Okay. Please give a warm welcome to our next presenter. This is Justin Kenna, the Chief Executive Officer of GameSquare.
Thanks, thanks everyone. We'll jump through the forward-looking statement. I'm sure everyone will read that in their own time. Plan here, I'll give you a quick overview of the company, some information around our market that we play in, so Total Addressable Market, a bit of context and history on the company we're building. And then some more details around our model, specifically why we're different to our competitors, and then a bit of an update on progress in terms of, you know, our financials and where we're headed for 2026 and beyond. Quick snapshot. In its simplest form, GameSquare, we are connecting game publishers and brands with the growing gaming and esports fans and communities.
We are very much positioned as the entry point into the creator economy, and we'll talk a little bit more about what that looks like. Just as we're going through these slides, things to think about, you can see the $85 million in estimated revenue for 2026. We're well on track post our Q1 and how we're tracking with Q2 to exceed that number. 8x revenue growth from 2021- 2026. We'll show you some of that, and we'll talk through again our model, this end-to-end offering that we have. You know, certainly from a public company standpoint, from an end-to-end offering, we don't have a competitor, but we certainly have competitors within our four main streams, we'll touch on that. This market is huge, right?
The market's really large. We sit really at the intersection of these markets. You can see the global digital advertising TAM there, $790 billion, $250 billion here. The video game industry and total addressable market is north of $200 billion. Around 60% of that revenue comes directly from creators and influencers. We'll touch on how we've really doubled down on that space, how we're growing there, how we're really monetizing it. It's a big part of, you know, how we've been able to hit profitability and now get to scale profitability from here. The third one's really interesting. I think a lot of people don't know or understand this. 1/3 of the world's population is playing games online in some description, right? Pretty staggering numbers.
Really the theme to take away from this is we sit at the intersection of these enormous markets. Total addressable market is really big. There's certainly challenges with that. I'll come back to this slide. There's challenges with this market. It's probably what a lot of people in this space don't really talk about enough, right? You look at all of the stats from, you know, your hardcore professional gaming and esports to your casual creators. The numbers within the creator economy are going north and north and north. These audiences are really hard to reach, right? They're fragmented.
You can see here, you know, there's just a higher demand today for data-driven performance. All of these things really lead in perfectly into our model, why we very intentionally set up the model the way we have, obviously the performance that comes from that. Again, I think the main themes to take away from here, you know, we can share this presentation. It's up on our website. We can share it with anyone who's interested in doing more of a deep dive and a follow-up with me personally. The themes to take away. Really, really large addressable market that we sit in the intersection of, really, really difficult fragmented audiences to reach. Good to think about as we talk through what our model looks like and in comparison to our competitors.
This one just shows sort of the evolution of the company. The company was an RTO under the Canadian Securities Exchange in October of 2020. You know, we had at the time, you know, a handful of staff, five or six staff, doing a couple of million dollars of revenue. You can see here really the evolution of the company. I took over as Chief Executive Officer in January of 2021. You can see there sort of annualized revenue there of $10 million. We'll do $85 million of revenue this year and be profitable. Certainly been a journey to getting there, and again, you can see, you know, the foundation in Canada. We did a reverse merger in 2023 onto Nasdaq. We were actually dual-listed on Nasdaq and TSX. We dropped the Canadian listing.
Domiciled in Delaware, headquartered in Frisco, Texas, along with the Dallas Cowboys, which you'll see a bit more info on as we get to our board and key investors as well. Yeah, we've been really disciplined in our growth, obviously through 2023 and 2024, the reverse merger, getting onto Nasdaq, other M&A deals that have helped get us to scale, and we've done a great job with some of these names that were burning cash, cleaning them up, being disciplined, executing, and of course, getting to profitability, which is really key. This is our model. From an end-to-end standpoint, as I said, we don't really have a competitor, we do certainly have competitors within our four streams.
