GameStop Beats on EPS, Bitcoin Bet Loses $151 Million
GameStop topped Q4 earnings estimates by 58% but missed on revenue. The company's Bitcoin position took a $151M hit, and Ryan Cohen stayed silent.
GameStop reported a mixed Q4 that beat on earnings but missed badly on revenue. And once again, Ryan Cohen had nothing to say about it.
The video game retailer earned $0.49 per share against expectations of $0.31—a 58% beat. Revenue came in at $1.1 billion, well short of the $1.47 billion consensus. Gross margin expanded to 35% from 28.3% a year ago, showing pricing discipline even as sales declined.
The stock barely moved after hours. At this point, GameStop investors are used to earnings surprises that don't translate to sustained gains.
The Bitcoin Problem
GameStop's $519 million Bitcoin position lost $151 million in Q4.
The company jumped into crypto in late 2024, following the MicroStrategy playbook of using corporate cash to buy Bitcoin. It seemed clever when BTC was climbing. Less so now, with Bitcoin trading around $71,000—down 19% year-to-date.
That $151 million loss hit the income statement directly. Without the Bitcoin drag, the EPS beat would have been even larger. But you can't separate the treasury strategy from the results. GameStop chose this volatility.
The silver lining: collectibles now represent 33% of Q4 net sales, up from a smaller slice a year ago. That segment brought in over $1 billion for the full fiscal year. The pivot away from physical game discs is working, just not fast enough to offset the core business decline.
The Cohen Silence
Ryan Cohen held no earnings call. He provided no forward guidance. The pattern has held across every quarter of fiscal 2025.
This isn't normal. Public companies generally explain their strategy, take analyst questions, and give investors a roadmap. Cohen has opted out of all of it.
His stated vision is to transform GameStop into an acquisition vehicle targeting a larger, undervalued consumer company. His compensation structure requires hitting a $20 billion market cap and $2 billion in aggregate EBITDA before he sees any payout. Right now, GameStop's market cap sits around $13 billion. EBITDA is nowhere near $2 billion.
The math suggests Cohen needs a transformative deal to hit those targets. What deal? When? No guidance.
The Balance Sheet
Cash remains the bright spot. GameStop closed the quarter with approximately $8.8 billion in liquid assets. That's a war chest by any measure.
The company could deploy that capital for acquisitions, buy back shares, or continue stacking Bitcoin. Cohen's preference seems to be the first option, but he hasn't named a target. The mystery is part of the GameStop investment thesis at this point.
Directly registered shares totaled 66.2 million as of March 18, 2026. The DRS crowd remains committed. Whether that commitment translates to shareholder value depends entirely on what Cohen does with the cash pile.
What's Next
GameStop's next earnings are expected around June 9, with analysts projecting an EPS loss of $0.08. That's the seasonal pattern—strong holiday quarter followed by weaker spring results.
The real catalyst is whatever Cohen is planning. He's been publicly outlining an "omni-holding" strategy, suggesting GameStop will become a platform for acquiring undervalued businesses. That's a fundamentally different company than a game retailer.
For traders, GME remains a story stock with extreme volatility potential. The EPS beat shows the core business can generate profits when conditions align. The Bitcoin loss shows the downside of Cohen's treasury experiments. And the silence from the top leaves everyone guessing what comes next.