GameStop Reports 14% Revenue Decline in Q4 2025, Bitcoin Holdings Drop to $368 Million

GameStop (NYSE: GME) reported fourth-quarter 2025 net sales of $1.104 billion on March 24, 2026, a 14% decrease from $1.283 billion in the same period a year earlier, while net income fell to $127.9 million from $131.3 million, as the videogame retailer continued to face pressure from the industry’s shift to digital downloads and weaker consumer demand.

The company’s bitcoin holdings were valued at $368.4 million at quarter end, down from $519.4 million at the close of the third quarter, reflecting a decline in the cryptocurrency’s market price. GameStop’s cash, cash equivalents, and marketable securities rose to $9.0 billion from $4.8 billion a year earlier.

For the full fiscal year ended January 31, 2026, net sales totaled $3.630 billion, down from $3.823 billion in fiscal 2024, while net income increased to $418.4 million from $131.3 million, driven largely by cost reductions.

Fourth Quarter Financial Results

Revenue and Profit

Net sales for the quarter ended January 31, 2026, were $1.104 billion, compared with $1.283 billion in the prior-year quarter. Hardware and accessories sales, which include new and pre-owned video games, fell to $535.6 million from $725.8 million a year earlier. Collectibles revenue continued to grow, now representing approximately one-third of total sales, up from 21% a year prior.

Selling, general, and administrative (SG&A) expenses decreased to $241.5 million from $282.5 million in the prior-year quarter. Operating income was $135.2 million, compared with $79.8 million a year earlier.

Net income was $127.9 million, or $0.22 per share, compared with $131.3 million, or $0.29 per share, in the prior-year quarter. Excluding impairment, loss on digital assets and related receivables, and other items, adjusted net income was $291.4 million, compared with $136.4 million a year earlier.

Bitcoin and Cash Position

GameStop’s bitcoin holdings were valued at $368.4 million at the close of the fourth quarter, down from $519.4 million at the end of the third quarter. The company first disclosed its bitcoin treasury strategy in the third quarter of fiscal 2025 after purchasing approximately 4,710 BTC.

Cash, cash equivalents, and marketable securities totaled $9.0 billion at quarter end, up from $4.8 billion a year earlier.

Full Year Fiscal 2025 Results

Annual net sales were $3.630 billion for the year ended January 31, 2026, compared with $3.823 billion in fiscal 2024. SG&A expenses fell to $910.2 million from $1.130 billion a year earlier. Operating income was $232.1 million, compared with an operating loss of $26.2 million in fiscal 2024. Net income was $418.4 million, compared with $131.3 million in the prior year.

Strategic Context

Shift to Collectibles and Cost Discipline

Under CEO Ryan Cohen, GameStop has shifted its strategy from reliance on hardware and software to a greater focus on trading cards and collectibles, while emphasizing cost reduction and operational streamlining. The company has reduced its store footprint and closed underperforming locations in recent years.

CEO Compensation Proposal

GameStop shareholders are expected to vote in March or April 2026 on a performance-based pay plan for Cohen that would grant him options to purchase over 171.5 million GameStop shares, with potential value tied to increases in the company’s market capitalization and profitability.

French Operations

GameStop disclosed in a filing that it has signed an agreement related to a potential sale of its operations in France.

Frequently Asked Questions

How did GameStop perform in the fourth quarter of fiscal 2025?

GameStop reported net sales of $1.104 billion, a 14% decline from the prior year, and net income of $127.9 million, down from $131.3 million. Hardware and accessories sales fell significantly, while collectibles revenue continued to grow, now accounting for about one-third of total sales.

What is the value of GameStop’s bitcoin holdings?

GameStop’s bitcoin holdings were valued at $368.4 million at the close of the fourth quarter, down from $519.4 million at the end of the third quarter, primarily due to a decline in bitcoin’s market price. The company first disclosed its bitcoin treasury strategy in fiscal 2025.

What is GameStop’s current cash position?

GameStop held $9.0 billion in cash, cash equivalents, and marketable securities at the end of the fourth quarter, up from $4.8 billion a year earlier. The company has accumulated substantial cash reserves through cost reductions and asset sales while pursuing strategic alternatives.