GameStop Surprises with a Robust 22% Revenue Increase to $972M
GameStop Corp. delivered a surprising turnaround in its second quarter results, reporting revenue of $972.2 million, representing a robust 21.8% year-over-year increase that significantly beat analyst estimates of $823.2 million.
The video game retailer’s earnings per share of $0.25 surpassed consensus estimates by 61.3%, marking a dramatic improvement from previous quarters. The strong performance was driven by renewed consumer demand for gaming hardware and collectibles, particularly following the successful launch of the Nintendo Switch 2 in June.
GameStop achieved positive operating margins of 6.8%, a remarkable turnaround from negative 3.6% in the same quarter last year, indicating successful cost management and operational efficiency gains.
The company’s adjusted EBITDA reached $75.7 million with a 7.8% margin, representing an impressive 521% year-over-year growth. Free cash flow margin also strengthened to 11.7%, compared to 8.2% in the prior year period.
Despite historical challenges with sales declining 11.2% annually over the past six years, this quarter’s performance suggests potential stabilization in GameStop’s business model. Shares responded positively, closing at $23.59 on September 9, with pre-market trading showing additional gains of over 8%.
Source: GameStop Discloses Second Quarter 2025 Results