GameStop (GME) AI Stock Analysis

• Market Cap: $10.30B
• Dividend Yield: N/A
• Average Volume (3M): 5.19M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 0.54
• Revenue Growth: -12.13%
• EPS Growth: 426.82%
• Country: US
• Employees: 6,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.24
• Shares Outstanding: 448,009,500
• 10 Day Avg. Volume: 5,636,254
• 30 Day Avg. Volume: 5,188,782
• PEG Ratio: 0.06
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 2.77
• P/FCF Ratio: 81.80
• Enterprise Value/Market Cap: 0.66
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 5.84
• Enterprise Value/Ebitda: 28.21
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.99
• Revenue Forecast (FY): $4.16B

• Rating: 62 Neutral
• Price Target: $22.00 ▲(1.71% Upside)

The score is primarily supported by improving profitability, cash flow generation, and a healthier balance sheet, but is meaningfully constrained by weak technical trends (price below key moving averages and negative MACD) and a middling valuation profile (P/E 25.13 with no dividend yield).

Positive Factors

Improved profit margins

Sustained margin improvement and the conversion to positive EBIT/EBITDA indicate the company has structurally raised profitability through cost controls and mix improvements. Higher margins provide lasting earnings resilience, funding reinvestment or balance sheet strengthening despite sales pressure.

Strong free cash flow generation

Material FCF growth and near parity with net income show durable cash-generation capability. Reliable free cash flow improves operational flexibility, supports debt reduction or strategic investments, and reduces reliance on external financing over a multi-quarter horizon.

Healthier balance sheet

Lower leverage and a solid equity base give the company greater financial flexibility to withstand industry headwinds. Improved ROE with a balanced capital structure supports sustainable investment in transformation initiatives without immediate liquidity strain.

Negative Factors

Declining revenue trend

A persistent topline decline reduces operating scale and increases reliance on margin improvements to sustain profits. Over several quarters this trend can erode bargaining power with suppliers and limit reinvestment capacity, making long-term growth more challenging.

Brick-and-mortar exposure vs digital shift

A large physical store footprint faces secular pressure from digital distribution. Successfully shifting channel mix requires sustained investment in e-commerce, logistics and customer acquisition; failure or slow progress can structurally compress margins and market share over time.

Large potential dilution & governance risk

A very large, performance‑based option package creates potential future dilution and concentrates payoff on market‑cap targets. If approved and earned, dilution could materially affect shareholder economics; the structure also ties leadership incentives to aggressive market/EBITDA milestones, posing governance tradeoffs.

GameStop Business Overview & Revenue Model

Company Description

GameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising licensed merchandise primarily related to the gaming, television, and movie industries, as well as pop culture themes. As of January 29, 2022, the company operated 4,573 stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and 50 pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer, a print and digital video game publication featuring reviews of new releases, previews of the big titles on the horizon, and coverage of the latest developments in the gaming industry. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.

How the Company Makes Money

GameStop generates revenue primarily through the sale of video games, consoles, and accessories, both in physical stores and online. A significant portion of its income comes from the sale of new video games, but the company also profits from the sale of pre-owned games and trade-ins, where customers can exchange used games for store credit or cash. Additionally, GameStop earns revenue from its digital sales of downloadable games and in-game content, as well as subscription services such as Game Informer magazine and membership programs. Partnerships with major gaming publishers and console manufacturers also contribute to revenue, as GameStop often engages in promotional activities and exclusive game launches. The company's efforts to diversify its offerings and adapt to the digital gaming trend are key factors influencing its financial performance.

GameStop Financial Statement Overview

Summary

Solid overall fundamentals driven by improved margins and profitability, stronger balance sheet leverage metrics, and improving free cash flow. The main offset is slight revenue decline and segment softness (notably Hardware/Accessories and Software), despite resilience in Collectibles.

Income Statement

GameStop's TTM revenue shows a slight decline, indicating challenges in maintaining sales momentum. However, the company has improved its gross profit margin to 30.06% and net profit margin to 9.36%, reflecting better cost management and profitability compared to previous periods. The EBIT and EBITDA margins have also turned positive, suggesting operational improvements.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.85 in the TTM, indicating a more balanced capital structure. Return on equity has increased to 7.24%, showcasing enhanced profitability. The equity ratio stands at 50.26%, reflecting a solid equity base relative to total assets.

