Should You Buy GameStop (GME) Stock Ahead of Tuesday’s Earnings?

TLDR

• GameStop will release its Q4 2025 earnings on March 24, with analysts projecting an EPS of $0.37 and total revenue of $1.47 billion.
• CEO Ryan Cohen has indicated plans to use GameStop as a platform to acquire a large, undervalued public consumer company.
• Cohen’s incentive package only pays out if GameStop reaches at least $20B in market capitalization and $2B in cumulative EBITDA.
• At the end of Q3, GameStop held $8.8B in cash and holds roughly $519M in Bitcoin as part of its treasury management strategy.
• Options traders are pricing in an approximately 8% swing in either direction following the earnings release.

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(SeaPRwire) –   GameStop has not hosted an earnings conference call for more than two years. But when it publishes Q4 2025 results on March 24, both Wall Street and retail traders will be watching closely, for reasons that extend far beyond the company’s bottom line.

GameStop Corp., GME

Analysts expect earnings of $0.37 per share, up from $0.30 per share in the same period a year ago. Revenue is forecast to climb 15% year-over-year to $1.47 billion. While these numbers matter, the bigger focus for most observers is what CEO Ryan Cohen does next.

Cohen has been unusually open about his ambitions. He wants to use GameStop as a vehicle to buy a publicly traded consumer company that is “significantly larger” than GME, undervalued, and run by what he described as a “sleepy” management team. He draws a comparison to Berkshire Hathaway — a holding company that buys and holds quality businesses.

This strategy is not just empty talk. Cohen’s own compensation is tied directly to it. His incentive package pays out only if GameStop reaches at least $20B in market cap and $2B in cumulative EBITDA. Full vesting requires a $100B market cap and $10B in cumulative EBITDA. The high bar for these targets makes the M&A pivot feel less like a standard plan and more like a high-stakes bet.

What the Balance Sheet Reveals

GameStop’s strong financial position gives Cohen real firepower to execute his plans. The company ended Q3 with $8.8B in cash and marketable securities, up sharply from $4.6B a year earlier. It also holds roughly $519M in Bitcoin as part of its treasury strategy — a position that drew widespread attention when it was first announced.

In Q3, adjusted EPS came in at $0.24, beating Wall Street’s consensus estimate of $0.18. Revenue fell 4.6% year-over-year to $821M, missing analyst expectations as the broader gaming industry continues its ongoing shift toward digital sales. The improvement to GameStop’s balance sheet outshone the weakness in its top line.

Heading into earnings, GME is up around 12% year-to-date. The company’s market cap stood at roughly $10.1B at Friday’s close. Short interest is at 14.7% of the float — a reminder that this stock still has a large skeptical audience.

Store Closures and a Retro Pivot

On the operational side, GameStop has been reshaping its retail footprint. The company has accelerated store closures to cut costs, while shifting to a sharper focus on e-commerce and higher-margin collectibles.

In a move that leans into fan nostalgia, GameStop officially classified the Xbox 360, PlayStation 3, and Wii U as “retro consoles” in March. It also launched a new trade-in policy that accepts non-working retro hardware — a practical step to build inventory and tap into the fast-growing market for vintage gaming gear.

Options traders are pricing in a move of around 7.98% in either direction when earnings are released. That is slightly below GME’s average post-earnings swing of 10.4% over the past three quarters — a sign that this particular earnings report may carry less volatility than usual.

Short interest currently stands at 14.7% of the float.