GameStop Corp. (GME): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of a company that has fundamentally rewritten its playbook, and frankly, it's a fascinating case study in corporate reinvention. Honestly, the entity we see in late 2025 is far removed from the struggling retailer of years past; it now backs its operations with a war chest of $8.7 billion in cash and marketable securities, even strategically holding 4,710 BTC as part of its treasury. This isn't your dad's video game store anymore. We've mapped out how GameStop Corp. balances its remaining ~2,915 physical locations with an AI-driven e-commerce focus, a booming collectibles segment, and a unique value proposition that now includes exposure to digital assets. Keep reading below to see the precise building blocks-from key partnerships to revenue streams-that define this omnichannel, asset-holding business model.

GameStop Corp. (GME) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances GameStop Corp. relies on to drive its current strategy, especially as the business pivots hard into collectibles and modernizes its retail tech stack. These partnerships are the scaffolding for their operations as of late 2025.

Microsoft: Standardizing Back-End and In-Store Tech

The multi-year strategic agreement with Microsoft Corp. remains central to GameStop Corp.'s retail infrastructure modernization. This involves standardizing core business operations on Microsoft's cloud solutions.

GameStop Corp. is standardizing its back-end and in-store solutions on Dynamics 365, Microsoft's portfolio of cloud-based business applications and customer data platform. This integration is designed to give associates omnichannel insights, covering customer preferences, purchasing history, and real-time inventory availability.

The deployment of new Surface devices is key to enabling associates to move freely within the store footprint, improving customer service speed and efficiency. Furthermore, the rollout of Microsoft 365 and Microsoft Teams aims to empower the workforce.

Here's a quick look at the scale of the technology integration:

Technology Component	Scope/Purpose	Quantifiable Detail
Dynamics 365	Standardizing back-end operations (Finance, Inventory, POS)	Enables omnichannel insights across the retail platform.
Microsoft Surface Devices	Equipping store associates for mobile customer engagement	Transforms the in-store experience and supports digital modernization.
Microsoft Teams	Associate communication and collaboration	Planned rollout to empower more than 30,000 store associates.
Xbox All Access	Product offering expansion	Includes bundling an Xbox console with 24 months of Xbox Game Pass Ultimate.

Major Console Manufacturers (Sony, Microsoft, Nintendo)

Direct relationships with the three major console manufacturers-Sony for PlayStation, Microsoft for Xbox, and Nintendo-are essential for GameStop Corp.'s hardware supply chain. These partnerships ensure access to new console inventory, which is critical for driving foot traffic and trade-in volume, even as digital sales grow.

The availability of current-generation hardware, such as the PlayStation 5, remains a driver. For instance, in late 2025, the PlayStation 5 model was seen marked down to $450 at GameStop Corp. locations, reflecting manufacturer-supported pricing strategies across the retail channel.

The company's ability to secure allocation for expected new hardware, like the Nintendo Switch 2, is entirely dependent on these foundational relationships.

Collectibles and Trading Card Suppliers

This segment represents a strategic focus for GameStop Corp., specifically for its high-margin potential compared to traditional hardware and software. Trading cards and collectibles are now a primary growth pillar.

The pivot is substantial; reports indicate that trading cards and collectibles contribute around 30% of GameStop Corp.'s total revenue as of late 2025. This is a significant shift from prior years.

The financial performance of this focus area is clear:

• Q1 2025 Collectible sales reached approximately $211.5 million (period ending May 3, 2025).
• This figure represents a 54 percent growth year-over-year from Q1 2024 sales of $136.8 million.
• The company is actively partnering with grading services like Professional Sports Authenticator (PSA) and Collectors Holdings.
• GameStop Corp. has submitted over 1 million cards for grading since October 2024.

This focus on high-value, tactile products like Pokémon and sports cards is seen as aligning with the company's heritage and its established trade-in model.

