GameSquare Completes FanEngine Deal, Reiterates 2027 Revenue Target

FRISCO, TEXAS, Oct. 26, GameSquare Holdings, Inc. (Nasdaq: GAME) closed its acquisition of sports, music and entertainment intellectual property assets from FanEngine Holdings Ltd. The transaction was finalized after GameSquare stockholders approved the contribution agreement at a special meeting on October 22, 2026.

The deal shifts GameSquare's operational model from managing fan engagement on behalf of third parties to directly owning and monetizing first-party fan relationships. By integrating FanEngine's platform and franchise rights with GameSquare's existing data, creator, agency and media businesses, the company aims to build direct communities across global sports, music and entertainment sectors.

GameSquare reaffirmed its financial guidance for 2027, projecting revenue exceeding $150 million, gross margins above 50%, and adjusted EBITDA surpassing $30 million. The company expects FanEngine to contribute immediately to fourth-quarter 2026 results and be accretive to adjusted EBITDA. Management stated that FanEngine will require limited additional overhead, allowing GameSquare to utilize its current infrastructure to convert incremental gross profit into higher operating profitability.

The acquired intellectual property portfolio grants GameSquare rights to the Peaky Blinders brand, Simon’s Cat, and 15 global athletes. The roster includes specific partnerships with The Two Robbies & Friends and cricketer Ben Stokes. Peaky Blinders is slated to launch in the fourth quarter of 2026. These assets introduce recurring revenue streams through rewards, merchandise, ticketing, live events, licensing and brand partnerships, supplementing GameSquare’s traditional services income.

To improve margins, GameSquare plans to internalize production, events, commerce and gamification functions that FanEngine previously outsourced to third parties. Justin Kenna, Chief Executive Officer of GameSquare, described the closing as a new chapter in the company's evolution. He noted that owning the fan relationship directly allows the company to earn repeatedly from those connections, a shift he expects to impact results quickly.

Ben Hugo, representing FanEngine, characterized the merger as a method to unlock commercial value by connecting IP owners and talent directly with their audiences. He argued that combining premium intellectual property with fan identity tools transforms fragmented engagement into data-driven relationships capable of generating recurring revenue. Hugo stated that GameSquare's scale and infrastructure will help accelerate this model across multiple properties.

The company disclosed that its adjusted EBITDA guidance excludes transaction costs, impairments and other one-time expenses. GameSquare did not provide a reconciliation of forward-looking adjusted EBITDA to GAAP net income, citing the inherent difficulty in forecasting and quantifying the specific amounts required for such a calculation. The release contains forward-looking statements covered by safe harbor provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934.