Cash Flow

GameStop's free cash flow has grown by 18.06% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.60, indicating efficient cash conversion. The free cash flow to net income ratio is high at 0.97, suggesting robust cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.81B	3.82B	5.27B	5.93B	6.01B	5.09B
Gross Profit	1.17B	1.11B	1.29B	1.37B	1.35B	1.26B
EBITDA	242.80M	22.40M	26.50M	-247.20M	-284.60M	-174.00M
Net Income	421.80M	131.30M	6.70M	-313.10M	-381.30M	-215.30M
Balance Sheet
Total Assets	10.55B	5.88B	2.71B	3.11B	3.50B	2.47B
Cash, Cash Equivalents and Short-Term Investments	8.83B	4.77B	1.20B	1.39B	1.27B	508.50M
Total Debt	4.39B	410.70M	602.80M	616.60M	649.00M	1.05B
Total Liabilities	5.25B	945.60M	1.37B	1.79B	1.90B	2.04B
Stockholders Equity	5.30B	4.93B	1.34B	1.32B	1.60B	436.70M
Cash Flow
Free Cash Flow	568.70M	129.60M	-238.60M	52.30M	-496.30M	63.70M
Operating Cash Flow	583.50M	145.70M	-203.70M	108.20M	-434.30M	123.70M
Investing Cash Flow	-1.48B	265.10M	-33.20M	-222.70M	-64.80M	36.90M
Financing Cash Flow	4.15B	3.44B	-11.60M	-7.90M	1.20B	-55.40M

GameStop Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GME, the sentiment is Positive. The current price of 21.63 is above the 20-day moving average (MA) of 21.20, above the 50-day MA of 21.55, and below the 200-day MA of 24.11, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 64.82 is Neutral, neither overbought nor oversold. The STOCH value of 83.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GME.

GameStop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	70 Outperform	$42.31B	20.43	42.43%	1.38%	4.89%	17.30%
GME	62 Neutral	$10.30B	27.96	8.35%	―	-12.13%	426.82%
BBY	62 Neutral	$14.05B	22.14	22.49%	5.46%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	57 Neutral	$5.94B	42.07	―	―	1.98%	-20.98%
CRSR	57 Neutral	$564.85M	-15.90	-5.88%	―	9.79%	63.17%
FNKO	50 Neutral	$235.97M	―	-32.77%	―	-11.32%	-165.08%

GameStop Corporate Events

GameStop Seeks Shareholder Approval for Ryan Cohen Award

On January 6, 2026, GameStop Corp. entered into a performance-based stock option award agreement with Ryan Cohen, its chairman and chief executive officer, and is now moving to seek shareholder approval of this CEO performance award at a forthcoming special meeting. The company plans to file a proxy statement with the U.S. Securities and Exchange Commission in connection with this special meeting, where its directors and executive officers may be considered participants in the proxy solicitation, underscoring that the outcome of the vote could shape GameStop’s executive compensation structure and governance dynamics for investors.

The most recent analyst rating on (GME) stock is a Hold with a $22.00 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.

GameStop Grants Ryan Cohen Performance-Based Stock Option Package

On January 7, 2026, GameStop announced that its board had granted Ryan Cohen a 100% performance-based nonqualified stock option award, agreed on January 6, 2026, that provides him with no salary, cash bonuses or time-based equity, making his compensation entirely contingent on achieving aggressive long-term market and operational milestones. The award covers options on 171.5 million shares at $20.66 and is split into nine tranches that vest only if GameStop’s market capitalization climbs from at least $20 billion up to $100 billion and the company delivers between $2 billion and $10 billion in cumulative performance EBITDA, with no partial vesting below each full hurdle; the package, which follows a period in which GameStop’s market value rose from about $1.3 billion to $9.3 billion and the company swung from a large loss in 2021 to substantial trailing net income, is subject to stockholder approval at a special meeting expected in March or April 2026, underscoring the board’s bid to tightly align Cohen’s pay with shareholder returns and sustained profitability.

The most recent analyst rating on (GME) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.

GameStop Reports Q3 2025 Profit Surge Amid Cost Cuts

On December 9, 2025, GameStop Corp. announced its financial results for the third quarter ending November 1, 2025. The company reported net sales of $821.0 million, a decrease from the previous year’s $860.3 million. However, it achieved a significant turnaround in profitability, with a net income of $77.1 million compared to $17.4 million in the prior year’s third quarter. This improvement was attributed to reduced selling, general, and administrative expenses, which dropped to $221.4 million from $282.0 million. GameStop’s operating income also saw a positive shift, reaching $41.3 million from a loss of $33.4 million in the previous year. The company’s cash and marketable securities increased to $8.8 billion, and its Bitcoin holdings were valued at $519.4 million.

The most recent analyst rating on (GME) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.