The esports company touts its first-ever adjusted pre-tax profit as it seeks to get back in Nasdaq’s good graces.
FRISCO, Texas — This article was originally published in the Dallas Business Journal. Read the original article and more business content here.
The Frisco-based esports company backed by Dallas Cowboys owner Jerry Jones reported another loss in the fourth quarter but showed signs of progress.
GameSquare Holdings Inc. reported April 9 a net loss in the fourth quarter of $31.1 million, up 5% from $29.6 million in the prior-year quarter. On a per-share basis, GameSquare saw improvement from a loss of 81 cents per share to a loss of 32 cents per share, due to more shares outstanding.
During the quarter, the company recognized a $20.3 million change in fair value loss on digital assets, loss on change in fair value of non-consolidated investments of $1.9 million and a $12.1 million impairment expense. Companies recognize permanent reduction in the value of assets when book value exceeds fair market value due to factors such as poor performance.
On a more positive note, GameSquare reported its first-ever adjusted pre-tax profit. The company’s adjusted earnings before income, taxes, depreciation and amortization totaled $1.7 million in the fourth quarter, compared with a $3.1 million adjusted pre-tax loss during the same period in 2024.
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