GameStop (GME) Shares Dip After Physical Store Weakness Drives 14% Q4 Sales Decline

TLDR

• Q4 revenue declined 14% to $1.10 billion from $1.28 billion a year earlier.
• Sales of hardware and accessories decreased to $535.6 million from $725.8 million.
• Collectibles now account for approximately one-third of total sales, rising from 21% the previous year.
• Net income decreased to $127.9 million from $131.3 million.
• The value of Bitcoin holdings fell by more than $150 million from Q3 to Q4.

(SeaPRwire) –   GameStop (GME) shares declined 0.96% after the company reported its fourth-quarter earnings.

$GME Mixed Results

~EPS: $0.49 vs $0.37 est
~REV: $1.104B vs $1.467B est

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— TrendSpider (@TrendSpider) March 24, 2026

GameStop announced fourth-quarter revenue of $1.10 billion, a 14% decrease compared to the $1.28 billion reported in the prior-year period. The Tuesday results underscore the ongoing challenges facing the company’s physical store operations.

Revenue from hardware and accessories—a category encompassing new and pre-owned video games—plummeted to $535.6 million from $725.8 million the year before. This represents a decline of nearly $190 million for that segment alone.

GameStop Corp., GME

Collectibles provided the sole area of growth. This business segment now constitutes about one-third of total revenue, increasing from 21% a year ago. CEO Ryan Cohen has publicly shifted the company’s strategy toward trading cards and collectibles, moving away from its traditional emphasis on hardware and software.

Net income was $127.9 million, or 22 cents per share, versus $131.3 million, or 29 cents per share, a year earlier. Adjusted earnings per share stood at 49 cents.

Cost Cuts Cushion the Bottom Line

Regarding expenses, selling, general and administrative costs decreased to $241.5 million from $282.5 million in the same quarter last year. This reduction helped mitigate the effect of lower sales on the company’s profits.

GameStop also revealed it has entered into an agreement concerning a possible sale of its French business, although specific terms were not disclosed.

The company’s Bitcoin investment introduced further complexity. GameStop purchased 4,710 Bitcoin last year, and the value of these holdings was $368.4 million at the end of Q4—down from $519.4 million at the conclusion of Q3. This equates to a loss of approximately $151 million in a single quarter.

Cohen’s Pay Package and Acquisition Plans

The CEO’s compensation plan attracted attention in January when GameStop disclosed a performance-based award for Cohen valued at roughly $35 billion. The arrangement would provide him options to purchase over 171.5 million GameStop shares. Shareholders are slated to vote on the proposal at a special meeting in March or April.

Cohen informed the Wall Street Journal in January that he was considering a significant acquisition of a publicly traded company, expressing particular interest in consumer products or retail. No transaction has been confirmed.

GameStop has additionally been taking steps to shrink its physical store presence. Major game publishers are moving progressively toward digital sales and subscription services, completely circumventing traditional retail stores.

The company posted adjusted earnings per share of 49 cents for the quarter.