Video game retailer GameStop Corporation is poised to showcase its growth in collectibles and improving profitability in its upcoming second-quarter financial results, which will be unveiled after the market closes on Tuesday. Analysts predict the company will report a revenue of $823.25 million for Q2, an increase from $798.30 million during the same period last year, according to data from Benzinga Pro. However, it’s worth noting that GameStop has failed to meet analyst revenue estimates in seven consecutive quarters and has overall missed estimates in eight of the last ten quarters.
Earnings per share (EPS) estimates stand at 16 cents, a notable rise from just 1 cent in Q2 of the previous year. Despite its disappointing revenue track record, GameStop has managed to exceed EPS estimates in two consecutive quarters and three out of four recent quarters, achieving this feat in six of the last ten quarters overall.
The coverage of GameStop by financial analysts remains limited, with Wedbush Securities analyst Michael Pachter being one of the few who actively follows the stock. Pachter has maintained a bearish perspective on the company, suggesting that GameStop’s foray into Bitcoin investments is unlikely to generate significant investor interest. He indicated that signs of a turnaround in the company’s core business are still absent. Consequently, Pachter has assigned an Underperform rating with a $13.50 price target, emphasizing that a substantial portion of the company’s valuation derives from its cash, securities, and cryptocurrency holdings—estimated at about $12.50 per share.
Despite the cautious outlook, Pachter did recognize a positive shift in GameStop’s trading card business, marking it as the sole recent venture experiencing modest success. GameStop has partnered with the trading card grading company PSA to introduce a new product line, the “Power Packs,” which are a blind bag style offering. CEO Ryan Cohen views the collectibles sector as a natural growth avenue for the retailer, signaling potential expansion in this area.
The collectibles segment experienced impressive growth, with Q1 revenues soaring to $211.5 million—the only sector among the company’s three main divisions to achieve year-over-year growth. This increase is helping to compensate for declines in video game hardware, accessories, and software sales, while also contributing to improved profit margins.
Notably, GameStop disclosed acquiring 4,710 Bitcoin between early May and June, with a total investment ranging from approximately $93,400 to $111,970. Given that Bitcoin is currently trading at around $112,384, this acquisition has already seen a significant increase in value, which may positively impact the company’s financial disclosures. Investors and analysts are particularly interested in whether GameStop plans additional Bitcoin purchases or will reveal further details in its quarterly report. Cohen has clarified that the company does not intend to transform into a Bitcoin treasury entity; instead, it views Bitcoin as a hedge against inflation.
The company also aims to deploy its substantial cash reserves—reported at $9 billion—responsibly in areas with potential for high upside and limited downside. GameStop has not hosted a conference call in multiple quarters, which may also play a significant role in the upcoming report.
In terms of stock performance, GameStop shares were up 2.3%, trading at $23.13 as of Monday. Over the past year, its share price has fluctuated between $19.31 and $35.81, but it has witnessed a 25% decline year-to-date in 2025. As GameStop enters this pivotal reporting period, stakeholders will keenly watch for insights into its evolving business strategies and financial health.
