GameStop Corp.
For the period ended Nov 1, 2025. Filed Dec 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 1, 2025 · Filed Dec 9, 2025
GME$25.12+3.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-08-02; filed 2025-09-09.
0001326380-25-000075
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-11-01; filed 2025-12-09.
0001326380-25-000098
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 102 previous paragraphs and 114 current paragraphs.
61 unchanged; 35 reworded; 18 added; 4 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (18)
Current report
The Three and Nine Months Ended November 1, 2025 Compared to the Three and Nine Months Ended November 2, 2024
Current report
Net sales decreased $14.8 million, or 0.6%, for the nine months ended November 1, 2025, compared to the prior year.
Current report
During the three months ended November 1, 2025, we recognized net interest income of $49.0 million compared to $54.2 million for the same period in the prior year period. The decrease was primarily due to a noncash, nonrecurring interest charge of $42.2 million related to the issuance of warrants during the third quarter of fiscal 2025 to the holders of the Convertible 2030 Notes and Convertible 2032 Notes, partially offset by interest earned on higher balances of cash and cash equivalents from the issuance of the Convertible 2030 Notes and Convertible 2032 Notes during the first and second quarters of fiscal 2025.
Current report
Unrealized loss (gain) on digital assets
Current report
Our effective income tax rate for the three and nine months ended November 2, 2024 was primarily due to tax expense recognized during the third quarter in connection with our sale of property in Ireland, and in connection with an Italian tax audit.
Current report
The difference between our effective income tax rates and the statutory income tax rate is primarily due to the impact of the Company's valuation allowance.
Current report
Warrants
Current report
On October 7,2025, the Company, announced that the Board declared a distribution (the “Warrant Distribution”) to the holders of record of the Common Stock and holders of the Convertible Notes, in the form of warrants to purchase shares of Common Stock (the “Warrants”). The Warrants were issued on the terms and conditions described in the Warrant Agreement (as defined below) and were distributed on October 7, 2025, to the record holders of the Common Stock and the Convertible Notes as of the close of business on October 3, 2025 (the “Record Date”).
Current report
Pursuant to the terms of the Warrant Agreement between the Company, Computershare Inc., a Delaware corporation, and its affiliate, Computershare Trust Company, N.A., as Warrant Agent (the “Warrant Agreement”), each holder of record of Common Stock as of the Record Date received one Warrant for every ten shares of Common Stock (rounded down to the nearest whole number for any fractional Warrant). Holders of the Convertible Notes also received Warrants on an “as converted” basis in lieu of an adjustment to the conversion rate of the Convertible Notes pursuant to the applicable indenture governing the Convertible Notes. The distribution of the Warrants to the Convertible Noteholders was at the same time and on the same terms as holders of Common Stock. Holders of the Convertible Notes will not need to convert the Convertible Notes into Common Stock in order to receive the Warrants.
Current report
Each Warrant entitles the holder to purchase, at the holder’s sole and exclusive election, at a cash exercise price of $32.00 per Warrant (the “Exercise Price”), one share of Common Stock, subject to adjustment pursuant to the provisions of the Warrant Agreement. Payment for shares of Common Stock upon exercise of Warrants must be in cash. The Warrants will expire and cease to be exercisable at 5:00 p.m. New York City time on October 30, 2026 (the “Expiration Date”).
Current report
The number of shares of Common Stock issuable upon exercise of the Warrants is subject to certain anti-dilution adjustments, including for stock dividends, share splits, share combinations, rights issuances, other distributions, spinoffs, cash dividends and tender or exchange offers.
Current report
The Warrants commenced trading on the New York Stock Exchange under the ticker “GME WS” on October 8, 2025.
Current report
In connection with the Warrant Distribution, the Company filed a prospectus supplement, dated October 7, 2025, pursuant to the Company’s existing shelf registration statement on Form S-3 ASR, effective as of October 3, 2025, registering up to 59,153,963 shares of Common Stock to be issued upon exercise of the Warrants.
Current report
During the three months ended November 1, 2025, holders exercised 4,422 Warrants, resulting in the issuance of 4,422 shares of common stock and cash proceeds of $141,504.
Current report
Valuation of Warrants
Current report
During the three months ended November 1, 2025, the Company issued warrants to the record holders of the Company's common stock and Convertible Noteholders. Each warrant entitles the holder to purchase, at the holder's sole exclusive election, one share of common stock at an exercise price, subject to adjustment pursuant to the provision of the Warrant Agreement, of $32.00. The warrants have been classified as equity in accordance with ASC 815-40 and will expire on October 30, 2026.
Current report
The valuation of the warrants involves significant judgment, and the Company estimated the fair value using the Black-Scholes option pricing model, a Level 3 valuation technique under ASC 820: Fair Value Measurements, as there was no readily observable market price for these warrants at the time of the issuance. Key inputs used in the model to determine the fair value include: the closing stock price of the Company on the issuance date, the exercise price, the expiration date, the risk-free rate, the expected dividend yield rate, and volatility. This resulted in an estimated valuation of $2.94 for each warrant.
