GameStop Swings to Profit on Strong Sales, Bitcoin Gains
The video game retailer reported a surprise Q2 profit and a 22% revenue surge, driven by robust hardware sales and its significant holdings in Bitcoin.
GameStop (NYSE: GME) reported a significant financial turnaround in its second-quarter 2025 results, posting a surprise profit and a substantial revenue increase that sent a bullish signal to investors. The news, released after the market closed, was driven by strong performance in its hardware and collectibles divisions, effective cost-cutting measures, and considerable gains on its corporate Bitcoin holdings.
The video game retailer announced that its to $972.2 million, comfortably exceeding analyst expectations. This top-line growth fueled a swing to profitability, with GameStop reporting a net income of $168.6 million, or $0.31 per share. The performance marks a sharp reversal from the same period in the prior year and easily surpassed consensus estimates.
The robust results were primarily driven by a significant uptick in sales of hardware and accessories, which rose to $592.1 million. The company's push into collectibles also paid off, with sales in that category growing to $227.6 million. This growth offset a continued decline in its more traditional software sales. Bolstering the bottom line further were the company's , contributing to the positive earnings.
In a move to reward shareholders, GameStop's board also announced a special dividend in the form of a warrant. Investors will receive one warrant for every 10 common shares held, with an exercise price of $32.00. Wall Street reacted positively to what many analysts are calling a . While the quarter's performance strengthens confidence in the company's turnaround strategy, questions remain about its long-term plans for deploying its large cash reserves and navigating the ongoing shift in the video game industry.