GameSquare, the owner of FaZe Esports, released its second-quarter 2026 results on August 10. The core business is improving — but the group's bet on an Ethereum treasury has wiped out 72% of its shareholders' equity in six months.
A losing bet
Over the first half of 2026, GameSquare posted a net loss of $28.2 million. Of that total, $22.4 million came from realised and unrealised losses on its digital assets — including $7.8 million in the second quarter alone. Nearly 80% of the group's loss has nothing to do with esports, creators or advertising: crypto volatility is what made the cash disappear.
Between December 31, 2025 and June 30, 2026:
- Shareholders' equity: $35.7M → $9.9M (-72%)
- Total assets: $79.3M → $58.9M
- Crypto holdings (digital assets + ETH fund): $47.4M → $23.8M
- Accumulated deficit: $162.3M → $190.6M
GameSquare held 15,080.51 ETH as of June 30. The group describes its treasury programme as an innovative scheme designed to generate yield. Yet for the quarter, the "yield on digital assets" line came in negative.
Meanwhile, the business is finally working
That is the paradox of this quarter: operationally, the company is in better shape than it has been in a long time.
- Revenue: $18.5M, versus $7.8M a year earlier (+137%)
- Gross margin: 49.0%, versus 29.4% in Q2 2025
- Adjusted EBITDA: +$1.0M, versus -$3.2 M last year
Operating loss before financial items still stands at $1.7 million for the quarter. The business isn't making money yet — it has simply stopped losing a lot of it. CEO Justin Kenna points to organic growth, the ramp-up of GameSquare Experiences and the integration of the Click and TubeBuddy acquisitions.
