GameStop Corp. stock research
FY2025 Q1
GameStop (GME) Gross Margin — Quarter Ended May 3, 2025
Revenue declined compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than the year-ago quarter. Gross margin improved from both comparison periods, with cost of revenue falling more sharply than revenue.
Gross margin takeaway
Quarter ended May 3, 2025 · FY2025 Q1
Revenue declined compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than the year-ago quarter. Gross margin improved from both comparison periods, with cost of revenue falling more sharply than revenue.
- The primary observable driver of margin improvement is the reduction in cost of revenue as a proportion of revenue, which was lower than both the prior quarter and the year-ago quarter.
- Compared to the preceding quarter, revenue and gross profit were lower but gross margin was higher. Compared to the same quarter one year ago, revenue was lower while gross profit and gross margin were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.5%
Gross profit
$252.8M
Revenue
$732.4M
Cost of revenue
$479.6M
Quarter-over-quarter change
+6.2 pts
Year-over-year change
+6.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 3, 2024 | $798.3M | $248.8M | $549.5M | 31.2% |
| Nov 2, 2024 | $860.3M | $257.2M | $603.1M | 29.9% |
| Feb 1, 2025 | $1.3B | $363.4M | $919.2M | 28.3% |
| May 3, 2025 | $732.4M | $252.8M | $479.6M | 34.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2025
+6.2 pts
Year-over-year change
May 4, 2024
+6.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of margin improvement is the reduction in cost of revenue as a proportion of revenue, which was lower than both the prior quarter and the year-ago quarter.
Compared to the preceding quarter, revenue and gross profit were lower but gross margin was higher. Compared to the same quarter one year ago, revenue was lower while gross profit and gross margin were higher.
Monitor the trends in revenue and cost of revenue to evaluate whether the current gross margin level can be sustained.