GameStop Q2 Revenue Climbs 22%; Shares Rise on Earnings and Warrants Dividend

GameStop Corp. reported a 21.8% increase in second-quarter revenue to $972.2 million and beat profit estimates, sending shares up about 3% in after-hours trading. The company also announced a special dividend of warrants to common shareholders, boosting investor interest.

Nut Graf: The videogame retailer’s robust Q2 performance underscores the success of its turnaround efforts-driven by a booming collectibles segment and improved cost controls-while the warrant dividend signals management’s commitment to shareholder value.

Key Highlights

  • Revenue Growth: $972.2 million vs. $798.3 million a year earlier, +21.8% year-over-year.
  • Net Income: $168.6 million, up from $14.8 million last year; EPS of $0.31 vs. $0.04.
  • Collectibles Segment: Sales surged 63%, reflecting strong pop-culture merchandising.
  • Share Movement: Stock gained roughly 3% in extended trading on the results announcement.
  • Warrants Dividend: Special warrant dividend declared for shareholders of record October 3, 2025, offering additional upside potential.

Details of the Quarter

GameStop’s turnaround strategy continues to yield results, with collectibles now representing a growing share of sales. The higher-margin category helped offset ongoing headwinds in hardware and software. SG&A expenses declined year-over-year, driving operating income of $66.4 million compared to a loss of $22.0 million in Q2 2024.

The company’s strengthened balance sheet-bolstered by a cash and securities position of $8.7 billion-provides flexibility for further strategic initiatives, including potential store optimization and e-commerce expansion.

Dividend of Warrants

In a move to reward shareholders, GameStop will issue warrants as a special dividend to holders of record on October 3, 2025. The dividend structure aims to enhance long-term investor returns and reflects confidence in the company’s growth trajectory.

Outlook and Market Reaction

Despite a challenging retail environment, analysts view the results as validation of GameStop’s reshaped business model, with a focus on collectibles and streamlined operations. Post-earnings volatility remains possible, but management’s lack of forward guidance keeps consensus estimates intact for fiscal 2026.

Investors will watch holiday-season preparations and execution of the warrant program as indicators of sustained momentum heading into 2026.