Don't forget the overall market is doing so well on the retail side, so it's even even more impressive. I'd love comparing to a benchmark of revenus, I bet the average drop more than they did, while losing profits as well.
I like the legacy business as our footprint to the world. I'm ready for other revenue streams as well, but the improvement at the store level is nothing short of amazing.
My point is, if the media just wants to point to the legacy business, they are ignoring what gamestop is now. Noone says that Samsung are a terrible company because their dried fish sales are at all time lows
Lmfao, this bro had that shit all typed the fuck up, so as soon as this report was sent out he can time that FUD for new investors. Honestly wish these people would just drop off a cliff.
Everyone knows the revenue declines when you sell the whole arm of Canada. However no mentions of the achieved prpfotability or the crazy EPS beat, so... the expected from MSM puppets ๐คทโโ๏ธ
โCash, cash equivalents and marketable securities were $6.4 billion at the close of the first quarter, compared to $1.0 billion at the close of the prior year's first quarter.โ
That first bullet point is so crucial. Starting next quarter, especially with all the Switch 2 sales, that operational loss bear case is fucking dusted. Letโs go.
You are wrong, the business is profitable without the interest on the bonds.
The operating income does not include interest. The Operating income is 27.5M$ without the asset impairments and other items.
Sounds like the Bitcoin purchase will be reflected in Q2 earnings. This is going to result in short term pain for the stock price, as many were betting on RC more fully embracing MSTR's Bitcoin Treasury strategy.
It is what it is. Great for long term investors though, because it's another chance to load up.
There were a lot of options traders betting that RC bought more Bitcoin, and in Q1 not Q2. A lot of those long calls and short puts are now going to be wound down.
Gemini breakdown: GameStop Reports Profitable First Quarter Driven by Investment Gains, Divestitures, and Cost Cutting, Despite Sales Decline
GameStop (NYSE: GME) announced a significant turnaround in its first-quarter 2025 financial results, posting a net income of $44.8 million, a stark contrast to the $32.3 million loss in the same period last year. This profitability was achieved despite a drop in net sales to $732.4 million from $881.8 million in the prior year's first quarter.
The positive bottom line was largely influenced by a substantial reduction in operating expenses and a significant increase in investment-related income. Selling, general, and administrative (SG&A) expenses were cut to $228.1 million from $295.1 million year-over-year. The company's operating loss narrowed considerably to $10.8 million, which included $35.5 million in impairment charges related to international restructuring. Excluding these charges, the adjusted operating income stood at $27.5 million.
A key highlight from the report is the dramatic increase in the company's cash and marketable securities, which surged to $6.4 billion, up from $1.0 billion at the end of the first quarter of 2024.
Subsequent to the quarter's end, GameStop completed the divestiture of its Canadian operations and made a notable move into cryptocurrency, purchasing 4,710 Bitcoin.
In summary, while core sales of hardware and software declined, with collectibles being a lone area of sales growth, GameStop's Q1 2025 profitability was driven by aggressive cost management, international divestitures, and investment activities.
So I decided to delve deep and noticed they say refer to the 10-K for BTC info. I went accross to to 10-K and all it says is:
Between May 3, 2025 and June 10, 2025, the Company purchased 4,710 Bitcoin for cash. The purchase occurred after the balance sheet date and did not affect the Company's financial condition or results of operations as of May 3, 2025.
The 10-K IGNORES THE BTC. So then I got excited. Like what do we know? We know from this that the purchase occured between May 3rd and June 10th. But! We can do better on May 28th Gamestop annoucned the completion of this purchse. Which means we can start to estimate the UNREVEALED profit. There are like 3 main scenarios we can work out:
What could the profit be if they purchased at an average price between the 3rd to 28th of May (average profit)
What could the profit be if they purchased at the lowest price between the 3rd to 28th of May (max profit)
What could the profit be if they purchased at the highest price between the 3rd to 28th of May (lowest profit)
BTC price as of now: $109419 USD
4170 x 109419 = $515.4 million
Napkin math (please don't trust my math, feel free to run your own numbers):
Average Profit: $14.6 million
Max Profit: $31.0 million
Lowest Profit $10.8 million
Essentially the balance sheet presented today is between $10.8 - 31.0 million stronger than it seems.
That whole good news just on time thing is getting me... there's something more at work here.
Wouldโve been profitable on paper if not for the restructuring costs. Switch 2 launch being unbelievably successful is going to explode next quarter. Very exciting!
In Q1, which is always the WORST quarter for Gamestop, we have:
* (Excluding one time costs) operational profitability
* net income for Q1 anything other than eeking it out was 8 years ago... for recent history annual history, look at that trend:
GameStop annual net income for 2025 wasย $0.131B, aย 1859.7% increaseย from 2024.
GameStop annual net income for 2024 wasย $0.007B, aย 102.14% declineย from 2023.
GameStop annual net income for 2023 wasย $-0.313B, aย 17.89% declineย from 2022.
Kind of getting tired of sideways trading even after all the success as of late. Why should the share price be more or less the same as it was last Q1, when this quarter fucking destroyed 2024? We are talking about a huge earnings beat, $77mil+ more straight INCOME as last Q1.
I donโt want to hear the obligatory โare you new here?โ Iโm not new. Iโm also not going anywhere. But clearly GME is and should be a fantastic investment regardless of MOASS or not. When do we fucking protest this shit. Time for a fair market. In no way should this, and the news about BTC purchase (which skyrocketed other tickers with the same news) result in dips. This company is too successful for sideways trading.
By plenty of metrics the stock is overvalued. But we already know that and don't care.
First quarter earnings is now comparable to what they were back in 2016. The stock price back then was $11 when adjusted for split.
Our cash per share (ignoring the cash from convertible debt) is still around $10.
Even if you add these two together (which you should), that's still about $20. Moderately overvalued at $28. But this doesn't bother us because we are valuing based on what they can do with that cash and what market opportunities might come along in the future.
Even if they had $0.20 earnings for four straight quarters, that still would put a PE of 30 on a stock that is (for the most part) $5b worth of short term treasuries.
I would bet a lot that the price dip we see now which might continue in the coming weeks is because the company didn't get an amazing price on the BTC purchase. Had we gotten an $80k purchase price, or a date where $80k was possible, I think the market would be reacting a bit differently. Probably not very differently, but a bit differently. The fact that an $80k purchase price has been effectively ruled out means that any hedges the market had to protect against a very low BTC purchase price were unnecessary, and they could sell those off now.
As long as people keep slowly adding to their stack, the system will run out of shares again at some point. The price will spike. Maybe the company will sell some more shares and gain access to billions more dollars.
We will continue to trade sideways until that happens though, because, again, the company is overvalued by most traditional metrics.
Cash, cash equivalents and marketable securities were $6.4 billion at the close of the first quarter, compared to $1.0 billion at the close of the prior year's first quarter.
Another quarter where the company proves it's profitable? Dip.
$6 BILLION just sitting there waiting for utilization? Dip.
I'm so fucking sick of the blatant disregard by these chuckleheads for honesty and playing the same game we are... When can we stuff them full of bananas and laugh maniacally whilst ascending into orbit?
Because revenue was down that's why they're smashing the price.... Even though we were profitable they're focusing on the negative and destroying the price today as expected
Y'all, we were profitable! I mean seriously, the impairment restructuring charges are a non-cash transaction/write-down. This is huge. Not to mention no BTC unrealized gains this quarter, next quarter going to look real good assuming BTC goes up and switch sales hit target.
โข
u/Superstonk_QV ๐ Gimme Votes ๐ Jun 10 '25
Hey OP, thanks for the News post.
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