FaZe owner GameSquare at risk of NASDAQ delisting after stock craters 83% in 12 months

As first reported by Tarun Sayal of The Esports Radar, FaZe's parent company, GameSquare Holdings, is at risk of being delisted on the NASDAQ stock exchange as their stock ($GAME) has been below the $1.00 minimum listing requirement for close to a year.

$GAME is currently trading at $0.33 at the time of publication and has consistently been below the $1.00 mark since July 28th, 2025 when it was traded at $1.12.

The news comes as $GAME has been on an extended rout for a number of years, with GameSquare Holding's stock losing 83% of its value of over the last twelve months and a staggering 99.27% of its value over the past five years.

GameSquare formally acquired FaZe in March 2024 as part of what GameSquare CEO Justin Kenna described as "journey to revolutionize the gaming and media landscape." The acquisition followed FaZe's own decision to go public on the stock market in 2022 under the $FAZE symbol.

This proved to be a disastrous decision for the esports and media brand as their stock plummeted from an all-time high of $20.08 in August 2022 to just $0.15 in September 2023. This complete collapse which saw the market effectively value "FaZe Clan at $0 and less than the cash in the organization's bank accounts", forced FaZe to organize multiple extensions and stock splits to stave delisting by the NASDAQ before being acquired by GameSquare.

As such, history is repeating itself to a degree as esports companies after historically struggled to stay afloat on the NASDAQ.

Per a timeline organized by The Esports Radar, GameSquare received its first deficiency notice from the NASDAQ in September 2025, giving them 180 days to bring their stock back above $1.00. In March 2026, GameSquare were given a rare second extension, pushing the deadline to September 7th, 2026; a date that is rapidly approaching as the stock has continued to tumble.

According to a July 2nd SEC filing, GameSquare's leadership are set to pitch stockholders on a reverse stock split next month in an effort to raise the overall stock price ahead of the delisting deadline.

A reverse stock split essentially combines multiple stocks at a fixed ratio, combining their value in an attempt to bump out the stock price. The split leaves the various investors with the same proportion of ownership of stock while having less shares overall.

Doing a 1:8 reverse split, for example, would see the stock climb to a value of ~$2.64 if it were done today. This would still leave $GAME in a difficult position, however it would stave off a potential delisting and mark the highest valuation for the stock since August 2023.

However, a reverse stock split is a temporary fix and does not address the underlying financial and investor confidence reasons the stock declined in the first place. As such, GameSquare would still be under pressure to cut losses and improve revenue streams should they wish to stay afloat on the NASDAQ and avoid a second delisting notice in the future.