GameStop (GME) Q2 2025 Earnings
GAAP EPS of $0.31 includes $28.6 million unrealized gain on digital assets (Bitcoin) and $(2.1) million asset impairment reversal; adjusted EPS of $0.25 excludes these items plus $0.4 million transformation costs
How Did GME Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +0.12%.
Did GME Beat Earnings? Q2 2025 Results
Yes. GameStop reported Q2 2025 earnings of $0.25 a share on Sep 9, 2025, beating the $0.16 consensus estimate by 61.3%. Revenue was $972.2M against a $823.2M estimate.
GameStop posted a standout second quarter for fiscal 2025, beating analyst expectations on both the top and bottom lines as a sweeping operational turnaround took hold. The company reported net sales of $972.20 million, up 21.8% year over year and well ahead of the $823.25 million consensus, while adjusted diluted EPS of $0.25 cleared the $0.15 estimate by 61.29%. The headline driver was a dramatic shift in profitability: GAAP operating income swung to $66.40 million from an operating loss of $22.00 million a year ago, powered by aggressive cost cuts that pulled SG&A expenses down to $218.80 million from $270.80 million, alongside a surge in hardware and accessories sales to $592.10 million. Collectibles also contributed meaningfully, with quarterly sales reaching $227.60 million versus $139.40 million a year prior. Looking ahead, GameStop announced a special warrant dividend that, if fully exercised, could generate approximately $1.90 billion in gross proceeds earmarked for investments, general corporate purposes, and potential acquisitions, signaling management's intent to deploy its growing capital base beyond the retail floor.
- Hardware and accessories sales surged to $592.1 million from $451.2 million year-over-year
- Collectibles sales grew significantly to $227.6 million from $139.4 million year-over-year
- SG&A expenses reduced to $218.8 million from $270.8 million year-over-year
- Net interest income of $79.6 million from massive cash and investment portfolio
- $28.6 million unrealized gain on digital assets (Bitcoin)
- U.S. segment net sales grew to $724.6 million from $545.6 million year-over-year
What Was GameStop's Outlook in Q2 2025?
GameStop announced a special warrant dividend distributing approximately 59 million warrants at an exercise price of $32.00 per share, exercisable through October 30, 2026. If fully exercised, the warrants could generate approximately $1.9 billion in gross proceeds intended for general corporate purposes, investments consistent with GameStop's Investment Policy, and potential acquisitions. The company continues to pursue divestiture of its French operations.
GME YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $972.2M | $798.3M | +21.8% |
| Gross Profit | $283.1M | $248.8M | +13.8% |
| Operating Income | $66.4M | $13.2M | +401.8% |
| Net Income | $168.6M | $14.8M | +1,039.2% |
GME Revenue by Segment
GME Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.