First is our data and analytics. As we think about being the entry point to the creator economy, this is very much that, right? You think about how big this total addressable market is. The audience is fragmented. They're really hard to reach. This data becomes incredibly powerful. The easiest way to think about it, you know, really, Stream Hatchet is what Nielsen is to broadcast television is what Stream Hatchet is to the gaming and streaming world. We have nine of the top 10 global game publishers as clients. They're all buying data and analytics from us. Twitch is buying data from us. Nielsen licenses data from us. We're the official data provider for the Esports World Cup, which is the largest esports tournament that's ever been.
That'll be in Paris actually this year, for $75 million of prize money, bigger than any golf or tennis tournament that ever existed. We collect off every major streaming platform globally. We've been collecting longer than anybody else. We have complete credibility in the market. Most importantly, it gives us a huge competitive advantage into our second and third stream, right? Being our creative business. Click, our talent business we acquired last year. Click will double in revenue since we acquired them, and it's a great example of the GameSquare ecosystem really working. We'll have close to 100 talent, about around 70 talent when we closed Click towards the end of last year. We've added in some big U.S. talent, and we plan on continuing to grow that.
Click has a talent management business, full 360 coming up, you know, with content strategies, integration, you know, into brand campaigns, merchant consumer products, podcasts, original content, complete end-to-end management for these large creators. A good example of that, the boys have six million YouTube subscriptions. We just created their own hot sauce, you know, which is into, you know, north of 300 stores at the moment in the U.S. and is growing. Lots of opportunity for these creators, you know, far beyond just streaming for a brand and brand integration around building out their own IP. You know, these bigger creators are really media assets in their own right. The second piece of Click, which has been a huge area of growth for us, is our creative deployment business.
The reality is that a lot of these game publishers, brands, they're not spending $5 million on, you know, Ninja and the two biggest creators to try and get their brand, you know, message or outreach out there. They're using those dollars to partner with 10,000 creators who have smaller audiences, but really highly engaged. A really successful part of our business has been using our data, layering it in, going to brands, building out influencer campaigns at scale. That'll be around $6 million of incremental new revenue in the first half of this year for us and an area that we're gonna continue to grow and scale. Third piece is full service agency business. Everything you would think of a traditional agency. We have creative and strategy. We have experiential.
We have a media network, merchant consumer products business, and a content studio. This is one team. They're going to market as one, as GameSquare, with, you know, complete expertise in connectivity with youth audience, digitally native audiences at scale. You'll see the two logos there. Again, you know, this is one team, but Zoned is a creative and strategy arm, so they are the retainer or agency of record for a number of entities. One being the Dallas Cowboys, Jack in the Box, another Dairy MAX. We're on retainer with Roblox, obviously one of the biggest game publishers in the world, Epic Games, Fortnite mobile, et cetera. Most pleasing part here is we don't lose clients, and we have more locked-in revenue and more visibility into 2026 and beyond than we've ever had before.
Having these two logos, so GSX is more of our experiential live events business, but it just gives us the ability to work across, you know, in the same categories, i.e. with the agency of record for Jack in the Box. Having the GSX brand gives us the ability to monetize, you know, McDonald's and other fast food outlets. Again, you know, would say from an end-to-end standpoint, these first three streams are going to market as 1. We have an enterprise sales team, north of 20 sellers. They get commissioned on dollars into GameSquare, not on data or media or esports. They work as 1 enterprise team. We're going to market as GameSquare. We lead with data. We have a full service offering, it's really starting to resonate. Fourth and final piece here is our owned and operated IP.
To put it simply, instead of just getting paid by publishers and brands to access audience for them, we're also building out our own assets that we can monetize directly. You know, many of you that are aware really of the gaming space will recognize the red logo, FaZe Clan. We own eight competitive teams. They'll compete at the Esports World Cup that I mentioned for $75 million of prize money. We are one of very few North American esports orgs that is profitable. We've just moved the FaZe logo in next to the Cowboys logo at our headquarters in Dallas, Texas. We're in the process of negotiating a high seven-figure naming rights deal, which is very exciting.
