GameStop Q1 2025 Earnings Preview & Analysis: What to Expect

GameStop (NYSE: GME) is set to release its Q1 2025 earnings report after market close on June 10, 2025. This quarter is shaping up to be one of the most unpredictable earnings yet, due to evolving business strategies, Bitcoin investment, and meme-stock volatility.

Upcoming Report Snapshot

Q1 Date: Tuesday, June 10, 2025 (after market close)
Expected Revenue: ~$754 million
Expected EPS: ~$0.04 (Vs. same quarter last year: -$0.12)

Analysts are forecasting a 133% YoY rise in EPS, even as revenue is seen down about 15% YoY .

What’s New This Quarter

Heavy Bitcoin Investment
- In late May, GameStop purchased 4,710 BTC (~$515.7M) funded through a $1.3B convertible bond sale
- This move signals a pivot toward becoming a Bitcoin-backed treasury, similar to MicroStrategy’s strategy
Insider Buying Wave
- CEO Ryan Cohen and other insiders bought shares—Ryan alone invested about $10.8M
- Strong insider buying often hints at well-informed optimism.
Meme-Stock Unpredictability
- GME shares plunged ~15% from its 52-week high, then bounced ~26% in just three months
- The stock remains volatile, driven partly by retail momentum.

Drivers Behind the Data

Core Business Pressure:
Revenue expected to fall ~14.5% YoY to ~$754M, reflecting struggling hardware and game retail sales
EPS Recovery from Losses:
Analysts estimate a swing to positive earnings (~$0.04 EPS vs. -$0.12 a year ago)
Bitcoin Exposure:
Huge treasury Bitcoin investment could heavily influence both revenues and headline earnings.

Segment & Strategy Outlook

Business Segment	Q1 Drivers
Video Game Retail	Continued decline; focus on restructuring and retrenchment
Digital/Game Trading	Uncertain impact from core business challenges
Treasury Bitcoin Holdings	$515M “digital asset” stash brings upside & volatility

Analyst and Trader Sentiment

Analysts: Consensus EPS estimate of $0.08 is based on limited coverage (TipRanks shows just one Sell rating)
Insider Confidence: Ryan Cohen’s share purchases indicate positive internal conviction
Bitcoin as Hedge: Media coverage (Barron’s, AP) places this strategy alongside MicroStrategy’s well-known approach — though analysts remain cautionary
Meme Volatility Factor: Despite fundamentals, GME remains a ‘volatility play,’ attracting both large short and long retail positions
Valuation Signals: Inside trading mixed—some buying, some selling. Institutional holdings also fluctuating .
Option Market: Implied volatility suggests a possible 11% price swing post-earnings

Bullish vs Bearish Cases

Bullish Factors:

EPS turnaround, shifting from loss to profit.
Significant insider buys, reinforcing belief in future upside.
Bitcoin treasury strategy could boost returns during crypto rallies.
Meme-driven momentum remains strong — retail traders could push the stock higher.

GameStop (GME) Earnings — GameStop GME Earnings

Bearish Risks:

Declining core sales make sustained profitability doubtful.
High revenue dependency on crypto markets adds risk exposure.
One analyst rating the stock a “Strong Sell” with a $13.50 target – implying a 50% downside
Retail volatility can swing prices unpredictably — both up and down.

What to Watch on June 10 Earnings Call

Bitcoin on balance sheet
• How the $515M BTC investment statistics are reported — as asset or liability?
• Will they hint at future allocations or strategy?
Retail fundamentals
• Is physical/digital sales stabilization underway?
• Any signs of pivot to higher-margin services?
Guidance or Signals
• Will they couch Q2 with growth or retreat?
• Any mention of new business lines, NFTs, or e-commerce enhancements?
Insider Activity Post-Earnings: Following Cohen’s lead, will executives buy/sell once earnings are public?

Bottom Line for Investors & Traders

Long-Term Investors:
GameStop remains speculative. A promising EPS turn is positive, but survival hinges on diversifying beyond hardware. Bitcoin strategy is bold — but volatile.

Active Traders:
Anticipate sharp price swings around the release. Key triggers: Bitcoin reporting, retail revenue surprises, and insider moves. Expect 30–50% daily moves — this is a high-risk, high-reward environment.

Beginners:
If you hold GME, brace for volatility. Watch earnings reaction and stay nimble. Focus on whether revenue shrinkage continues or stabilizes — crypto tailwinds can be deceptive.

Conclusion

GameStop’s Q1 print combines two contrasting themes: struggling core business vs. aggressive crypto-led transformation. This duality creates unique opportunities — but also elevated unpredictability. The market reaction will pivot on Bitcoin exposure, insider sentiment, and forward signals about revenue stability.

After June 10, we’ll be closely tracking: