GameStop Q4 Revenue Drops 14% to $1.1B, Cash Hits $9B

GameStop Corp. released its fourth-quarter and full-year fiscal 2025 earnings on Tuesday, reporting a 14 percent decline in quarterly revenue to $1.104 billion from $1.283 billion a year earlier, even as profitability held steady and the company's cash reserves swelled to $9 billion. The Grapevine, Texas-based video game retailer, which operates stores and an online platform, saw its shares drop 0.8 percent to $22.85 during trading, reflecting investor concerns over weakening sales amid a broader industry shift toward digital distribution.

The quarter, which ended January 31, highlighted GameStop's efforts to control costs under Chief Executive Officer Ryan Cohen. Selling, general and administrative expenses fell to $241.5 million from $282.5 million in the prior-year period, boosting adjusted operating income to $147.7 million, up from $84.4 million. Net income came in at $127.9 million, slightly below the $131.3 million recorded a year ago, while adjusted earnings per share of $0.49 exceeded analyst expectations of $0.37. The company attributed the resilience to operational efficiencies, including reduced store-related costs in the United States, where operating income...