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GameStop’s Q1 Revenue Drops Amid Rising Shift to Digital Gaming

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GameStop reported a 17% decline in first-quarter revenue to $732.4 million as consumers increasingly favored digital game downloads over physical purchases at stores, sending its shares down 4.6% in after-hours trading on Tuesday.

The Texas-based videogame retailer, known for its volatile stock and 2021 Reddit-driven rally, continues to face challenges adapting to the gaming industry’s shift towards digital downloads, game streaming, and online shopping.

While GameStop expanded its ecommerce platform to include digital downloads and online merchandise, it has yet to fully benefit from the digital transition. Revenue from its hardware and accessories segment, covering new and pre-owned games, dropped about 32% in the quarter.

After closing nearly 600 U.S. stores in 2024, GameStop announced plans to shutter a “significant number” of additional locations in 2025, highlighting ongoing struggles in its retail operations despite attempts at turnaround.

On a positive note, cost-cutting measures helped GameStop report a net profit of $44.8 million for Q1, a reversal from a $32.3 million net loss a year earlier. However, the company still posted an operating loss of $10.8 million, which included $35.5 million in impairment charges tied to international restructuring.

GameStop recently sold its Canadian subsidiary Electronics Boutique Canada and expects to complete the sale of its French operations within fiscal 2025.

Notably, the company purchased 4,710 bitcoins between early May and mid-June, following a March board approval to add bitcoin as a treasury reserve asset.

Axon Raises Full-Year Revenue Forecast on Strong Demand for Security Tech, Shares Surge

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Axon Enterprise (AXON.O), the maker of TASER devices, body cameras, drones, and law enforcement technology, raised its 2025 revenue guidance on Wednesday, fueled by continued strong demand for its security products and software platforms. The news sent Axon shares up more than 7% in after-hours trading.

The Arizona-based company now expects full-year revenue to reach $2.60–$2.70 billion, up from a prior forecast of $2.55–$2.65 billion, with the midpoint exceeding analysts’ consensus of $2.62 billion (LSEG).

Q1 Financial Highlights:

  • Adjusted EPS: $1.41 (vs. $1.27 expected)

  • Revenue: $603.6M (vs. $583.8M expected)

Axon, which supplies its technology across North America, Europe, and Australia, continues to lead the U.S. market for police body cameras and has been expanding its drone and sensor offerings.

CapEx & Strategic Investments:

  • 2025 capital expenditures are projected to range between $160M–$180M, excluding planned investments in a new headquarters facility.

“Axon’s strong financial performance reflects ongoing trust in our mission-critical technologies and our expanding global customer base,” the company said in a statement.

Axon’s raised forecast and strong quarterly beat reinforce its position as a dominant player in law enforcement tech, with growth driven by both hardware and recurring revenue from its software-as-a-service (SaaS) offerings.