What caused GME's earnings to miss forecasts in Q4 2025?

GameStop's earnings missed forecasts in Q4 2025 due to a combination of factors:

1. Decline in Sales: GameStop's total revenue for the quarter was $1.28 billion, which missed the estimated $1.477 billion. This decline was primarily due to a 28.5% year-over-year drop in sales. The company's hardware and software sales were particularly weak, reflecting a shift in consumer behavior towards digital gaming and streaming services.
2. Cost Reductions and Strategic Shifts: Despite the revenue shortfall, GameStop reported a net income of $131.3 million for the quarter, which was a significant increase from $63.1 million in the same period the previous year. This improvement was largely attributed to cost-cutting initiatives and strategic shifts in investment policy.

In summary, GameStop's earnings miss in Q4 2025 was primarily due to lower-than-expected sales, particularly in hardware and software, despite efforts to streamline operations and boost profitability through cost management and strategic investments like Bitcoin.