GameStop (NYSE: GME) filed its Q4 FY2025 results on March 24, 2026, delivering a massive earnings beat while quietly building the financial foundation that makes a major acquisition credible. The question investors are asking is whether the balance sheet now supports CEO Ryan Cohen’s rumored pursuit of a major acquisition, expected to be eBay (NASDAQ: EBAY).
The War Chest
The headline number is the balance sheet. GameStop ended Q4 with $9.01 billion in total cash, equivalents, and marketable securities, nearly double the $4.77 billion held a year prior. That buildup was funded by $4.2 billion in zero-coupon convertible notes issued during fiscal 2025. The company also generated $597.3 million in free cash flow for the full year, meaning the war chest has an organic replenishment mechanism beyond debt financing.
One drag on the portfolio: GameStop’s $500 million Bitcoin position generated a $151 million loss in Q4. Bitcoin is currently trading around $71,277, down 19.3% year-to-date, which means that position remains a source of earnings volatility.
The Silence Is the Signal
Cohen held no earnings conference call and provided no forward guidance with the Q4 filing. That pattern has held across every quarter of FY2025. For investors watching for acquisition clues, the absence of commentary is itself informative. Cohen has previously described his ambition to build a $100 billion company through a “big” acquisition, calling it “genius or totally foolish.” The warrant dividend announced in Q2 explicitly cited “potential acquisitions” as a use of proceeds, with up to $1.9 billion in potential gross proceeds if warrants are fully exercised. Nothing in this filing changes that framing.
The Acquisition Math
eBay currently carries a market cap of approximately $39.9 billion with $11.1 billion in trailing revenue. GameStop’s $9 billion liquid position covers roughly a fifth of that at current market prices, meaning any realistic deal structure would require a combination of debt, equity, and convertible instruments to close the gap.
On the stock itself, our price model places GameStop at a predicted price of $35.85 with a Buy rating and +57.2% upside from $22.81, with a five-year target of $78.59. That stands in sharp contrast to Wall Street’s consensus target of $13.50 with zero Buy ratings. A transformative acquisition could dramatically expand the bull case, but integration risk on a deal of this scale could just as easily compress it.
The earnings themselves were operationally strong: EPS of $0.49 against an estimate of $0.08, gross margin expanding to 35.0% from 28.3% a year ago, and collectibles now representing 33.1% of Q4 net sales. The core retail business is shrinking, but what remains is more profitable. The war chest is intact. Cohen’s silence continues. For investors in GME, the acquisition question remains open.
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