GameStop Discloses First Quarter 2025 Results
Grapevine, TX — GameStop Corp. released financial results for the first quarter ended May 3, 2025.
FIRST QUARTER OVERVIEW
- Net sales were $732.4 million for the period, compared to $881.8 million in the prior year’s first quarter.
- Selling, general and administrative (“SG&A”) expenses were $228.1 million for the period, compared to $295.1 million in the prior year’s first quarter.
- Operating loss was $10.8 million for the period, compared to an Operating loss of $50.6 million in the prior year’s first quarter.
- First quarter Operating loss includes $35.5 million of impairment charges related to international restructuring efforts.
- Excluding the impairment charges and other items, Adjusted Operating Income was $27.5 million for the period compared to an Adjusted Operating Loss of $55.0 million in the prior year’s first quarter.
- Net income was $44.8 million for the period, compared to a Net loss of $32.3 million for the prior year’s first quarter.
- Excluding the impairment charges and other items, Adjusted Net Income was $83.1 million for the period compared to an Adjusted Net Loss of $36.7 million for the prior year’s first quarter.
- Cash, cash equivalents and marketable securities were $6.4 billion at the close of the first quarter, compared to $1.0 billion at the close of the prior year’s first quarter.
SUBSEQUENT EVENTS
- Completed the divestiture of Canada on May 4, 2025.
- Purchased 4,710 Bitcoin between May 3, 2025 and June 10, 2025 for cash.
|
GameStop Corp. |
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|
|
13 Weeks Ended May 3, 2025 |
|
13 Weeks Ended May 4, 2024 |
||||
|
Net sales |
|
$ |
732.4 |
|
|
$ |
881.8 |
|
|
Cost of sales |
|
|
479.6 |
|
|
|
637.3 |
|
|
Gross profit |
|
|
252.8 |
|
|
|
244.5 |
|
|
Selling, general and administrative expenses |
|
|
228.1 |
|
|
|
295.1 |
|
|
Asset Impairments |
|
|
35.5 |
|
|
|
— |
|
|
Operating loss |
|
|
(10.8 |
) |
|
|
(50.6 |
) |
|
Interest income, net |
|
|
(56.9 |
) |
|
|
(14.9 |
) |
|
Other income, net |
|
|
(2.2 |
) |
|
|
— |
|
|
Income (loss) before income taxes |
|
|
48.3 |
|
|
|
(35.7 |
) |
|
Income tax expense (benefit) |
|
|
3.5 |
|
|
|
(3.4 |
) |
|
Net income (loss) |
|
$ |
44.8 |
|
|
$ |
(32.3 |
) |
|
|
|
|
|
|
||||
|
Net income (loss) per share: |
|
|
|
|
||||
|
Basic Income (loss) per share |
|
$ |
0.10 |
|
|
$ |
(0.11 |
) |
|
Diluted income (loss) per share |
|
$ |
0.09 |
|
|
$ |
(0.11 |
) |
|
|
|
|
|
|
||||
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Weighted-average common shares outstanding: |
|
|
|
|
||||
|
Basic |
|
|
447.1 |
|
|
|
305.9 |
|
|
Diluted |
|
|
497.9 |
|
|
|
305.9 |
|
|
|
|
|
|
|
||||
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Percentage of Net Sales: |
|
|
|
|
||||
|
|
|
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|
|
||||
|
Net sales |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
Cost of sales |
|
|
65.5 |
|
|
|
72.3 |
|
|
Gross profit |
|
|
34.5 |
|
|
|
27.7 |
|
|
Selling, general and administrative expenses |
|
|
31.1 |
|
|
|
