GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today released financial results for the second quarter ended August 2, 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.
SECOND QUARTER OVERVIEW
- Net sales were $972.2 million for the period, compared to $798.3 million in the prior year's second quarter.
- Selling, general and administrative (“SG&A”) expenses were $218.8 million for the period, compared to $270.8 million in the prior year's second quarter.
-
Operating income was $66.4 million for the period, compared to an operating loss of $22.0 million in the prior year's second quarter.
- Excluding impairment and other items, adjusted operating income was $64.7 million for the period compared to an adjusted operating loss of $31.6 million in the prior year's second quarter.
-
Net income was $168.6 million for the period, compared to a net income of $14.8 million for the prior year’s second quarter.
- Excluding impairment, unrealized gain on digital assets, and other items, adjusted net income was $138.3 million for the period compared to an adjusted net income of $5.2 million for the prior year's second quarter.
- Cash, cash equivalents and marketable securities were $8.7 billion at the close of the second quarter, compared to $4.2 billion at the close of the prior year's second quarter.
- Bitcoin holdings were valued at $528.6 million at the close of the second quarter.
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 earnings (loss) per share, adjusted EBITDA and free cash flow. The Company believes these non-GAAP financial measures provide useful information to investors in evaluating the Company’s core operating performance. Adjusted SG&A expenses, adjusted operating loss, adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA exclude the effect of items such as certain transformation costs, asset impairments, unrealized gain (loss) on digital assets, severance, as well as divestiture costs. Free cash flow excludes capital expenditures otherwise included in net cash flows provided by (used in) operating activities. The Company’s definition and calculation of non-GAAP financial measures may differ from that of other companies. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of terms such as "anticipates," "believes," "continues," "could," estimates," "expects," "intends," "may," "plans," potential," predicts," "pro forma," seeks," "should," "will" or similar expressions. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: economic, social, and political conditions in the markets in which we operate; the competitive nature of the Company’s industry; the cyclicality of the video game industry; the Company’s dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Company’s sales; interruptions to the Company’s supply chain or the supply chain of our suppliers; the Company’s dependence on sales during the holiday selling season; the Company’s ability to obtain favorable terms from its current and future suppliers and service providers; the Company’s ability to anticipate, identify and react to trends in pop culture with regard to its