GameStop Corp (GME) saw its shares decline over 3.5% in after-hours trading on Tuesday following the release of its first-quarter earnings report for the period ending May 3, 2025.
The video game retailer reported mixed results, with revenue falling short of analyst expectations amid ongoing challenges in its core physical game sales business.
GameStop posted revenues of $732.4 million, missing the consensus estimate of $754.2 million and representing a 17% drop from $881.8 million in the same quarter last year. Industry analysts, including IG, attribute the revenue decline primarily to continued headwinds in physical game sales, a segment facing pressure from the growing trend of digital distribution.
Despite the revenue shortfall, GameStop showed significant operational progress. The company reported a net income of $44.8 million, a notable turnaround from a net loss of $32.3 million in Q1 2024. Operating losses also narrowed sharply to $10.8 million from $50.6 million a year earlier, reflecting improved cost management and efficiency gains.
Following the earnings release, GameStop’s stock price dipped to just above $29 per share, continuing a relatively flat trend over the past month. Year-to-date, the shares are down approximately 3.8%, including a slight decline after the company’s recent foray into cryptocurrency.
In late May, GameStop made headlines by purchasing 4,710 Bitcoin (BTC), valued at roughly $513 million at the time, marking its entry into the growing list of public companies holding Bitcoin as a reserve asset. The purchase was financed through a $1.3 billion convertible notes offering, signalling GameStop’s strategic pivot to diversify its treasury with digital assets.
GameStop’s balance sheet remains robust, with cash, cash equivalents, and marketable securities totalling $6.4 billion—up significantly from $1 billion a year ago. This liquidity position provides the company with ample flexibility to pursue further Bitcoin acquisitions or other strategic investments.
Meanwhile, Nvidia surpassed revenue forecasts for Q1 2026 but missed earnings due to a U.S. export restriction charge on AI chips to China. Despite this, their data center division fueled growth, and they’re developing a new chip for the Chinese market.
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