GameStop Corp. stock research
FY2025 Q3
GameStop (GME) Gross Margin — Quarter Ended Nov 1, 2025
Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Cost of revenue declined relative to both periods, and gross margin improved versus both the preceding quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Nov 1, 2025 · FY2025 Q3
Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Cost of revenue declined relative to both periods, and gross margin improved versus both the preceding quarter and the year-ago quarter.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which outpaced the decline in revenue, leading to an improved gross margin.
- Compared to the immediately preceding quarter, revenue was lower but gross margin was higher, driven by a proportionally larger decrease in cost of revenue. Versus the same quarter one year earlier, revenue was slightly lower while gross margin improved, again supported by a larger decline in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.3%
Gross profit
$273.4M
Revenue
$821.0M
Cost of revenue
$547.6M
Quarter-over-quarter change
+4.2 pts
Year-over-year change
+3.4 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 |
|---|---|---|---|---|
| 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% |
| Nov 1, 2025 | $821.0M | $273.4M | $547.6M | 33.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2025
+4.2 pts
Year-over-year change
Nov 2, 2024
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which outpaced the decline in revenue, leading to an improved gross margin.
Compared to the immediately preceding quarter, revenue was lower but gross margin was higher, driven by a proportionally larger decrease in cost of revenue. Versus the same quarter one year earlier, revenue was slightly lower while gross margin improved, again supported by a larger decline in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement is sustainable.