33.5 |
|
|
Asset Impairments |
|
|
4.8 |
|
|
|
— |
|
|
Operating loss |
|
|
(1.5 |
) |
|
|
(5.7 |
) |
|
Interest income, net |
|
|
(7.8 |
) |
|
|
(1.7 |
) |
|
Other income, net |
|
|
(0.3 |
) |
|
|
— |
|
|
Income (loss) before income taxes |
|
|
6.6 |
|
|
|
(4.0 |
) |
|
Income tax expense (benefit) |
|
|
0.5 |
|
|
|
(0.4 |
) |
|
Net income (loss) |
|
|
6.1 |
% |
|
|
(3.7 |
)% |
|
GameStop Corp. |
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|
|
United States |
|
Canada |
|
Australia |
|
Europe |
|
Total |
||||||||||
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As of and for the Quarter ended May 3, 2025 |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales |
|
$ |
537.5 |
|
$ |
38.2 |
|
|
$ |
81.9 |
|
|
$ |
74.8 |
|
|
$ |
732.4 |
|
|
|
Cost of sales |
|
|
343.6 |
|
|
28.2 |
|
|
|
55.0 |
|
|
|
52.8 |
|
|
$ |
479.6 |
|
|
|
Gross Profit |
|
|
193.9 |
|
|
10.0 |
|
|
|
26.9 |
|
|
|
22.0 |
|
|
$ |
252.8 |
|
|
|
Selling, general and administrative expenses: |
|
|
160.3 |
|
|
13.9 |
|
|
|
32.3 |
|
|
|
21.6 |
|
|
$ |
228.1 |
|
|
|
Store related |
|
|
131.6 |
|
|
11.3 |
|
|
|
26.6 |
|
|
|
22.4 |
|
|
$ |
191.9 |
|
|
|
Other |
|
|
28.7 |
|
|
2.6 |
|
|
|
5.7 |
|
|
|
(0.8 |
) |
|
$ |
36.2 |
|
|
|
Asset impairments |
|
|
— |
|
|
18.3 |
|
|
|
— |
|
|
|
17.2 |
|
|
|
35.5 |
|
|
|
Operating income (loss) |
|
|
33.6 |
|
|
(22.2 |
) |
|
|
(5.4 |
) |
|
|
(16.8 |
) |
|
|
(10.8 |
) |
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
(56.9 |
) |
||||||||
|
Other income, net |
|
|
|
|
|
|
|
|
|
|
(2.2 |
) |
||||||||
|
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
48.3 |
|
||||||||
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
3.5 |
|
||||||||
|
Net income |
|
|
|
|
|
|
|
|
|
|
44.8 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Property and equipment, net(1) |
|
|
37.5 |
|
|
— |
|
|
|
16.7 |
|
|
|
— |
|
|
|
54.2 |
|
|
|
Capital expenditures |
|
|
1.2 |
|
|
0.1 |
|
|
|
1.0 |
|
|
|
0.6 |
|
|
|
2.9 |
|
|
|
|
|
United States |
|
Canada |
|
Australia |
|
Europe |
|
Total |
||||||||||
|
As of and for the Quarter ended May 4, 2024 |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net sales |
|
$ |
617.3 |
|
|
$ |
42.6 |
|
|
$ |
79.6 |
|
|
$ |
142.3 |
|
|
$ |
881.8 |
|
|
Cost of sales |
|
|
448.5 |
|
|
|
31.6 |
|
|
|
53.4 |
|
|
|
103.8 |
|
|
|
637.3 |
|
|
Gross Profit |
|
|
168.8 |
|
|
|
11.0 |
|
|
|
26.2 |
|
|
|
38.5 |
|
|
|
244.5 |
|
|
Selling, general and administrative expenses: |
|
|
194.1 |
|
|
|
15.5 |
|
|
|
34.3 |
|
|
|
51.2 |
|
|
|
295.1 |
|
|
Store related |
|
|
168.2 |
|
|
|
11.9 |
|
|
|
28.2 |
|
|
|
44.4 |
|
|
|
252.7 |
|
|
Other |
|
|
25.9 |
|
|
|
3.6 |
|
|
|
6.1 |
|
|
|
6.8 |
|
|
|
42.4 |
|
|
Operating loss |
|
|
(25.3 |
) |
|
|
(4.5 |
) |
|
|
(8.1 |
) |
|
|
(12.7 |
) |
|
|
(50.6 |
) |
|
Interest income |
|
|
|
|
|
|
|
|
|
|
(14.9 |
) |
||||||||
|
Loss before income taxes |
|
|
|
|
|
|
|
|
|
|
(35.7 |
) |
||||||||
|
Income tax benefit |
|
|
|
|
|
|
|
|
|
|
(3.4 |
) |
||||||||
|
Net loss |
|
|
|
|
|
|
|
|
|
|
(32.3 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Property and equipment, net |
