GameStop disclosed in its Q1 2025 earnings report that overall revenues are down by 16.9% from Q1 2024. This update follows the video game retailer’s pivot into the crypto space by making investments in BTC, with a total purchase of 4,710 BTC.
Just a day after the results were announced, the company announced that it will offer $1.75 billion in convertible senior notes that will mature by 2032. Reports suggest that the proceeds will be used to add Bitcoin as a treasury reserve asset.
After-hours trading saw the stock price plummet over 5% on June 11 and continued its downward drag from the previous trading day, where it lost over 3% post its earnings.
Source: Google Finance
Net sales for the company were marked at $732.4 million, down from $881.8 million in the previous year’s first quarter. SGA (Selling, General, and Administrative) expenses were marked at $228.1 million, down from $295.1 million.
The company incurred an operating loss of $10.8 million for the quarter, with $35.5 million in impairment charges arising from international restructuring costs. Despite lower revenues, GameStop ended up with positive net income of $44.8 million, compared against the net loss it reported in Q1 2024 of $32.3 million.
GameStop’s cash, cash equivalents, and marketable securities shot up from $1 billion in Q1 2024 to $6.4 billion in Q1 2025.
The video-game retailer has seen worse times, incurring losses in net income of $381.3 million and $313.1 million in 2021 and 2022, respectively. This drop could be attributed to a shift in video game shoppers’ preferences, which became more digital. There were also events such as COVID-19, which limited foot traffic in its brick-and-mortar stores.
GameStop shut down hundreds of stores in 2024 and announced more store closures this year as the company now shifts its strategy to establishing an omnichannel retail presence, achieving profitability, and expanding its market, as per an SEC filing.
