GameSquare Holdings, Inc. (NASDAQ:GAME) announced that its Board of Directors has increased the company’s share‑repurchase authorization from $5 million to $15 million. The expanded program allows the company to repurchase shares on a discretionary basis through open‑market purchases, private negotiations, or other mechanisms, including Rule 10b5‑1 trading plans.
The decision follows a strong Q4 2025 earnings report in which GameSquare posted revenue of $18.5 million, up 142% year‑over‑year, and achieved its first positive adjusted EBITDA of $1.7 million after a $3.1 million loss in the same quarter of 2024. Gross margin expanded to 45.9% from 25.8% in the prior year, driven by growth in the agency and owned‑IP segments and the contribution from the Klik acquisition.
CEO Justin Kenna said, "The increase in our share repurchase authorization reflects the meaningful progress we made in the fourth quarter and our confidence in GameSquare's long‑term earnings power." He added, "At recent trading levels, full utilization of our remaining authorization could represent the repurchase of approximately 40% of our current common shares outstanding, underscoring what we believe is a significant disconnect between our current market valuation and the long‑term earnings power of our business."
The announcement was met with a positive market reaction, as investors viewed the expanded buyback program as a signal of management confidence and a potential catalyst for shareholder value. Analysts highlighted the buyback as a sign that GameSquare believes its shares are undervalued relative to its earnings trajectory.
GameSquare reiterated its proforma 2026 guidance, projecting revenue between $85 million and $90 million and adjusted EBITDA exceeding $5 million. The guidance reflects the company’s confidence in sustaining its growth momentum and maintaining profitability while returning capital to shareholders.
With the expanded authorization, GameSquare has the flexibility to reduce its share count by up to 40% if it chooses to fully utilize the remaining $12.5 million. The move positions the company to strengthen earnings per share and potentially enhance long‑term shareholder value as it continues to build on its recent operational turnaround.
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