GameStop Corp. (GME) Q3 2025 Financial Results Summary
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GameStop Corp. (GME) Q3 2025 Financial Results Summary
On December 9, 2025, GameStop Corp. (NYSE: GME) released its financial results for the third quarter ended November 1, 2025. Below is a summary of the key financial metrics from the report.
Third Quarter Overview
- Net Sales: $821.0 million
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Decrease: -4.6% compared to $860.3 million in Q3 2024.
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Cost of Sales: $547.6 million
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Decrease: -9.2% compared to $603.1 million in Q3 2024.
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Gross Profit: $273.4 million
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Increase: +6.7% compared to $257.2 million in Q3 2024.
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Selling, General and Administrative (SG&A) Expenses: $221.4 million
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Decrease: -21.5% compared to $282.0 million in Q3 2024.
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Operating Income: $41.3 million
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Increase: Data shifted from an operating loss of $33.4 million in Q3 2024.
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Adjusted Operating Income: $52.1 million
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Increase: Shifted from an adjusted operating loss of $24.6 million in Q3 2024.
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Net Income: $77.1 million
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Increase: +343.7% compared to $17.4 million in Q3 2024.
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Adjusted Net Income: $139.3 million
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Increase: +431.7% compared to $26.2 million in Q3 2024.
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Cash, Cash Equivalents and Marketable Securities: $8.8 billion
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Increase: +91.3% compared to $4.6 billion at the end of Q3 2024.
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Bitcoin Holdings: Valued at $519.4 million at the close of Q3 2025.
Key Financial Metrics
Non-GAAP Measures and Adjustments
- Adjusted SG&A Expenses:
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Reported at $221.4 million compared to $282.0 million; excludes transformation costs.
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Adjusted EBITDA:
- $64.4 million compared to an adjusted loss of $11.2 million in Q3 2024.
Per Share Metrics
- Basic Income per Share: $0.17
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Increase: +325% from $0.04 in Q3 2024.
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Diluted Income per Share: $0.13
- Increase: Data remained the same from $0.04 in Q3 2024.
Financial Position
- Total Assets: $10.6 billion
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Increase: +69.7% compared to $6.2 billion in Q3 2024.
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Total Liabilities: $5.2 billion
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Increase: +264.5% compared to $1.4 billion in Q3 2024.
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Total Stockholders’ Equity: $5.3 billion
- Increase: +10.4% from $4.8 billion a year prior.
Dividend Declaration and Share Repurchase
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Quarterly Dividend: No dividend declared during this quarter.
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Share Repurchase: No share repurchase program mentioned in the release.
Summary
In summary, GameStop reported substantial improvements in its financial position for Q3 2025 as indicated by increased net income, improved operating performance, and a significant boost in cash and cash equivalents compared to the same period in the previous year. Despite a decrease in net sales, the company successfully managed to lower its operating expenses, leading to a turnaround from operating losses to profitability. The significant growth in adjusted net income suggests a strengthening operational performance amidst a challenging market environment.
Condensed Statements of Operations
(in millions, except per share data)
| 13 Weeks Ended November 1, 2025 | 13 Weeks Ended November 2, 2024 | |
|---|---|---|
| Net sales | $821.0 | $860.3 |
| Cost of sales | $547.6 | $603.1 |
| Gross profit | $273.4 | $257.2 |
| Selling, general and administrative expenses | $221.4 | $282.0 |
| Asset Impairments | $10.7 | $8.6 |
| Operating income (loss) | $41.3 | -$33.4 |
| Interest income, net | -$49.0 | -$54.2 |
| Unrealized loss (gain) on digital assets | $9.2 | — |
| Other income, net | -$3.0 | — |
| Income before income taxes | $84.1 | $20.8 |
| Income tax expense | $7.0 | $3.4 |
| Net income | $77.1 | $17.4 |
| Basic Income per share | $0.17 | $0.04 |
| Diluted income per share | $0.13 | $0.04 |
| Basic | 447.7 | 437.4 |
| Diluted | 591.7 | 437.9 |
| Net sales | 100.0% | 100.0% |
| Cost of sales | 66.7% | 70.1% |
| Gross profit | 33.3% | 29.9% |
| Selling, general and administrative expenses | 27.0% | 32.8% |
| Asset Impairments | 1.3% | 1.0% |
| Operating income (loss) | 5.0% | -3.9% |
| Interest income, net | -6.0% | -6.3% |
| Unrealized gain on digital assets | 1.1% | — |
| Other income, net | -0.4% | — |
| Income before income taxes | 10.2% | 2.4% |
| Income tax expense | 0.9% | 0.4% |
| Net income | 9.4% | 2.0% |
Condensed Consolidated Balance Sheets
(in millions)
| November 1, 2025 | November 2, 2024 | |
|---|---|---|
| Cash and cash equivalents | $7,842.7 | $4,583.4 |
| Marketable securities | $986.9 | $32.8 |
| Receivables, net of allowance of $0.9 and $3.8, respectively | $54.5 | $57.5 |
| Merchandise inventories, net | $575.5 | $830.2 |
| Prepaid expenses and other current assets | $34.6 | $119.4 |
| Assets held for sale | $194.1 | — |
| Total current assets | $9,688.3 | $5,623.3 |
| Property and equipment, net of accumulated depreciation of $565.1 and $768.9, respectively | $51.2 | $70.5 |
| Digital assets | $519.4 | — |
| Operating lease right-of-use assets | $218.7 | $425.3 |
| Deferred income taxes | $18.9 | $17.7 |
| Other noncurrent assets | $54.2 | $103.4 |
| Total assets | $10,550.7 | $6,240.2 |
| Accounts payable | $380.4 | $494.1 |
| Accrued liabilities and other current liabilities | $277.2 | $437.0 |
| Current portion of operating lease liabilities | $94.3 | $157.6 |
| Current portion of long-term debt | — | $10.9 |
| Liabilities held for sale | $180.5 | — |
| Total current liabilities | $932.4 | $1,099.6 |
| Long-term debt, net | $4,162.6 | $9.6 |
| Operating lease liabilities | $134.6 | $285.4 |
| Other long-term liabilities | $18.1 | $41.1 |
| Total liabilities | $5,247.7 | $1,435.7 |
| Total stockholders’ equity | $5,303.0 | $4,804.5 |
| Total liabilities and stockholders’ equity | $10,550.7 | $6,240.2 |