Zip for Pay-in-Installments Services

To enhance customer financing and potentially increase average transaction value, GameStop Corp. established a partnership with Zip Co. in March 2025, making Zip its primary Buy Now, Pay Later (BNPL) service in the U.S. for both online and in-store purchases.

This partnership taps into Zip's existing user base, where nearly 84% of its U.S. customers shop for gaming and accessories at GameStop Corp. Zip itself reports having 6.3 million active customers across its operating regions.

The goal is to offer flexible payment plans across GameStop Corp.'s offerings, which is a leader in the $100 billion gaming industry.

Game Publishers for Physical and Digital Game Distribution

Game publishers remain essential partners for both physical game distribution and the growing digital segment. While the industry leans heavily digital, GameStop Corp. continues to integrate digital offerings, such as downloadable games and in-game currency, to maintain relevance against platforms like Steam.

The company's enhanced e-commerce capabilities, supported by the Microsoft partnership, are necessary to compete in this space. For context on overall sales performance, GameStop Corp.'s quarterly revenue for Q2 2025 was reported at $972.20 million, and its full fiscal year 2024 net sales totaled $3.823 billion.

Furthermore, GameStop Corp. is exploring future digital distribution channels by partnering with entities like the Telos Foundation and Elixir Games for Web3 gaming initiatives.

Finance: draft the Q3 2025 cash flow projection incorporating expected holiday inventory needs by next Tuesday.

GameStop Corp. (GME) - Canvas Business Model: Key Activities

You're looking for the hard numbers on what GameStop Corp. is actually doing to run its business right now, late in 2025. Forget the noise; here are the concrete actions and the associated figures we see in their latest filings.

Aggressive cost-cutting and store network optimization

GameStop Corp. is actively shrinking its physical footprint while driving down overhead. This de-densification effort is a major activity supporting profitability. For fiscal year 2024, Selling, general and administrative (SG&A) expenses were $1.130 billion, down from $1.324 billion in fiscal year 2023. This trend continued into 2025; in the second quarter of 2025, SG&A expenses fell to $218.8 million, compared to $270.8 million in the prior year's second quarter. This reduction in overhead brought SG&A down to 22.51% of net sales in Q2 2025, a significant improvement from levels over 30% in prior years.

The physical network is being aggressively optimized. GameStop Corp. closed 590 U.S. stores in 2024. Furthermore, they anticipated closing a 'significant number' of additional stores in fiscal 2025. The physical count is down substantially; for instance, they had over 4,000 locations a year before Q2 2025, but by Q2 2025, the count was somewhere around 2,900 or less. International streamlining is also a key activity, with the divestiture of Canada completed last quarter and the French business sale planned for completion by fiscal 2025. The remaining operations are showing efficiency, as Q2 2025 net revenue still surged 21.8% year-over-year to $972.2 million, despite the store closures.

E-commerce platform enhancement, increasingly AI-driven

The operational focus is clearly shifting to digital, with artificial intelligence being integrated to improve the online experience. As of mid-2025, GameStop Corp.'s e-commerce platform is increasingly powered by AI for personalization and operational streamlining. This enhancement helps drive the overall business, which saw Q2 2025 net sales of $972.2 million, outpacing Wall Street's forecast of $823.2 million.

Strategic treasury management, including holding 4,710 BTC

Managing the substantial cash position and deploying it into digital assets is a core activity. GameStop Corp. approved the addition of Bitcoin (BTC) as a treasury reserve asset in March 2025. The company purchased 4,710 BTC between May 3, 2025, and June 10, 2025, for approximately $513 million. The average purchase price was in the range of $93,000 to $112,000 per coin. At the close of Q2 2025, these holdings were valued at $528.6 million, resulting in an unrealized gain of $15.6 million for that quarter. This was supported by a significant capital raise; in June 2025, GameStop Corp. raised $2.7 billion through a convertible debt offering, with a primary goal of expanding the Bitcoin treasury. Cash, cash equivalents, and marketable securities stood at $8.7 billion at the close of Q2 2025, up from $4.2 billion at the close of the prior year's second quarter.

