GameStop net sales rose 21.8% to $972.2 million in the second quarter of fiscal 2025; net income was $168.6 million

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

GameStop's net sales were $972.2 million in the second quarter, which ended Aug 2, 2025, up 21.8% from $798.3 million a year earlier. The first quarter, which ended May 3, 2025, had net sales of $732.4 million. The company reported the figures in its quarterly report, a Form 10-Q, filed on Sep 9, 2025. Operating income was $66.4 million, against an operating loss of $22 million a year earlier. Net income was $168.6 million, or $0.31 a share after dilution, against $14.8 million, or $0.04 a share. Below the operating line, net interest income was $79.6 million against $39.5 million, which the company tied to higher cash balances from share sales and convertible notes. The company also booked a $28.6 million unrealized gain on digital assets, which it tied to its purchase of 4,710 Bitcoin in the quarter for $500 million; it recorded them at fair value. Its own non-GAAP measure, adjusted net income, which leaves out that gain, impairment and other items, was $138.3 million against $5.2 million a year earlier.1^,2^,3^,4^,5^,6^,7^,8^,9^,10^,11^,12^,13^,14^,15^,16^,17^,18

Hardware and accessories sales rose 31.2% to $592.1 million and collectibles rose 63.3% to $227.6 million, while software fell 26.6% to $152.5 million. By region, the United States rose 32.8% to $724.6 million, while Europe fell 16.1% to $106.7 million, which the company put down to the sale of Italy and the closure of Germany in the second half of fiscal 2024. Gross profit as a share of net sales fell to 29.1% from 31.2%, mainly because hardware and accessories, a lower-margin category than collectibles, added more sales in dollars than collectibles did.19^,20^,21^,22^,23^,24^,25^,26^,27^,28^,29^,30^,31

Cash, cash equivalents and marketable securities stood at $8.7 billion at the close of the quarter, against $4.2 billion a year earlier. On Jun 17, 2025 the company completed a $2,250 million offering of 0.00% convertible senior notes due 2032, and said it intended to use the net proceeds for general purposes, including investments in line with its investment policy and potential acquisitions.32^,33^,34

In an 8-K, the form US companies use to report an event, filed the same day, GameStop announced a special dividend to be paid in warrants to holders of its common stock as of Oct 3, 2025: one warrant for every ten shares held. Each warrant would let its holder buy one share at $32.00 until Oct 30, 2026, and the company said it expected to distribute up to about 59 million warrants on or around Oct 7, 2025, holders of its convertible notes included. If exercised, the company said, the warrants would raise up to about $1.9 billion in gross proceeds. The company later said in an 8-K that the warrants had been distributed on Oct 7, 2025, to the record holders of its common stock and convertible notes as of Oct 3.35^,6^,36^,37^,38^,39^,40^,41^,42

Our records hold the text of this report's management discussion and analysis, not its notes to the financial statements or other exhibits. Our records also keep one value for each period, so they cannot tell whether the year-earlier figures were restated.43^,44