sales of collectibles; the Company’s ability to maintain strong retail and ecommerce experiences for its customers; the Company’s ability to keep pace with changing industry technology and consumer preferences; the Company’s ability to manage its profitability and cost reduction initiatives; changes in senior management or the Company’s ability to attract and retain qualified personnel; potential damage to the Company’s reputation or customers' perception of the Company; the Company’s ability, or the ability of the third parties with whom we work, to maintain the security of our information technology systems or data (including customer, associate or Company information); the Company's compliance with stringent and evolving laws and other obligations related to data privacy and security; occurrence of weather events, natural disasters, public health crises and other unexpected events; risks associated with inventory shrinkage; potential failure or inadequacy of the Company's computerized systems; the ability of the Company’s third party delivery services to deliver products to the Company’s retail locations, fulfillment centers and consumers and changes in the terms the Company has with such service providers; the ability and willingness of the Company’s vendors to provide marketing and merchandising support at historical or anticipated levels; restrictions on the Company’s ability to purchase and sell pre-owned products; the Company’s ability to renew or enter into new leases on favorable terms; unfavorable changes in the Company’s global tax rate; legislative actions; the Company’s ability to comply with federal, state, local and international laws and regulations and statutes; changes to tariff and import/export regulations; potential litigation and other legal proceedings; the value of the Company’s investment holdings; concentration of the Company’s investment portfolio into one or fewer holdings; the recognition of losses in a particular investment even if the Company has not sold the investment; potential variability in the Company's earnings due to our current and potential future holdings of equity securities or certain crypto-currencies, including our current holdings of Bitcoin; volatility in the Company’s stock price, including volatility due to potential short squeezes; continued high degrees of media coverage by third parties; the availability and future sales of substantial amounts of the Company’s Class A common stock; fluctuations in the Company’s results of operations from quarter to quarter; the Company’s ability to generate sufficient cash flow to fund its operations; the Company’s ability to incur additional debt; dilution to current stockholders caused by the conversion of the Company's convertible debt securities; risks associated with the Company’s investment in marketable, nonmarketable and interest-bearing securities, including the impact of such investments on the Company’s financial results; and the Company’s ability to maintain effective internal control over financial reporting. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found in GameStop's most recent Annual Report on Form 10-K and other filings made from time to time with the SEC and available at www.sec.gov or on the Company’s investor relations website (https://investor.gamestop.com). Forward-looking statements contained in this press release speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
