TLDR
- GameStop is scheduled to report Q2 2025 earnings on September 9, with analysts expecting $0.19 per share and revenue of $823.2 million
- The company beat earnings expectations in the previous quarter with $0.17 EPS but revenue fell 16.9% year-over-year to $732.4 million
- GME shares opened at $22.45 with a 12-month range of $19.31 to $35.81, currently trading down 1.5%
- Wall Street analysts maintain a “Sell” rating with an average target price of $13.50, while institutional ownership stands at 29.21%
- Company insiders have been selling shares, with General Counsel Mark Robinson selling 11,055 shares worth $267,309 in July
GameStop prepares to release its second-quarter 2025 financial results on September 9, with investors watching closely for signs of business improvement. The video game retailer faces continued headwinds as the industry shifts toward digital distribution.
Wall Street expects the company to report earnings of $0.19 per share on revenue of $823.2 million for the quarter. The earnings call is scheduled for 4:00 PM ET on Tuesday.
GameStop’s most recent quarterly report showed mixed results. The company delivered $0.17 earnings per share, beating analyst estimates of $0.04 by a healthy margin.
However, revenue told a different story. The company generated $732.4 million in sales, falling short of the $754.23 million consensus estimate.
The revenue figure represents a 16.9% decline compared to the same period last year. This continues a trend of weakening sales as gaming moves increasingly digital.
Stock Performance Under Pressure
GME shares opened Tuesday at $22.45, down 1.5% from the previous session. The stock has traded between $19.31 and $35.81 over the past 12 months.
The company’s market capitalization sits at $10.04 billion. GameStop trades at a price-to-earnings ratio of 48.79, reflecting the premium investors pay for potential growth.
Technical indicators show mixed signals. The stock trades below both its 50-day moving average of $23.08 and its 200-day moving average of $25.06.
GameStop maintains strong balance sheet metrics. The company has a current ratio of 8.39 and a quick ratio of 7.89, indicating solid liquidity.
The debt-to-equity ratio stands at 0.30, showing conservative financial management. These metrics provide a cushion during the business transformation period.
Analyst Sentiment Remains Negative
Wall Street maintains a cautious stance on GameStop shares. The consensus rating sits at “Sell” with an average price target of $13.50.
Wedbush recently changed its rating to “strong sell” in a July research note. This reflects broader skepticism about the company’s ability to compete in the digital gaming era.
The $13.50 target price implies downside risk from current trading levels. Analysts question whether GameStop can successfully pivot its business model.
Institutional investors hold 29.21% of GameStop’s outstanding shares. Several funds have adjusted their positions recently.
EverSource Wealth Advisors increased its stake by 226.6% in the second quarter, now owning 1,277 shares worth $31,000. Raymond James Financial and Bank of Nova Scotia both established new positions during the same period.
Insider Activity Raises Questions
Company insiders have been selling shares in recent months. General Counsel Mark Robinson sold 11,055 shares in July at an average price of $24.18.
The transaction totaled $267,309 and reduced Robinson’s stake by 8.65%. He still owns 116,781 shares valued at approximately $2.8 million.
Over the past quarter, insiders sold 13,075 shares worth $315,685 total. Corporate insiders collectively own 8.58% of the company.
The selling activity comes as GameStop works to transform its operations. The company has invested heavily in e-commerce capabilities and digital initiatives.
GameStop continues adapting to industry changes that favor digital game distribution. Major console makers now offer digital-only versions of their systems.
The upcoming earnings report will provide fresh insight into whether GameStop’s transformation efforts are gaining traction. Revenue trends and management commentary will be key factors for investors to monitor.
