GameStop's Q3 Earnings Fall Short Amid Weak Sales and Decreased Bitcoin Gains

GameStop's third-quarter earnings report for 2025 has disappointed analysts, leading to a decline in its stock by over 4% on Wednesday. The company's struggles stem from weakening core sales and lower earnings from Bitcoin investments.

Key Takeaways

GameStop's Q3 revenues of $821 million missed the analyst expectations of $987.29 million.
The company holds 4,710 Bitcoin, experiencing $9 million in unrealized losses, yet is up $19.4 million for the year.
GameStop's stock fell over 4% following disappointing earnings, continuing a troubling trend from previous quarters.
The company's focus on a Bitcoin treasury strategy has not provided the expected relief and raised investor concerns.
CEO Ryan Cohen hinted at future plans to accept cryptocurrency as payment, aiming to pivot away from physical game sales.

GameStop Q3 earnings miss estimates, pressured by soft sales and lower BTC gains

In Q3, GameStop generated revenues totaling $821 million, which was significantly lower than the analysts' expectations of $987.29 million, as highlighted by Seeking Alpha. The report also revealed that the company holds a total of 4,710 Bitcoin (BTC) and experienced unrealized losses of $9 million during the quarter. However, they maintain a total gain of $19.4 million for the year.

Stocks, Companies
GameStop balance sheet Q3 2025. Source: SEC

Additionally, the company faced similar challenges in Q1, where it reported revenues of approximately $732 million, also missing the estimated figure of $754 million. Despite its attempts to implement a Bitcoin treasury strategy back in March, which initially boosted the stock price by about 12% to $35 per share, those gains quickly dwindled.

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Limited Relief from Bitcoin Treasury Strategy

GameStop's business model primarily depends on the sale of physical video games and the resale of second-hand games; both areas have been negatively affected by the overall decline in physical media demand. In April, the company raised $1.5 billion to fund Bitcoin purchases and acquired 4,710 BTC in May, marking its shift towards becoming a digital asset treasury company.

Yet, the day following the announcement of this strategy, GameStop shares dropped by 11%, revealing investors' unease about the digital asset approach.

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GameStop’s stock has been declining since it announced its crypto treasury strategy in March. Source: Yahoo Finance

In July, CEO Ryan Cohen remarked on Bitcoin and cryptocurrency serving as hedges against inflation, indicating a potential future where customers could use crypto for in-store purchases. "The ability to actually use crypto within transactions is something we see as an opportunity, and we are actively exploring," said Cohen. He further mentioned the company's strategy of moving away from reliance on physical products and instead focusing on collectibles like trading cards.

The downturn of GameStop's stock reflects a larger trend of declines among digital asset treasury companies, driven by market saturation and a cautious approach from investors, according to insights from Standard Chartered.

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