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GameStop Posts Profit Beat but Revenue Falls Short in Q3, Shares Drop After Hours

The report highlights stronger profitability alongside a sizable top-line miss versus Wall Street forecasts.

Overview

  • Revenue came in at $821 million versus the $987.3 million consensus, down 4.5% from a year earlier.
  • Adjusted earnings were $0.24 per share, topping the $0.20 estimate, as operating income reached $41.3 million versus a year-ago loss.
  • Category results showed hardware and accessories at $367.4 million and software at $197.5 million, both lower year over year, while collectibles rose to $256.1 million from $171.1 million.
  • GameStop ended the quarter with approximately $8.8 billion in cash, cash equivalents and marketable securities, and $519.4 million in Bitcoin holdings.
  • The company did not hold an earnings call, and shares fell about 5.7% after hours as options pricing had implied roughly a 9.5% post-report move.