This is a profitable esports org that again gives us huge access to audience and credibility within the space. You'll see the SpongeBob logo. Really good example of our agency business really executing for our big brand partners. We actually helped integrate Teenage Mutant Ninja Turtles into Fortnite for Paramount. We did such a good job in the marketing and media strategy around that, they've actually now co-own the IP for SpongeBob in-game. We've created a game within Fortnite. We're getting royalties off that every month. We co-own that with Paramount. We've got plans to do another three over the next 18 months. Some other examples within this, we've launched a collegiate esports platform with Barnes & Noble. We co-own some IP with the NFL called NFL 4 The Fans.
Again, to put it simply, these are us executing at scale for brand partners, then co-branding and building out our own IP that we can monetize over time. This is just a bit more detail as you download the deck around the specific, you know, projects. There's some case studies at the back that give you some really good examples of those four streams that I talked about and a lot of the work that's underlying those. You can see, you know, some of the logos and, you know, brands that we've worked with at scale. Some of the biggest creators in the world, game publishers in the world. Obviously, you know, having a partner as the most valued sports organization in the world being the Dallas Cowboys.
We actually integrated and built out a Fortnite map for the Cowboys, the only NFL one that's ever been done. Basically, we weren't allowed, Jerry just said to do it anyway, so we did. It was hugely successful and a really cool example of ways of, like, integrating, you know, traditional sport and media into this new media and new generation space, right? You know, these audiences, they're immersive. They want to experience things. They don't wanna just watch. Being able to build out, you know, in-game advertising and brand strategy is really powerful. That leads me to the numbers. 2026, touched on a little bit. $85 million-$90 million expectation on revenue, 35%-40% margin. We've really improved our margins over the past, you know, 18 months.
We will continue to do so. That end-to-end offering, right, as we expand our services and we keep more in-house, you know, we're seeing our deal size increase, and there's real operating leverage that we can start to get to scale here now that we've hit profitability. $5 million+ in operating profits is the expectation. Very much on target here to hit these. You'll see here in the yellow box is Q4. We said last year we'd get to profitability in the back half of the year, which we did, and it was a big tick. You know, you can see there Q4, $20 million in revenue. If you annualize that, obviously you're at that $80 million pretty quickly. You know, really healthy margins there, north of $2 million in operating profits.
We proved out, you know, the cash flow sort of thesis. 2026 for a full year is gonna be our first full year of profitability. We're kind of talking a little bit, yeah, just around the disconnect into the market at the moment, some of the challenges there, and I think the opportunity that represents. Q1 is over here on our left. There is seasonality in our business. Really think about it more as 40-60, front half to back half. You know, our Q3, Q4 is typically a lot stronger. You know, brand and ad spend picks up, holidays with merch and consumer products, more events, esports, et cetera. Close to $16 million in revenue Q1, very much on target in terms of our model.
Q2 will be growth on this, and we expect it to be sort of break even or slightly profitable with a big, you know, profitability in the back half of the year. You know, again, you know, we kind of reiterate that. We talked about getting to profitability. We hit it in Q4. We'll be profitable for the year this year. Reshaped balance sheet. Between Q2 and Q3 of last year, we raised close to $90 million, average price of around $1.40. Like many others, we did launch a Digital Asset Treasury. It was a bit of a blessing and a curse, truthfully. I'd say the positive for us is we have a lot of synergies into the Web3 space, and we are monetizing a number of Web3 clients through our core business, right?
