Company: GAME
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010979
Chunk: 164

Company: GameSquare Holdings, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 events,
the Gigamoon CD can be converted into either (i) GameSquare common stock at a conversion price of $2.50 per common share or (ii) exchanged
for the 5,725,000 shares of Series A-1 Preferred Stock of Faze Media Inc. held by the Company.

24

Current
                                            Market Conditions

GameSquare
is pursuing organic growth opportunities, as well as M&A growth opportunities. From August 2020 to March 2025, the Company has completed
five acquisitions and divested two 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 months ended March 31, 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 months ended March 31, 2025 compared to the three months ended March
31, 2024:

    Three
    months ended March 31,  

    2025  
    2024  
    Variance 
  
    Revenue 
    $21,109,659  
    $17,728,224  
    $3,381,435 
  
    Cost of revenue 
     17,776,605  
     14,335,067