PART I — FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents the company's unaudited condensed consolidated financial statements and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's assets, liabilities, and stockholders' equity at specific points in time Balance Sheet Summary | Metric | August 2, 2025 (millions) | August 3, 2024 (millions) | February 1, 2025 (millions) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Cash and cash equivalents | $8,694.4 | $4,193.1 | $4,756.9 | | Merchandise inventories, net | $484.9 | $560.0 | $480.2 | | Assets held for sale | $177.0 | $2.1 | — | | Digital assets | $528.6 | — | — | | Total assets | $10,341.1 | $5,536.3 | $5,875.4 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Total current liabilities | $829.9 | $783.5 | $665.4 | | Long-term debt | $4,160.9 | $12.4 | $6.6 | | Total liabilities | $5,164.7 | $1,152.9 | $945.6 | | Total stockholders' equity | $5,176.4 | $4,383.4 | $4,929.8 | | Total liabilities and stockholders' equity | $10,341.1 | $5,536.3 | $5,875.4 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income or loss over specific periods Operating Results | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $972.2 | $798.3 | $1,704.6 | $1,680.1 | | Gross profit | $283.1 | $248.8 | $535.9 | $493.3 | | Operating income (loss) | $66.4 | $(22.0) | $55.6 | $(72.6) | | Interest income, net | $(79.6) | $(39.5) | $(136.5) | $(54.4) | | Unrealized gain on digital assets | $(28.6) | — | $(28.6) | — | | Income (loss) before income taxes | $174.6 | $17.5 | $222.9 | $(18.2) | | Net income (loss) | $168.6 | $14.8 | $213.4 | $(17.5) | | Basic EPS | $0.38 | $0.04 | $0.48 | $(0.05) | | Diluted EPS | $0.31 | $0.04 | $0.42 | $(0.05) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Reports net income alongside other comprehensive income items like foreign currency adjustments Comprehensive Income (Loss) | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $168.6 | $14.8 | $213.4 | $(17.5) | | Foreign currency translation adjustment | $14.1 | $0.1 | $21.4 | $0.4 | | Net change in unrealized gain on available-for-sale securities | — | — | — | $0.2 | | Total comprehensive income (loss) | $182.7 | $14.9 | $234.8 | $(16.9) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines cash movements from operating, investing, and financing activities over specific periods Cash Flow Summary | Cash Flow Activity | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | | Net cash flows provided by (used in) operating activities | $309.9 | $(41.2) | | Net cash flows (used in) provided by investing activities | $(516.0) | $268.2 | | Net cash flows provided by financing activities | $4,153.3 | $3,050.2 | | Increase in cash, cash equivalents and restricted cash | $3,944.1 | $3,278.1 | | Cash, cash equivalents and restricted cash at end of period | $8,733.9 | $4,217.0 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Shows changes in the company's equity accounts, including stock issuance and retained earnings Stockholders' Equity Changes | Metric | February 1, 2025 (millions) | August 2, 2025 (millions) | February 3, 2024 (millions) | August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Class A Common Stock (Shares) | 447.0 | 447.6 | 305.7 | 426.5 | | Class A Common Stock (Amount) | $0.2 | $0.2 | $0.1 | $0.2 | | Additional Paid-in Capital | $5,105.1 | $5,116.9 | $1,634.9 | $4,696.5 | | Accumulated Other Comprehensive Loss | $(94.0) | $(72.6) | $(83.6) | $(83.0) | | Retained Earnings (Loss) | $(81.5) | $131.9 | $(212.8) | $(230.3) | | Total Stockholders' Equity | $4,929.8 | $5,176.4 | $1,338.6 | $4,383.4 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=8&type=section&id=1.%20General%20Information) Outlines the company's business, operational structure, and the seasonal nature of its sales - GameStop Corp is a Delaware corporation established in 1996, operating as a leading specialty retailer of games and entertainment products through stores and e-commerce platforms[20](index=20&type=chunk) - Effective May 4, 2025, the Company operates in three geographic segments: United States, Australia, and Europe, following the **divestiture of Canadian operations in Q2 fiscal 2025**[21](index=21&type=chunk) - The business is seasonal, with the **majority of net sales occurring in the fourth quarter**, which includes the holiday selling season[23](index=23&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Details key accounting policies, including a new investment policy and the treatment of digital assets - The Board of Directors authorized a **revised investment policy** on March 18, 2025, delegating authority to an Investment Committee to manage the Company's securities portfolio[30](index=30&type=chunk) - On March 25, 2025, **Bitcoin was approved as a treasury reserve asset**, allowing a portion of cash or future debt/equity issuances to be invested in Bitcoin, classified as Digital assets and recorded at fair value[31](index=31&type=chunk) - During Q1 fiscal 2025, management approved plans to **divest operations in Canada and France**, reclassifying related assets and liabilities as held for sale and recording impairment expenses[34](index=34&type=chunk)[36](index=36&type=chunk) - The Company adopted ASU No 2023-08 for crypto assets on a modified retrospective basis effective February 2, 2025, requiring **digital assets to be measured at fair value** with gains/losses reported in the statement of operations[38](index=38&type=chunk) - During Q2 fiscal 2025, the Company **purchased 4,710 Bitcoin for $500 million**, recognizing an unrealized gain of **$28.6 million** as of August 2, 2025[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [3. Revenue](index=11&type=section&id=3.%20Revenue) Breaks down net sales by product category and details remaining performance obligations Net Sales by Product Category | Product Category | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Hardware and accessories | $592.1 | $451.2 | $937.4 | $956.5 | | Software | $152.5 | $207.7 | $328.1 | $447.4 | | Collectibles | $227.6 | $139.4 | $439.1 | $276.2 | | Total net sales | $972.2 | $798.3 | $1,704.6 | $1,680.1 | - The Company recognizes revenue over time for extended warranties and the GameStop Pro rewards program, with unredeemed customer liabilities generally redeemed within one year[47](index=47&type=chunk) Remaining Performance Obligations | Performance Obligation | August 2, 2025 (millions) | August 3, 2024 (millions) | | :--- | :--- | :--- | | Unredeemed customer liabilities | $113.4 | $140.2 | | Extended warranties | $48.0 | $59.9 | | Subscriptions | $41.9 | $48.1 | | Total performance obligations | $203.3 | $248.2 | [4. Fair Value Measurements](index=12&type=section&id=4.