GameStop Q4 Earnings: Revenue Miss, EPS Beat, Shares Surge As Board Approves Bitcoin As Treasury Reserve Asset

GameStop Corp GME reported fourth-quarter financial results after the market close on Tuesday. Here’s a rundown of the report.

Q4 Earnings: GameStop reported fourth-quarter revenue of $1.283 billion, missing the consensus estimate of $1.48 billion. The video game retailer reported fourth-quarter adjusted earnings of 30 cents per share, beating analyst estimates of eight cents per share, according to Benzinga Pro.

Total revenue was down about 28% on a year-over-year basis. Hardware and accessories revenue totaled $725.8 million in the quarter, Software revenue came in at $286.2 million and Collectibles revenue reached $270.6 million in the quarter.

GameStop reported fourth-quarter net income of $131.3 million, up from $63.1 million in the prior year’s quarter. The company ended the period with approximately $4.78 billion in cash, cash equivalents and marketable securities.

GameStop noted in the release that it will not be holding a conference call to discuss its quarterly results.

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In a separate press release, GameStop announced its board unanimously approved an update to investment policies to add Bitcoin BTC/USD as a treasury reserve asset.

GameStop shares soared last month following reports the company was considering adding Bitcoin and other crypto assets to its balance sheet. Shares appear to be moving higher after-hours in response to the company’s strategic move towards crypto.

GameStop previously made a push into the crypto space with the launch of wallets that let users manage crypto and non-fungible tokens (NFTs) and also provided access to GameStop's NFT marketplace. The company closed down the offering in 2023 due to “regulatory uncertainty.”

When GameStop reported third-quarter financial results in December, the company said it was freeing up CEO Ryan Cohen to bet on stocks in order to improve the company’s financial standing. GameStop did not provide an update on this initiative in its fourth-quarter release.

GME Price Action: GameStop shares were up 6.50% after-hours, trading at $27.05 at the time of publication Tuesday, according to Benzinga Pro.

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