The major video game retailer posted a strong second-year revenue figures, with a 22% increase compared to the same period last year.
GameStop (GME) shares surged in after-hours trading after it reported an impressive 22% rise in second-quarter revenue. The strong quarterly results, released on Tuesday, beat analyst forecasts and led to a 7% rise in its stock price.
The US video game retailer revealed that revenue climbed to $972.2 million, above the $823.2 million expected figure. It is also higher than the $732.4 million revenue it posted for the quarter ending 3 May 2025. Market capitalisation reached $10.55 billion, supported by optimism around cost controls, higher margins, and new shareholder rewards.
Quarterly profit also rose significantly year-on-year, rising to $168.6 million, or $0.31 a share. This was up from $14.8 million, or $0.04 a share, which was recorded over the same period in 2024. Adjusted earnings came in at $0.25 a share, well above consensus estimates of $0.16.
Historically a dominant player in the physical retail sector, GameStop has gradually declined as a leading high street force. Its market share has fallen in recent years due to its slow shift toward digital purchases. Meanwhile, e-commerce giants such as Amazon have seized this opportunity, becoming a go-to destination for gaming and general merchandise.
Despite this, GameStop’s collectibles business has shown certain resilience, with Q2 revenue surging 63%. A strong merchandising strategy based around pop culture has led to the firm attracting a more diverse consumer base.
GameStop continues to embrace Bitcoin
It was also revealed on Tuesday that GameStop purchased $500 million worth of Bitcoin during the last quarter, valuing the holdings at $528.6 million. This generated an unrealised gain of $28.6 million, helping offset earlier losses and boosting the company’s balance sheet.
The firm uses Coinbase pricing to track its crypto reserves, placing it among few public companies with large Bitcoin holdings. Since the purchase of 4,710 BTC, Bitcoin’s price has increased roughly 18%, further strengthening the company’s position.
Through embracing Bitcoin, GameStop joins firms that integrate cryptocurrency into corporate strategy, diversifying beyond traditional retail operations. This controversial approach reflects ongoing efforts to reshape the company’s long-term future following years of declining traditional sales.
GameStop announces special dividend
Aside from the strong revenue figures, another key item stood out from GameStop’s earnings report. The firm announced a special dividend, offering one warrant for every ten common shares held by registered shareholders.
It plans to distribute around 59 million warrants on 7 October 2025 to eligible shareholders and noteholders. Investors will automatically receive these warrants without the need to take any action or provide payment on the distribution date.
Each warrant grants the right to buy one GameStop share at $32 until the expiry date of 30 October 2026. Following distribution, the warrants will trade freely on the New York Stock Exchange under the ticker GME WS.
This structure gives shareholders a chance to invest further in GameStop on a non-dilutive basis, strengthening long-term alignment. If fully exercised, the warrants could raise approximately $1.9 billion for corporate use, acquisitions, and strategic investments.
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