US video game retailer GameStop Q2 revenue jumps to $927m

GameStop reported Q2 revenue of US$972.2 million, up from US$798.3 million a year earlier, driven by higher hardware and collectibles sales.

Hardware and accessories revenue rose 31% to US$592.1 million, while sales in the collectibles segment climbed 63%.

Net income reached US$168.6 million, compared with US$14.8 million a year earlier.

The company has shifted focus toward digital sales and exclusive merchandise deals with publishers, while closing hundreds of stores to improve profitability.

Shares rose about 4% in after-hours trading following the results.

🔗 Source: GameStop

🧠 Food for thought

Implications, context, and why it matters.

GameStop’s product mix shift drives profitability despite industry headwinds

GameStop’s strategic pivot to higher-margin collectibles is paying off, with that segment surging 63% in Q2 2025 and now representing 23.4% of total sales1 2.
This diversification beyond traditional video games comes at a crucial time, as the company faces pressure from digital distribution platforms that threaten its core physical game sales business3.
The collectibles strategy leverages partnerships with game publishers for exclusive merchandise, creating unique value propositions that competitors can’t easily replicate1.
Hardware and accessories sales also jumped 31% to $592.1 million, benefiting from gaming console demand driven by Nintendo’s Switch popularity and strong upcoming game releases1.
The combined effect helped GameStop achieve net income of $168.6 million in Q2 2025, up dramatically from just $14.8 million in the same period last year1.

Store closure strategy boosts efficiency without sacrificing growth

GameStop’s aggressive cost-cutting through store closures appears to be working, as the company reduced its selling, general, and administrative expenses to $218.8 million from $270.8 million year-over-year4.
Despite shutting down hundreds of stores to boost profitability, total revenue still climbed to $972.2 million compared to $798.3 million in Q2 20241.
The company now operates 3,203 stores globally while maintaining a strong cash position of $6.4 billion, providing financial flexibility for future strategic moves3 5.
This approach demonstrates how GameStop is successfully rightsizing its physical footprint while investing in areas like Bitcoin—the company purchased 4,710 BTC for $513 million and reported a $28.6 million unrealized gain in Q22.
The strategy shows how traditional retailers can maintain relevance by combining physical store optimization with digital asset diversification and product mix evolution.