Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 146

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 146
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 was $4.9 million,
in comparison to $2.9 million for the same period in 2024. The increase was primarily related to the acquisition of FaZe on March 7, 2024
and FaZe Esports not being a full six months in the prior year period.

Agency
Revenue

Agency revenue for the six months ended June 30, 2025, was $4.5 million,
in comparison to $5.0 million for the same period in 2024. The variance between the periods was not significant.

Software-as-a-service
(“SaaS”) + Advertising revenue

SaaS + Advertising revenue for the six months ended June 30, 2025, was
$21.2 million, in comparison to $25.5 million for the same period in 2024. The decrease was primarily related to decrease in revenue at
Frankly Media (SaaS + Advertising), primarily driven by decease in ad impressions as compared to prior year period. Further, Frankly Media
sold its remaining SaaS assets on May 31, 2024, contributing to the decline in revenue in the 2025 period.

Cost
of Sales

Cost of sales for the six months ended June 30, 2025, was $24.8 million,
in comparison to $28.8 million for the same period in 2024. The decrease was primarily related to the decrease in revenue discussed above,
and varying margins of the Company product mix.

Operating
expenses

General
and administrative

General and administrative expenses for the six months ended June 30, 2025,
was $8.4 million, in comparison to $9.4 million for the same period in 2024. The decrease was primarily related to continued efforts made
by the Company to reduce operating expenses during the second half of 2024 and first half of 2025, primarily through reductions in headcount,
technology expenses and other overhead. This was partially offset by FaZe Esports being included for a full six month period in 2025 vs.
2024.

Selling
and marketing

Selling and marketing expenses for the six months ended June 30, 2025,
was $3.0 million, in comparison to $3.5 million for the same period in 2024. The decrease was primarily related to continued efforts made
by the Company to reduce operating expenses during the second half of 2024 and first half of 2025, primarily through reductions