The surge in **cash and cash equivalents** in Q2 2025 was primarily driven by **financing activities**. Specifically, the company received significant cash inflows, notably **$3,055.7 million** from an ATM Offering, which resulted in an overall inflow of **$3,050.2 million** during the six months ended August 3, 2024. This capital raise greatly outweighed the cash outflows from operating activities, with additional support from investing activities contributing **$268.2 million** in inflows, despite a **$41.2 million** outflow from operations.  **[0001326380-24-000109_gme-20240803.htm:23]** 

What drove the surge in Cash and cash equivalents in Q2 2025?

The significant jump in **Total assets** in Q3 2025 was primarily driven by a dramatic **increase in Cash and Cash Equivalents**, which surged from **$909.0 million** in Q3 2024 to **$4,583.4 million** largely due to proceeds from an at-the-market offering that generated **$398.1 million**. In addition, there was a substantial **reduction in Marketable Securities** (from **$300.5 million** to **$32.8 million**), a decrease in **Merchandise Inventories** (from **$1,021.3 million** to **$830.2 million**), and an increase in **Prepaid Expenses and Other Current Assets** (from **$57.7 million** to **$119.4 million**), all contributing to the overall growth in total assets.  **[0001326380-24-000170_gme-20241102.htm:2]** **[0001326380-24-000168_a991-q3fy24earningsrelease.htm:6]** 

What factors contributed to the jump in Total assets in Q3 2025?

The sharp drop in long-term debt in Q3 2025 is attributed to the company's **debt repayments** during the period—specifically, GameStop reported **$2.8 million in debt repayments**—and its consistent strategy to maintain a low level of long-term debt, largely related to a **low-interest, unsecured term loan tied to the French government's COVID-19 response**. However, the documents do not provide additional specific reasons for this reduction.  **[0001326380-24-000168_a991-q3fy24earningsrelease.htm:6]** **[0001326380-24-000170_gme-20241102.htm:2]** **[0001326380-24-000159_a991-q1fy24earningsrelease.htm:0]** 

Why did Long-term debt drop so sharply in Q3 2025?

df54611c573a206769adea217d50c4c9cf774eb13cce31c4bc1203117e3816cd

The improvement in Q4 2024 was driven primarily by **significant cost reductions**, especially in **SG&A expenses** (a drop of **$94.2 million**) and an **improvement in gross profit margins**, which together helped offset the impact of declining net sales, leading to a shift from a loss in Q3 to a positive operating result in Q4 2024.  **[0001326380-24-000011_a991q4fy23earningsrelease.htm:4]** **[0001326380-24-000011_a991q4fy23earningsrelease.htm:0]** 

What drove the swing from an operating loss to a positive result in Q4 2024?

GameStop’s strong positive income before income taxes in **Q4 2024** resulted from a combination of factors. **SG&A expenses decreased by $94.2 million**, which helped improve operating earnings (rising from **$46.2 million to $55.2 million**). In addition, **net interest income increased significantly from $6.2 million to $15.3 million**, further boosting pre-tax income. Although the company experienced a decline in net sales and gross profit, these cost-saving measures and increased interest income more than offset the declines, leading to a jump to **$71.0 million** in income before taxes.  **[0001326380-24-000011_a991q4fy23earningsrelease.htm:4]** **[0001326380-24-000011_a991q4fy23earningsrelease.htm:0]** 

How did income before income taxes jump to a strong positive figure in Q4 2024?

In Q4 2024, the turnaround from a net loss to net income was driven by **improved cost management** and **higher operational efficiency**. Specifically, **SG&A expenses** were reduced significantly, helping to offset the impact of declining net sales. Additionally, the **gross profit margin** improved from **22.4%** to **23.4%**, indicating better control over the costs related to sales. A notable contributor was the increase in **net interest income** from **$6.2 million** to **$15.3 million**, which further boosted overall profitability despite challenges from lower sales and higher asset impairments.  **[0001326380-24-000011_a991q4fy23earningsrelease.htm:0]** **[0001326380-24-000011_a991q4fy23earningsrelease.htm:4]** **[0001326380-24-000011_a991q4fy23earningsrelease.htm:8]** 

What factors contributed to turning net loss into net income in Q4 2024?

