FaZe Esports' parent company posts $28.2M in losses over six months

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.

So where does FaZe fit in?

The org landed a partnership with CORSAIR during the quarter, cited by the group among its standout signings alongside a deal with the US Army. GameSquare also renewed and expanded its partnership with Riot Games, while its data subsidiary Stream Hatchet was selected for a second consecutive year as an insights provider for the Esports World Cup.

On the creator side, Click signed SypherPK and Steak (the second-largest Roblox creator), bringing its network to more than 60 million combined followers.

The bottom line

GameSquare is sticking to its 2026 targets: $85M to $90M in revenue, 35% to 40% gross margin, and over $5 million in adjusted EBITDA. Those targets cover operations, not the crypto treasury — whose value will depend on the price of ETH, something the group has no control over.

Operations are improving, far from esports — but the crypto bet is proving as volatile as the asset itself.