%20Fair%20Value%20Measurements) Categorizes assets and liabilities measured at fair value on recurring and nonrecurring bases - Assets and liabilities measured at fair value on a recurring basis include cash equivalents, marketable securities, digital assets, and foreign currency contracts, categorized into Level 1 and Level 2[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) Fair Value of Assets and Liabilities | Asset/Liability | Fair Value (August 2, 2025, millions) | Fair Value (August 3, 2024, millions) | Fair Value (February 1, 2025, millions) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Time deposits (Level 1) | $23.2 | $11.1 | $18.0 | | Digital assets (Level 1) | $528.6 | — | — | | Company-owned life insurance (Level 2) | $0.1 | $0.2 | $0.1 | | Total assets | $551.9 | $11.3 | $18.1 | | **Liabilities** | | | | | Nonqualified deferred compensation (Level 2) | $0.1 | $0.1 | $0.1 | | Total liabilities | $0.1 | $0.1 | $0.1 | - Assets measured at fair value on a nonrecurring basis primarily include property and equipment, operating lease ROU assets, and other intangible assets[62](index=62&type=chunk) [5. Debt](index=15&type=section&id=5.%20Debt) Details the company's outstanding debt, including significant new convertible senior notes Outstanding Debt Summary | Debt Type | August 2, 2025 (millions) | August 3, 2024 (millions) | February 1, 2025 (millions) | | :--- | :--- | :--- | :--- | | Total outstanding debt | $4,160.9 | $23.4 | $16.9 | | Current portion of short-term debt | $0.0 | $11.0 | $10.3 | | Debt related to French disposal group (held for sale) | $13.2 | — | — | - On April 1, 2025, the Company completed a private offering of **$1,500 million** aggregate principal amount of 0.00% Convertible Senior Notes due 2030[67](index=67&type=chunk)[69](index=69&type=chunk) - On June 17, 2025, the Company completed a private offering of **$2,250 million** aggregate principal amount of 0.00% Convertible Senior Notes due 2032[74](index=74&type=chunk)[76](index=76&type=chunk) - Both series of Convertible Notes are **general unsecured obligations**, do not bear regular interest, and mature in 2030 and 2032, respectively[68](index=68&type=chunk)[75](index=75&type=chunk) [6. Commitments and Contingencies](index=17&type=section&id=6.%20Commitments%20and%20Contingencies) Discloses outstanding letters of credit and the status of legal proceedings - As of August 2, 2025, the Company had approximately **$8.7 million in outstanding stand-by letters of credit** and other bank guarantees[81](index=81&type=chunk) - The Company is subject to various legal proceedings but does not believe any will **materially affect its financial condition**, results of operations, or liquidity[82](index=82&type=chunk) [7. Earnings Per Share](index=17&type=section&id=7.%20Earnings%20Per%20Share) Provides the calculation for basic and diluted earnings per share, including dilutive securities - Basic EPS is calculated by dividing net income by weighted-average common shares outstanding, while diluted EPS includes potentially dilutive securities[83](index=83&type=chunk) Weighted-Average Shares Calculation | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Weighted-average common shares outstanding | 447.4 | 386.4 | 447.3 | 346.2 | | Dilutive effect of stock-based awards | 0.6 | 0.8 | 0.6 | — | | Dilutive effect of Convertible Notes | 98.5 | — | 58.3 | — | | Weighted-average diluted common shares | 546.5 | 387.2 | 506.2 | 346.2 | [8. Segment Information](index=18&type=section&id=8.%20Segment%20Information) Presents financial performance data for the company's geographic operating segments - Effective May 4, 2025, GameStop operates in three geographic segments: **United States, Australia, and Europe**, following the divestiture of Canadian operations[86](index=86&type=chunk) Segment Performance (Three Months Ended August 2, 2025) | Segment (Three Months Ended August 2, 2025) | Net Sales (millions) | Gross Profit (millions) | Operating Income (Loss) (millions) | | :--- | :--- | :--- | :--- | | United States | $724.6 | $215.3 | $63.7 | | Canada | — | — | — | | Australia | $140.9 | $41.8 | $6.0 | | Europe | $106.7 | $26.0 | $(3.3) | | Total | $972.2 | $283.1 | $66.4 | Segment Performance (Six Months Ended August 2, 2025) | Segment (Six Months Ended August 2, 2025) | Net Sales (millions) | Gross Profit (millions) | Operating Income (Loss) (millions) | | :--- | :--- | :--- | :--- | | United States | $1,262.1 | $409.2 | $97.3 | | Canada | $38.2 | $10.0 | $(22.2) | | Australia | $222.8 | $68.7 | $0.6 | | Europe | $181.5 | $48.0 | $(20.1) | | Total | $1,704.6 | $535.9 | $55.6 | [9. Assets Held for Sale](index=20&type=section&id=9.%20Assets%20Held%20for%20Sale) Details assets and liabilities related to the planned divestiture of operations in France - Management approved a plan to **divest operations in France** during Q1 2025, reclassifying related assets and liabilities as held for sale[95](index=95&type=chunk) French Disposal Group (August 2, 2025) | French Disposal Group (August 2, 2025, millions) | Amount | | :--- | :--- | | Total assets held for sale (net) | $177.0 | | Total liabilities held for sale | $151.7 | - An impairment loss of **$17.2 million** was recognized in Q1 fiscal 2025 for the French disposal group, followed by a **$2.1 million asset impairment reversal** in Q2 fiscal 2025[95](index=95&type=chunk) [10. Income Taxes](index=21&type=section&id=10.%20Income%20Taxes) Reports the company's income tax expense and effective tax rate for the reporting periods Income Tax Summary | Period | Income Tax Expense (millions) | Effective Income Tax Rate | | :--- | :--- | :--- | | Three Months Ended August 2, 2025 | $6.0 | 3.4% | | Three Months Ended August 3, 2024 | $2.7 | 15.4% | | Six Months Ended August 2, 2025 | $9.5 | 4.3% | | Six Months Ended August 3, 2024 | $(0.7) | 3.8% | - The effective income tax rates were primarily influenced by forecasted income taxes in certain jurisdictions and the impact of the Company's valuation allowance[98](index=98&type=chunk)[99](index=99&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) is **not expected to have a material effect** on the estimated fiscal 2025 effective tax rate[100](index=100&type=chunk) [11. Subsequent Events](index=21&type=section&id=11.