Sourcing and logistics for high-growth collectibles segment

Sourcing and moving high-margin collectibles is a critical activity that directly impacts profitability metrics. The collectibles segment is a major revenue driver. In Q1 2025, trading cards like Pokémon and Magic: The Gathering drove a 54.6% year-over-year sales increase. By Q2 2025, collectibles contributed 28.9% of total revenue, up from 15.5% in Q1 2025. This segment's growth helps improve margins, as Q2 2025 gross margin was 29.14%, compared to 24.54% in 2024. The launch of the Power Packs product in late July 2025 is a key logistical and sourcing activity leveraging this segment.

Here's a look at the segment revenue contribution for Q1 2025:

Category	Net Sales (in millions)	Percentage of Total Sales
Hardware (1)	$345.3	47.1%
Software (2)	$175.6	24.0%
Collectibles (3)	$211.5	28.9%
Total	$732.4	100.0%

Note: (1) Includes new/pre-owned hardware, accessories, and bundles. (2) Includes new/pre-owned software and digital software. (3) Includes apparel, toys, trading cards, gadgets.

Managing the PowerUp Rewards loyalty program and customer data

Data management and customer retention via the loyalty program are essential for driving repeat business, especially as the collectibles segment scales. The PowerUp Rewards Pro membership is now integrated with the new collectibles offering. GameStop Corp. has 5.6 million PowerUp Rewards Pro members as of late 2025. The GameStop Pro Credit Card offers enhanced benefits, allowing cardholders with a Pro Membership to earn up to 4% back in Rewards (40 points per dollar spent). Historically, PowerUp Rewards members represented over 60% of U.S. transactions.

Key Loyalty Program Metrics/Features:

• Pro Membership Count: 5.6 million members.
• Credit Card Rewards Rate: Up to 4% back (40 points per dollar) for Pro members.
• Points Expiration: Points never expire for active cardholders.
• Historical Transaction Share: Members represented over 60% of U.S. transactions.

Finance: draft 13-week cash view by Friday.

GameStop Corp. (GME) - Canvas Business Model: Key Resources

You're looking at the core assets GameStop Corp. is relying on right now to navigate the shift from pure physical retail. Honestly, the balance sheet is where the story is thickest as of late 2025.

The most immediate resource is the liquidity position. GameStop Corp. built up a substantial war chest, which is critical for any transformation strategy. This gives you breathing room that many pure-play retailers just don't have.

Resource Metric	Value (as of Q2 FY2025 End)	Context/Comparison
Cash and Marketable Securities	$8.7 billion	Up from $4.2 billion in the prior year's second quarter.
Total Physical Stores (Global)	3,203	As of February 2025, down from a peak of ~6,000 a decade ago.
U.S. Physical Stores	2,325	The bulk of the remaining physical footprint.
Bitcoin Treasury Holdings (Value)	$528.6 million	Valuation at the close of the second quarter.
Bitcoin Purchased (Amount)	4,710 BTC	Reported purchase amount, valued at $513.4 million at time of purchase (May 2025).

The physical footprint is actively being pruned. You see a clear trend of optimization, meaning this resource is shrinking but hopefully becoming more profitable per location. As of February 2025, the total count stood at 3,203 stores globally, with 2,325 in the U.S. alone. This followed the closure of 590 U.S. stores in fiscal 2024, and the company signaled more cuts are coming in FY 2025. Also, the Canadian operations, which numbered 193 stores, were sold in May 2025.

Brand equity remains a powerful, if less quantifiable, asset, especially given the highly engaged retail investor community. This community translated into tangible financial actions, like the distribution of up to ~59 million tradable warrants (GME WS) with a $32.00 strike price in Q2 FY2025, potentially raising up to ~$1.9 billion if fully exercised. That level of direct shareholder engagement is a resource in itself.

