We feel now is a pretty good time to analyse GameSquare Holdings, Inc.'s (NASDAQ:GAME) business as it appears the company may be on the cusp of a considerable accomplishment. GameSquare Holdings, Inc. operates as a vertically integrated digital media, entertainment, and technology company. The US$29m market-cap company posted a loss in its most recent financial year of US$32m and a latest trailing-twelve-month loss of US$44m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is GameSquare Holdings' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for GameSquare Holdings

Consensus from 3 of the American Interactive Media and Services analysts is that GameSquare Holdings is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of US$2.1m in 2026. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 99%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for GameSquare Holdings given that this is a high-level summary, but, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 33% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of GameSquare Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – GameSquare Holdings' company page on Simply Wall St. We've also put together a list of pertinent factors you should further research:

1. Valuation: What is GameSquare Holdings worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether GameSquare Holdings is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on GameSquare Holdings’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.