GameStop Corp. (GME) Q4 2025 Earnings Summary

Executive Summary

• EPS materially beat Wall Street consensus, while revenue missed: GAAP diluted EPS was $0.29 vs consensus $0.08; revenue was $1.283B vs consensus $1.477B; strong interest income and cost controls supported the bottom line even as sales declined year over year . EPS estimate $0.08* and revenue estimate $1.477B*; Values retrieved from S&P Global.
• Gross profit margin expanded vs prior year (28.3% vs 23.4%), despite lower sales, reflecting tighter inventory and mix; SG&A dollars fell sharply, but SG&A as a percent of sales ticked up to 22.0% .
• Mix shifted further toward collectibles (21.1% of sales vs 13.0% a year ago), while software declined; hardware and accessories remained the largest category .
• Management did not host an earnings call and provided no formal guidance; on the same day, the Board added Bitcoin as a treasury reserve asset, signaling a new investment posture .

What Went Well and What Went Wrong

What Went Well

• EPS beat and margin improvement: GAAP diluted EPS of $0.29 vs consensus $0.08*; gross margin rose to 28.3% from 23.4% YoY, aided by reduced cost of sales and mix optimization . EPS estimate $0.08*; Values retrieved from S&P Global.
• SG&A efficiency: SG&A declined to $282.5M from $359.2M YoY, reflecting ongoing cost reduction initiatives; adjusted EBITDA improved to $96.5M vs $88.0M YoY .
• Strategic portfolio actions: “Completed divestiture of Italy and the wind-down of store operations in Germany.” (company statement) .

What Went Wrong

• Top-line contraction: Net sales declined 28.5% YoY to $1.2826B from $1.7936B; hardware and accessories and software both fell sharply YoY, only collectibles grew .
• Revenue miss vs consensus: Revenue of $1.283B vs consensus $1.477B*, highlighting demand and category headwinds; estimates likely need to be revised lower for sales trajectory* . Revenue estimate $1.477B*; Values retrieved from S&P Global.
• SG&A ratio up and no guidance: SG&A as % of sales increased to 22.0% vs 20.0% YoY; the company provided no forward guidance and did not hold a call, limiting visibility .

Financial Results

Key P&L metrics vs prior quarter and prior year

Actuals vs Wall Street consensus (S&P Global)

Segment (Sales Mix)

KPIs and balance sheet highlights

Guidance Changes

Earnings Call Themes & Trends

Note: The company did not host an earnings call this quarter .

Management Commentary

• “Completed divestiture of Italy and the wind-down of store operations in Germany.”
• “The Company will not be holding a conference call today.”
• “Board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.”

Q&A Highlights

• No Q&A; management did not hold an earnings call this quarter .

Estimates Context

• EPS beat: Actual GAAP diluted EPS $0.29 vs S&P consensus $0.08*, driven by higher gross margin and sizable interest income on enlarged cash balances . EPS estimate $0.08*; Values retrieved from S&P Global.
• Revenue miss: Actual $1.283B vs S&P consensus $1.477B*, reflecting category weakness in software and lower hardware volumes . Revenue estimate $1.477B*; Values retrieved from S&P Global.
• Estimate implications: Street models may need lower top-line assumptions and higher OI&E/interest income inputs given cash levels; margin assumptions should reflect improved gross margin and leaner SG&A observed this quarter .

Key Takeaways for Investors

• The quarter demonstrated profitability resilience despite a steep sales decline, with GAAP EPS of $0.29 and gross margin expansion to 28.3% .
• Revenue softness concentrated in software; collectibles mix increased to 21.1% of sales, partially offsetting category weakness .
• SG&A dollars fell materially (to $282.5M), but the SG&A ratio rose to 22.0% due to lower sales; continued cost discipline remains critical .
• Strong interest income ($54.8M) is a notable earnings tailwind tied to elevated cash balances; inventory drawdown supports cash generation and working capital efficiency .
• Strategic pruning (Italy divestiture, Germany wind-down) improves operational focus; the Bitcoin reserve decision introduces investment optionality and potential earnings volatility .
• With no guidance or call, near-term narrative will hinge on upcoming disclosures and execution on cost/footprint strategy .
• For trading: the clear EPS beat vs consensus* but revenue miss* sets a mixed setup; monitor category trends, interest income sustainability, and any follow-ups on treasury policy shifts. Values retrieved from S&P Global.

Additional Q4 2025-period press releases (context)

• Warrant dividend distribution finalized Oct 7, 2025; Warrants exercisable at $32.00, expiring Oct 30, 2026; expected listing under GME WS .
• Prior warrant dividend announcement and FAQ detail pro‑rata allocation mechanics and potential proceeds if exercised .