Company: GAME
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023589
Chunk: 84

Company: GameSquare Holdings, Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 2025 that contributed
to the increase.

Owned and operated IP Revenue

Owned and operated IP revenue for the three months ended September 30, 2025, was $3.7 million, in comparison to $4.7
million for the same period in 2024. The decrease was driven by changes in prize winnings between the two periods, which was primarily
driven by the Esports World Cup.

Agency Revenue

Agency revenue for the three months ended September 30, 2025, was $5.4 million, in comparison to $3.3 million for
the same period in 2024. The increase was primarily due new web3 deals, initiated as the result of the launch of our digital asset treasury,
that closed in the third quarter of the current period combined with revenue from the acquisition of Click that contributed 19 days of
operating results post close in the current period.

SaaS and managed services

SaaS and management services revenue for the three months ended September 30, 2025, was $1.6 million, in comparison
to $1.2 million for the same period in 2024. The increase was primarily due to launch of a management services offering within the SaaS
segment.

Yield

DAT yield revenue for the three months ended September 30, 2025, was $0.6 million, in comparison to $0 for the same
period in 2024. The Company launched its DAT in the third quarter of 2025.

37

Cost
of Revenue

Cost
of revenue for the three months ended September 30, 2025, was $5.7 million, in comparison to $5.1 million for the same period in
2024. The increase was primarily related to the increase in revenue discussed above, and varying margins of the Company product
mix.

Operating
expenses

General
and administrative

General
and administrative expenses for the three months ended September 30, 2025, was $6.2 million, in comparison to $3.7 million for the
same period in 2024. The increase was primarily due to $1.9 million in stock based compensation recorded during the current period from
new RSU grants to employees and warrant grant to a service provider, in addition to the operations of Click that contributed 19 days of
operating results post close in the current period.

Selling
and marketing

Selling
and marketing expenses for the three months ended September