GameStop(GME) - 2025 Q4 - Annual Results

Financial Performance - Net sales for Q4 2024 were $1.283 billion, a decrease of 28.5% compared to $1.794 billion in Q4 2023[6] - Net income for Q4 2024 was $131.3 million, compared to $63.1 million in Q4 2023, representing a 108.5% increase[6] - For fiscal year 2024, net sales totaled $3.823 billion, a decline of 27.5% from $5.273 billion in fiscal year 2023[6] - Net income for fiscal year 2024 was $131.3 million, significantly higher than $6.7 million in fiscal year 2023[6] - Net income for the 13 weeks ended February 1, 2025, was $131.3 million, compared to $63.1 million for the 14 weeks ended February 3, 2024, representing a 108% increase[16] - Total net sales for the 13 weeks ended February 1, 2025, were $1,282.6 million, down from $1,793.6 million for the 14 weeks ended February 3, 2024, a decrease of 28.4%[20] - Adjusted net income for the 52 weeks ended February 1, 2025, was $131.2 million, compared to $17.4 million for the 53 weeks ended February 3, 2024, a significant increase[24] Expenses and Costs - SG&A expenses for Q4 2024 were $282.5 million, down 21.4% from $359.2 million in Q4 2023[6] - SG&A expenses for fiscal year 2024 were $1.130 billion, down 14.6% from $1.324 billion in fiscal year 2023[6] - Adjusted EBITDA for fiscal year 2024 was $36.1 million, down from $64.7 million in fiscal year 2023[6] - Adjusted EBITDA for the 13 weeks ended February 1, 2025, was $96.5 million, up from $88.0 million for the 14 weeks ended February 2, 2024, indicating a growth of approximately 6%[26] - Capital expenditures for the 13 weeks ended February 1, 2025, were $3.5 million, down from $7.7 million for the 14 weeks ended February 3, 2024[31] - Transformation costs for the 13 weeks ended February 1, 2025, amounted to $3.5 million, compared to $0.3 million for the 14 weeks ended February 2, 2024[26] - Asset impairments for the 13 weeks ended February 1, 2025, were $1.1 million, down from $4.8 million for the 14 weeks ended February 2, 2024[27] Cash Flow and Liquidity - Cash, cash equivalents, and marketable securities at the end of Q4 2024 were $4.775 billion[6] - Total cash, cash equivalents, and restricted cash at the end of the period was $4,789.8 million, up from $938.9 million at the beginning of the period[18] - Cash flows provided by operating activities for the 13 weeks ended February 1, 2025, were $162.3 million, compared to $(11.0) million for the prior year[16] - Free cash flow for the 13 weeks ended February 1, 2025, was $158.8 million, a substantial improvement from a negative $18.7 million for the 14 weeks ended February 3, 2024[31] - Net cash flows provided by operating activities for the 13 weeks ended February 1, 2025, were $162.3 million, compared to a negative $11.0 million for the 14 weeks ended February 3, 2024[31] Inventory and Sales Mix - Merchandise inventories increased by $293.1 million in the 13 weeks ended February 1, 2025, compared to a decrease of $397.0 million in the prior year[16] - The sales mix for hardware and accessories accounted for 56.6% of total net sales in the 13 weeks ended February 1, 2025, down from 61.0% in the prior year[20] Share Issuance - Proceeds from the issuance of shares in at-the-market offerings for the 52 weeks ended February 1, 2025, amounted to $3,453.8 million[24] Interest and Depreciation - Interest income, net for the 13 weeks ended February 1, 2025, was $(54.8) million, compared to $(15.3) million for the 14 weeks ended February 2, 2024, reflecting an increase in interest expenses[26] - Depreciation and amortization for the 13 weeks ended February 1, 2025, was $6.0 million, down from $18.6 million for the 14 weeks ended February 2, 2024[26] Divestitures - The company completed the divestiture of its operations in Italy and the wind-down of store operations in Germany[6] Importance of Free Cash Flow - The company emphasizes that free cash flow is a critical measure for evaluating financial performance, highlighting its importance to investors[30]