GameStop Corp. reported fiscal third‑quarter 2025 results on December 9, 2025, with net sales of $821 million, a 4.6% decline from the $860.3 million recorded in the same quarter a year earlier. The decline fell short of the consensus estimate of roughly $987 million, marking a revenue miss of about $166 million.
Collectibles sales surged 50% to $256.1 million, offsetting a 27% drop in software revenue, which fell to $197.5 million from $268.5 million year‑over‑year. Hardware and accessories revenue also declined to $367.4 million, down from $417.4 million, reflecting the company’s ongoing exit from several international markets and a shift toward higher‑margin product lines.
GAAP diluted earnings per share were $0.13, missing the consensus estimate of $0.18–$0.20. The adjusted EPS of $0.24 beat the adjusted consensus of $0.20, a $0.04 or 20% lift. The adjusted figure excludes one‑time restructuring charges and the impact of the company’s Bitcoin holdings, which explains the discrepancy between GAAP and adjusted results.
Operating income turned positive at $41.3 million, compared with a $33.4 million loss in the same quarter a year earlier. The turnaround is driven by cost containment measures and a higher‑margin mix, as evidenced by a gross margin expansion to 33.3% from 29.1% in Q2 2025. Net income rose to $77.1 million, a 352% increase from $17.4 million in Q3 2024, largely due to the improved operating performance and the favorable impact of the Bitcoin portfolio.
Cash, cash equivalents, and marketable securities totaled $8.8 billion, up from $4.6 billion a year earlier, giving the company a strong liquidity buffer. Bitcoin holdings were valued at $519.4 million, a modest increase from $500 million earlier in the year, and remain a significant but volatile component of the treasury strategy. Management did not provide new guidance for the remainder of the fiscal year, leaving investors to interpret the results in the context of the company’s strategic pivot toward collectibles and e‑commerce.
Investors reacted negatively to the revenue miss, with analysts noting that the shortfall underscores ongoing challenges in the core software and hardware segments. The adjusted EPS beat and operating income improvement were viewed as positive signs of cost discipline, but the revenue decline and GAAP EPS miss tempered enthusiasm, highlighting the need for continued momentum in the company’s transformation.
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