GameStop Corp. Condensed Statements of Operations (in millions, except per share data) (unaudited) | ||||||||
|
|
13 Weeks Ended
|
|
13 Weeks Ended
| ||||
Net sales |
| $ | 972.2 |
|
| $ | 798.3 |
|
Cost of sales |
|
| 689.1 |
|
|
| 549.5 |
|
Gross profit |
|
| 283.1 |
|
|
| 248.8 |
|
Selling, general and administrative expenses |
|
| 218.8 |
|
|
| 270.8 |
|
Asset Impairments |
|
| (2.1 | ) |
|
| — |
|
Operating income (loss) |
|
| 66.4 |
|
|
| (22.0 | ) |
Interest income, net |
|
| (79.6 | ) |
|
| (39.5 | ) |
Unrealized gain on digital assets |
|
| (28.6 | ) |
|
| — |
|
Income before income taxes |
|
| 174.6 |
|
|
| 17.5 |
|
Income tax expense |
|
| 6.0 |
|
|
| 2.7 |
|
Net income |
| $ | 168.6 |
|
| $ | 14.8 |
|
|
|
|
|
| ||||
Net income per share: |
|
|
|
| ||||
Basic Income per share |
| $ | 0.38 |
|
| $ | 0.04 |
|
Diluted income per share |
| $ | 0.31 |
|
| $ | 0.04 |
|
|
|
|
|
| ||||
Weighted-average common shares outstanding: |
|
|
|
| ||||
Basic |
|
| 447.4 |
|
|
| 386.4 |
|
Diluted |
|
| 546.5 |
|
|
| 387.2 |
|
|
|
|
|
| ||||
Percentage of Net Sales: |
|
|
|
| ||||
|
|
|
|
| ||||
Net sales |
|
| 100.0 | % |
|
| 100.0 | % |
Cost of sales |
|
| 70.9 |
|
|
| 68.8 |
|
Gross profit |
|
| 29.1 |
|
|
| 31.2 |
|
Selling, general and administrative expenses |
|
| 22.5 |
|
|
| 33.9 |
|
Asset Impairments |
|
| (0.2 | ) |
|
| — |
|
Operating income (loss) |
|
| 6.8 |
|
|
| (2.8 | ) |
Interest income, net |
|
| (8.2 | ) |
|
| (4.9 | ) |
Unrealized gain on digital assets |
|
| (2.9 | ) |
|
| — |
|
Income before income taxes |
|
| 18.0 |
|
|
| 2.2 |
|
Income tax expense |
|
| 0.6 |
|
|
| 0.3 |
|
Net income |
|
| 17.3 | % |
|
| 1.9 | % |
|
|
26 Weeks Ended
|
|
26 Weeks Ended
| ||||
Net sales |
| $ | 1,704.6 |
|
| $ | 1,680.1 |
|
Cost of sales |
|
| 1,168.7 |
|
|
| 1,186.8 |
|
Gross profit |
|
| 535.9 |
|
|
| 493.3 |
|
Selling, general and administrative expenses |
|
| 446.9 |
|
|
| 565.9 |
|
Asset Impairments |
|
| 33.4 |
|
|
| — |
|
Operating income (loss) |
|
| 55.6 |
|
|
| (72.6 | ) |
Interest income, net |
|
| (136.5 | ) |
|
| (54.4 | ) |
Unrealized gain on digital assets |
|
| (28.6 | ) |
|
| — |
|
Other income, net |
|
| (2.2 | ) |
|
| — |
|
Income (loss) before income taxes |
|
| 222.9 |
|
|
| (18.2 | ) |
Income tax expense (benefit) |
|
| 9.5 |
|
|
| (0.7 | ) |
Net income (loss) |
| $ | 213.4 |
|
| $ | (17.5 | ) |
|
|
|
|
| ||||
Net income (loss) per share: |
|
|
|
| ||||
Basic Income (loss) per share |
| $ | 0.48 |
|
| $ | (0.05 | ) |
Diluted income (loss) per share |
| $ | 0.42 |
|
| $ | (0.05 | ) |
|
|
|
|
| ||||
Weighted-average common shares outstanding: |
|
|
|
| ||||
Basic |
|
| 447.3 |
|
|
| 346.2 |
|
Diluted |
|
| 506.2 |
|
|
| 346.2 |
|
|
|
|
|
| ||||
Percentage of Net Sales: |
|
|
|
| ||||
|
|
|
|
| ||||
Net sales |
