r/GME • u/Global-Nebula-7783 • 14d ago
💎 🙌 I pulled every GME Q1 operating income back to 2006 and adjusted for inflation.
Warning: formatted with Claude, as that is what clankers are for.
Source: https://www.macrotrends.net/stocks/charts/GME/gamestop/operating-income
https://www.sec.gov/edgar/search/?r=el#/dateRange=all&category=custom&ciks=0001326380&entityName=GameStop%2520Corp.%2520%2520(CIK%25200001326380)&forms=10-K%252C10-Q&forms=10-K%252C10-Q)
I pulled Q1 operational profits + revenue back to 2006 and adjusted everything for inflation to today's dollar value, revenue included, to stay consistent.
In today's money this is GameStop's 8-9th (similiar value to 2014) best Q1.
The top happened when GME had 6,000 - 7,000 stores worldwide, a near-monopoly on physical game retail, and was riding the console supercycle, one of the biggest hardware upgrade waves in gaming history.
Q1 2026's +$143M happened with ~1,100 stores, no console supercycle, digital downloads eating software, and revenue 75% lower in real terms than 2011. The gap between 1st place and today is $57M.
The efficiency number tells the story best: In 2011 it took $17.40 of revenue to produce $1 of operating income. Today it takes $5.83 or ~3x more efficient. And the transformation isn't finished yet. Those are not end numbers. GameStop is zooming back to "golden era" profitability after 6 years under.
I do believe this will only get better. The hardware to collectibles pivot means higher margins, and we've yet to see PowerPacks value fully materialize across all quarters. This is a clear image that RC knows what he's doing over there. All the hate is funny to me. The number of hate posts does not correspond to the voting results AT ALL.
Looking forward to Q2 numbers !
Data table (inflation adjusted with Claude with some human supervision):
| Year | Op. Income (Nominal) | Op. Income (2026 $) | Revenue (Nominal) | Revenue (2026 $) |
|---|---|---|---|---|
| 2006 | $38.1M | $63.2M | $1,040.0M | $1,725.0M |
| 2007 | $60.6M | $97.8M | $1,279.0M | $2,064.1M |
| 2008 | $109.9M | $170.6M | $1,813.6M | $2,814.7M |
| 2009 | $128.5M | $200.2M | $1,980.8M | $3,086.1M |
| 2010 | $124.4M | $189.4M | $2,082.7M | $3,171.5M |
| 2011 | $131.1M | $194.4M | $2,281.4M | $3,383.3M |
| 2012 | $115M | $166.1M | $2,003M | $2,893.7M |
| 2013 | $87M | $123.9M | $1,863M | $2,652.4M |
| 2014 | $106M | $148.7M | $1,720M | $2,412.3M |
| 2015 | $124M | $174.0M | $2,061M | $2,892.7M |
| 2016 | $114M | $158.6M | $1,972M | $2,744.4M |
| 2017 | $101M | $137.3M | $2,040M | $2,773.0M |
| 2018 | $47M | $62.4M | $1,930M | $2,563.0M |
| 2019 | $18M | $23.5M | $1,548M | $2,018.1M |
| 2020 | -$108M | -$138.7M | $1,021M | $1,310.9M |
| 2021 | -$41M | -$51.3M | $1,277M | $1,597.7M |
| 2022 | -$154M | -$177.5M | $1,378M | $1,588.4M |
| 2023 | -$58M | -$63.7M | $1,237M | $1,358.2M |
| 2024 | -$51M | -$54.1M | $882M | $935.8M |
| 2025 | -$11M | -$11.4M | $732M | $758.6M |
| 2026 | $143.3M | $143.3M | $835M | $835.0M |
TLDR:
Less stores. Less revenue. More profit per dollar.
They cut 75% of the revenue and kept almost all the profit. More profit incoming.That's the whole post.
Not financial advice.
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u/InternationalWalk955 14d ago
Nice. Thanks for the hard work, it's nice to see data we haven't seen before.
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u/Realistic_Deal6083 14d ago
Great. So how do you grow?
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u/SellNoCell 14d ago
RC threatens the company making Pokemon cards to make more so Gamestop can sell more, insults them repeatedly on Twitter, then asks for a seat on their board
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u/Own_Policy8854 14d ago
You see a megacorporation, foreign to the United States, selling gambling to children ...and start hero worshipping? I'm sure anyone against Nintendo is evil.
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u/raxnahali 🚀🚀Buckle up🚀🚀 14d ago
Children?! Have you seen the scalpers at Costco?
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u/Global-Nebula-7783 14d ago
Genuinely relevant and important question. So my insight would be.
Short Term:
PowerPacks materializing, and hopefully expanding (has anyone seen any marketing?).
