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GameSquare Holdings, the Nasdaq-listed company that owns FaZe Esports, said on August 10, 2026 that its revenue for the second quarter reached US$18.5 million, against US$7.8 million in the same three months of 2025. The press release, issued from Frisco, Texas, puts the rise at 137% and reports a gross margin of 49.0%, up from 29.4%.
The quarter also brought a first for the year on the measure the company steers by. Adjusted EBITDA, a version of operating earnings from which the company removes a list of items, was positive at US$1.0 million, against a loss of US$3.2 million a year earlier. The net loss from continuing operations was nevertheless US$10.6 million, larger than the US$4.0 million of the second quarter of 2025.
The release gives no separate figure for FaZe Esports, and it does not break revenue down by business. Everything below is the company as a whole.
GameSquare Holdings press release of August 10, 2026, for the three months ended June 30, 2026. Preliminary and unaudited figures.
The second quarter in figures
Revenue for the three months ended June 30, 2026 was US$18,475,300, the release's income statement shows, against US$7,788,519 a year earlier. That is US$10.7 million more, and the 137% of the headline.
Gross profit is what is left of revenue once the direct cost of delivering it is paid. It came to US$9.0 million, against US$2.3 million in the second quarter of 2025, nearly four times as much. Gross margin is that profit as a share of revenue: 49.0% this time, 29.4% then, a gain of 19.6 percentage points.
The loss from operations, before financial items, narrowed to US$1.7 million from US$4.3 million. The adjusted EBITDA of US$961,636, which the release rounds to US$1.0 million, equals 5.2% of revenue. A year earlier the same measure was a loss equal to 40.5% of revenue. EBITDA stands for earnings before interest, taxes, depreciation and amortization; in the adjusted version of this release the company also takes out share-based payments, transaction costs and the change in value of a contingent payment, among other items.
Related readKrafton reports record 2025 revenue and a KRW 1 trillion return planGameSquare Holdings releases of May 14 and August 10, 2026. Revenue from continuing operations, unaudited.
The second quarter was also larger than the first. Subtracting the quarter from the six-month total leaves US$14.5 million for January to March, the figure the company reported on May 14, so revenue grew by 27.1% from one quarter to the next. The margin followed: the first-quarter release gave a gross margin of 38.4%, more than ten points under the 49.0% of the second.
Why the net loss is larger
The bottom line moved against the trend of the lines above it. The net loss from continuing operations was US$10,610,710 for the quarter, about 2.6 times the US$4,034,003 of a year earlier.
The release lists what stands between the small operating loss and that figure. Of the quarter's net loss, US$7.8 million is a fair-value loss on the company's digital assets, according to the release, which gives US$22.4 million for the same item over six months. The other items it names for the quarter are US$1.4 million for the change in fair value of contingent consideration, which is a payment owed for an acquisition that depends on future results, US$0.7 million for the change in fair value of a warrant liability and US$0.6 million of transaction costs. Interest also changed sign: an expense of about US$0.3 million, where the company had earned interest of about US$0.1 million a year earlier.
Continuing operations are the businesses the company still runs. Activities it has sold or closed are reported apart, as discontinued operations, and they weighed little this quarter: a loss of US$39,129.
Six months: revenue more than doubled
For the half year to June 30, 2026, revenue was US$33.0 million against US$15.2 million, a rise of 116.8% by the release's own amounts. Gross profit was US$14.7 million against US$5.4 million, which works out to a margin of 44.4% for the half against 35.8% a year earlier.
Related readListed esports companies: where NIP, OverActive and GameSquare earnAdjusted EBITDA for the six months was a loss of US$0.1 million, against a loss of US$5.7 million in the first half of 2025. The first quarter had been negative by US$1.1 million and the second positive by US$1.0 million, which is how the half ends close to zero. The loss from operations was US$5.1 million against US$8.4 million. The net loss from continuing operations was US$28.2 million against US$7.8 million.
These figures are preliminary and unaudited
GameSquare says the results remain subject to its quarter-end procedures and to its independent auditor's review. The Form 10-Q, the quarterly report a listed company files with the US securities regulator, may differ from what the release presents.
What the company says drove the quarter
GameSquare describes itself as a media, entertainment and technology company that helps brands and game publishers reach younger audiences through creative services, analytics and FaZe Esports. The release does not report revenue by segment, but it names the activity it credits.