|
| 100.0 | % |
|
| 100.0 | % |
Cost of sales |
|
| 68.6 |
|
|
| 70.6 |
|
Gross profit |
|
| 31.4 |
|
|
| 29.4 |
|
Selling, general and administrative expenses |
|
| 26.2 |
|
|
| 33.7 |
|
Asset Impairments |
|
| 2.0 |
|
|
| — |
|
Operating income (loss) |
|
| 3.3 |
|
|
| (4.3 | ) |
Interest income, net |
|
| (8.0 | ) |
|
| (3.2 | ) |
Unrealized gain on digital assets |
|
| (1.7 | ) |
|
| — |
|
Other income, net |
|
| (0.1 | ) |
|
| — |
|
Income (loss) before income taxes |
|
| 13.1 |
|
|
| (1.1 | ) |
Income tax expense (benefit) |
|
| 0.6 |
|
|
| — |
|
Net income (loss) |
|
| 12.5 | % |
|
| (1.0 | )% |
|
|
|
|
| ||||
GameStop Corp. Condensed Statements of Operations by Segment (in millions, except per share data) (unaudited) | ||||||||||||||||||||
|
|
United
|
| Canada |
| Australia |
| Europe |
| Total | ||||||||||
As of and for the three months ended August 2, 2025 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 724.6 |
| $ | — |
| $ | 140.9 |
| $ | 106.7 |
|
| $ | 972.2 |
| |||
Cost of sales |
|
| 509.3 |
|
| — |
|
| 99.1 |
|
| 80.7 |
|
|
| 689.1 |
| |||
Gross Profit |
|
| 215.3 |
|
| — |
|
| 41.8 |
|
| 26.0 |
|
|
| 283.1 |
| |||
Selling, general and administrative expenses: |
|
| 151.6 |
|
| — |
|
| 35.8 |
|
| 31.4 |
|
|
| 218.8 |
| |||
Store related |
|
| 129.2 |
|
| — |
|
| 28.6 |
|
| 26.8 |
|
|
| 184.6 |
| |||
Other |
|
| 22.4 |
|
| — |
|
| 7.2 |
|
| 4.6 |
|
|
| 34.2 |
| |||
Asset impairments |
|
| — |
|
| — |
|
| — |
|
| (2.1 | ) |
|
| (2.1 | ) | |||
Operating income (loss) |
|
| 63.7 |
|
| — |
|
| 6.0 |
|
| (3.3 | ) |
|
| 66.4 |
| |||
Interest income, net |
|
|
|
|
|
|
|
|
|
| (79.6 | ) | ||||||||
Unrealized gain on digital assets |
|
|
|
|
|
|
|
|
|
| (28.6 | ) | ||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
| 174.6 |
| ||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
| 6.0 |
| ||||||||
Net income |
|
|
|
|
|
|
|
|
|
| 168.6 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Property and equipment, net(1) |
|
| 35.8 |
|
| — |
|
| 16.5 |
|
| — |
|
|
| 52.3 |
| |||
Capital expenditures |
|
| 2.6 |
|
| — |
|
| 1.5 |
|
| — |
|
|
| 4.1 |
| |||
|
|
United
|
| Canada |
| Australia |
| Europe |
| Total | ||||||||||
As of and for the three months ended August 3, 2024 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 545.6 |
|
| $ | 37.7 |
|
| $ | 87.8 |
|
| $ | 127.2 |
|
| $ | 798.3 |
|
Cost of sales |
|
| 371.5 |
|
|
| 27.5 |
|
|
| 59.5 |
|
|
| 91.0 |
|
|
| 549.5 |
|
Gross Profit |
|
| 174.1 |
|
|
| 10.2 |
|
|
| 28.3 |
|
|
| 36.2 |
|
|
| 248.8 |
|
Selling, general and administrative expenses: |
|
| 175.6 |
|
|
| 14.4 |
|
|
| 34.2 |
|
|
| 46.6 |
|
|
| 270.8 |
|
Store related |
|
| 152.7 |
|
|
| 11.6 |
|
|
| 28.1 |
|
|
| 43.6 |
|
|
| 236.0 |
|
Other |
|
| 22.9 |
|
|
| 2.8 |
|
|
| 6.1 |
|
|
| 3.0 |
|
|
| 34.8 |
|
Operating loss |
|
| (1.5 | ) |
|
| (4.2 | ) |
|
| (5.9 | ) |
|
| (10.4 | ) |
|
| (22.0 | ) |
Interest income, net |
|
|
|
|
|
|
|
|
|
| (39.5 | ) | ||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
| 17.5 |
| ||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
| 2.7 |
| ||||||||
Net income |
|
|
|
|
|
|
|
|
|
