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GameStop Discloses First Quarter 2025 Results

1. GME's Q1 net sales decreased to $732.4 million from $881.8 million. 2. SG&A expenses reduced significantly to $228.1 million from $295.1 million. 3. GME recorded a net income of $44.8 million, contrasting last year's loss. 4. The company holds $6.4 billion in cash and securities, up from $1.0 billion. 5. GME completed divestiture in Canada and purchased 4,710 Bitcoin recently.

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FAQ

Why Bullish?

Despite lower sales, an increase in net income and cash reserves provides GME with improved financial footing. Historical context shows that cash reserves often stabilize stock prices in times of loss.

How important is it?

The financial results indicate resilience, particularly in cash management. Increased investor interest is likely due to the positive turnaround in net income.

Why Short Term?

Immediate impact from financial results could boost investor sentiment temporarily. However, sustained growth will depend on market conditions and business execution.

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GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today released financial results for the first quarter ended May 3, 2025. The Company’s condensed and consolidated financial statements, including GAAP and non-GAAP results, are below. The Company’s Form 10-Q and supplemental information can be found at https://investor.gamestop.com.

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.

Additional information can be found in the Company’s Form 10-Q.

NON-GAAP MEASURES AND OTHER METRICS

As a supplement to the Company’s financial results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), GameStop may use certain non-GAAP measures, such as adjusted SG&A expenses, adjusted operating income (loss), adjusted net income (loss), adjusted EBITDA and free cash flow...

GameStop Corp. Condensed Statements of Operations (in millions, except per share data) (unaudited)
Net sales $732.4 million
Operating loss ($10.8 million)

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR

This press release contains forward-looking statements...

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