The digital pivot is cemented by the adoption of digital assets. GameStop Corp. added Bitcoin as a treasury reserve asset after the board approved the policy update on March 18, 2025. By the end of Q2, these digital asset holdings were valued at $528.6 million. This move is explicitly about diversifying the investment portfolio using a portion of their cash reserves.

Regarding the technology stack, while specific investment figures are hard to pin down without the full Q3 report, the operational improvements suggest resource deployment in efficiency. For instance, Selling, General and Administrative (SG&A) expenses dropped to $218.8 million in Q2 FY2025 from $270.8 million in the prior year's second quarter. This reduction in operating cost is a direct result of optimizing the existing infrastructure, which includes the e-commerce platform.

Here are the key operational and financial metrics underpinning these resources:

• The company generated $115.8 million in operating cash flow during Q2.
• Q2 FY2025 net sales rose to $972.2 million.
• The company reported an operating income of $66.4 million for Q2 FY2025.
• The stock had a Market Cap of $10.28B as of late November 2025.

Finance: draft 13-week cash view by Friday.

GameStop Corp. (GME) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose GameStop Corp. in late 2025, grounded in the latest numbers we have from their Q2 fiscal year 2025 performance.

Omnichannel access to gaming and pop culture products.

GameStop Corp. maintains a physical footprint while pushing digital sales, creating a hybrid shopping environment. As of February 1, 2025, the company operated 3,203 global stores. This physical presence supports the omnichannel strategy, which saw total net sales reach $972.2 million in Q2 2025. The product mix shows a diversified offering, though hardware remains the largest piece of the pie.

Revenue Segment (Q2 FY2025)	Amount (Millions USD)	Percentage of Total Revenue
Hardware and Accessories	$592.1	60.9%
Collectibles	$227.6	23.4%
Software	$152.5	15.7%

The company's ability to generate $168.6 million in net income for Q2 2025 shows this mix is working profitably.

High-margin, exclusive collectibles and trading card selection.

The collectibles segment is a key value driver, boasting higher margins that help the overall business. Collectibles revenue hit $227.6 million in Q2 2025, representing a 63.3% year-over-year increase. This segment's gross margin is significantly better than legacy software sales, contributing to a full fiscal year 2025 gross margin of 29.1%. The focus includes expanding in-store business for items like trading cards, where they buy, sell, and grade Pokemon Cards.

• Collectibles revenue growth in Q1 2025 was +54.6% year-over-year.
• Collectibles accounted for nearly 29% of total net sales in Q1 2025.
• The segment's gross margin for Q1 2025 was reported at 34.5%.

Physical retail experience for hardware and trade-ins.

The remaining physical stores offer immediate access and service, especially for hardware. Hardware and Accessories sales made up 60.9% of total revenue in Q2 2025, totaling $592.1 million, up 31.2% year-over-year. This revenue stream is supported by the ability to handle trade-ins for new and pre-owned consoles and accessories, which is a core function of the brick-and-mortar locations. The reduction in Selling, General and Administrative (SG&A) expenses to $218.8 million in Q2 2025, partly from optimizing the store network, suggests a more focused physical offering.

Exposure to digital assets and Web3 initiatives for customers.

GameStop Corp. is actively exploring digital frontiers, offering customers exposure to emerging asset classes. The company made a substantial investment in digital assets, holding Bitcoin valued at $528.6 million at the close of Q2 2025. Furthermore, they are venturing into Web3 gaming platforms like 'GameStop Playr' and launched a Solana-based $GME token to power services like their trading card program. This digital exploration is a distinct value proposition for tech-aware customers.

Competitive pricing on new and pre-owned hardware/accessories.

While direct pricing data isn't available, the strong performance of the Hardware and Accessories segment, which grew 31.2% year-over-year in Q2 2025 to $592.1 million, suggests competitive positioning against online rivals. The integration of new and pre-owned gaming platforms and accessories across its digital and physical channels aims to capture value across price points. The company's overall gross margin of 29.1% in Q2 2025 reflects a balance between discounting on hardware and the high margins from collectibles.