| 14.8 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Property and equipment, net |
|
| 42.5 |
|
|
| 2.0 |
|
|
| 18.5 |
|
|
| 15.9 |
|
|
| 78.9 |
|
Capital expenditures |
|
| 1.7 |
|
|
| 0.2 |
|
|
| 0.7 |
|
|
| 0.5 |
|
|
| 3.1 |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
United
|
| Canada |
| Australia |
| Europe |
| Total | ||||||||||
As of and for the six months ended August 2, 2025 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 1,262.1 |
| $ | 38.2 |
|
| $ | 222.8 |
| $ | 181.5 |
|
| $ | 1,704.6 |
| ||
Cost of sales |
|
| 852.9 |
|
| 28.2 |
|
|
| 154.1 |
|
| 133.5 |
|
|
| 1,168.7 |
| ||
Gross Profit |
|
| 409.2 |
|
| 10.0 |
|
|
| 68.7 |
|
| 48.0 |
|
|
| 535.9 |
| ||
Selling, general and administrative expenses: |
|
| 311.9 |
|
| 13.9 |
|
|
| 68.1 |
|
| 53.0 |
|
|
| 446.9 |
| ||
Store related |
|
| 260.8 |
|
| 11.3 |
|
|
| 55.2 |
|
| 49.2 |
|
|
| 376.5 |
| ||
Other |
|
| 51.1 |
|
| 2.6 |
|
|
| 12.9 |
|
| 3.8 |
|
|
| 70.4 |
| ||
Asset impairments |
|
| — |
|
| 18.3 |
|
|
| — |
|
| 15.1 |
|
|
| 33.4 |
| ||
Operating income (loss) |
|
| 97.3 |
|
| (22.2 | ) |
|
| 0.6 |
|
| (20.1 | ) |
|
| 55.6 |
| ||
Interest income, net |
|
|
|
|
|
|
|
|
|
| (136.5 | ) | ||||||||
Unrealized gain on digital assets |
|
|
|
|
|
|
|
|
|
| (28.6 | ) | ||||||||
Other income, net |
|
|
|
|
|
|
|
|
|
| (2.2 | ) | ||||||||
Income before income taxes |
|
|
|
|
|
|
|
|
|
| 222.9 |
| ||||||||
Income tax expense |
|
|
|
|
|
|
|
|
|
| 9.5 |
| ||||||||
Net income |
|
|
|
|
|
|
|
|
|
| 213.4 |
| ||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Property and equipment, net(1) |
|
| 35.8 |
|
| — |
|
|
| 16.5 |
|
| — |
|
|
| 52.3 |
| ||
Capital expenditures |
|
| 3.8 |
|
| 0.1 |
|
|
| 2.5 |
|
| 0.6 |
|
|
| 7.0 |
| ||
(1) Property and equipment, net for France (Europe) is classified in Assets held for sale on our Condensed Consolidated Balance Sheets. |
|
|
United
|
| Canada |
| Australia |
| Europe |
| Total | ||||||||||
As of and for the six months ended August 3, 2024 |
|
|
|
|
|
|
|
|
|
| ||||||||||
Net sales |
| $ | 1,162.9 |
|
| $ | 80.3 |
|
| $ | 167.4 |
|
| $ | 269.5 |
|
| $ | 1,680.1 |
|
Cost of sales |
|
| 820.0 |
|
|
| 59.1 |
|
|
| 112.9 |
|
|
| 194.8 |
|
|
| 1,186.8 |
|
Gross Profit |
|
| 342.9 |
|
|
| 21.2 |
|
|
| 54.5 |
|
|
| 74.7 |
|
|
| 493.3 |
|
Selling, general and administrative expenses: |
|
| 369.8 |
|
|
| 29.8 |
|
|
| 68.5 |
|
|
| 97.8 |
|
|
| 565.9 |
|
Store related |
|
| 320.9 |
|
|
| 23.5 |
|
|
| 56.4 |
|
|
| 88.0 |
|
|
| 488.8 |
|
Other |
|
| 48.9 |
|
|
| 6.3 |
|
|
| 12.1 |
|
|
| 9.8 |
|
|
| 77.1 |
|
Operating loss |
|
| (26.9 | ) |
|
| (8.6 | ) |
|
| (14.0 | ) |
|
| (23.1 | ) |
|
| (72.6 | ) |
Interest income, net |
|
|
|
|
|
|
|
|
|
| (54.4 | ) | ||||||||
Loss before income taxes |
|
|
|
|
|
|
|
|
|
| (18.2 | ) | ||||||||
Income tax benefit |
|
|
|
|
|
|
|
|
|
| (0.7 | ) | ||||||||
Net loss |
|
|
|
|
|
|
|
|
|
| (17.5 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Property and equipment, net |
|
| 42.5 |
|
|
| 2.0 |
|
|
| 18.5 |
|
|
| 15.9 |
|
|
| 78.9 |
|
Capital expenditures |
|
| 4.2 |
|
|
| 0.9 |
|
|
| 1.9 |
|
|
| 1.0 |
|
|
| 8.0 |
