GameStop has announced a 2.5% drop in net income for the fourth quarter of the 2025 financial year as the company continues to battle the shift from physical sales to digital sales.
The video game retailer famous for a short squeeze that sent its share price soaring in 2021 said net income was US$127.9 million (A$184 million) in the 13 weeks ended 31 January 2026, compared with $131.3 million in the previous corresponding period (pcp).
Diluted net income per share fell 24% to 22 cents as net sales declined 16% to $1.104 billion in the final quarter of FY25.
Excluding impairment, loss on digital assets and related receivables, and other items, adjusted net income soared 114% to $291.4 million in Q4.
For FY26, net income climbed 219% to $418.4 million as diluted net income per share rose 133% to 77 cents on net sales which fell 5% to $3.630 billion.
The Texas-based company, which operates 3,200 stores worldwide, including 2,300 in the United States, is struggling to adapt to the video game industry's shift to digital downloads and weaker consumer demand.
GameStop (NYSE: GME) shares closed down 24 cents (1.04%) at $22.81 on Tuesday (Wednesday AEDT), capitalising the company at $10.22 billion.
This compares with the record high of $120 ($483 before adjustment for subsequent share splits) reached on 28 January 2021, which represented a 2,000% increase over just two to three weeks.
The spike was generated by short sellers who bet the stock would fall, being caught out when it the price surged, forcing them to buy back in.