Finance: draft Q3 2025 cash flow projection by Monday.

GameStop Corp. (GME) - Canvas Business Model: Customer Relationships

You're looking at how GameStop Corp. (GME) keeps its customers engaged in late 2025, which is a mix of digital personalization and very real, physical community stunts. The core of their relationship strategy still rests on the PowerUp Rewards program, which is a massive data capture engine for them.

PowerUp Rewards program for loyalty and data capture

This program is central; it's how GameStop Corp. (GME) knows what you want before you even type it into the search bar. As of recent reports, the program boasts more than 40 million members worldwide. Honestly, that scale is impressive for a retailer that has streamlined its physical footprint to under 3,000 U.S. stores as of October 2024. The real metric here is that these loyalty members account for a staggering 71 percent of GameStop's business. That tells you their relationship strategy is working to drive transaction volume.

Here's a quick look at the premium tier, PowerUp Rewards Pro, which is designed to lock in your spend:

Membership Level	Annual Cost (USD)	Key Benefit Example	Annual Value Potential (USD)
Pro (Digital)	$14.99	Monthly $5 coupon	$60.00 (from monthly coupons alone)
Pro (Physical)	$19.99	Monthly $5 coupon + Game Informer (Physical)	$60.00 (from monthly coupons alone)

The Pro tier gives members instant gratification, like a $5 rewards certificate upon sign-up, plus that recurring $5 monthly coupon. This structure helps GameStop Corp. (GME) capture data on high-frequency buyers, which is crucial when overall net sales were down 16.9% in Q1 2025, but gross profit margins improved to 34.5% in that same quarter, suggesting better product mix control, likely driven by loyalty member purchasing habits.

High-touch, community-focused in-store associate interaction

Even with the store count shrinking, the remaining locations are being used for high-impact, community-building events. You see this clearly in their promotional calendar. For example, the 'Trade Anything Day' on December 6, 2025, was a one-day event where customers could trade almost any physical item for $5 in store credit, provided it fit within a 20-by-20-by-20-inch box. This isn't about the five dollars; it's about getting you physically back into the store environment, creating a memorable, high-touch interaction that drives foot traffic.

• The event encourages in-store visits, converting curiosity into physical presence.
• Store associates handle the direct, often humorous, interaction of accepting or rejecting items.
• This contrasts with the leaner operational structure that saw SG&A expenses cut by 22.7% in Q1 2025.

Automated, personalized e-commerce experience via AI

GameStop Corp. (GME) has made a strategic pivot toward AI-driven e-commerce as part of its reinvention. While I don't have the specific 2025 adoption rate for AI personalization features, we know digital behavior is key. In a recent period, 40% of customers were heavily engaged in the mobile space, but only less than 5% were actually purchasing on mobile devices, with 40% to 65% using mobile for product research. This gap suggests a major opportunity for AI to personalize the research-to-purchase journey online, turning that research intent into completed sales, especially as the company seeks to grow its digital revenue streams.

Direct engagement with the meme stock community via social media

The relationship with the 'meme stock' community is a unique, if volatile, aspect of GameStop Corp. (GME)'s customer engagement. Reddit remains the epicenter for this dialogue. Our analysis of social network graphs showed Reddit, specifically the r/Superstonk cluster, as the largest and most active community discussing the stock and company narrative during mid-2024, often drawing influence from figures like Keith Gill. The company's recent viral promotions, like 'Trade Anything Day,' are explicitly designed to generate buzz and engagement within these social channels, which in turn drives stock price action and retail investor interest. This direct, if sometimes chaotic, engagement keeps the brand top-of-mind with a highly motivated segment of retail traders, who are also your customers. Finance: review the Q3 2025 marketing spend allocated to social media amplification by next Tuesday.

