GameStop (NYSE:GME) slipped in premarket trading on Wednesday after the videogame retailer delivered quarterly results that disappointed analysts.
The company has been attempting to modernize its business by strengthening its digital presence, reflecting a broader industry shift toward online purchases over traditional in-store sales. While GameStop has expanded its e-commerce offerings with exclusive editions and collectibles, it continues to face steep competition from major online players such as Amazon.
Its stock has also remained volatile in the years following its brief rise to meme-stock fame during the retail trading frenzy of 2021.
For the third quarter, GameStop reported earnings of $0.13 per share, missing the consensus estimate of $0.18. Revenue declined to $821 million from $860.3 million a year earlier, falling short of expectations of $893.64 million.
The company did succeed in significantly reducing operating expenses, trimming them to $221.4 million from $282 million. It also returned to an operating profit of $41.3 million, compared to a loss of $33.4 million in the prior year period. Adjusted operating income totaled $52.1 million.
GameStop ended the quarter with $8.8 billion in cash, equivalents, and marketable securities — nearly double the $4.6 billion it held a year earlier. Its Bitcoin holdings were valued at $519.4 million at period end.
Net income climbed to $77.1 million from $17.4 million last year, while adjusted net income surged to $139.3 million from $26.2 million over the same period.