TLDR
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GameStop Q1 revenue fell 17% year-over-year to $732.4 million, missing estimates.
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Net income hit $44.8 million, reversing a $32.3 million loss in Q1 2024.
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Hardware and software sales declined; collectibles revenue increased.
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GameStop bought 4,710 Bitcoin as a treasury reserve between May 3 and June 10.
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The company sold Canadian operations and plans to exit the French market in FY 2025.
Shares of GameStop Corp. (NYSE: GME) closed at $30.15 on June 10, 2025, down 0.63%, and slipped 4.68% to $28.75 in pre-market trading following the release of its first-quarter 2025 results.
For the period ended May 3, 2025, the videogame retailer reported net sales of $732.4 million, marking a 17% decline from $881.8 million in the same quarter last year. Revenue came below Wall Street’s $754.2 million target.
Despite the revenue miss, GameStop swung to a net profit of $44.8 million, compared to a net loss of $32.3 million a year ago. Operating loss shrank sharply to $10.8 million from $50.6 million, thanks to cost-cutting and restructuring efforts.
📣 Evening Company reports:$GME GameStop Corp | After close 🌙
✅ EPS: $ 0.09 vs EPS est.: $ 0.04
❌ Revenue: 732.4M vs est.: 754.23M$SJM JM Smucker | Before open ☀️
✅ EPS: $ 2.31 vs EPS est.: $ 2.24
❌ Revenue: 2.1B vs est.: 2.18B$CNM Core Main | Before open ☀️
✅ EPS: $…— AI pattern lab (@aipatternlab) June 11, 2025
Shift in Sales Mix
The shift in gaming habits continued to weigh on GameStop’s core business. Sales from hardware and accessories declined, with their share of total sales falling from 57.3% to 47.1%. Software sales also dipped as a percentage of total sales, from 27.2% to 24%. Meanwhile, collectibles gained ground in both net sales and overall share.
The company’s efforts to trim expenses paid off, with selling, general and administrative costs reduced to $228.1 million, down from $295.1 million year-on-year. Adjusted operating income stood at $27.5 million, compared to an adjusted operating loss of $55 million a year earlier.
Bitcoin Investment and Divestitures
In a notable move, GameStop disclosed that it purchased 4,710 Bitcoin between May 3 and June 10 as part of its treasury reserve strategy. This aligns with the board’s earlier approval to add cryptocurrency to its assets.
The company also completed the sale of its Canadian operations on May 4. Plans are in place to exit the French market later in fiscal year 2025 as part of broader international restructuring. The operating loss this quarter included $35.5 million in impairment charges tied to these changes.
Strengthened Cash Position and Market Performance
GameStop’s liquidity improved, with cash, equivalents, and marketable securities totaling $6.4 billion at the quarter’s end, a sharp increase from $1 billion a year ago. Free cash flow turned positive at $189.6 million compared to a $114.7 million deficit in Q1 2024.
Despite a solid EPS beat of $0.17 versus the $0.04 estimate, investors reacted cautiously, with the stock slipping post-earnings. As of June 10, GME’s market capitalization stood at $13.57 billion.