GameStop Corp. (GME) - Canvas Business Model: Channels

You're looking at how GameStop Corp. gets its products-new and pre-owned games, hardware, and collectibles-into the hands of its customers as of late 2025. The strategy is clearly moving away from sheer physical presence toward a more integrated digital and physical experience, which is a massive undertaking for a retailer this size.

E-commerce platform (primary growth driver).

The online channel is where the company is trying to pivot its revenue mix, even if overall digital sales growth has been uneven. The focus here is less on disc sales and more on high-margin collectibles, which are showing real traction online and in-store. For the full fiscal year ended February 1, 2025, GameStop's consolidated net sales were $3.823 billion. The online store, gamestop.com, generated $441 million in sales in 2024, but its projected growth rate for 2025 compared to 2024 is indicated as <0%. However, the strategic shift is evident in the product categories, where collectibles revenue reached approximately $228 million in Q2 fiscal year 2026, representing over 23% of total revenue for that quarter, a significant increase from approximately 17% in the same period last year. This collectible segment is being actively pushed through the digital storefronts.

Reduced physical store footprint (down from 5,122 in 2020).

The physical footprint is shrinking aggressively as part of the optimization review. As of February 2025, GameStop Corp. operated 3,203 stores globally. This is a substantial reduction from the 5,122 locations it had in 2020. [cite: context] The company closed 590 locations globally in the year leading up to early 2025, with 590 of those closures occurring in the U.S. Furthermore, the company stated in its latest 10-Q filing that it anticipates closing a 'significant number' of additional stores in fiscal 2025. The Canadian operations were sold in May 2025, which represented 4.7% of Q2 2024 sales. The remaining physical locations are now serving a dual purpose: direct sales and acting as fulfillment nodes for online orders.

Here's a look at the store count evolution and the shift in sales composition:

Metric	Value/Percentage	Period/Context
Global Store Count (Feb 2025)	3,203	As of February 2025
US Store Count (2025 Estimate)	2,960	In the United States
Global Store Count (2020 Peak Reference)	5,122	Down from this level [cite: context]
FY 2024 Total Net Sales	$3.823 billion	Fiscal Year Ended February 1, 2025
Collectibles Revenue Share (Q2 FY2026)	Slightly over 23%	Core growth engine
Hardware & Accessories Revenue Share (Q2 FY2026)	Over 60%	Still the largest segment

Omnichannel fulfillment centers and logistics network.

The logistics network is increasingly relying on the remaining physical stores to handle online demand, a strategy known as Ship-from-Store. While older data from 2016 showed the company used a system to connect 4,000 locations for this purpose, the current network must support the remaining stores and any dedicated fulfillment centers. The global omnichannel logistics market itself was valued at USD 1482.4 Million in 2024, with a projected CAGR of 12.8% through 2032, driven by demand for unified experiences. For GameStop Corp., the challenge in 2025 remains data integration between systems and efficiently handling returns across channels (reverse logistics).

Mobile application for shopping and loyalty program access.

The mobile app is a key touchpoint for the loyalty program, GameStop Pro. The app displayed growing trends on Google Play in 2025, reaching 22K+ installs on Android. The Pro Membership is priced at $19.99 per year, and new members can receive $65 in value just for joining, which includes a $5 Welcome Reward and $5 Monthly Pro Rewards. Members also get 2% back in rewards, plus an extra 5% off pre-owned products, digital items, and collectibles. This structure helps drive repeat engagement, which is critical when physical store traffic is declining.

The app experience is designed to be easier for gamers.

• Current App Version: 501.2.2
• App Rating: 3.6 stars (from 476 votes)
• Pro Rewards: 2% back on purchases
• Pro Welcome Bonus: $5 reward

Finance: draft the projected impact of the Pro Membership revenue stream on Q3 2025 gross margin by next Tuesday.