|
GameStop Corp. Condensed Consolidated Balance Sheets (in millions) (unaudited) | ||||||
|
| August 2, 2025 |
| August 3, 2024 | ||
ASSETS: | ||||||
Current assets: |
|
|
|
| ||
Cash and cash equivalents |
| $ | 8,694.4 |
| $ | 4,193.1 |
Marketable securities |
|
| — |
|
| 11.1 |
Receivables, net of allowance of $0.9 and $4.4, respectively |
|
| 45.5 |
|
| 59.7 |
Merchandise inventories, net |
|
| 484.9 |
|
| 560.0 |
Prepaid expenses and other current assets |
|
| 36.6 |
|
| 60.0 |
Assets held for sale |
|
| 177.0 |
|
| 2.1 |
Total current assets |
|
| 9,438.4 |
|
| 4,886.0 |
Property and equipment, net of accumulated depreciation of $567.2 and $846.0, respectively |
|
| 52.3 |
|
| 78.9 |
Digital assets |
|
| 528.6 |
|
| — |
Operating lease right-of-use assets |
|
| 249.9 |
|
| 490.9 |
Deferred income taxes |
|
| 18.8 |
|
| 17.5 |
Other noncurrent assets |
|
| 53.1 |
|
| 63.0 |
Total assets |
| $ | 10,341.1 |
| $ | 5,536.3 |
|
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||
Current liabilities: |
|
|
|
| ||
Accounts payable |
| $ | 292.9 |
| $ | 220.5 |
Accrued liabilities and other current liabilities |
|
| 283.8 |
|
| 377.8 |
Current portion of operating lease liabilities |
|
| 101.5 |
|
| 174.2 |
Current portion of long-term debt |
|
| — |
|
| 11.0 |
Liabilities held for sale |
|
| 151.7 |
|
| — |
Total current liabilities |
|
| 829.9 |
|
| 783.5 |
Long-term debt, net |
|
| 4,160.9 |
|
| 12.4 |
Operating lease liabilities |
|
| 155.5 |
|
| 335.9 |
Other long-term liabilities |
|
| 18.4 |
|
| 21.1 |
Total liabilities |
|
| 5,164.7 |
|
| 1,152.9 |
Total stockholders’ equity |
|
| 5,176.4 |
|
| 4,383.4 |
Total liabilities and stockholders’ equity |
| $ | 10,341.1 |
| $ | 5,536.3 |
|
|
|
|
| ||
GameStop Corp. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | ||||||||
|
|
13 Weeks Ended
|
|
13 Weeks Ended
| ||||
Cash flows from operating activities: |
|
|
|
| ||||
Net income |
| $ | 168.6 |
|
| $ | 14.8 |
|
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
|
| ||||
Depreciation and amortization |
|
| 4.7 |
|
|
| 7.6 |
|
Stock-based compensation expense, net |
|
| 6.3 |
|
|
| 5.4 |
|
Unrealized gain on digital assets |
|
| (28.6 | ) |
|
| — |
|
Loss (gain) on disposal of property and equipment, net |
|
| 0.9 |
|
|
| (2.6 | ) |
Asset impairments, net |
|
| (2.1 | ) |
|
| — |
|
Other, net |
|
| 3.0 |
|
|
| 1.1 |
|
Changes in operating assets and liabilities: |
|
|
|
| ||||
Receivables, net |
|
| (2.2 | ) |
|
| 0.5 |
|
Merchandise inventories, net |
|
| (72.1 | ) |
|
| 115.9 |
|
Prepaid expenses and other current assets |
|
| (0.8 | ) |
|
| (10.6 | ) |
Prepaid income taxes and income taxes payable |
|
| (8.8 | ) |
|
| 1.7 |
|
Accounts payable and accrued liabilities |
|
| 53.6 |
|
|
| (55.9 | ) |
Operating lease right-of-use assets and liabilities |
|
| (1.1 | ) |
|
| (0.6 | ) |
Changes in other long-term liabilities |
|
| (4.0 | ) |
|
| (8.7 | ) |
Net cash flows provided by operating activities |
|
| 117.4 |
|
|
| 68.6 |
|
Cash flows from investing activities: |
|
|
|
| ||||
Proceeds from the sale of property and equipment |
|
| — |
|
|
| 9.8 |
|
