Is GameStop (GME) Stock a Buy Before Earnings on Tuesday?

TLDR

• GameStop reports Q4 2025 earnings on March 24, with analysts expecting EPS of $0.37 and revenue of $1.47 billion.
• CEO Ryan Cohen has signaled plans to use GameStop as a platform for acquiring a large, undervalued public consumer company.
• Cohen’s incentive package only pays out if GameStop hits at least $20B in market cap and $2B in cumulative EBITDA.
• GameStop ended Q3 with $8.8B in cash and holds around $519M in Bitcoin as part of its treasury strategy.
• Options traders are pricing in a roughly 8% move in either direction after earnings.

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GameStop has not held an earnings conference call in over two years. But when it posts Q4 2025 results on March 24, Wall Street — and retail traders — will be watching closely, for reasons that go far beyond the bottom line.

GameStop Corp., GME

Analysts expect earnings of $0.37 per share, up from $0.30 a year ago. Revenue is forecast to rise 15% year-over-year to $1.47 billion. Those numbers matter, but the bigger conversation is about what CEO Ryan Cohen does next.

Cohen has been unusually candid about his ambitions. He wants to use GameStop as a vehicle to buy a publicly traded consumer company that is “significantly larger” than GME, undervalued, and run by what he described as a “sleepy” management team. His comparison point is Berkshire Hathaway — a holding company that buys and holds quality businesses.

The strategy is not just talk. Cohen’s own compensation is tied directly to it. His incentive package pays out only if GameStop reaches at least $20B in market cap and $2B in cumulative EBITDA. Full vesting requires a $100B market cap and $10B in cumulative EBITDA. The stakes are set at a level that makes the M&A pivot feel less like a plan and more like a bet.

What the Balance Sheet Shows

GameStop’s financial position gives Cohen real firepower. The company ended Q3 with $8.8B in cash and marketable securities, up sharply from $4.6B a year earlier. It also holds roughly $519M in Bitcoin as part of its treasury strategy — a position that drew attention when it was first announced.

In Q3, adjusted EPS came in at $0.24, beating Wall Street’s estimate of $0.18. Revenue fell 4.6% year-over-year to $821M, missing expectations as the broader gaming industry continues its shift toward digital sales. The balance sheet improvement outshone the top-line weakness.

GME is up about 12% year-to-date heading into earnings. The market cap stood at around $10.1B at Friday’s close. Short interest is at 14.7% of the float — a reminder that this stock still has a skeptical audience.

Store Closures and a Retro Pivot

On the operational side, GameStop has been reshaping its retail footprint. The company has been accelerating store closures to cut costs, with a sharper focus on e-commerce and higher-margin collectibles.

In a move that doubles as nostalgia-bait, GameStop officially labeled the Xbox 360, PlayStation 3, and Wii U as “retro consoles” in March. It also introduced a new trade-in policy that accepts non-working retro hardware — a practical step to build inventory and tap into the growing market for vintage gaming gear.

Options traders are pricing in a move of around 7.98% in either direction when earnings drop. That is slightly below GME’s average post-earnings swing of 10.4% over the past three quarters — a sign that this particular print may carry less drama than usual.

Short interest sits at 14.7% of the float.

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