%20Subsequent%20Events) Announces a warrant dividend distribution to common stockholders declared after the reporting period - On September 9, 2025, the Board declared a **warrant dividend distribution** to common stockholders, with holders receiving one warrant for every ten shares[101](index=101&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=22&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Provides management's perspective on financial performance, business priorities, liquidity, and capital resources [OVERVIEW](index=22&type=section&id=OVERVIEW) Describes the company's core business, geographic segments, and fiscal year structure - GameStop is a leading specialty retailer of games and entertainment products, operating in the United States, Australia, and Europe after **divesting Canadian operations** in Q2 fiscal 2025[103](index=103&type=chunk)[104](index=104&type=chunk) - The Company's fiscal year is 52 or 53 weeks, with the **majority of net sales occurring in the fourth quarter** due to the holiday selling season[105](index=105&type=chunk) [BUSINESS PRIORITIES](index=22&type=section&id=BUSINESS%20PRIORITIES) Outlines strategic goals including shareholder value maximization and retail business optimization - GameStop's strategy focuses on **maximizing shareholder value** through potential investments/acquisitions and optimizing its retail business for profitability[106](index=106&type=chunk) - The revised Investment Policy allows investments in cash, fixed income, equity securities, and certain cryptocurrencies like **Bitcoin**[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - Retail business objectives include achieving omnichannel excellence, cost containment, and **expanding the addressable market** through new product offerings[114](index=114&type=chunk)[115](index=115&type=chunk) - Ongoing efforts to achieve sustained profitability include **evaluating international assets**, divesting underperforming operations, and optimizing the store portfolio[112](index=112&type=chunk) [CONSOLIDATED RESULTS OF OPERATIONS](index=24&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Analyzes key changes in net sales, gross profit, and operating expenses over comparative periods Consolidated Operating Results Comparison | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $972.2 | $798.3 | $173.9 | 21.8% | | Gross profit | $283.1 | $248.8 | $34.3 | 13.8% | | Selling, general and administrative expenses | $218.8 | $270.8 | $(52.0) | (19.2)% | | Operating income (loss) | $66.4 | $(22.0) | $88.4 | (401.8)% | | Net income | $168.6 | $14.8 | $153.8 | NM | | **Metric** | **Six Months Ended August 2, 2025 (millions)** | **Six Months Ended August 3, 2024 (millions)** | **Change ($)** | **Change (%)** | | Net sales | $1,704.6 | $1,680.1 | $24.5 | 1.5% | | Gross profit | $535.9 | $493.3 | $42.6 | 8.6% | | Selling, general and administrative expenses | $446.9 | $565.9 | $(119.0) | (21.0)% | | Operating income (loss) | $55.6 | $(72.6) | $128.2 | 176.6% | | Net income (loss) | $213.4 | $(17.5) | $230.9 | NM | - **Net sales increased by 21.8%** for the three months and 1.5% for the six months, driven by growth in hardware, accessories, and collectibles[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - **Gross profit margin improved to 31.4%** for the six months due to a shift towards higher-margin collectibles and pre-owned hardware/accessories[124](index=124&type=chunk)[125](index=125&type=chunk) - **SG&A expenses decreased significantly by 21.0%** (six months) due to cost reduction efforts, store closures, and international divestitures[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - The Company recognized a **$2.1 million asset impairment reversal** in Q2 2025 but a total asset impairment expense of **$33.4 million** for the six months[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - **Net interest income increased significantly** due to higher cash balances from recent equity and convertible debt issuances[133](index=133&type=chunk) - An **unrealized gain of $28.6 million on digital assets** was recognized following the purchase of 4,710 Bitcoin[134](index=134&type=chunk)[135](index=135&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=27&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Details the company's cash position, financing activities, and cash flow performance Liquidity Summary | Metric | August 2, 2025 (millions) | August 3, 2024 (millions) | February 1, 2025 (millions) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $8,694.4 | $4,193.1 | $4,756.9 | | Marketable securities | — | $11.1 | $18.0 | | Cash, cash equivalents and marketable securities | $8,694.4 | $4,204.2 | $4,774.9 | - The Company's primary liquidity sources are **cash on hand ($8,694.4 million)** and cash from operations[141](index=141&type=chunk) - Strategic operating alternatives, including divestitures and uses for excess cash like **Bitcoin investments**, are continuously evaluated[143](index=143&type=chunk)[145](index=145&type=chunk) - The Company completed multiple At-the-Market (ATM) equity offerings in fiscal 2024, raising aggregate gross proceeds of approximately **$3,470.4 million**[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - In April and June 2025, the Company completed private offerings of **$1,500 million and $2,250 million** of 0.00% Convertible Senior Notes[152](index=152&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) Cash Flow Activity Comparison | Cash Flow Activity | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | Change (millions) | | :--- | :--- | :--- | :--- | | Operating activities | $309.9 | $(41.2) | $351.1 | | Investing activities | $(516.0) | $268.2 | $(784.2) | | Financing activities | $4,153.3 | $3,050.2 | $1,103.1 | | Increase in cash, cash equivalents and restricted cash | $3,944.1 | $3,278.1 | $666.0 | - **Cash flows from operating activities significantly improved to $309.9 million** (provided) from $(41.2) million (used) in the prior year[157](index=157&type=chunk)[158](index=158&type=chunk) - **Cash flows used in investing activities increased to $(516.0) million**, primarily due to the **$500 million purchase of Bitcoin** in Q2 fiscal 2025[159](index=159&type=chunk) - **Cash flows from financing activities increased to $4,153.3 million**, mainly from the issuance of Convertible Notes[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=29&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) Confirms no material changes to critical accounting policies from the 2024 Annual Report - There have been **no material changes** to the Company's critical accounting policies from those disclosed in its 2024 Annual Report on Form 10-K[164](index=164&type=chunk) [OFF-BALANCE SHEET ARRANGEMENTS](index=30&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) States the company has no material off-balance sheet arrangements - As of August 2, 2025, the Company had **no material off-balance sheet arrangements**[165](index=165&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=30&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Confirms no material changes to market risk disclosures since the 2024 Annual Report - **No material changes** to quantitative and qualitative disclosures