Video game retailer GameStop Corp. (GME) is expected to report its third-quarter 2025 results on December 2. The meme stock has dropped about 31% year-to-date, hurt by weaker sales in its retail business and doubts about how it will use its large cash pile. Wall Street analysts expect the company to report earnings of $0.20 per share, versus $0.06 in the year-ago quarter. Also, revenue is expected to increase by 15% from the year-ago quarter to $987.3 million, according to data from the TipRanks Forecast page.
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During the Q3 earnings call, investors will be looking for signs that GameStop can stabilize its operations and deliver a clearer long-term strategy.
GME’s Q2 Shows Profit Surprise
In the last reported quarter, GameStop reported earnings per share (EPS) of $0.25, well ahead of Wall Street’s $0.19 estimate. Also, revenue increased 22% year-over-year to $972.2 million, exceeding analyst expectations of $900 million, driven by strength in its hardware and accessories business.
GameStop also ended Q2 with a hefty cash balance of $8.7 billion, compared with $4.2 billion in the same period last year. Meanwhile, its Bitcoin holdings at the end of Fiscal Q2 were valued at $528.6 million.
AI Analyst Is Cautious on GME Stock Ahead of Q3 Print
Interestingly, ahead of the results, TipRanks’ AI Analyst Rina Curatex (under the OpenAI-4o model) decreased the price target on GME stock to $21.5 from $26 and maintained a Hold rating on the stock. The new price target suggests about 0.60% downside from current levels.
According to TipRanks A.I. Stock Analysis, GameStop stock earns a strong score of 53 out of 100. The model points to better profit trends, stronger cash flow, and improved cost control as positives. However, revenue pressure and valuation concerns keep the outlook cautious.