Purchases of marketable securities |
|
| (52.5 | ) |
|
| — |
|
Proceeds from maturities and sales of marketable securities |
|
| 41.4 |
|
|
| 72.0 |
|
Purchase of digital assets |
|
| (500.0 | ) |
|
| — |
|
Capital expenditures |
|
| (4.1 | ) |
|
| (3.1 | ) |
Proceeds from other divestitures, net of cash disposed |
|
| (5.6 | ) |
|
| — |
|
Other |
|
| (2.5 | ) |
|
| (0.3 | ) |
Net cash flows (used in) provided by investing activities |
|
| (523.3 | ) |
|
| 78.4 |
|
Cash flows from financing activities: |
|
|
|
| ||||
Proceeds from the issuance of convertible debt |
|
| 2,700.0 |
|
|
| — |
|
Debt issuance costs from convertible debt |
|
| (21.6 | ) |
|
| — |
|
Proceeds from the issuance of shares in at-the-market (ATM) offering |
|
| — |
|
|
| 3,070.4 |
|
Issuance costs from ATM offering |
|
| — |
|
|
| (14.7 | ) |
Repayments of debt |
|
| (3.1 | ) |
|
| (2.8 | ) |
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 financing activities |
|
| 2,675.3 |
|
|
| 3,052.9 |
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
| 0.1 |
|
|
| -0.4 |
|
Less: Net change in cash balance classified as assets held for sale |
|
| 40.3 |
|
|
| — |
|
Increase in cash, cash equivalents, and restricted cash |
|
| 2,309.8 |
|
|
| 3,199.5 |
|
Cash, cash equivalents and restricted cash at beginning of period |
|
| 6,424.1 |
|
|
| 1,017.5 |
|
Cash, cash equivalents and restricted cash at end of period |
| $ | 8,733.9 |
|
| $ | 4,217.0 |
|
|
|
|
|
| ||||
GameStop Corp. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) | ||||||||
|
|
26 Weeks Ended
|
|
26 Weeks Ended
| ||||
Cash flows from operating activities: |
|
|
|
| ||||
Net income (loss) |
| $ | 213.4 |
|
| $ | (17.5 | ) |
Adjustments to reconcile net income (loss) to net cash flows from operating activities: |
|
|
|
| ||||
Depreciation and amortization |
|
| 10.3 |
|
|
| 24.4 |
|
Stock-based compensation expense, net |
|
| 11.8 |
|
|
| 6.0 |
|
Unrealized gain on digital assets |
|
| (28.6 | ) |
|
| — |
|
Gain on disposal of property and equipment, net |
|
| (0.6 | ) |
|
| (2.3 | ) |
Asset impairments, net |
|
| 33.4 |
|
|
| — |
|
Other, net |
|
| 2.6 |
|
|
| 0.5 |
|
Changes in operating assets and liabilities: |
|
|
|
| ||||
Receivables, net |
|
| 9.8 |
|
|
| 33.9 |
|
Merchandise inventories, net |
|
| (82.2 | ) |
|
| 72.7 |
|
Prepaid expenses and other current assets |
|
| 5.9 |
|
|
| (2.1 | ) |
Prepaid income taxes and income taxes payable |
|
| (10.4 | ) |
|
| (3.4 | ) |
Accounts payable and accrued liabilities |
|
| 163.9 |
|
|
| (143.7 | ) |
Operating lease right-of-use assets and liabilities |
|
| (1.7 | ) |
|
| 0.5 |
|
Changes in other long-term liabilities |
|
| (17.7 | ) |
|
| (10.2 | ) |
Net cash flows provided by (used in) operating activities |
|
| 309.9 |
|
|
| (41.2 | ) |
Cash flows from investing activities: |
|
|
|
| ||||
Proceeds from the sale of property and equipment |
|
| — |
|
|
| 9.8 |
|
Purchases of marketable securities |
|
| (67.2 | ) |
|
| (7.5 | ) |
Proceeds from maturities and sales of marketable securities |
|
| 64.0 |
|
|
| 273.9 |
|
Purchase of digital assets |
|
| (500.0 | ) |
|
| — |
|