These Web3 projects, whether they're neobanks, you know, looking for first-time depositors and wallets, whether it's an NFT brand, a blockchain gaming brand, these are all Web3 companies that are trying to access Web2 audience. Our core operating business closed close to $8 million in new revenue through crypto clients and being, you know, I'd say adjacent to the space and all things internet culture. We raised, you know, close to $90 million. We cleaned up, you know, our balance sheet. We have no long-term debt at all, again, no long-term debt. Today we own around 16,000 ETH on balance sheet, so cash and cash equivalents. Obviously, a bit of volatility with the ETH. Cash and cash equivalents today is just under $40 million.
Again, no long-term debt, profitable, and if you look at our market cap today, we have a really clean cap table. You know, we've got a market cap of, you know, close to our cash and cash equivalents. You are getting a significant discount on the operating business. I think, you know, part of our challenge when I said it's a blessing and a curse, it was more of a blessing, right? That raise that we did, giving us the ability to clean up our balance sheet, start to buy back stock, which we've been doing and will continue to do, certainly at these discounts. You know, and just the ability to invest back in our business and into growth. They were the positives.
I think the negative, you know, we're gonna dispel a lot of that this year by putting up quarter-on-quarter growth, is that we got lumped in with a number of other DATs, right? We were pretty early to the strategy. It's been, you know, it's been really beneficial for us on a number of fronts. The challenge was there were a lot of companies that, you know, saw this space as their last chance saloon to raise money. They bought crypto. They don't have operating businesses. We got lumped in trading at an NAV that's not realistic, right? I think Q4 was the first step there in posting real profitability to dispelling that. Our focus is on our operating business. There's certainly opportunities for us within the Web3 space, within digital assets.
Certainly it was, you know, opportunistic, and it was a point in time. Cleaned up our balance sheet. We've got plenty of growth capital. We don't need to raise money. Now we can really focus on scale. It's a bit of a misconception in the market there, but again, we're effectively trading at cash and cash equivalents, you know, and not getting value today for an operating entity that, you know, quite frankly, in private markets would trade at multiples of current market cap. Quickly touch on the management team and then open it up for any questions. I know we're coming up on time. We've really focused on bringing a couple of new hires in on the management team side down the bottom. Over here you'll see Doug Rosen. Doug, he's based in New York.
He's our chief strategy officer. Doug is ex-Paramount. He was head of games and game studio at Paramount. You know, I think just gives a huge tick in terms of where we've come from three or four years ago, you know, fighting for RFPs out in market to now being agency of record for the caliber of brand, endemic and non-endemic, that we are, and to be able to attract and bring over such great executive talent. Amaree Tanawong is actually based here in L.A. Amaree is our Chief Operating Officer. Amaree was the Chief Financial Officer at Meow Wolf and also had senior roles at Fullscreen and YouTube, so really understands this space. Again, she's added a lot of firepower, you know, into our executive team. We've got Andrew Berger here, very handsome redhead from Cleveland.
If anyone has any questions about the company, feel free to come up to myself or to Andrew Berger after this. Excuse me. Rich Flye is also here, who heads up our international initiatives, and probably something that's not really built into our numbers. Huge amount of opportunity for us in the Middle East. Expect to see some real announcements there. We have a strategic partnership in the Middle East that has us as an approved government gaming vendor. We have some really big, exciting brand news coming on that front. Asia and other new markets as well that are going to be really big for us in the next three to five years. As you know, the challenge for us was clean balance sheet, get to profitability. Now it is get to scale, right?
We're a MarTech company that the reality is we don't wanna be at $100 million revenue, we wanna be at $500 million. We're growing organically really well. There's lots of opportunities for us to continue to get to scale. Over here, just on the board, I think, again, you know, another really big tick for a company of our size to have the caliber of board that we do. Tom Walker, who's the head of our audit committee. He's the Chief Financial Officer of the Dallas Cowboys and the Jones Family Trust. Travis Goff's the president of Goff Capital. you know, another sort of billionaire Texas family office. Jeremi Gorman, Chief Revenue Officer of Fanatics. Stu Porter's the Chief Executive Officer and founder of Denham Capital.