GameStop Corp. (GME) - Canvas Business Model: Customer Segments

You're looking at the distinct groups GameStop Corp. (GME) serves as of late 2025, based on their evolving revenue mix and strategic announcements.

Core video game enthusiasts and console buyers still form a base, though their spending is shifting away from physical media. Hardware and accessories sales accounted for over 60% of GameStop Corp. (GME)'s sales revenue in Q2 fiscal year 2026. By contrast, the traditional software segment, which includes physical game discs, represented approximately 15%-16% of revenue in that same period. For the quarter ending May 3, 2025, software sales specifically brought in around $175.6 million.

Collectors of pop culture merchandise and trading cards represent the primary growth engine now. This segment drove collectibles net sales to approximately $211.5 million in Q1 2025, marking a year-over-year increase of 54.6%. This category grew to constitute nearly 29% of total net sales in Q1 2025, up from 15.5% the prior year. More recently, in Q2 fiscal year 2026, collectibles revenue hit approximately $228 million, making up slightly over 23% of total revenue. The gross margin for the collectibles segment in Q1 2025 was reported at 34.5%.

Here's a quick look at the segment revenue shift based on recent data:

Segment	Q1 FY2025 Sales (Approx.)	Percentage of Total Sales (Approx.)
Collectibles	$211.5 million	29%
Software (Physical Games)	$175.6 million	N/A

Value-conscious gamers utilizing trade-in and pre-owned services are targeted through promotions that drive foot traffic. GameStop Corp. (GME) ran its first-ever 'Trade Anything Day' on December 6, 2025, offering a $5 store credit for one item that fit within a 20x20x20 box. This contrasts with the typical trade-in process, though a highly publicized, record trade-in on December 1, 2025, involved a rare card for a payment of $30,494.70. However, the official FAQ for trading cards suggests a maximum trade-in limit of $1500 in cash or store credit.

Retail investors drawn by the meme stock narrative and digital asset strategy represent a segment whose engagement is financial rather than purely transactional. GameStop Corp. (GME) made a major move in May 2025, purchasing 4,710 Bitcoin, valued at over $515.7 million. At the close of the second quarter of 2025, the company's Bitcoin holdings were valued at $528.6 million. Furthermore, the digital strategy includes a Web3 platform with Immutable X, supported by a $100 million grant fund for NFT creators. Institutional ownership stood at 40.61% as of late 2025.

• The company reported a strong cash position, with cash, cash equivalents, and marketable securities at $8.7 billion at the close of the second quarter of 2025.
• The stock's price remains sensitive to narrative-driven momentum, with retail trader activity spiking ahead of Q3 results.

Finance: draft 13-week cash view by Friday.

GameStop Corp. (GME) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive GameStop Corp.'s operating expenses as of late 2025. This structure reflects the ongoing, significant pivot away from a purely physical footprint toward digital and collectibles focus, which directly impacts fixed and variable costs.

The most immediate cost component you see on the income statement is the Cost of Goods Sold (COGS), which covers inventory procurement and the logistics to move that product. For the second quarter ended August 2, 2025, the Cost of Sales was reported at $689.1 million. This number is directly tied to the net sales of $972.2 million for the same period.

Next, you have the overhead costs, categorized as Selling, General & Administrative (SG&A) expenses. For that same Q2 2025 period, GameStop Corp. reported SG&A expenses of $218.8 million. This represents a year-over-year reduction, showing the impact of cost control measures, such as exiting unprofitable regions like Canada.

Here's a quick look at the key cost components from the Q2 2025 results:

Cost Component	Amount (Q2 2025)	Context/Period
Sales, General & Administrative (SG&A) expenses	$218.8 million	13 Weeks Ended August 2, 2025
Cost of Sales (COGS)	$689.1 million	13 Weeks Ended August 2, 2025
Gross Profit	$283.1 million	13 Weeks Ended August 2, 2025
Operating Expenses (Total)	$907.9M	Fiscal Quarter Ending June 2025

The retail footprint costs, which include store lease and operational expenses, are being actively managed. GameStop Corp. was operating around 3,203 stores globally as of February 1, 2025, down significantly from over 4,000 locations a year prior. This reduction in physical presence is a direct lever used to lower fixed lease obligations and associated operational costs. The twelve months ending July 31, 2025, saw total operating expenses decline to $3.746B, an 18.29% drop year-over-year, reflecting this streamlining.

