In brief

  • GameStop posted net income of $168.6 million in Q2, up sharply from $14.8 million a year earlier, as revenue climbed to $972.2 million from $798.3 million.
  • The company disclosed a $500 million Bitcoin purchase during the quarter, with holdings valued at $528.6 million at period-end.
  • Shares rose as much as 5.7% in after-hours trading, with collectibles accounting for about one-quarter of sales.

GameStop reported a second-quarter profit as sales rose and interest income and crypto gains lifted results, while the retailer continued to tighten costs and streamline overseas operations.

The Grapevine, Texas-based company posted net income of $168.6 million for the three months ended August 2, up from $14.8 million a year earlier.

Revenue increased to $972.2 million from $798.3 million a year ago and from $732.4 million in the prior quarter.

Operating income was $66.4 million, compared with an operating loss of $22 million in the same period last year, as selling, general, and administrative expenses decreased to $218.8 million from $270.8 million.

GameStop said it purchased 4,710 BTC during the quarter for $500 million under a digital-assets investment policy adopted earlier this year.

The holdings were valued at $528.6 million at quarter-end, generating an unrealized gain of $28.6 million measured using Coinbase pricing.

The company ended the quarter with $8.7 billion in cash, cash equivalents, and marketable securities, excluding digital assets.

During the quarter, it raised $2.7 billion via convertible debt and completed the divestiture of its Canada operations; France is classified as assets held for sale.

Hardware and accessories accounted for 60.9% of quarterly sales, software 15.7%, and collectibles 23.4%.

On an adjusted basis, operating income was $64.7 million versus an adjusted operating loss of $31.6 million a year earlier.

GameStop stock is up 8.3% on the month to $24.93, according to Google Finance data.

Editor’s note: An earlier version misstated the quarter’s bottom line and revenue trend. GameStop reported a profit, and revenue rose quarter-over-quarter and year-over-year.

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