GameStop Corp. stock research
FY2025 Q4
GameStop (GME) Gross Margin — Quarter Ended Jan 31, 2026
In the current quarter, gross margin improved compared to both the preceding quarter and the same quarter one year earlier. Gross profit increased sequentially and year-over-year, even though revenue decreased relative to the prior year.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2025 Q4
In the current quarter, gross margin improved compared to both the preceding quarter and the same quarter one year earlier. Gross profit increased sequentially and year-over-year, even though revenue decreased relative to the prior year.
- The gross margin improvement was associated with a decline in cost of revenue relative to revenue year-over-year, and with cost growth lagging revenue growth sequentially.
- Compared to the preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin strengthening. Versus the same quarter a year earlier, revenue was lower but gross profit was higher, as cost of revenue declined more sharply, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.0%
Gross profit
$386.8M
Revenue
$1.1B
Cost of revenue
$717.5M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
+6.7 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 |
|---|---|---|---|---|
| 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% |
| Jan 31, 2026 | $1.1B | $386.8M | $717.5M | 35.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 1, 2025
+1.7 pts
Year-over-year change
Feb 1, 2025
+6.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was associated with a decline in cost of revenue relative to revenue year-over-year, and with cost growth lagging revenue growth sequentially.
Compared to the preceding quarter, revenue, gross profit, and cost of revenue were all higher, with gross margin strengthening. Versus the same quarter a year earlier, revenue was lower but gross profit was higher, as cost of revenue declined more sharply, leading to an improved gross margin.
Monitor the trend in cost of revenue relative to revenue, especially its composition and variability.