Gaming and esports company GameSquare Holdings (NASDAQ:GAME) announced fiscal year 2024 results for the 12-month period that ended on Dec. 31, 2024, showing positive growth in revenue, gross profits, and significantly lowered operating expenses. While the company posted a loss in FY 2024, it was significantly smaller than in FY 2023, showing that–through a combination of cost cutting measures, a divestment of FaZe Media (while retaining ownership of the FaZe brand for operating esports teams), and revenue from its various subsidiaries–is putting it on a solid path to profitability, despite operating an entertainment company in a challenging global economic environment being affected by uncertainty over on-again, off-again tariff policy (among other things) from the United States.
Before revealing the numbers, GameSquare CEO Justin Kenna said the following in the financial release:
Since our founding in August of 2020, we have followed a strategic plan focused on quickly building a diverse set of media, agency, technology and esports assets, to help global brands engage with hard to reach esports and youth audiences at scale. Our 2024 financial results, reflect the success of the first phase of our plan, driven by the differentiated platform we have created, and the organic and M&A growth strategies we have pursued. In less than four years, GameSquare has achieved $100 million in pro forma revenue, through our team’s efforts to develop next generation solutions, and drive connections between the world’s largest video game publishers, top tier brands and global gaming, and esports communities.
I believe our recent performance demonstrates, the progress we’ve made throughout the year. With these efforts successfully behind us, we are excited to begin the next FaZe of our multiyear strategic plan and focus on reaching positive adjusted EBITDA and cash flow in 2025. Given the rapid pace of our growth over the past four plus years, we understand there have been a lot of moving parts to our business.
As brands look to drive market share in the current economic environment, we believe we are well positioned to grow organically. Our confidence is supported by recently signed partnerships, and a robust order book and pipeline that, we expect to really start to accelerate revenue in the second quarter. With the successful divestiture of FaZe Media. We are focused on executing the next FaZe of our strategic plan and profitably growing our business.
For FY 2024, the company showed:
- Revenue of $96.2 million, compared to $41.3 million in FY 2023.
- Gross profit of $15.3 million, compared to $10.1 million in FY 2023.
- Net loss attributable to GameSquare of $48.8 million, compared to a net loss of $31.3 million FY 2023.
- Adjusted EBITDA loss of $16.0 million, compared to a loss of $11.1 million in FY 2023.
- Adjusted EBITDA loss was 16.6% of revenue, versus 26.8% of revenue in FY 2023.
Proforma results (which also includes a full year-to-date contribution of FaZe Clan in the 2024 period, and a full year-to-date contribution of Engine and FaZe Clan in the 2023 period) were:
- Revenue of $102.0 million, compared to $94.8 million in FY 2023.
- Gross profit of $15.6 million, compared to $13.9 million in FY 2023.
- Operating expenses of $39.3 million (38.6% of revenue), compared to $60.0 million (63.4% of revenue last year).
- Adjusted EBITDA loss of $19.8 million, compared to a loss of $46.1 million in FY 2023.
- Adjusted EBITDA loss was 19.4% of revenue, versus 48.6% of revenue last year in FY 2023.
Looking ahead to the remainder of the year, GameSquare expects to:
- Generate $100 – $105 million in revenue, excluding $27 million of FaZe Media revenue (the company divested its remaining ownership at the beginning of this month).
- Revenue growth in the 20% – 25% range, driven in part by “sales to existing and new customers, and cross-selling opportunities.”
- Annual gross margin of approximately 20% to 25%, benefiting from a more profitable mix of revenue and the April 1, 2025, FaZe Media divestiture
- A decline in cash operating expenses in 2025 of approximately $15 million compared to $35 million 2024, as a result of the FaZe Media divestiture and recent cost-cutting measures.
- An improvement in EBITDA and cash flow throughout the rest of the year, with positive EBITDA and cash flow in the second half of 2025.
GameSquare owns and operates a number of subsidiaries including FaZe Clan Esports, digital media company GCN, gaming and lifestyle marketing agency Cut+Sew (Zoned), UK-based esports talent agency Code Red Esports Ltd., live streaming analytics company Stream Hatchet, social influencer marketing platform Sideqik, creative production studio Fourth Frame Studios, merchandising company Mission Supply, and Moonlight Studios, among others.
Earlier this week, GameSquare announced a partnership with GGTech to operate its properties GAMERGY and University Esports in the United States in 2026. Other recent partnerships include eFuse, and Capcom–with a focus on the Monster Hunter Wilds release through subsidiary Stream Hatchet.
Stream Hatchet released a free report on the launch of Monster Hunter Wilds on Friday.