GameStop (GME) Q3 2025 earnings summary

Executive summary

• Net sales for Q3 2025 were $821.0 million, down 4.6% year-over-year, while net income rose to $77.1 million from $17.4 million, driven by higher gross margins and lower SG&A expenses.

• Operating income reached $41.3 million, reversing a prior year operating loss of $33.4 million.

• The company divested its Canadian operations and is in the process of selling its French business, reflecting a continued focus on optimizing its international footprint.

• A revised investment policy was adopted, allowing investment in Bitcoin as a treasury reserve asset; 4,710 Bitcoin were purchased for $500 million during the second quarter.

• Cash, cash equivalents, and marketable securities totaled $8.8 billion at quarter end, with Bitcoin holdings valued at $519.4 million.

Financial highlights

• Gross profit margin improved to 33.3% from 29.9% year-over-year, with gross profit for the quarter at $273.4 million.

• SG&A expenses decreased to $221.4 million from $282.0 million year-over-year, reflecting cost containment and store closures.

• Adjusted EBITDA for the quarter was $64.4 million, up from $8.6 million year-over-year.

• Free cash flow for the quarter was $107.0 million, up from $20.0 million year-over-year.

• Net income for the nine months ended November 1, 2025, was $290.5 million, compared to a net loss in the prior year period.

Outlook and guidance

• The company anticipates further store closures in fiscal 2025 as part of ongoing portfolio optimization.

• Management continues to focus on cost containment and margin accretive opportunities, particularly in collectibles and new product categories.

• Forward-looking statements highlight risks from industry cyclicality, supply chain, consumer trends, and technology shifts.