GameStop Corp (NYSE:GME) stock fell 5.58% (As on December 10, 11:18:11 AM UTC-4, Source: Google Finance) after the company posted third-quarter revenue below analysts’ estimates, as the video game ​retailer struggles to gain ground following its pivot ‌to digital downloads and streaming. The Grapevine, Texas-based company, once a dominant force in physical game sales and a poster child of the 2021 meme-stock frenzy, has struggled to reinvent itself as gamers ⁠increasingly favor online ‌purchases and subscription platforms over visits to brick-and-mortar stores. GameStop has expanded its e-commerce platform to ‍offer digital downloads and merchandise and struck partnerships with publishers to sell exclusive game editions and collectibles, but those efforts are ​yet to bear fruit.

Moreover, for the quarter, Operating income was $41.3 million for the period, compared to an operating loss of $33.4 million in the prior year’s third quarter. The adjusted net income was $139.3 million for the period compared to an adjusted net income of $26.2 million for the prior year’s third quarter. Cash, cash equivalents and marketable securities were $8.8 billion at the close of the third quarter, compared to $4.6 billion at the close of the prior year’s third quarter. Bitcoin holdings were valued at $519.4 million at the close of the third quarter. The company reported a shift in product sales, with collectibles increasing to 31.2% of total net sales for the three months ended November 1, 2025, compared to 19.9% in the prior year. The United States segment saw a significant increase in net sales, accounting for 75.2% of total net sales for the three months ended November 1, 2025, up from 64.1% in the prior year. In contrast, the Europe segment experienced a decline in net sales due to the divestiture of Italy and the closure of operations in Germany. There was a notable increase in the sale of collectibles, which rose by 49.7% for the quarter

GME in the third quarter of FY25 has reported the adjusted earnings per share of 13 cents, missing the analysts’ estimates for the adjusted earnings per share of 18 cents. The company had reported the adjusted revenue of $821 million in the third quarter of FY25, missing the analysts’ estimates for revenue of $987.3 million according to data compiled by LSEG. GameStop has also faced ‍volatility in ⁠its share price since the meme-stock rally, which briefly made it a market sensation. Revenue from hardware and ⁠accessories, which includes new and pre-owned video games, fell about 12% ‌in the quarter.