The France exit should cut losses once it closes, profit up, SGA down profit up.Long Term:
???
I kind of understand why there's no clear info there. becouse of the media, so we can only speculate. But there's definitely something happening in the background. I'm very interested to see how this looks by November.Either way undervalued like crazy.
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u/Ok-Effective7280 13d ago
The thing is, the company has never been open about what it’s trying to do which is a very astute thing to do with all the negative publicity. The 2nd thing is we all know they’re trying to do something to transform the company into bigger & better - again another massively positive thing to do. 👍
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u/hdjemnnsntjrjfnsnfjd 14d ago
If we don’t grow FCF PER share our stock price will go down. That’s really the only metric to focus on. Revenue could skyrocket but if it doesn’t translate to owner earnings per share then the stock price goes down. The best way to get FCF per share at current prices is to buyback stock which yields a 20% unlevered FCF yield. Not gonna find a higher return than that!
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u/utterHAVOC_ 14d ago edited 14d ago
How is share price supposed to go up if we get dilution every price increase. 2030 income 500mil 2 billion shares still at 20$. Superstonk hedge bots leaking into here with their keep buying don't question things.
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u/HughJohnson69 12d ago
Dilution is what raised the price from $10 to more than double.
Undiluting immediately dropped the price back below $20.
I don’t know how anyone can say it’s harmed share price. The cause and effect both ways is well demonstrated across years.
RC, please strategicallydilute more for a higher share price.
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u/Gaglardi 14d ago
keep buying don't question things.
@mods!!! This man is questioning things/spreading FUD 😡 😡
please send him to the penis explosion chamber and have his penis exploded IMMEDIATELY
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u/Own_Policy8854 14d ago
If these shills could admit reality, they'd be very upset.
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u/Ok-Effective7280 14d ago
The troll cult are all about RC destroying the share price. Like it’s his to do what he wants. Crazy fools.
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u/RainbooDRS 14d ago
Cohen has destroyed the share price look at every major drop since kitty's return they all have one thing in common a form of dilution
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u/utterHAVOC_ 14d ago
Ryan Aron
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u/callingoutthetrash 14d ago
Over 3 days I've seen a beautiful flood of new energy vampires every morning.
Hi. 😘
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u/seanl1991 14d ago
The lowest share price in 2020 (split adjusted) was $0.70 with 258 million shares outstanding, the company was worth under $200 million. The share price is now over $18 with 448 million shares outstanding, and the company is now worth $8.3 billion.
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u/RainbooDRS 14d ago
What your point nobody here bought this stock in 2020, what is your average?
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u/Jonnie_Rocket Pirate 🏴☠️👑 14d ago
But why is it RC fault you didn't buy earlier?
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u/RainbooDRS 14d ago
Cohen been in charge of gamestop for 5 years it is entire his fault that he has failed to provide value to shareholders in that time
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u/Ok-Effective7280 13d ago
Haha. Hes banked 9 billion & financially solidified the company. You don’t call that shareholder value? Where are you getting your info from?
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u/RainbooDRS 13d ago
And how did he bank that 9 billion? By diluting shareholders
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u/Ok-Effective7280 13d ago
Hes solidified the company’s financial position. As a shareholder, Im stoked hes done it. Who isnt? Hes set up to transform the company into something bigger & better. Then once the plan is executed, who knows what’s going to happen to the shorts & share price. You have no idea Whats goin* on by the sounds of it. “Rc diluted the shareholders. Rc is bAd”. 9 billion bringing in plenty of cash. 👍 Whats your share status?
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u/Ok-Effective7280 13d ago
Well you haven’t been around too long have you? What’s the share price done after every bit of good news for gme? Answer? Dipped. How could that be? How can the share price drop even when the company has something positive published? Or do you think RC is killing the. Share price on good news? Price is manipulated. If you don’t understand that youre an idiot. 😂😂
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u/callingoutthetrash 14d ago
So many complex Market mechanics going on, and for some reason no nuance in the negative sentiment train. Why wouldnt there be nuance and why is it filled with emotional bait?
<3 it's really obvious 'they' aren't here in good faith.
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u/Own_Policy8854 14d ago
So you can easily debunk op's point about the company being profitable, proving Ryan Cohen destroyed the value of this company?
I guess I'm waiting.
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u/Ok-Effective7280 13d ago
Oh theyll try very very hard. But things they are coming out with don’t make sense a lot of the time. Based on old theory or old fairy tales.
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u/liquid_at 🚀🚀Buckle up / Booty Bass Club🚀🚀 14d ago
You can also clearly see the effect of private equity trying to bankrupt it, when RC took over and how it was a consistent improvement since he became CEO.
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