GameStop Corp. (GME) Q3 2025 Earnings Summary

Executive Summary

As of November 20, 2025, GameStop has not yet released Q3 FY2025 financials or its Q3 earnings call; third‑party calendars indicate the announcement is expected on December 9, 2025, with a call at 4:00pm ET .
Trailing performance strengthened: Q2 FY2025 net sales rose to $972.2M with diluted EPS of $0.31; Q1 FY2025 delivered $732.4M and $0.09 diluted EPS, driven by SG&A reductions and improved operations .
Liquidity and balance sheet optionality increased: cash and equivalents reached $8.7B in Q2 and Bitcoin holdings were valued at $528.6M; the company also raised $2.7B in Q2 via convertible notes and distributed up to ~59M tradable warrants (GME WS) with a $32.00 strike expiring October 30, 2026, potentially raising up to ~$1.9B if fully exercised .
Stock reaction catalyst in Q3 window: warrant distribution and listing of GME WS on NYSE added a tradable instrument and non‑dilutive participation option for shareholders, a notable event heading into Q3 .

What Went Well and What Went Wrong

What Went Well

Q2 FY2025 operating performance improved materially: operating income of $66.4M versus a loss in the prior year, supported by SG&A expense reductions to $218.8M .
Free cash flow remained strong: Q2 generated $113.3M; Q1 delivered $189.6M, reflecting improved cash conversion and working capital management .
Capital markets flexibility increased: distribution of up to ~59M warrants (one per 10 shares/notes on an as‑converted basis) with a $32 exercise price and NYSE listing (GME WS), enabling potential additional capital of ~$1.9B for investments and acquisitions .

What Went Wrong

Mix headwind in software: Q2 software sales were $152.5M (15.7% of sales), down from $207.7M (26.0%) in the prior year comparable period, indicating a shift away from higher historical software contribution .
Gross margin compressed sequentially: Q2 gross margin was 29.1% vs. 34.5% in Q1, reflecting product mix and seasonal inventory build dynamics .
Q1 impairment charges tied to international restructuring (Canada and France) weighed on profitability (asset impairments $35.5M), highlighting ongoing portfolio optimization costs early in the fiscal year .

Financial Results

Consolidated Results vs Prior Periods and Estimates

Metric	Q1 2025	Q2 2025	Q3 2025 (scheduled)
Revenue ($USD Millions)	$732.4	$972.2	— (results not yet released as of 11/20/2025)
Diluted EPS ($USD)	$0.09	$0.31	— (results not yet released as of 11/20/2025)
Gross Profit ($USD Millions)	$252.8	$283.1	—
Gross Margin (%)	34.5%	29.1%	—
EBIT (Operating Income) ($USD Millions)	$(10.8)	$66.4	—
EBIT Margin (%)	(1.5%)	6.8%	—
Net Income ($USD Millions)	$44.8	$168.6	—
Net Income Margin (%)	6.1%	17.3%	—
Consensus Revenue (S&P Global)	—	—	Unavailable via S&P Global (tool limit)
Consensus EPS (S&P Global)	—	—	Unavailable via S&P Global (tool limit)

Note: S&P Global Wall Street consensus values for Q3 2025 were unavailable via the S&P tool at this time; comparisons to estimates will be updated post‑release when accessible.

Segment/Product Mix

Sales Mix	Q1 2025	Q2 2025
Hardware & Accessories ($USD Millions, % of total)	$345.3; 47.1%	$592.1; 60.9%
Software ($USD Millions, % of total)	$175.6; 24.0%	$152.5; 15.7%
Collectibles ($USD Millions, % of total)	$211.5; 28.9%	$227.6; 23.4%

Geographic (Net Sales)

Region	Q1 2025	Q2 2025
United States ($USD Millions)	$537.5	$724.6
Canada ($USD Millions)	$38.2	— (divested; no Q2 figure reported)
Australia ($USD Millions)	$81.9	$140.9
Europe ($USD Millions)	$74.8	$106.7
Total ($USD Millions)	$732.4	$972.2

