GameStop (NYSE: $GME) is a major American retailer, primarily known for gaming consoles, video games, and gambling merchandise. It also operates stores internationally in Australia, Canada, and Europe. On Tuesday, March 25, 2025, GameStop released its Q4 results after markets closed. Here is a deep dive into those results.
GameStop Q4 Results
For the fourth quarter of fiscal 2024, GameStop reported revenue of $1.28 billion, a 28% YoY decline and below estimates of $1.48 billion. An adjusted EPS of $0.29, compared to $0.21 the previous year, and above estimates of $0.08.
Q4 net income came in at $131.3 million compared to $63.1 million last year, while the adjusted EBITDA came in at $96.5 million compared to $88 million last year. SG&A expenses in Q4 were $282.5 million compared to $359.2 million last year.
GameStop ended Q4 with $4.78 billion in cash and cash equivalent. It also revealed it had completed its divestiture from Italy and the wind down of store operations in Germany.
It reported an operating margin of 6.2% for Q4, compared to 3.1% last year, while free cash flow improved to $158.8 million, up from a negative of $18.7 million last year. The gross profit margin improved to 28.3% compared to 23.4% last year.
Full-Year Highlights
Full-year revenue dipped 27.5% YoY to $3.82 billion from $5.27 billion last year. SG&A expenses came in at $1.13 billion, compared to $1.32 billion last year. GameStop reported a full-year net income of $131.3 million compared to a net income of $6.7 million last year. The company ended the fiscal year with an adjusted EBITDA of $36.1 million, compared to $64.7 million last year.
It reported a positive free cash flow of $129.6 million at the end of the year compared to a negative of $238.6 million last year.
GameStop To Add Bitcoin To Its Cash Reserves
On Tuesday, GameStop’s board announced it had unanimously agreed to add Bitcoin to its reserves. In its SEC filing, GameStop stated there was no limit on how much Bitcoin it may acquire. As of the end of the fourth quarter, GameStop had $4.8 billion in cash reserves, a major boost from the $921 million reported last year.
GameStop Market Performance
Despite the revenue miss, GME shares soared 12.60% on Wednesday, March 26, 2025, to $28.60 per share as of 9:53 AM EDT. The stock is down 7.91% YTD and up 86.19% in the past 12 months.
One analyst gives GameStop shares a moderate sell rating. According to the analyst, the average price target for GME is $10.00, which is 64.44% downside from the most recent price.
Is GME A Buy In 2025?
GameStop (GME) is largely considered a meme stock whose performance is not tied to current or future performance. The stock came into the limelight thanks to hype by retail traders on Reddit. Since then, its stock price has continued to soar, often driven by major announcements.
Despite being a meme stock, management has worked to improve its financial position, and it now holds respectable cash reserves of nearly $5 billion. The recent announcement that it could potentially invest all its cash reserves into Bitcoin has sent the stock flying. While there is potential for major gains with a meme stock, it is important to approach such an investment with caution.
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