|
|
44.9 |
|
|
|
2.0 |
|
|
|
19.6 |
|
|
|
15.9 |
|
|
|
82.4 |
|
|
Capital expenditures |
|
|
2.5 |
|
|
|
0.7 |
|
|
|
1.2 |
|
|
|
0.5 |
|
|
|
4.9 |
|
|
(1) |
Property and equipment, net for Canada and France (Europe) is classified in Assets held for sale on our Condensed Consolidated Balance Sheets. |
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GameStop Corp. |
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May 3, 2025 |
|
May 4, 2024 |
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|
ASSETS: |
||||||
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Current assets: |
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
6,385.8 |
|
$ |
999.9 |
|
Marketable securities |
|
|
— |
|
|
83.0 |
|
Receivables, net of allowance of $0.9 and $4.4, respectively |
|
|
44.1 |
|
|
58.9 |
|
Merchandise inventories, net |
|
|
421.3 |
|
|
675.8 |
|
Prepaid expenses and other current assets |
|
|
29.3 |
|
|
62.1 |
|
Assets held for sale |
|
|
226.2 |
|
|
9.4 |
|
Total current assets |
|
|
7,106.7 |
|
|
1,889.1 |
|
Property and equipment, net of accumulated depreciation of $572.5 and $843.6, respectively |
|
|
54.2 |
|
|
82.4 |
|
Operating lease right-of-use assets |
|
|
272.5 |
|
|
542.0 |
|
Deferred income taxes |
|
|
18.7 |
|
|
17.5 |
|
Other noncurrent assets |
|
|
50.5 |
|
|
56.1 |
|
Total assets |
|
$ |
7,502.6 |
|
$ |
2,587.1 |
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY: |
||||||
|
Current liabilities: |
|
|
|
|
||
|
Accounts payable |
|
$ |
198.4 |
|
$ |
282.7 |
|
Accrued liabilities and other current liabilities |
|
|
328.4 |
|
|
377.1 |
|
Current portion of operating lease liabilities |
|
|
113.3 |
|
|
177.7 |
|
Current portion of long-term debt |
|
|
— |
|
|
10.8 |
|
Liabilities held for sale |
|
|
207.2 |
|
|
— |
|
Total current liabilities |
|
|
847.3 |
|
|
848.3 |
|
Long-term debt, net |
|
|
1,480.7 |
|
|
14.9 |
|
Operating lease liabilities |
|
|
167.8 |
|
|
385.3 |
|
Other long-term liabilities |
|
|
19.4 |
|
|
31.3 |
|
Total liabilities |
|
|
2,515.2 |
|
|
1,279.8 |
|
Total stockholders’ equity |
|
|
4,987.4 |
|
|
1,307.3 |
|
Total liabilities and stockholders’ equity |
|
$ |
7,502.6 |
|
$ |
2,587.1 |
|
GameStop Corp. |
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|
13 Weeks Ended May 3, 2025 |
|
13 Weeks Ended May 4, 2024 |
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|
Cash flows from operating activities: |
|
|
|
|
||||
|
Net income (loss) |
|
$ |
44.8 |
|
|
$ |
(32.3 |
) |
|
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
|
|
||||
|
Depreciation and amortization |
|
|
5.6 |
|
|
|
16.8 |
|
|
Stock-based compensation expense, net |
|
|
5.5 |
|
|
|
0.6 |
|
|
(Gain) loss on disposal of property and equipment, net |
|
|
(1.5 |
) |
|
|
0.3 |
|
|
Asset impairments |
|
|
35.5 |
|
|
|
— |
|
|
Other, net |
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
|
Receivables, net |
|
|
12.0 |
|
|
|
33.4 |
|
|
Merchandise inventories, net |
|
|
(10.1 |
) |
|
|
(43.2 |
) |
|
Prepaid expenses and other current assets |
|
|
6.7 |
|
|
|
8.5 |
|
|
