GameStop shares jump on Q4 earnings beat, move to add Bitcoin to balance sheet

Investing.com -- GameStop Corp . (NYSE: GME) shares jumped 6% in after-hours trading on Tuesday after the video game retailer reported fourth-quarter earnings that surpassed analysts’ estimates, despite a significant drop in revenue and announced that its board has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset.

The company posted adjusted earnings per share of $0.29 for the quarter ended February 1, 2025, beating the analyst consensus of $0.09 by $0.20. However, revenue fell sharply to $1.28 billion from $1.79 billion in the same quarter last year, missing expectations of $1.5 billion.

The company’s plan to add Bitcoin as a treasury asset comes after U.S. President Donald Trump signed an executive order earlier this month to create a strategic Bitcoin reserve.

GameStop’s net income for the quarter rose to $131.3 million, more than doubling from $63.1 million in the prior year period. The company attributed the improved profitability to cost-cutting measures and higher-margin sales.

The company’s hardware and accessories segment, which includes sales of gaming consoles and peripherals, saw the steepest decline, with revenue falling 33.7% YoY to $725.8 million. Software (ETR:SOWGn) sales dropped 38.5% to $286.2 million, while collectibles revenue grew 15.8% to $270.6 million.

For the full fiscal year 2024, GameStop reported net income of $131.3 million on revenue of $3.82 billion, compared to net income of $6.7 million on revenue of $5.27 billion in fiscal 2023.

The company ended the quarter with $4.77 billion in cash and marketable securities, up significantly from $1.2 billion a year ago, bolstered by proceeds from stock offerings.

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