You know, These are really highly credentialed, you know, board members and provide a huge amount of value to the company. You can see down there, obviously, key investors. Jerry's represented on the board by Tom Walker and John by his son, Travis. There's a number of great case studies in here as well. So again, you know, I won't go to them, you know, we're nearly up on time, into detail today. But great case studies really showing the complete end-to-end offering of GameSquare, right? There, there's certainly cases where we are selling data to someone, we sell media to someone, but this flywheel really works at scale, right? And the Roblox Creator Showdown's a really good example of that. It's a one piece of IP that our strategy and creative team pitched to the Chief Executive Officer and Chief Marketing Officer of Roblox. They loved it.
We went and built it out and executed it. We used our data, our content team, our talent, and it's been hugely successful. We've locked in six of these events around the world over the next 12 months and that'll be, you know, multiple sort of seven figures of revenue, high margin revenue that touches, you know, each aspect of our business. There's a few of these. I'll pause there. I've got a few minutes for any questions.
Is there still M&A in the future, or do you have a portfolio of companies you want now to scale?
Yeah, there is. Like I sort of touched on, we wanna get to scale. I think what's changed in our M&A strategy is, you know, I think we've done a really good job with Engine Gaming and FaZe Clan, two entities that, you know, were burning cash. We cleaned them up quickly. I think that's behind us. I'd say in terms of the way we think about M&A now, we've worked really hard to get to profitability. They need to be accretive. We're not gonna look at anything that's burning cash. You know, I'd say sweet spots, you know, probably $10 million-$30 million in revenue size, 10%-20% EBITDA. It's a bit of a buyer's market in that space at the moment.
We're seeing a lot of inbound performance marketing technology assets that are adjacent to the space. We've got some interesting conversations going on with a production company, does a lot of esports gaming production. Yeah, we're seeing a lot of inbound certainly in the creative space. I think that those medium-sized agencies with the risk of, you know, AI to their rev stack if they don't have other services, if they're not at scale, you know, is a challenge. For us, you know, the challenge is obviously dilution. You know, when we look at using stock as currency, we certainly don't look at it at today's price. We're pretty upfront with, you know, those looking to sell around what a relative value deal would need to look like.
I think we've done a really good job with that. TubeBuddy, our recent acquisition, is a great example of that. Really good example of somebody selling an asset, could have taken more cash top line, believes in one plus one equaling five. We did an all-stock deal and, you know, picked up $3 million of EBITDA, you know, at a pretty crazy multiple. Definitely, we've got quite a bit of inbound there at the moment, but we're gonna be really disciplined in the way we do it. We know we're undervalued. We're really cognizant of dilution.
Do you have in-house team of developers or do you outsource it to other people who does development policy analysis?
Yep, we've got in-house. You know, I think it's really interesting the sort of publisher space, there's also some interesting assets at the moment, you know, we're far from a publisher, right? We've got, you know, in-house sort of studio capabilities around Unreal Engine and our real focus within that space is really around brands, right? We've created brand maps and experiences for Mastercard, McDonald's, Samsung, obviously Paramount that I mentioned. I think the lucrative part for us is not just actually making the experience, right? That branded experience that you get paid for, which is nice. If no one's playing those games, the brand message is dead, right? Our secret sauce is building out the creative strategy around it, using our data, selling in our media stack.
That's when it becomes really lucrative for us, and it's another good example of that flywheel working. I talk about our competitors. Our competitors, the reality is they don't do all that in-house, right? Even if you go to some of these bigger agencies, you know, UTA have invested in the gaming space, you know, but they might represent 10 creators. You know, they've gotta buy their data from us. You know, they might be buying their media from us or Twitch or somebody else. Yeah, good example of kind of that complete end-to-end offering.
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Awesome. Well, thanks for having me. I will stick around if anyone wants to catch up. Happy to share details, set up follow-up calls, but appreciate you stopping by. Cheers.