about market risk have occurred since the 2024 Annual Report on Form 10-K[166](index=166&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=30&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of disclosure controls and reports no changes in internal controls [Evaluation of Disclosure Controls and Procedures](index=30&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Asserts that disclosure controls and procedures were effective as of the end of the period - The Company's disclosure controls and procedures were **effective as of August 2, 2025**, providing reasonable assurance that required disclosures are appropriately reported[167](index=167&type=chunk) [Changes in Internal Control Over Financial Reporting](index=30&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports no material changes in internal control over financial reporting during the quarter - There were **no material changes** in internal control over financial reporting during the second quarter of fiscal 2025[168](index=168&type=chunk) PART II — OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=31&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Refers to disclosures on legal matters within the financial statement notes - Legal proceedings information is incorporated by reference from Note 6, 'Commitments and Contingencies - Legal Proceedings,' in Part I, Item 1 of this report[171](index=171&type=chunk) [ITEM 1A. RISK FACTORS](index=31&type=section&id=ITEM%201A.%20RISK%20FACTORS) Highlights new risks related to Bitcoin investments and substantial indebtedness from convertible notes [Risks Related to Our Investment Policy and Investment Portfolio](index=31&type=section&id=Risks%20Related%20to%20Our%20Investment%20Policy%20and%20Investment%20Portfolio) Details risks from Bitcoin investments, including price volatility, security, and regulatory uncertainty - Investment in Bitcoin exposes the Company to significant risks, including **price volatility, limited liquidity, and regulatory uncertainty**, which could adversely impact financial results[173](index=173&type=chunk) - Bitcoin holdings **do not pay interest**, and generating cash depends on selling Bitcoin or implementing income-generating strategies, which may not be successful[173](index=173&type=chunk) - **Security breaches, cyberattacks, or loss of private keys** could result in the loss of some or all Bitcoin holdings, materially affecting financial condition[173](index=173&type=chunk) [Risks Related to Our Outstanding Notes](index=31&type=section&id=Risks%20Related%20to%20Our%20Outstanding%20Notes) Discusses risks from substantial convertible note debt, including serviceability and potential dilution - The Company has incurred **substantial indebtedness ($4.2 billion in Convertible Notes)**, which may decrease business flexibility and limit access to capital[174](index=174&type=chunk) - The Convertible Notes are obligations of the Company only, and the **ability to service this debt depends on cash flow from subsidiaries**, which may be subject to restrictions[175](index=175&type=chunk)[176](index=176&type=chunk) - The Company **may not have sufficient cash flow to settle conversions** of Convertible Notes in cash or repurchase them, potentially leading to default[177](index=177&type=chunk)[179](index=179&type=chunk) - Conversion of Convertible Notes may **dilute existing stockholders' ownership interest** or depress the price of Class A common stock[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=33&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) States no unregistered sales of equity securities occurred during the period - **No unregistered sales** of equity securities or use of proceeds occurred during the period[184](index=184&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=33&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Indicates no defaults upon senior securities occurred during the period - **No defaults** upon senior securities occurred[185](index=185&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=33&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) States that mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable** to the Company[186](index=186&type=chunk) [ITEM 5. OTHER INFORMATION](index=33&type=section&id=ITEM%205.%20OTHER%20INFORMATION) Provides updates on outstanding shares, trading plans, tax law, and a warrant dividend [Outstanding Shares and Ownership](index=33&type=section&id=Outstanding%20Shares%20and%20Ownership) Reports the number of outstanding Class A common shares and their holder distribution - As of September 5, 2025, approximately **447.7 million shares of Class A common stock were outstanding**[187](index=187&type=chunk) [Security Trading Plans of Directors and Executive Officers](index=33&type=section&id=Security%20Trading%20Plans%20of%20Directors%20and%20Executive%20Officers) Confirms no directors or officers adopted or terminated Rule 10b5-1 trading plans - **None of the Company's directors or executive officers** adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter[188](index=188&type=chunk) [Recent Tax Law Changes](index=33&type=section&id=Recent%20Tax%20Law%20Changes) Notes the enactment of new tax legislation and its expected immaterial impact - The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, is **not expected to materially affect** the Company's estimated fiscal 2025 effective tax rate[189](index=189&type=chunk) [Recent Developments](index=33&type=section&id=Recent%20Developments) Announces a warrant dividend distribution for common stockholders and convertible note holders - On September 9, 2025, the Board declared a **warrant dividend distribution**, where common stockholders will receive one warrant for every ten shares[190](index=190&type=chunk)[191](index=191&type=chunk) - Holders of Convertible Notes will also receive warrants without conversion, and the warrants are expected to be listed on the NYSE under ticker symbol **GME WS**[191](index=191&type=chunk) [ITEM 6. EXHIBITS](index=35&type=section&id=ITEM%206.%20EXHIBITS) Lists all exhibits filed with the Form 10-Q, including key corporate and financing documents - The exhibits include the Certificate of Incorporation, Bylaws, Indentures for the 2030 and 2032 Convertible Senior Notes, and various certifications[192](index=192&type=chunk)

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive focuses on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

GameStop Corp. (NYSE:GME) traded higher in post-market trading on Tuesday after disclosing its Q2 earnings report and updating on its Bitcoin (BTC-USD) holdings. Revenue rose 21.8% year-over-year for the quarter that ended on August 3 to $972.2 million. Hardware and accessories sales accounted ...

