Revenue rose after seven quarters of decline; collectibles and Nintendo Switch 2 drive sales surge.
GameStop shares rose more than 5% in extended trading on Tuesday after the videogames retailer reported strong revenue and profit growth, driven by collectibles and console sales.
Revenue rose 22% to $972.2 million in the second quarter, registering growth after seven quarters of declines. Hardware and accessories sales rose 31%, helped by a record reception for Nintendo Switch 2, while the comparatively smaller collectibles business grew 63%.
Recently, GameStop has boosted its efforts in the collectibles business, which encompasses trading cards, board games, and merchandise related to video games.
That comes as the video game retailer shutters more physical stores to sharpen its e-commerce focus, after years of shrinking business amid shifting consumer habits and competition with Amazon.
Two other items from the earnings release stood out for investors. The company announced a special dividend, offering one warrant for each log of 10 GameStop common shares (each warrant buys one GameStop share for $32 between the Oct. 7, 2025, distribution date and Oct. 30, 2026, expiry date).
Meanwhile, the company’s cash and cash equivalents swelled to $8.7 billion, up from $4.2 billion in Q2 last year, with Bitcoin holdings totaling $528.6 million.
On Stocktwits, the retail sentiment for GameStop climbed higher in the ‘extremely bullish’ zone (94/100), with the message volume soaring nearly 200% in the past 24 hours.
“$GME this is gonna get wild. Those warrants are key,” one user said, while another said they are surprised at the weak after-market gains.
In Q2, GameStop’s profit rose to $168.6 million, or $0.31 a share, up from $14.8 million, or $0.04 a share, last year.
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