GameSquare Holdings Inc. reported its first quarter 2025 financial results, revealing a revenue of $21.1 million, up from $17.7 million during the same period in 2024. However, the company experienced a slight decline in gross profit, which stood at $3.3 million compared to $3.4 million the previous year. The net loss attributable to GameSquare was $5.2 million, a slight improvement from a net loss of $5.3 million in the first quarter of 2024. The company also reported an adjusted EBITDA loss of $3.4 million, which is an improvement from a loss of $4.1 million in the previous year. GameSquare expects its annual proforma revenue in 2025 to range between $100 million to $105 million, with an anticipated annual gross margin of approximately 20% to 25%. This positive forecast is partly due to the divestiture of FaZe Media, completed on April 1, 2025, which is expected to enhance gross margin and reduce operating expenses by over $2 million per quarter. GameSquare plans to achieve positive cash flow and adjusted EBITDA in 2025, focusing on optimizing its operating structure and leveraging the success of FaZe Clan Esports. The company aims to improve annual cash operating expenses by approximately $15 million, driven by the FaZe Media divestiture and ongoing cost-reduction measures.
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