Employee costs are a major fixed component. The company reported an employee count of approximately 8K in its recent filings. These salaries and benefits cover both the remaining store associates supporting the physical channel and the corporate staff driving the digital transformation. The overall reduction in SG&A suggests efficiency gains across the entire workforce structure.

Investment in e-commerce technology and digital transformation is funded by the company's strong liquidity position, which stood at $8.7 billion in cash, cash equivalents, and marketable securities at the close of Q2 2025. This capital is earmarked for strategic initiatives, including digital asset acquisitions and R&D spending. The cost structure is shifting from high variable retail costs to potentially higher, but more scalable, technology development costs. This is a defintely necessary trade-off for the future model.

Key cost drivers that are being optimized or invested in include:

• Store lease and utility expenses due to network optimization.
• Salaries and benefits for the remaining 8K employees.
• Logistics costs associated with inventory procurement and fulfillment.
• Capital expenditure on digital platform development and Web3 initiatives.
• Costs related to the divestiture of international operations, such as the Canadian wind-down.

Finance: draft 13-week cash view by Friday.

GameStop Corp. (GME) - Canvas Business Model: Revenue Streams

You're looking at the actual money GameStop Corp. brings in, which is definitely shifting away from just selling new games. The revenue streams are now a mix of physical goods, digital asset performance, and interest earned on that massive cash pile they built up. Honestly, the biggest story here is the change in the sales mix, which directly impacts gross margin.

The core retail business is heavily weighted toward hardware and accessories. For the second quarter ended August 2, 2025, this segment was the clear leader, making up over 60% of total revenue. This is a significant pivot, driven by the current console cycle and related add-ons.

The Collectibles category is the high-growth engine right now. For Q2 2025, this segment pulled in $227.6 million, which represented over 23% of the total sales for that period. This shows you they are successfully becoming a destination for enthusiast merchandise, not just games.

Software sales, which is the traditional bread-and-butter of physical game discs, continues its structural decline. In that same Q2 2025 period, software revenue was $152.5 million, accounting for only about 15% of the top line.

Here's a quick look at the Q2 2025 revenue composition based on the latest reported figures:

Revenue Stream Component	Amount (Q2 2025)	Percentage of Total Revenue (Q2 2025)
Hardware and Accessories Sales	$592.6 million	Over 60% (approx. 61.0%)
Collectibles Sales	$227.6 million	Over 23%
Software Sales	$152.5 million	Approx. 15.7%
Total Net Sales (Q2 2025)	$972.2 million	100%

Beyond the physical sales, GameStop Corp.'s treasury strategy is now a direct revenue stream, though it comes with volatility. You have to watch the financial line items closely, as they are now material to the bottom line.

The large cash reserve, which stood at $8.7 billion in cash and equivalents at the end of Q2 2025, is generating interest income. While the GAAP statements sometimes show a net interest expense due to debt servicing, the underlying interest earned on cash is a component. For the third quarter ended October 2025, the reported Interest income, net on the condensed statement was $(54.2) million, reflecting the net effect after other financing costs.

The digital asset holdings are a unique, non-recurring source of potential profit. As of August 2, 2025, the company held Bitcoin valued at $528.6 million. This led to a significant non-operating gain in Q2 2025:

• Unrealized gain on digital assets (Bitcoin) for Q2 2025: $28.6 million.

These financial gains are definitely boosting reported net income, but they aren't tied to selling products in the store. Finance: draft 13-week cash view by Friday.