GameSquare Holdings, Inc., the parent company of American esports organisation FaZe Clan, reported a sharp increase in revenue for the fourth quarter of 2025 but still posted a large net loss.
The company reported revenue for the quarter rose 142% year-on-year to $18.5 million, compared to $7.6 million in the same period last year. Gross profit also increased significantly to $8.5 million, while gross margin improved to 45.9% from 25.8%.
The company also showed improvement in its core operations. Adjusted EBITDA, a measure of operating performance, came in at a profit of $1.7 million, compared to a loss of $3.1 million a year ago. This represented 9.4% of revenue, a strong improvement from negative margins last year.
Despite this growth, GameSquare reported a net loss from continuing operations of $28.2 million, wider than the $19.5 million loss in Q4 2024. The company said the loss was mainly due to a $20.3 million drop in the value of its digital assets, a $12.1 million impairment charge, and $1.9 million in losses from investments. These were partly offset by a $7.4 million gain linked to warrant liabilities.
At the same time, GameSquare still has exposure to crypto and digital assets, including Ethereum and NFTs, which continue to introduce volatility into its earnings. In fact, last year GameSquare entered decentralized finance (DeFi) after its board approved putting $100 million into Ethereum.
However, the company did not specifically break out how FaZe Clan is performing financially within its results. While FaZe Clan remains one of GameSquare’s most recognisable assets and a key part of its esports and content strategy, the earnings release did not provide separate revenue, profitability, or growth figures for the brand.
The Q4 2025 results for GameSquare reflect several major strategic moves made in the previous quarter, including the $8.5 million acquisition of Click Management and the rebranding of Stream Hatchet. During the same period, the company also confirmed the repurchase of 833,124 shares of its common stock for $599,148, representing an average price of approximately $0.7192 per share.
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