Capital expenditures |
|
| (7.0 | ) |
|
| (8.0 | ) |
Proceeds from other divestitures, net of cash disposed |
|
| (3.4 | ) |
|
| — |
|
Other |
|
| (2.4 | ) |
|
| — |
|
Net cash flows (used in) provided by investing activities |
|
| (516.0 | ) |
|
| 268.2 |
|
Cash flows from financing activities: |
|
|
|
| ||||
Proceeds from the issuance of convertible debt |
|
| 4,200.0 |
|
|
| — |
|
Debt issuance costs from convertible debt |
|
| (40.9 | ) |
|
| — |
|
Proceeds from the issuance of shares in at-the-market (ATM) offering |
|
| — |
|
|
| 3,070.4 |
|
Issuance costs from ATM offering |
|
| — |
|
|
| (14.7 | ) |
Repayments of debt |
|
| (5.8 | ) |
|
| (5.5 | ) |
Proceeds from equity awards directly withheld from employees for tax purposes |
|
| 4.6 |
|
|
| 4.4 |
|
Payments to tax authorities for equity awards directly withheld from employees |
|
| (4.6 | ) |
|
| (4.4 | ) |
Net cash flows provided by financing activities |
|
| 4,153.3 |
|
|
| 3,050.2 |
|
Exchange rate effect on cash, cash equivalents and restricted cash |
|
| 6.0 |
|
|
| 0.9 |
|
Less: Net change in cash balance classified as assets held for sale |
|
| (9.1 | ) |
|
| — |
|
Increase in cash, cash equivalents, and restricted cash |
|
| 3,944.1 |
|
|
| 3,278.1 |
|
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 |
| $ | 8,733.9 |
|
| $ | 4,217.0 |
|
|
|
|
|
| ||||
Schedule I Sales Mix (in millions) (unaudited) | ||||||||||||
|
| 13 Weeks Ended August 2, 2025 |
| 13 Weeks Ended August 3, 2024 | ||||||||
|
|
| ||||||||||
|
| Net |
| Percent |
| Net |
| Percent | ||||
Net Sales: |
| Sales |
| of Total |
| Sales |
| of Total | ||||
Hardware and accessories (1) |
| $ | 592.1 |
| 60.9 | % |
| $ | 451.2 |
| 56.5 | % |
Software (2) |
|
| 152.5 |
| 15.7 | % |
|
| 207.7 |
| 26.0 | % |
Collectibles (3) |
|
| 227.6 |
| 23.4 | % |
|
| 139.4 |
| 17.5 | % |
Total |
| $ | 972.2 |
| 100.0 | % |
| $ | 798.3 |
| 100.0 | % |
|
|
|
|
|
|
|
|
| ||||
|
| 26 Weeks Ended August 2, 2025 |
| 26 Weeks Ended August 3, 2024 | ||||||||
|
|
| ||||||||||
|
| Net |
| Percent |
| Net |
| Percent | ||||
Net Sales: |
| Sales |
| of Total |
| Sales |
| of Total | ||||
Hardware and accessories (1) |
| $ | 937.4 |
| 55.0 | % |
| $ | 956.5 |
| 57.0 | % |
Software (2) |
|
| 328.1 |
| 19.2 | % |
|
| 447.4 |
| 26.6 | % |
Collectibles (3) |
|
| 439.1 |
| 25.8 | % |
|
| 276.2 |
| 16.4 | % |
Total |
| $ | 1,704.6 |
| 100.0 | % |
| $ | 1,680.1 |
| 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.
Schedule II
(in millions, except per share data)
(unaudited)
Non-GAAP results
The following tables reconcile the Company's selling, general and administrative expenses (“SG&A expense”), operating income (loss), net income (loss) and net income (loss) per share as presented in its unaudited consolidated statements of operations and prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to its adjusted SG&A expense, adjusted operating income (loss), adjusted net income (loss), adjusted EBITDA and adjusted net income (loss) per share.
Contacts
GameStop Investor Relations
817-424-2001
ir@gamestop.com
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