KPIs and Balance Sheet Highlights

KPI	Q1 2025	Q2 2025
Cash & Cash Equivalents ($USD Millions)	$6,385.8	$8,694.4
Bitcoin Holdings ($USD Millions)	—	$528.6
Merchandise Inventories ($USD Millions)	$421.3	$484.9
Free Cash Flow ($USD Millions)	$189.6	$113.3
Long‑Term Debt, net ($USD Millions)	$1,480.7	$4,160.9
Total Stockholders’ Equity ($USD Millions)	$4,987.4	$5,176.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company Guidance	FY2025/Q3 2025	Not provided	Not provided	Maintained – no formal guidance observed in filings/press releases
Warrant Distribution Details	Oct 7, 2025 – Oct 30, 2026	N/A	1 warrant per 10 shares/notes (as converted), $32.00 exercise price, expires Oct 30, 2026; listing GME WS	New capital instrument introduced
Potential Warrant Proceeds	Through expiration	N/A	Up to ~$1.9B if all 59M warrants exercised	New—capital optionality

Earnings Call Themes & Trends

Note: No Q3 FY2025 call transcript available yet. Themes below reflect press releases and 8‑K disclosures for Q1/Q2 and Q3 window events.

Topic	Previous Mentions (Q-2: Q2 2025)	Previous Mentions (Q-1: Q1 2025)	Current Period (Q3 window)	Trend
Product mix & category performance	Hardware/accessories and collectibles strength; software weaker	Collectibles strong mix; hardware/accessories leading	No Q3 data yet	Stable mix trends; watch software recovery
Cost discipline/SG&A	SG&A reduced to $218.8M	SG&A $228.1M	No Q3 data yet	Ongoing cost control
Restructuring/International footprint	Canada divested; segment reporting reflects changes	Impairments tied to Canada/France plan	No new footprint updates disclosed in Q3 window filings	Portfolio optimization easing post Q1
Liquidity & capital structure	Cash $8.7B; Bitcoin $528.6M; $2.7B converts issued in Q2	Cash $6.4B; $1.5B converts issued in Q1	Warrants listed as GME WS; non‑dilutive participation	Increasing optionality
Supply chain/macro (risk language)	Risks include supply chain, holiday season dependence	Similar macro/supply chain risk language	No change disclosed	Risk disclosures steady
Regulatory/legal	Standard safe harbor & risk factors references	Standard safe harbor & risk factors references	Prospectus/Warrant Agreement filings	Neutral

Management Commentary

“GameStop Corp. (NYSE: GME) … today released financial results for the second quarter ended August 2, 2025. The Company’s condensed and consolidated financial statements, including GAAP and non‑GAAP results, are below.” .
“Each warrant will entitle the holder to purchase one share of common stock at an exercise price of $32.00 … The warrants are expected to be freely tradable and listed on the New York Stock Exchange under the ticker GME WS.” .
“We expect approximately 59 million warrants will be issued … If all 59 million warrants are exercised at the exercise price of $32.00, the gross proceeds to the company would be approximately $1.9 billion.” .

Q&A Highlights

No Q3 FY2025 Q&A transcript is available yet. Q1/Q2 disclosures were via press releases and 8‑K filings without published call transcripts in the reviewed materials .

Estimates Context

S&P Global consensus for Q3 FY2025 EPS and revenue was not retrievable at this time due to tool limitations (daily request cap). Post‑release, we will update comparisons to S&P Global consensus and assess beats/misses accordingly.

Key Takeaways for Investors

Q3 FY2025 results are pending; focus on December 9 timing and potential holiday season dynamics given historical dependence on holiday sales .
Trailing quarters show operational improvement: Q2 delivered $66.4M operating income and diluted EPS of $0.31 with lower SG&A; monitor sustainability of cost control into Q3 .
Watch product mix: strength in hardware/accessories and collectibles contrasted with weaker software; Q3 mix will be key to gross margin trajectory .
Liquidity remains robust ($8.7B cash) with added optionality from listed warrants (GME WS) and recent converts; this supports investment capacity and potential strategic actions .
Inventory build into Q2 ($484.9M vs $421.3M in Q1) sets expectations for Q3 sell‑through; monitor working capital and cash conversion .
No formal guidance disclosed; price action may be driven by print‑to‑consensus and any qualitative commentary on store footprint, category strategy, and capital deployment post warrant program .