Prepaid income taxes and income taxes payable |
|
|
(1.6 |
) |
|
|
(5.1 |
) |
|
Accounts payable and accrued liabilities |
|
|
110.3 |
|
|
|
(87.8 |
) |
|
Operating lease right-of-use assets and liabilities |
|
|
(0.6 |
) |
|
|
1.1 |
|
|
Changes in other long-term liabilities |
|
|
(13.7 |
) |
|
|
(1.5 |
) |
|
Net cash flows provided by (used in) operating activities |
|
|
192.5 |
|
|
|
(109.8 |
) |
|
Cash flows from investing activities: |
|
|
|
|
||||
|
Purchases of marketable securities |
|
|
(14.7 |
) |
|
|
(7.5 |
) |
|
Proceeds from maturities and sales of marketable securities |
|
|
22.6 |
|
|
|
201.9 |
|
|
Capital expenditures |
|
|
(2.9 |
) |
|
|
(4.9 |
) |
|
Proceeds from other divestitures |
|
|
2.2 |
|
|
|
— |
|
|
Other |
|
|
0.1 |
|
|
|
0.3 |
|
|
Net cash flows provided by investing activities |
|
|
7.3 |
|
|
|
189.8 |
|
|
Cash flows from financing activities: |
|
|
|
|
||||
|
Proceeds from the issuance of convertible debt |
|
|
1,500.0 |
|
|
|
— |
|
|
Debt issuance costs from convertible debt |
|
|
(19.3 |
) |
|
|
— |
|
|
Repayments of debt |
|
|
(2.7 |
) |
|
|
(2.7 |
) |
|
Proceeds from equity awards directly withheld from employees for tax purposes |
|
|
2.3 |
|
|
|
2.2 |
|
|
Payments to tax authorities for equity awards directly withheld from employees |
|
|
(2.3 |
) |
|
|
(2.2 |
) |
|
Net cash flows provided by (used in) financing activities |
|
|
1,478.0 |
|
|
|
(2.7 |
) |
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
|
5.9 |
|
|
|
1.3 |
|
|
Less: Net change in cash balance classified as assets held for sale |
|
|
(49.4 |
) |
|
|
— |
|
|
Increase in cash, cash equivalents, and restricted cash |
|
|
1,634.3 |
|
|
|
78.6 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
4,789.8 |
|
|
|
938.9 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
6,424.1 |
|
|
$ |
1,017.5 |
|
|
Schedule I |
||||||||||||
|
|
|
13 Weeks Ended May 3, 2025 |
|
13 Weeks Ended May 4, 2024 |
||||||||
|
|
|
Net |
|
Percent |
|
Net |
|
Percent |
||||
|
Net Sales: |
|
Sales |
|
of Total |
|
Sales |
|
of Total |
||||
|
|
|
|
|
|
|
|
|
|
||||
|
Hardware and accessories(1) |
|
$ |
345.3 |
|
47.1 |
% |
|
$ |
505.3 |
|
57.3 |
% |
|
Software(2) |
|
|
175.6 |
|
24.0 |
% |
|
|
239.7 |
|
27.2 |
% |
|
Collectibles (3) |
|
|
211.5 |
|
28.9 |
% |
|
|
136.8 |
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
Total |
|
$ |
732.4 |
|
100.0 |
% |
|
$ |
881.8 |
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
||||
|
(1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. |
||||||||||||
|
(2) Includes sales of new and pre-owned video game software, digital software and PC entertainment software. |
||||||||||||
|
(3) Includes the sale of apparel, toys, trading cards, gadgets and other products for pop culture and technology enthusiasts. |
||||||||||||
|
GameStop Corp. |
||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
||||
|
|
|
May 3, 2025 |
|
May 4, 2024 |
||||
|
Adjusted SG&A expense |
||||||||
|
SG&A expense |
|
$ |
228.1 |
|
|
|
295.1 |
|
|
Transformation costs(1) |
|
|
(2.8 |
) |
|
|
4.4 |
|
|
Adjusted SG&A expense |
|
