GameStop Q2 2025 earnings: profit jumps on collectibles, cost cuts and Bitcoin gains
GameStop returned to solid profitability in Q2, powered by collectibles growth, deep cost cuts, and gains on its Bitcoin holdings, even as game software sales kept declining.
| Q2 2025 | Reported |
|---|---|
| EPS | $0.31 |
| Revenue | $972.2M |
Figures as reported by the company to the SEC for the quarter ended August 2, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total sales rose to $972.2 million from $798.3 million a year earlier, a roughly 22% increase, with growth led by collectibles and hardware while traditional video-game software sales kept shrinking.
- GameStop swung from a small profit a year ago to a much larger one this quarter, helped by lower costs, higher-margin collectibles sales, and a gain on its Bitcoin holdings.
- Collectibles (toys, trading cards and pop-culture merchandise) jumped sharply and made up nearly a quarter of total sales, continuing to offset the long decline in physical game and console software as more gaming shifts to digital downloads.
- Operating expenses fell about 19% from a year ago as the company kept closing underperforming stores and CEO Ryan Cohen pushed what he called ‘extreme frugality’ across the business.
- The TTM operating margin of about 10% and net margin of roughly 20% show a business that has moved from years of losses to consistent profitability, though gains tied to its Bitcoin position have played a real role in that improvement.
- GameStop held roughly $528.6 million in Bitcoin at quarter-end after buying more of the cryptocurrency during the period, part of a digital-asset strategy the company adopted last year; the position’s value swings can move reported profit from quarter to quarter.
- The company ended the quarter with a very large cash position alongside debt taken on partly through convertible-note offerings, giving it flexibility to keep investing in inventory, buybacks, or further Bitcoin purchases.
- GameStop does not issue forward financial guidance, so management did not provide sales or profit targets for coming quarters.
Q2 2025 in context
| Metric | Aug 2025 | Aug 2024 | Change |
|---|---|---|---|
| Revenue | $972M | $798M | +21.8% |
| Net income | $169M | $15M | +1039.2% |
| Free cash flow | $113M | $66M | +73.0% |
| Diluted EPS | $0.31 | $0.04 | +675.0% |
| Gross margin | 29.1% | 31.2% | -2.0 pts |
| Operating margin | 6.8% | -2.8% | +9.6 pts |
| Net margin | 17.3% | 1.9% | +15.5 pts |
Figures for the quarter ended Aug 2025 and the quarter ended Aug 2024, as reported to the SEC.
How the stock took it
GameStop Corp closed at $23.22 on Sep 8, 2025, the last session before the report, and at $24.37 on Sep 10, 2025, the first session after it — +5.0% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: company report · Yahoo Finance · Decrypt · Motley Fool