GameStop Corp. stock research
FY2025 Q2
GameStop (GME) Gross Margin — Quarter Ended Aug 2, 2025
Revenue increased while gross profit also rose, but cost of revenue grew at a faster pace, leading to a lower gross margin. Compared with the prior quarter and the same quarter last year, gross margin weakened.
Gross margin takeaway
Quarter ended Aug 2, 2025 · FY2025 Q2
Revenue increased while gross profit also rose, but cost of revenue grew at a faster pace, leading to a lower gross margin. Compared with the prior quarter and the same quarter last year, gross margin weakened.
- The strongest observable driver is the relationship between cost of revenue and revenue, as cost of revenue increased more than proportionally to revenue.
- Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue was higher in both comparisons, while cost of revenue was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.1%
Gross profit
$283.1M
Revenue
$972.2M
Cost of revenue
$689.1M
Quarter-over-quarter change
-5.4 pts
Year-over-year change
-2.0 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 |
|---|---|---|---|---|
| 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% |
| Aug 2, 2025 | $972.2M | $283.1M | $689.1M | 29.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 3, 2025
-5.4 pts
Year-over-year change
Aug 3, 2024
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between cost of revenue and revenue, as cost of revenue increased more than proportionally to revenue.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue was higher in both comparisons, while cost of revenue was also higher.
Monitor the trend in gross margin, particularly the movement of cost of revenue relative to revenue.