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Feb 01
GameStop Q4 2024 Earnings Report
GameStop reported its Q4 2024 results with a significant decline in revenue year-over-year but an improvement in net income and profitability metrics.
Key Takeaways
GameStop saw a year-over-year drop in revenue for Q4 2024 but managed to improve profitability, achieving higher net income and operating income. The company also reported strong free cash flow and maintained substantial cash reserves.
Revenue for Q4 2024 was $1.283 billion, down from $1.794 billion year-over-year.
Net income increased to $131.3 million compared to $63.1 million in the prior year quarter.
Adjusted EPS reached $0.30, up from $0.22 in Q4 2023.
The company ended the quarter with $4.7569 billion in cash and cash equivalents.
GameStop
GameStop
GameStop Revenue by Segment
Revenue by Segment
Hardware & Accessories Revenue
CapyFin.comSoftware Revenue
CapyFin.comCollectibles Revenue
CapyFin.com Forward Guidance
GameStop did not provide forward guidance in the report and announced that it will not hold a conference call for this quarter.
Positive Outlook
- Strong cash position with $4.76 billion in cash and cash equivalents.
- Improved profitability metrics compared to the prior year.
- Efficient cost control with reduced SG&A expenses year-over-year.
- Increased adjusted EBITDA compared to Q4 2023.
- Completion of divestiture and wind-down initiatives, focusing operations.
Challenges Ahead
- Significant year-over-year revenue decline.
- Continuing challenges in the hardware and software sales segments.
- No forward-looking guidance provided.
- Dependence on seasonal and cyclical factors in the gaming industry.
- Operational risks related to inventory management and store closures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income