What drove GameStop's expense reductions in 2025?

GameStop's expense reductions in 2025 were driven by several key factors:

1. **Decrease in Net Sales and Gross Profit**: GameStop experienced a decline in net sales, decreasing from $5.273 billion to $3.823 billion, and a reduction in gross profit, dropping from $1.294 billion to $1.113 billion. This decrease was attributed to a decline in sales across all major product categories, including hardware, software, and collectibles.
2. **Cost Reduction Efforts**: Despite the decrease in gross profit, the gross profit margin increased to 29.1% from 24.5% due to a shift towards higher-margin products. Additionally, selling, general, and administrative expenses decreased to $1.130 billion from $1.324 billion, reflecting the company's cost reduction efforts.
3. **Investment in Bitcoin**: GameStop's investment in Bitcoin as a treasury reserve asset may have also contributed to its expense reductions. By investing in Bitcoin, GameStop may have been able to diversify its investments and potentially increase its returns, which could have had a positive impact on its financial expenses.

In summary, GameStop's expense reductions in 2025 were driven by a combination of factors including decrease in net sales and gross profit, cost reduction efforts and investment in Bitcoin.