[Second Quarter 2025 Results Overview](index=1&type=section&id=1.%20Second%20Quarter%202025%20Results%20Overview) [Key Financial Highlights](index=1&type=section&id=1.1.%20Key%20Financial%20Highlights) GameStop Corp reported Q2 fiscal 2025 results with significant improvements in net sales, operating income, and net income year-over-year, alongside a substantial increase in cash and digital asset holdings Key Financial Data for Q2 FY2025 | Metric | Q2 2025 (Millions $) | Q2 2024 (Millions $) | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Net Sales | 972.2 | 798.3 | +21.8% | | SG&A Expenses | 218.8 | 270.8 | -19.2% | | Operating Income (Loss) | 66.4 | (22.0) | N/A (Turned to profit from loss) | | Adjusted Operating Income (Loss) | 64.7 | (31.6) | N/A (Turned to profit from loss) | | Net Income | 168.6 | 14.8 | +1039.2% | | Adjusted Net Income | 138.3 | 5.2 | +2560.0% | | Cash, Cash Equivalents & Marketable Securities | 8,700.0 | 4,200.0 | +107.1% | | Bitcoin Holdings | 528.6 | N/A | N/A | [Non-GAAP Measures and Other Metrics](index=1&type=section&id=2.%20Non-GAAP%20Measures%20and%20Other%20Metrics) [Definition and Purpose](index=1&type=section&id=2.1.%20Definition%20and%20Purpose) GameStop utilizes non-GAAP metrics to offer additional insight into core operating performance by excluding specific items like transformation costs and asset impairments - GameStop uses non-GAAP measures (Adjusted SG&A, Operating Income/Loss, Net Income/Loss, EPS, Adjusted EBITDA, Free Cash Flow) to supplement GAAP results, providing insight into core operating performance by excluding items like transformation costs, asset impairments, unrealized gains/losses on digital assets, and severance[5](index=5&type=chunk)[28](index=28&type=chunk)[37](index=37&type=chunk) - Free cash flow, defined as net cash flow from operating activities less capital expenditures, is considered a key financial indicator of the company's ability to generate additional cash from its business operations[5](index=5&type=chunk)[35](index=35&type=chunk) [Limitations of Non-GAAP Measures](index=13&type=section&id=2.2.%20Limitations%20of%20Non-GAAP%20Measures) Non-GAAP measures have limitations as they exclude key financial components and may not be comparable to other companies' metrics - Non-GAAP measures have limitations, including not reflecting the company's capital costs and tax structure, cash requirements for capital expenditures or contractual commitments, changes in or cash requirements for working capital needs, and cash requirements for replacing depreciated and amortized assets[37](index=37&type=chunk)[39](index=39&type=chunk) - The company acknowledges its non-GAAP definitions may not be comparable to those of other companies in the industry and emphasizes these measures should not be considered in isolation or as a substitute for GAAP-reported results[38](index=38&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=3.%20Condensed%20Consolidated%20Financial%20Statements) [Condensed Statements of Operations](index=3&type=section&id=3.1.%20Condensed%20Statements%20of%20Operations) The statements detail revenue, costs, and profitability for the three and twenty-six-week periods, highlighting significant improvements in net sales and gross profit [Three Months Ended August 2, 2025 and August 3, 2024](index=3&type=section&id=3.1.1.%20Three%20Months%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) In Q2 2025, GameStop saw substantial net sales growth and a significant profitability turnaround, moving from an operating loss to positive operating income Condensed Statements of Operations (Three Months) | Metric | 13 Weeks Ended Aug 2, 2025 (Millions $) | 13 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net Sales | 972.2 | 798.3 | +21.8% | | Cost of Sales | 689.1 | 549.5 | +25.4% | | Gross Profit | 283.1 | 248.8 | +13.8% | | SG&A Expenses | 218.8 | 270.8 | -19.2% | | Operating Income (Loss) | 66.4 | (22.0) | N/A (Turned to profit from loss) | | Net Income | 168.6 | 14.8 | +1039.2% | | Basic Income per Share | 0.38 | 0.04 | +850.0% | | Diluted Income per Share | 0.31 | 0.04 | +675.0% | [Twenty-Six Weeks Ended August 2, 2025 and August 3, 2024](index=4&type=section&id=3.1.2.%20Twenty-Six%20Weeks%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) For the first half of fiscal 2025, GameStop achieved modest net sales growth and a significant improvement in overall profitability, turning a net loss into net income Condensed Statements of Operations (Twenty-Six Weeks) | Metric | 26 Weeks Ended Aug 2, 2025 (Millions $) | 26 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net Sales | 1,704.6 | 1,680.1 | +1.5% | | Cost of Sales | 1,168.7 | 1,186.8 | -1.5% | | Gross Profit | 535.9 | 493.3 | +8.6% | | SG&A Expenses | 446.9 | 565.9 | -21.0% | | Operating Income (Loss) | 55.6 | (72.6) | N/A (Turned to profit from loss) | | Net Income (Loss) | 213.4 | (17.5) | N/A (Turned to profit from loss) | | Basic Income (Loss) per Share | 0.48 | (0.05) | N/A (Turned to profit from loss) | | Diluted Income (Loss) per Share | 0.42 | (0.05) | N/A (Turned to profit from loss) | [Condensed Statements of Operations by Segment](index=5&type=section&id=3.2.%20Condensed%20Statements%20of%20Operations%20by%20Segment) This section details operating performance by geographic segment for the three and twenty-six-week periods, highlighting regional contributions to net sales and operating income [Three Months Ended August 2, 2025 and August 3, 2024](index=5&type=section&id=3.2.1.