Justin Kenna, the chief executive, says in the release that the quarter was strong and ahead of the company's plan, and that he expects a strong second half. Among the developments the release lists are a renewed and expanded relationship with Riot Games, a partnership with the U.S. Army, and a partnership between FaZe Esports and CORSAIR. Stream Hatchet, the data platform the release lists with them, was selected for a second consecutive year as data and insights provider of the Esports World Cup.
The release also reports strong bookings at GameSquare Experiences, the addition of World of Dance, the Esports Awards and The Mobies to its portfolio of properties, and new names on its creator roster, including SypherPK, whom it describes as one of the world's largest Fortnite creators. Click, its subsidiary for creators, counts a network of more than 60 million followers by the company's figure.
Related readLeague of Legends: how Riot's Global Revenue Pool pays the teamsOne acquisition sits behind part of the comparison. On February 20, 2026 the company agreed to buy TubeBuddy, a software service for YouTube creators, from BENlabs, its first-quarter release said. The price was not disclosed. The second-quarter release says TubeBuddy is contributing to results and cites technology and software-as-a-service revenue as a reason deferred revenue grew. Deferred revenue is money received for a service not yet delivered; it stood at US$5.3 million on June 30, 35.0% above the US$4.0 million of December 31, 2025.
The full-year target
The company repeated the guidance it had given in May. The guidance is pro forma, meaning that it counts TubeBuddy as if it had been owned since January 1, 2026.
| Measure | First half of 2026 | Guidance for 2026 |
|---|---|---|
| Revenue | US$34.3 million | US$85 million to US$90 million |
| Gross margin | 46.3% | 35% to 40% |
| Adjusted EBITDA | US$0.3 million | Over US$5 million |
GameSquare Holdings press release of August 10, 2026. The company provides no reconciliation for the adjusted EBITDA guidance, which excludes transaction costs, impairments and other one-time items.
The arithmetic of the table is simple. With US$34.3 million booked in six months, the low end of the revenue range leaves US$50.7 million to come in the second half and the high end US$55.7 million. The first half therefore represents between 38% and 40% of the year the company is guiding to. On adjusted EBITDA, more than US$4.7 million of the target remains to be earned between July and December. The margin of the first half is above the range given for the year.
Cash, debt and share buybacks
GameSquare held US$2.1 million in cash on June 30, 2026, plus US$2.4 million of restricted cash, which is money set aside that it cannot spend freely. At the end of March the figures were US$2.4 million and US$1.8 million, and at the end of 2025 cash stood at US$4.6 million.
The balance sheet in the release shows current promissory notes, a form of short-term borrowing, of US$12.1 million, against US$2.0 million at December 31, 2025. Total liabilities were US$49.0 million against US$43.6 million, and shareholders' equity was US$9.9 million against US$35.7 million. Money owed by customers rose to US$11.3 million from US$8.7 million.
Related readMotorsport Games books its first esports revenue since 2023The company kept buying back its own shares, a way of returning money to shareholders by reducing the number of shares in circulation. It bought 2.8 million shares for US$1.2 million during the quarter and 1.0 million more for US$0.4 million in July. Since the program began in October 2025 and through August 7, 2026, it has bought more than 8.8 million shares for nearly US$4.1 million, and about US$10.9 million of the authorization remains. The release counts 102,371,390 common shares outstanding on June 30, against 98,066,751 at the end of 2025.
Kenna and the chief financial officer, Mike Munoz, were due to present the results on a conference call at 5:00 pm Eastern time on the day of the release.
Where FaZe Esports fits
FaZe Esports is the part of the group a follower of competition knows. GameSquare completed its acquisition of FaZe Clan in March 2024, according to HLTV's reporting at the time, a week after selling another organization, Complexity, to a group led by its founder for US$10.36 million. HLTV explained the sale then by a rule: under Valve's rulebook, one owner cannot field two teams in the Counter-Strike Majors.
On the server, 2026 has been a year of change for FaZe's Counter-Strike team. The team parted ways with its head coach NEO on March 16, failed to qualify for the Cologne Major, which ended a run of 16 Majors in a row, named enkay J head coach on April 16 and confirmed the departure of karrigan on April 20, HLTV reported at each step.
None of that appears in the accounts as a line of its own. The company's results show a media and technology business growing fast, with the esports organization named in its description and in one sponsorship announcement. The Form 10-Q for the quarter is the next document due, and the guidance sets the measure for the rest of the year: US$85 million to US$90 million of pro forma revenue.
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