Today, GameStop (GME) shared its earnings report for Q1 2023. This release came with an unexpected flurry of bad news for one of the stock market’s most interesting companies. GameStop missed on revenue expectations and canceled its quarterly earnings call, but that’s not all we found in the latest earnings report. GameStop’s cash balance has dropped by $116.2 million in Q1 2023.
GameStop’s cash balance figures were revealed in its earnings report for Q1 2023. As of the end of Q1, GameStop has just south of $1.08 billion cash on hand. This is a sharp drop from Nearly $1.2 billion it had at the end of the previous quarter. The $116.2 million loss in just one quarter is undoubtedly enough to raise some light concerns, especially if the trend continues in the coming months.
This comes from the same earnings report that GameStop reported a miss on revenue expectations. The company also announced that it had fired CEO Matt Furlong, with Ryan Cohen temporarily stepping into the role. Lastly, GameStop made the surprising move to cancel its previously-scheduled earnings call less than an hour before it was supposed to start. All of this culminated in GameStop (GME) stock fiercely plummeting in after-hours trading.
The steep drop is GameStop’s cash balance is certainly something to take note of. We’ll be watching closely to see if this rate continues in the coming quarters. For more of the news coming out of the gaming retail company this week, check out our GME topic page. We’ll continue to follow and report the most unique financial stories as they relate to tech and gaming.