GameSquare Holdings, Inc. (NASDAQ:GAME) shares are trading higher Thursday after the company reported fourth-quarter financial results and affirmed its fiscal-year 2026 guidance above estimates on Wednesday after the market closed.

Q4 Results

GameSquare reported a loss of 32 cents per share, missing the consensus estimate of a 2 cent-loss. In addition, it reported revenue of $18.45 million, missing the consensus estimate of $23.07 million, but representing a 142% year-over-year increase.

The company achieved positive adjusted EBITDA of $1.7 million, compared to an adjusted EBITDA loss of $3.1 million in the prior-year period. Adjusted EBITDA margin improved to 9.4% of revenue from negative 40.1% a year earlier.

The company attributed its improved profitability to strategic investments, stronger operating performance and contributions from acquisitions, including its creator marketing platform and the recently announced TubeBuddy acquisition.

Management said the TubeBuddy acquisition is expected to enhance its platform capabilities, expand creator relationships and drive higher-margin, recurring revenue streams. 

During the fourth quarter, the company repurchased approximately 2.99 million shares for $1.7 million. As of early March, total repurchases reached 5.06 million shares for $2.5 million under its buyback program. 

Looking ahead, the company affirmed fiscal-year 2026 revenue guidance of between $85.00 million and $90.00 million, versus the consensus estimate of $80.05 million.

GameSquare Shares Soar

GAME Price Action: At the time of publication, GameSquare shares are trading 68.33% higher at 42 cents, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.