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what it is
GameStop sells games, consoles, accessories, and collectibles through stores and its website.
how it gets paid
Last year Gamestop made $3.8B in revenue. hardware & accessories was the main engine at $1.35B, or 35% of sales.
why growth slowed
Revenue fell 27.5% last year. Gross margin was 32.0%, and that matters because a company with only 1.0% operating margin needs every point of gross profit it can keep.
what just happened
Revenue hit $2.5B and EPS came in above estimates.
At a glance
B balance sheet — gets the job done, barely
30/100 earnings predictability — expect surprises
20.7x trailing p/e — priced about right
3.0% return on capital — nothing to write home about
$0.80 fy2026 eps est
xvary composite: 39/100 — weak
What they do
GameStop sells games, consoles, accessories, and collectibles through stores and its website.
GameStop's moat is thin. The real asset is attention: the stock's 18-month range runs from $17 to $61, a 3.6x spread around a $20.72 share price. Volatility (big price swings) → your stock moves on narrative, not business progress → so what: that can lift shares fast, but it is not customer lock-in.
How they make money
$3.8B
annual revenue · their business grew -27.5% last year
hardware & accessories
$1.35B
24.0%
software
$1.04B
29.0%
collectibles
$0.69B
12.0%
other
$0.72B
31.0%
The products that matter
sells games, hardware, and collectibles
Retail stores and e-commerce
$3.8B · entire business
It's the whole $3.8B revenue base, and it shrank 27.5% from last year. Disclosure here is thin, which tells you something by itself.
32.0% gross margin
Key numbers
13.0%
sales growth
Sales growth → how fast the business is expanding or shrinking → so what: the base case still calls for another year of contraction.
$39
18-month target
The base target sits 88% above $20.72, which tells you the bull case depends more on multiple expansion than business quality.
1.0%
operating margin
Operating margin → what the company keeps after running stores and the website → so what: one bad quarter can wipe out profit.
20.7x
trailing p/e
P/E → stock price divided by earnings → so what: you are paying a normal multiple for a business with abnormal uncertainty.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 5 / 100
- long-term debt $4.2B (31% of capital)
- net profit margin 4.7% — keeps 5 cents of every dollar in revenue
- return on equity 3% — $0.03 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in GME 3 years ago → it's now worth $12,770.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $2.5B and EPS came in above estimates.
The last reported quarter showed revenue up 208% vs. prior year and EPS of $0.55. Yahoo also shows the most recent reported EPS at $0.24 versus a $0.20 estimate, a 20.0% beat, which tells you the data sources are not perfectly aligned.
$2.5B
revenue
$0.55
eps
32.0%
gross margin
the number that mattered
Gross margin was 32.0%, and that matters because a company with only 1.0% operating margin needs every point of gross profit it can keep.
-
as 2025 drew to a close, gamestop shares retreated back to near the $20a-share level.the july-period results (year ends on the saturday closest to january 31st) brought optimism that the company’s troubles on the top line might be reversible.
-
followers of this story will recall, gamestop was not as quick as its competitors to jump into the digital video game realm.
-
with that, its business deteriorated.
-
collectibles had a nice bump initially, but october-period sales missed the mark by about $150 million, so all the top-line concerns have returned.we continue to think earnings will clock in at about $1.00 a share in the fiscal year ending in a few weeks.
-
multiple share offerings raised a ton of money and the interest on those holdings pushed fiscal third-quarter earnings to $0.24 a share, roughly a nickel ahead of the consensus.
source: company earnings report, 2026
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What could go wrong
The biggest risk is continued revenue shrinkage in a thin-margin retail model. GameStop does not have much operating cushion if sales keep sliding.
med
the turnaround never becomes a turnaround
Revenue is $3.8B, down 27.5% from last year, while operating margin is just 1.0%. That means even small execution misses can hit profitability fast.
If the business keeps shrinking from this base, the current multiple has less and less operating support.
med
legal and investigation noise resets sentiment
Multiple 2025 headlines tied GameStop to investigation language. The record here is messy, but the stock does not need a proven charge to become more volatile.
The current risk model flags roughly $570M–$950M of revenue exposure across higher-severity issues already linked to the name.
med
capital raises help liquidity and dilute you at the same time
Warrant discussions around a $32 exercise price matter because new capital can support the company while reducing each existing shareholder's claim on future upside.
That trade-off matters more when return on equity is only 3% and the current business is not compounding much on its own.
With 32.0% gross margin, 4.7% net margin, and sales already down 27.5% from last year, there is not much room for another operational miss.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue stabilization
$4.0B is the fy2026 revenue estimate versus $3.8B today. If GameStop cannot even flatten the decline, the narrative gets harder to defend.
calendar
next earnings report
You want to see whether gross margin stays near 32.0% and whether sales stop moving backward from last year's base.
risk
investigation headlines
This stock does not separate legal noise from price action very well. New headlines can overwhelm fundamentals for stretches.
trend
institutional flow
Three straight quarters of net buying is better than the alternative. You still need that interest to convert into steadier ownership, not just trading activity.
Analyst rankings
earnings predictability
30 / 100
In human-speak, analysts do not trust these earnings to arrive smoothly. Expect revisions and surprises.
price stability
5 / 100
This stock is unusually jumpy. If the market drops 10%, GME's move can be about the market and about GME at the same time.
risk rank
4
A 4 means safer than only about 20% of stocks in this system. That's not a bunker. That's a warning label.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 155 buyers vs. 141 sellers in 3q2025. total institutional holdings: 0.2B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$17
$61
$21
current price
$39
target midpoint · +88% from current · 3-5yr high: $35 (+70% · 14% ann'l return)
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The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
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