$ |
225.3 |
|
|
$ |
299.5 |
|
|
|
|
|
|
|
||||
|
Adjusted Operating Income (Loss) |
|
|
|
|
||||
|
Operating (loss) income |
|
$ |
(10.8 |
) |
|
$ |
(50.6 |
) |
|
Transformation costs(1) |
|
|
2.8 |
|
|
|
(4.4 |
) |
|
Asset impairments (2) |
|
|
35.5 |
|
|
|
— |
|
|
Adjusted operating income (loss) |
|
$ |
27.5 |
|
|
$ |
(55.0 |
) |
|
|
|
|
|
|
||||
|
Adjusted Net Income (Loss) |
|
|
|
|
||||
|
Net Income (loss) |
|
$ |
44.8 |
|
|
$ |
(32.3 |
) |
|
Transformation costs(1) |
|
|
2.8 |
|
|
|
(4.4 |
) |
|
Asset impairments(2) |
|
|
35.5 |
|
|
|
— |
|
|
Adjusted net income (loss) |
|
$ |
83.1 |
|
|
$ |
(36.7 |
) |
|
|
|
|
|
|
||||
|
Adjusted net income (loss) per share |
|
|
|
|
||||
|
Basic |
|
$ |
0.19 |
|
|
$ |
(0.12 |
) |
|
Diluted |
|
|
0.17 |
|
|
|
(0.12 |
) |
|
|
|
|
|
|
||||
|
Number of shares used in adjusted calculation |
|
|
|
|
||||
|
Basic |
|
|
447.1 |
|
|
|
305.9 |
|
|
Diluted |
|
|
497.9 |
|
|
|
305.9 |
|
|
|
|
|
|
|
||||
|
(1) Transformation costs include severance, stock-based compensation forfeitures related to workforce optimization efforts and departures of key personnel, adjustments to reserves for expenses for consultants and advisors related to transformation initiatives, and other costs in connection with the transformation initiatives. |
||||||||
|
(2) Incurred in connection with the commitment made by management during the first quarter of fiscal 2025 to divest the Company’s operations in Canada and France. |
||||||||
|
|
|
13 Weeks Ended |
|
13 Weeks Ended |
||||
|
|
|
May 3, 2025 |
|
May 4, 2024 |
||||
|
Reconciliation of Net Income (loss) to Adjusted EBITDA |
|
|
|
|
||||
|
Net income (loss) |
|
$ |
44.8 |
|
|
$ |
(32.3 |
) |
|
Interest income, net |
|
|
(56.9 |
) |
|
|
(14.9 |
) |
|
Depreciation and amortization |
|
|
5.6 |
|
|
|
16.8 |
|
|
Income tax expense (benefit) |
|
|
3.5 |
|
|
|
(3.4 |
) |
|
EBITDA |
|
$ |
(3.0 |
) |
|
$ |
(33.8 |
) |
|
Stock-based compensation |
|
|
5.5 |
|
|
|
0.6 |
|
|
Transformation costs(1) |
|
|
2.8 |
|
|
(4.4 |
) |
|
|
Divestitures and other |
|
|
(2.2 |
) |
|
— |
|
|
|
Asset impairments(2) |
|
|
35.5 |
|
|
— |
|
|
|
Adjusted EBITDA |
|
$ |
38.6 |
|
|
$ |
(37.6 |
) |
|
|
|
|
|
|
||||
|
(1) Transformation costs include severance, stock-based compensation forfeitures related to workforce optimization efforts and departures of key personnel, adjustments to reserves for expenses for consultants and advisors related to transformation initiatives, and other costs in connection with the transformation initiatives. |
||||||||
|
(2) Incurred in connection with the commitment made by management during the first quarter of fiscal 2025 to divest the Company’s operations in Canada and France. |
||||||||
|
GameStop Corp. |
|||||||
|
|
13 Weeks Ended |
|
13 Weeks Ended |
||||
|
|
May 3, 2025 |
|
May 4, 2024 |
||||
|
Net cash flows provided by (used in) operating activities |
$ |
192.5 |
|
|
$ |
(109.8 |
) |
|
Capital expenditures |
|
(2.9 |
) |
|
|
(4.9 |
) |
|
Free cash flow |
$ |
189.6 |
|
|
$ |
(114.7 |
) |
tility.
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