GameStop’s net sales dropped significantly in Q1 2025 due to **broad-based declines** across its geographic segments and product categories. Specifically, the reduction was driven by lower sales in the **United States**, **Europe**, **Australia**, and **Canada**, with notable decreases in product areas such as **new software**, **hardware and accessories**, and **collectibles**. Additionally, the impact of **store closures** (notably in Ireland, Switzerland, and Austria) and shifts in **consumer behavior**—fueled by changing technological trends—further compounded the decline, with seasonality also playing a role as Q1 typically experiences lower sales relative to the more robust holiday season. These factors collectively contributed to a **$355.3 million (28.7%)** decrease from Q1 2024 to Q1 2025.  **[0001193125-24-156615_d614611dex991.htm:4]** **[0001326380-24-000030_gme-20240504.htm:16]** **[0001193125-24-156615_d614611dex991.htm:0]** 

Why did net sales drop significantly in Q1 2025?

The turnaround to a positive net income in FY 2024 was primarily driven by a **reduction in SG&A expenses** (a decrease of **$357.1 million** from FY 2023), a **substantial improvement in operating loss** (from **$(311.6) million** to **$(34.5) million**), and a significant **increase in interest income** (from **$9.5 million** to **$49.5 million**), which together helped offset the decline in net sales and led to a net income of **$6.7 million** in FY 2024.  **[0001326380-24-000011_a991q4fy23earningsrelease.htm:4]** **[0001326380-24-000011_a991q4fy23earningsrelease.htm:0]** 

What led to the turnaround to a positive net income in FY 2024?

140408e54d6d7ba0c2bd5b73a954735a565e8b131f609f3ee85d1ef72e1a6e6d

Net sales (USD, millions)

Cost of sales (USD, millions)

Gross profit (USD, millions)

Selling, general and administrative expenses (USD, millions)

Asset impairments (USD, millions)

Operating loss (USD, millions)

Interest income, net (USD, millions)

Interest (income) expense, net (USD, millions)

Other expense, net (USD, millions)

Income (loss) before income taxes (USD, millions)

Income tax expense (benefit) (USD, millions)

Net income (loss) (USD, millions)

Net income (loss) per share: Basic (USD)

Net income (loss) per share: Diluted (USD)

6a8e467398a13cd6c908a688a0e7f314eacb0bf9e96935b5c7fb26a010fbcb56

Cash and cash equivalents (USD, millions)

Marketable securities (USD, millions)

Receivables, net (USD, millions)

Merchandise inventories, net (USD, millions)

Prepaid expenses and other current assets (USD, millions)

Total current assets (USD, millions)

Property and equipment, net (USD, millions)

Operating lease right-of-use assets (USD, millions)

Deferred income taxes (USD, millions)

Other noncurrent assets (USD, millions)

Total assets (USD, millions)

Accounts payable (USD, millions)

Accrued liabilities and other current liabilities (USD, millions)

Current portion of operating lease liabilities (USD, millions)

Current portion of long-term debt (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Operating lease liabilities (USD, millions)

Other long-term liabilities (USD, millions)

Total liabilities (USD, millions)

Class A common stock (USD, millions)

Additional paid-in capital (USD, millions)

Accumulated other comprehensive loss (USD, millions)

Retained loss (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

94a9bb3048c1eb4e14f5d0664a3b6189fbc043efa1698477b43d78fd762f431d

bca78c890abfd6ae6c7ab3358411a99a2f26b58d4b0af29ff50391fabe4f94d4

f95e978c3a60f43ab72736ebe00ab3b3213a378255ae21c70bd7a271a8b22bc9

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

c72dd1144e164cd858ce6ddcde294eaa52b5603c35f27ce80b304e66c0a40956

United States

Canada

Australia

Europe

878001e24cfd5a4e78f8a3ef0c6ab48968d5c65af4c9f50f1b84ab6efae1b516

Hardware and Accessories

Software

Collectibles

Total Net Sales

5870e0f090954694008764a4085e6732eba90c22fa82bfde47d036bb13c7f8d7

GameStop (GME)

Financials