GameStop Reports Fifth Consecutive Quarterly Profit, Q2 Revenue Hits $972 Million

GameStop reported stronger-than-expected financial results for its second quarter, marking its fifth consecutive quarterly profit and a nearly 22% rise in revenue to $972.2 million. The company posted adjusted earnings of 25 cents per share, surpassing analysts' estimates and swinging to a net income of $168.6 million, up significantly from the previous year. GameStop's shift away from traditional retail towards higher-margin businesses, including its collectibles segment which grew 63%, and a strong merchandising strategy focused on pop culture, contributed to this performance. The retailer also holds bitcoin valued at $528.6 million, reflecting its pivot towards becoming a cash-heavy, crypto-flavored holding company, a strategy that has divided investors. Despite challenges from shrinking brick-and-mortar sales and competition from e-commerce giants, cost-cutting and store closures have helped improve profitability. Shares rose more than 5% in extended trading following the announcement.