Company: GAME
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-023972
Chunk: 138

Company: GameSquare Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 138
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-1 Preferred Stock of Faze Media Inc. to Gigamoon.

29

Current
Market Conditions

GameSquare
is pursuing organic growth opportunities, as well as M&A growth opportunities. From August 2020 to June 2025, the Company has
completed five acquisitions and divested three non-core assets. GameSquare’s organic growth strategy focuses on growing
audience and reach within its digital agencies, media network, and teams segments. GameSquare’s digital agencies, teams, and
services segments serve the gaming and esports market, and more broadly sports and entertainment through content creation, audience
development and growing brand relationships. The digital agency industry is highly fragmented, and these businesses are generally
characterized by high revenue growth with healthy earnings before income, taxes, depreciation and amortization margins, which
management believes positions the Company well for sustainable growth through organic efforts and presents significant opportunities
to grow through accretive acquisitions.

The
Company has invested in its sales organization and continues to see significant growth in the number, and the size, of requests for proposals
within its agency businesses. The Company’s financial profile compares very favorably against its esports peers, as well as other
companies seeking to engage with youth audiences.

The
Company believes enterprise growth may come as a result of synergistic approaches to combining the strengths of its multiple SaaS companies
that it can present as a unified offering to the market.

The
following is a summary of the Company’s financial performance highlights for the three and six months ended June 30, 2025 and
2024. This summary should be considered in the context of the additional disclosures in this MD&A which further highlight
Company results by segment.

Results
of Operations

The
following table summarizes our results of operations for the three and six months ended June 30, 2025 compared to the three and six months
ended June 30, 2024. FaZe Media is now reported in discontinued operations, historical results
of operations of FaZe Media are netted in discontinued operations within the below figures.

    Six months ended June 30,  

    2025  
    2024  
    Variance 
  
    Revenue 
    $30,583,937  
    $33,406,699  
    $(2,822,762)
  
    Cost of revenue 
     24,793,857  
     28,816,057  
     (4,022,200)
  
    Gross profit