%20Three%20Months%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) In Q2 2025, the U.S. segment drove significant growth in net sales and operating income, while Australia also saw increases and Europe reported an operating loss Statements of Operations by Segment (Three Months) | Segment | Q2 2025 Net Sales (Millions $) | Q2 2024 Net Sales (Millions $) | YoY Change | Q2 2025 Operating Income (Loss) (Millions $) | Q2 2024 Operating Loss (Millions $) | | :-------- | :----------------------------- | :----------------------------- | :--------- | :------------------------------------------- | :---------------------------------- | | United States | 724.6 | 545.6 | +32.8% | 63.7 | (1.5) | | Canada | — | 37.7 | -100.0% | — | (4.2) | | Australia | 140.9 | 87.8 | +60.5% | 6.0 | (5.9) | | Europe | 106.7 | 127.2 | -16.2% | (3.3) | (10.4) | | Total | 972.2 | 798.3 | +21.8% | 66.4 | (22.0) | - The company divested its operations in Canada during the second quarter of fiscal 2025, resulting in no reported sales or operating income for the segment in Q2 2025[30](index=30&type=chunk)[32](index=32&type=chunk) [Twenty-Six Weeks Ended August 2, 2025 and August 3, 2024](index=6&type=section&id=3.2.2.%20Twenty-Six%20Weeks%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) In the first half of 2025, the U.S. segment showed strong net sales growth and a significant turnaround to operating income, while asset impairments were recorded for divestitures Statements of Operations by Segment (Twenty-Six Weeks) | Segment | YTD 2025 Net Sales (Millions $) | YTD 2024 Net Sales (Millions $) | YoY Change | YTD 2025 Operating Income (Loss) (Millions $) | YTD 2024 Operating Loss (Millions $) | | :-------- | :------------------------------ | :------------------------------ | :--------- | :-------------------------------------------- | :----------------------------------- | | United States | 1,262.1 | 1,162.9 | +8.5% | 97.3 | (26.9) | | Canada | 38.2 | 80.3 | -52.4% | (22.2) | (8.6) | | Australia | 222.8 | 167.4 | +33.1% | 0.6 | (14.0) | | Europe | 181.5 | 269.5 | -32.6% | (20.1) | (23.1) | | Total | 1,704.6 | 1,680.1 | +1.5% | 55.6 | (72.6) | - Asset impairments of **$33.4 million** were incurred due to plans to divest operations in Canada and France, with the Canadian divestiture completed in Q2 fiscal 2025[15](index=15&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Balance Sheets](index=7&type=section&id=3.3.%20Condensed%20Consolidated%20Balance%20Sheets) As of August 2, 2025, the balance sheet shows a substantial increase in total assets, driven by growth in cash and the introduction of digital assets Condensed Consolidated Balance Sheets | Metric | August 2, 2025 (Millions $) | August 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :--------- | | Total Assets | 10,341.1 | 5,536.3 | +86.8% | | Cash and Cash Equivalents | 8,694.4 | 4,193.1 | +107.4% | | Merchandise Inventories, net | 484.9 | 560.0 | -13.4% | | Digital Assets | 528.6 | — | N/A | | Total Liabilities | 5,164.7 | 1,152.9 | +348.0% | | Long-term Debt, net | 4,160.9 | 12.4 | +33455.6% | | Total Stockholders' Equity | 5,176.4 | 4,383.4 | +18.1% | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=3.4.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The statements show cash flows from operating, investing, and financing activities, highlighting significant cash inflows from financing and a large increase in cash [Three Months Ended August 2, 2025 and August 3, 2024](index=8&type=section&id=3.4.1.%20Three%20Months%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) In Q2 2025, operating cash flow increased, while investing activities saw a net outflow due to digital asset purchases, and financing activities provided significant inflows Condensed Consolidated Statements of Cash Flows (Three Months) | Metric | 13 Weeks Ended Aug 2, 2025 (Millions $) | 13 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net Cash Flows from Operating Activities | 117.4 | 68.6 | +71.1% | | Net Cash Flows (Used in) Provided by Investing Activities | (523.3) | 78.4 | N/A (Turned to outflow) | | Net Cash Flows Provided by Financing Activities | 2,675.3 | 3,052.9 | -12.4% | | Increase in Cash, Cash Equivalents, and Restricted Cash | 2,309.8 | 3,199.5 | -27.8% | | Cash, Cash Equivalents and Restricted Cash at End of Period | 8,733.9 | 4,217.0 | +107.1% | - Investing activities in Q2 2025 included **$500.0 million** in purchases of digital assets[20](index=20&type=chunk) - Financing activities in Q2 2025 included **$2,700.0 million** from the issuance of convertible debt, compared to $3,070.4 million from ATM offerings in Q2 2024[20](index=20&type=chunk) [Twenty-Six Weeks Ended August 2, 2025 and August 3, 2024](index=9&type=section&id=3.4.2.%20Twenty-Six%20Weeks%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) For the first half of 2025, operating cash flow improved significantly, turning from an outflow to an inflow, while financing activities provided substantial cash Condensed Consolidated Statements of Cash Flows (Twenty-Six Weeks) | Metric | 26 Weeks Ended Aug 2, 2025 (Millions $) | 26 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net Cash Flows from Operating Activities | 309.9 | (41.2) | N/A (Turned to inflow) | | Net Cash Flows (Used in) Provided by Investing Activities | (516.0) | 268.2 | N/A (Turned to outflow) | | Net Cash Flows Provided by Financing Activities | 4,153.3 | 3,050.2 | +36.2% | | Increase in Cash, Cash Equivalents, and Restricted Cash | 3,944.1 | 3,278.1 | +20.3% | | Cash, Cash Equivalents and Restricted Cash at End of Period | 8,733.9 | 4,217.0 | +107.1% | - Year-to-date investing activities included **$500.0 million** in purchases of digital assets[22](index=22&type=chunk) - Year-to-date financing activities included **$4,200.0 million** from the issuance of convertible debt[22](index=22&type=chunk) [Sales Mix Analysis (Schedule I)](index=10&type=section&id=4.