GameStop has announced its first-quarter financial results, revealing a mixed performance with declining revenues but significantly improved profitability. The company also disclosed a strategic shift toward cryptocurrency by adding Bitcoin to its corporate reserves.
Revenue for the quarter reached $732.4 million, marking a 17% year-over-year decrease and falling short of analyst expectations of $754.2 million. Despite this decline, the company achieved a net income of $44.8 million, a substantial improvement from the $32.3 million net loss reported in the same period last year. Operating losses also narrowed considerably to $10.8 million from $50.6 million.
In a notable strategic pivot, GameStop acquired 4,710 Bitcoin valued at approximately $513 million as part of its new reserve asset policy. The company’s cash reserves expanded dramatically to $6.4 billion, compared to $1 billion a year prior, enhancing flexibility for future strategic investments.
Following the earnings release, GameStop’s stock declined over 3.5% in after-hours trading, settling just above $29 per share. This financial repositioning signals a significant evolution in the company’s corporate strategy.