Company: GAME
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001641172-25-004869
Chunk: 789

Company: GameSquare Holdings, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 5
Chunk 789
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aaS + Advertising 
     -  
     4,715,560  
     1,942,987  
     6,658,547 
  
    Total Gross profit 
    $788,379  
    $7,370,156  
    $1,942,987  
    $10,101,522 

Revenue

Revenues for the year ended December 31, 2024, were
$96.2 million, in comparison to $41.3 million for the year ended December 31, 2023. The increase was primarily related to the acquisition
of Engine on April 11, 2023 and the acquisition of FaZe on March 7, 2024. See below for revenue breakdown by operating segement.

Team
Revenue

Team revenue for the year ended December 31, 2024,
was $32.0 million, in comparison to $0 for the year ended December 31, 2023. The increase was related to our acquisition of FaZe on March
7, 2024. As such, there is no revenue is this operating segment in the prior year.

18

Agency
Revenue

Agency
revenue for the year ended December 31, 2024, was $12.1 million, in comparison to $11.5 million for the year ended December 31, 2023.
The variance was not significant.

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

SaaS
+ Advertising revenue for the year ended December 31, 2024, was $52.1 million, in comparison to $29.8 million for the year ended December 31,
2023. The increase was related to our acquisition of Engine on April 11, 2023. As such, there is only three quarters of
SaaS + Advertising revenue for this operating segment in the prior year. The large increase in revenue is also due to significant growth
derived primarily from programmatic advertising year over year.

Update
on 2024 Guidance

The
Company had previously announced, subsequent to the closing of the acquisition of Faze, pro-forma annual revenue guidance of $100+ million. When
including Faze revenue for the period from January 1, 2024 to March 7, 2024 of $5.7 million, pro-forma 2024 revenue amounted to approximately
$102.0 million. 

Cost
of Sales

Cost of