%20Sales%20Mix%20Analysis%20(Schedule%20I)) [Three Months Ended August 2, 2025 and August 3, 2024](index=10&type=section&id=4.1.%20Three%20Months%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) In Q2 2025, the share of net sales from hardware & accessories and collectibles increased significantly, while software's contribution declined Sales Mix (Three Months) | Product Category | Q2 2025 Net Sales (Millions $) | Q2 2025 % of Total | Q2 2024 Net Sales (Millions $) | Q2 2024 % of Total | YoY Sales Change | | :----------------------- | :----------------------------- | :----------------- | :----------------------------- | :----------------- | :--------------- | | Hardware and accessories | 592.1 | 60.9% | 451.2 | 56.5% | +31.2% | | Software | 152.5 | 15.7% | 207.7 | 26.0% | -26.6% | | Collectibles | 227.6 | 23.4% | 139.4 | 17.5% | +63.3% | | Total | 972.2 | 100.0% | 798.3 | 100.0% | +21.8% | [Twenty-Six Weeks Ended August 2, 2025 and August 3, 2024](index=10&type=section&id=4.2.%20Twenty-Six%20Weeks%20Ended%20August%202%2C%202025%20and%20August%203%2C%202024) For the first half of 2025, the share of collectibles in total net sales grew substantially, while software's contribution decreased Sales Mix (Twenty-Six Weeks) | Product Category | YTD 2025 Net Sales (Millions $) | YTD 2025 % of Total | YTD 2024 Net Sales (Millions $) | YTD 2024 % of Total | YoY Sales Change | | :----------------------- | :------------------------------ | :------------------ | :------------------------------ | :------------------ | :--------------- | | Hardware and accessories | 937.4 | 55.0% | 956.5 | 57.0% | -2.0% | | Software | 328.1 | 19.2% | 447.4 | 26.6% | -26.7% | | Collectibles | 439.1 | 25.8% | 276.2 | 16.4% | +59.0% | | Total | 1,704.6 | 100.0% | 1,680.1 | 100.0% | +1.5% | [Non-GAAP Reconciliations (Schedule II & III)](index=11&type=section&id=5.%20Non-GAAP%20Reconciliations%20(Schedule%20II%20%26%20III)) [Adjusted SG&A, Operating Income, Net Income, and EPS](index=11&type=section&id=5.1.%20Adjusted%20SG%26A%2C%20Operating%20Income%2C%20Net%20Income%2C%20and%20EPS) Reconciliations show adjusted SG&A, operating income, net income, and EPS were significantly higher than GAAP figures after adjustments for specific items Adjusted SG&A, Operating Income, Net Income, and EPS | Metric | 13 Weeks Ended Aug 2, 2025 (Millions $) | 13 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | 26 Weeks Ended Aug 2, 2025 (Millions $) | 26 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | :-------------------------------------- | :-------------------------------------- | :--------- | | SG&A expense (GAAP) | 218.8 | 270.8 | -19.2% | 446.9 | 565.9 | -21.0% | | Adjusted SG&A expense | 218.4 | 280.4 | -22.1% | 443.7 | 579.8 | -23.4% | | Operating income (loss) (GAAP) | 66.4 | (22.0) | N/A | 55.6 | (72.6) | N/A | | Adjusted operating income (loss) | 64.7 | (31.6) | N/A | 92.2 | (86.5) | N/A | | Net Income (loss) (GAAP) | 168.6 | 14.8 | +1039.2% | 213.4 | (17.5) | N/A | | Adjusted net income (loss) | 138.3 | 5.2 | +2560.0% | 219.2 | (31.4) | N/A | | Adjusted Basic EPS | 0.31 | 0.01 | +3000.0% | 0.49 | (0.09) | N/A | | Adjusted Diluted EPS | 0.25 | 0.01 | +2400.0% | 0.43 | (0.09) | N/A | - Adjustments primarily include transformation costs, asset impairments related to the Canada and France divestitures, and unrealized gains on digital assets[29](index=29&type=chunk)[30](index=30&type=chunk) [Adjusted EBITDA](index=12&type=section&id=5.2.%20Adjusted%20EBITDA) Adjusted EBITDA for the three and twenty-six-week periods showed a significant positive turnaround compared to the prior year after various adjustments Adjusted EBITDA | Metric | 13 Weeks Ended Aug 2, 2025 (Millions $) | 13 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | 26 Weeks Ended Aug 2, 2025 (Millions $) | 26 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net income (loss) (GAAP) | 168.6 | 14.8 | +1039.2% | 213.4 | (17.5) | N/A | | EBITDA | 99.7 | (14.4) | N/A | 96.7 | (48.2) | N/A | | Adjusted EBITDA | 75.7 | (18.0) | N/A | 114.3 | (49.2) | N/A | - Adjustments to EBITDA include interest income, depreciation and amortization, income tax expense, stock-based compensation, transformation costs, divestitures, asset impairments, and unrealized gains on digital assets[31](index=31&type=chunk) [Free Cash Flow](index=13&type=section&id=5.3.%20Free%20Cash%20Flow) GameStop generated positive free cash flow for both the three and twenty-six-week periods, a significant improvement from the negative cash flow in the prior year Free Cash Flow | Metric | 13 Weeks Ended Aug 2, 2025 (Millions $) | 13 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | 26 Weeks Ended Aug 2, 2025 (Millions $) | 26 Weeks Ended Aug 3, 2024 (Millions $) | YoY Change | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | :--------- | :-------------------------------------- | :-------------------------------------- | :--------- | | Net cash flows provided by (used in) operating activities | 117.4 | 68.6 | +71.1% | 309.9 | (41.2) | N/A | | Capital expenditures | (4.1) | (3.1) | +32.3% | (7.0) | (8.0) | -12.5% | | Free cash flow | 113.3 | 65.5 | +73.0% | 302.9 | (49.2) | N/A | [Cautionary Statement Regarding Forward-Looking Statements](index=2&type=section&id=6.