16 million and that second-quarter revenue is expected to grow from that level, with the company aiming for breakeven or slight profitability before stronger profitability in the second half.
Four-Part Business Model
Kenna said GameSquare’s model is organized around four main business streams. The first is data and analytics, led by Stream Hatchet, which he compared to Nielsen’s role in broadcast television. He said nine of the top 10 global game publishers are clients, and that Twitch and Nielsen license data from the company. He also said GameSquare is the official data provider for the Esports World Cup.
The second stream is the company’s creator and talent business, including Click, which GameSquare acquired last year. Kenna said Click is expected to double revenue since the acquisition and now manages close to 100 talent relationships. He said the business includes talent management, content strategy, brand integrations, merchandise, consumer products, podcasts and original content.
Kenna said GameSquare is also growing a “creative deployment” business that uses data to build influencer campaigns at scale. He said that area is expected to generate about $6 million of incremental new revenue in the first half of the year.
The third stream is a full-service agency business that includes creative strategy, experiential marketing, media, merchandise and a content studio. Kenna said the company works with clients including the Dallas Cowboys, Jack in the Box, Dairy MAX, Roblox and Epic Games. He said GameSquare has more locked-in revenue and visibility into 2026 than it has had previously.
The fourth stream is owned and operated intellectual property. Kenna cited FaZe Clan, which GameSquare owns, as a profitable North American esports organization with eight competitive teams. He also discussed GameSquare’s work with Paramount on SpongeBob-related in-game intellectual property within Fortnite, saying the company earns monthly royalties from the project and plans three additional projects over the next 18 months.
Balance Sheet and Digital Assets
Kenna said GameSquare raised close to $90 million between the second and third quarters of last year at an average price of about $1.40. He said the raise allowed the company to clean up its balance sheet, and that GameSquare has no long-term debt.
The company also launched a digital asset treasury strategy. Kenna said GameSquare owns about 16,000 ETH on its balance sheet and has cash and cash equivalents of just under $40 million, while acknowledging volatility tied to ETH. He described the strategy as both “a blessing and a curse,” saying it helped the company strengthen its balance sheet but also caused GameSquare to be grouped with other digital asset treasury companies.
Kenna said GameSquare’s operating business has closed close to $8 million in new revenue from crypto clients, including Web3 companies seeking access to Web2 audiences. He said the company has also been buying back stock and plans to continue doing so at current discounts.
M&A and Expansion Plans
In response to an analyst question, Kenna said GameSquare remains open to acquisitions but will be disciplined. He said future targets need to be accretive and not burning cash, with a likely focus on companies generating $10 million to $30 million of revenue and 10% to 20% EBITDA.
Kenna said the company is seeing inbound opportunities involving performance marketing technology assets, production companies and creative agencies. He cited TubeBuddy as a recent acquisition completed in an all-stock deal that added $3 million of EBITDA.
Kenna also said GameSquare sees international opportunity, particularly in the Middle East. He said the company has a strategic partnership in the region that makes it an approved government gaming vendor and indicated that brand-related announcements are expected.
“The challenge for us was clean balance sheet, get to profitability,” Kenna said. “Now it is get to scale.”
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.
