Video game retailer GameStop Corporation (NYSE:GME) reported second-quarter financial results Tuesday after market close.
Here are the key highlights.
What Happened: GameStop reported second-quarter net sales of $972.2 million, up from $798.3 million in the prior year's second quarter. The sales beat a Street consensus estimate of $823.2 million according to data from Benzinga Pro.
Here's a breakdown of GameStop's sales by business segment, with the prior year in parentheses:
- Hardware and Accessories: $592.1 million ($451.2 million)
- Software: $152.5 million ($207.7 million)
- Collectibles: $227.6 million ($139.4 million)
Software was down year-over-year, while Hardware and Collectibles saw growth in the quarter.
The company reported net income of $168.6 million, up from $14.8 million in the prior year's second quarter.
Earnings per share were 25 cents in the second quarter, beating a Street consensus estimate of 16 cents per share.
GameStop ended the quarter with $8.7 billion in cash and cash equivalents.
The company ended the quarter with Bitcoin (CRYPTO: BTC) valued at $528.6 million. The company previously disclosed buying 4,710 Bitcoin in the first quarter.
Read Also: GameStop Q2 Preview: Will Bitcoin, Trading Cards Overshadow Video Game Business?
Special Dividend Announced: Along with quarterly financial results, GameStop also announced a special dividend to be paid to shareholders in the form of a warrant.
Each shareholder will receive one warrant for every 10 common shares they own, with holders as of Oct. 3, 2025, eligible.
The warrants are expected to be distributed on or around Oct. 7, 2025.
The company estimates around 59 million warrants will be distributed.
The warrants come with an exercise price of $32.00 and an expiration date of Oct. 30, 2026. Shareholders can exercise the warrants by paying the exercise price of $32 during the holding period.
GameStop said the warrants will be listed on the New York Stock Exchange with the ticker GME WS and freely tradable.
GameStop said the company could raise up to $1.9 billion in gross proceeds from the warrants. Proceeds are expected to be used for general corporate purposes and potential acquisitions.
"The transaction provides GameStop shareholders the option to participate in the Company's capital raising on a non-dilutive basis," the company said.
GME Price Action: GameStop stock is up 2.4% to $24.15 in after-hours trading versus a 52-week trading range of $19.31 to $35.81.
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