%20Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) [Cautionary Statement Regarding Forward-Looking Statements](index=2&type=section&id=6.1.%20Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) This section serves as a legal disclaimer, advising that forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ - This press release contains forward-looking statements, identifiable by words like "anticipates," "expects," or "will," which are subject to significant risks and uncertainties[7](index=7&type=chunk) - Actual developments, business decisions, results, and outcomes may differ materially due to factors such as economic conditions, industry competition, supply chain disruptions, technological advances, reliance on new products, and risks associated with investment holdings, including Bitcoin volatility[7](index=7&type=chunk) - The company undertakes no obligation to publicly update any forward-looking statements, except as may be required by applicable securities laws[7](index=7&type=chunk)

Group 1 - GameStop reported a nearly 22% rise in second-quarter revenue [1] - The company is intensifying efforts to revive its struggling business [1] - The revenue increase comes amid a challenging economic environment [1]

Market Overview - US stock futures indicate gains at the open, with NASDAQ set to reach a new all-time high [1][2] - Investors are awaiting key inflation readings and revised jobs data, which is expected to show slower job growth [1][6] - The NASDAQ closed at a record high, driven by strong performances from tech stocks like Broadcom and Nvidia [2][3] Company Highlights - Apple is set to unveil the iPhone 17, with expectations for a thinner design and new features, including updates to AirPods and Apple Watches [1][2] - Oracle will report earnings after the closing bell, following a 40% stock surge since June, with a focus on a significant cloud services deal potentially worth $30 billion annually [1][2][3] - GameStop is expected to report a 3% revenue growth, driven by hardware and accessories, amidst a challenging year for the stock [2][3] Economic Indicators - The Bureau of Labor Statistics will release revised jobs data, expected to show 600,000 to 900,000 fewer jobs created from April 2024 to March 2025 [6][7] - Current job creation numbers stand at 1.76 million for the prior 12 months, indicating a significant downward revision [7][8] - The revisions may influence Federal Reserve rate decisions and highlight the need for improved data collection methods [8][9] Technology Sector Insights - The tech sector is experiencing upward momentum, with a focus on the implications of upcoming earnings reports and economic data [2][3] - Analysts are observing a potential shift away from large-cap tech stocks as growth rates converge with other sectors [16][17] - The AI landscape remains competitive, with companies like Oracle and others expected to benefit from ongoing demand [19][20]

GameStop is slated to report second-quarter earnings after Tuesday's close, with investors focused on any comments about the company's bitcoin plans. ...

GameStop Corp GME is back in focus as it gears up to report second-quarter earnings after the market close on Tuesday. Wall Street is expecting the company to report an EPS of 16 cents on revenue of $823.25 million, but for many traders, the real action is on the chart, where GME looks primed for another bout of meme-fueled volatility.Track GME stock here.Chart created using Benzinga ProCharts Show Tight Range Before EarningsGameStop is trading around $22.61, hovering just below key moving averages: the eig ...

Group 1 - GameStop stock price has remained stable in recent months, trading at $22.6 on Friday [1] - Investors have been selling off Bitcoin holding companies, impacting market sentiment [1] - The business performance of GameStop continues to deteriorate [1]

Core Insights - GameStop is set to announce its earnings on September 9, 2025, with historical volatility observed in its stock price following earnings announcements [2][4] - The company has diversified its business model beyond traditional video game sales, now including physical and digital products, as well as cryptocurrency investments exceeding $500 million [3] Earnings Expectations - Analysts project earnings of $0.16 per share on revenue of $823 million, a significant increase from $0.01 per share on sales of $798 million in the same quarter last year [4] - GameStop's current market capitalization stands at $10 billion, with reported revenue of $3.7 billion, an operating profit of $59 million, and a net income of $208 million over the past twelve months [4] Historical Stock Performance - Over the past five years, GameStop's stock has shown an even distribution of positive and negative one-day returns, with a median positive return of 8.9% and a maximum gain of 35.2% on positive days [2][11] - Conversely, on negative days, the median return was -16.6%, with the largest decline reaching -39.4% [2][11] - The likelihood of positive one-day returns post-earnings is approximately 50%, increasing to 58% when considering the last three years [11] Trading Strategies - Event-driven traders can benefit from understanding historical trends, as actual outcomes relative to consensus estimates will significantly influence stock performance [3][7] - Pre-earnings positioning involves evaluating historical chances of achieving positive returns, while post-earnings positioning focuses on analyzing immediate and medium-term returns to guide trading decisions [7][8]