GameStop (NYSE:GME) shares jumped 8% in premarket trading Wednesday after the video game retailer exceeded Wall Street expectations for the second quarter, posting higher revenues and returning to profitability, driven by strong demand for hardware and collectibles.
The company reported earnings of 25 cents per share, surpassing analysts’ consensus estimate of 16 cents.
Revenue climbed to $972.2 million, up from $798.3 million in the same period last year, exceeding forecasts of $823.3 million. Operating income reached $66.4 million, a notable rebound from a $22 million loss a year ago, as selling, general, and administrative expenses dropped to $218.8 million from $270.8 million.
Net income jumped to $168.6 million from $14.8 million last year. Adjusted for one-off items, net income soared to $138.3 million, up dramatically from $5.2 million in Q2 2024.
Once a dominant force in physical retail, GameStop has been shifting toward digital channels to compete with online platforms like Amazon. Partnerships with game publishers allow the company to offer exclusive titles and merchandise—such as a collectors edition of Borderlands 4—to attract customers both in stores and online.
Collectibles continue to drive growth, with second-quarter sales up 63%. Hardware and accessories also performed strongly, rising 31% to $592.1 million, supported by the Nintendo Switch 2 launch and an active pipeline of new game releases that boosted demand for consoles like PlayStation 5 and Xbox Series X/S.
GameStop ended the quarter with $8.7 billion in cash, cash equivalents, and marketable securities, compared with $4.2 billion a year earlier. Its Bitcoin holdings were valued at $528.6 million at the quarter’s close.
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