Current report
As of November 1, 2025, the condensed consolidated financial statements reflect a $172.9 million aggregate value for the warrants issued, including a noncash, nonrecurring interest charge of $42.2 million for the warrants issued to the holders of the Convertible 2030 Notes and the Convertible 2032 Notes.
Removed paragraphs (4)
Previous report
The Three and Six Months Ended August 2, 2025 Compared to the Three and Six Months Ended August 3, 2024
Previous report
Net sales increased $24.5 million, or 1.5%, for thesix months ended August 2, 2025, compared to the prior year.
Previous report
During the three months ended August 2, 2025, we recognized a $2.1 million asset impairment reversal, compared to no impairment expense for the prior year period.
Previous report
Unrealized gain on digital assets
Reworded paragraphs (35)
Previous wording
Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Fiscal 2025 consists of 52 weeks ending January 31, 2026 ("fiscal 2025"). Fiscal 2024 consisted of 52 weeks ended on February 1, 2025. All six-month periods presented herein contain 26 weeks. All references to years, quarters and months relate to fiscal periods rather than calendar periods. The discussion and analysis of our results of operations refers to continuing operations unless otherwise noted. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season.
Current wording
Our fiscal year is composed of the 52 or 53 weeks ending on the Saturday closest to the last day of January. Fiscal 2025 consists of 52 weeks ending January 31, 2026 ("fiscal 2025"). Fiscal 2024 consisted of 52 weeks ended on February 1, 2025. All nine-month periods presented herein contain 39 weeks. All references to years, quarters and months relate to fiscal periods rather than calendar periods. The discussion and analysis of our results of operations refers to continuing operations unless otherwise noted. Our business, like that of many retailers, is seasonal, with the major portion of the net sales realized during the fourth quarter, which includes the holiday selling season.
Previous wording
During fiscal 2024, we initiated a comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors, including an evaluation of current market conditions and individual store performance. This review, among other things, resulted in the closure of 590 stores in the United States in fiscal 2024. While this review is ongoing and a specific set of stores has not been identified for closure, we anticipate closing a significant number of additional stores in fiscal 2025.
Current wording
During fiscal 2024, we initiated a comprehensive store portfolio optimization review which involves identifying stores for closure based on many factors, including an evaluation of current market conditions and individual store performance. This review, among other things, resulted in the closure of 590 stores in the United States in fiscal 2024. We anticipate closing a significant number of additional stores in fiscal 2025.
Previous wording
Net sales increased $173.9 million, or 21.8%, for thethree months ended August 2, 2025, compared to the prior year.
Current wording
Net sales decreased $39.3 million, or 4.6%, for thethree months ended November 1, 2025, compared to the prior year.
Previous wording
During the three months ended August 2, 2025, net sales in our Europe and Canada segments decreased by 16.1% and 100.0%, respectively, compared to the prior year while the net sales in the Australia and the United States segments increased by 60.5% and 32.8%, respectively, compared to the prior year. The increase in consolidated net sales for the three months ended August 2, 2025 compared to the prior year was primarily due to a $140.9 million, or 31.2%, increase in the sale of hardware and accessories, and a $88.2 million, or 63.3%, increase in the sale of collectibles. This was partially offset by a $55.2 million, or 26.6%, decline in the sale of software. The decrease in net sales in our Canada segment was due to the divestiture of Canada in the second quarter of fiscal 2025. The decrease in net sales in our Europe segment was primarily due to the divestiture of Italy, and the closure of our operations in Germany, both occurring during the second half of fiscal 2024.
Current wording
During the three months ended November 1, 2025, net sales in our Europe and Canada segments decreased by 45.7% and 100.0%, respectively, compared to the prior year while the net sales in the Australia and the United States segments increased by 23.3% and 11.8%, respectively, compared to the prior year. The decrease in consolidated net sales for the three months ended November 1, 2025 compared to the prior year was primarily due to a decrease in the sales of software of $74.3 million or 27.3% and a decrease in the sale of hardware and accessories of $50.0 million, or 12.0%. This was partially offset by an increase in the sale of collectibles of $85.0 million, or 49.7%. The decrease in net sales in our Canada segment was due to the divestiture of Canada in the second quarter of fiscal 2025. The decrease in net sales in our Europe segment was primarily due to the divestiture of Italy, and the closure of our operations in Germany, both occurring during the second half of fiscal 2024.
Previous wording
During the six months ended August 2, 2025, net sales in our Europe and Canada segments decreased by 32.7% and 52.4%, respectively, compared to the prior year while the net sales in the Australia and United States segments increased by 33.1% and 8.5%, respectively, compared to the prior year. The increase in consolidated net sales for thesix months ended August 2, 2025 compared to the prior year was primarily due to a $162.9 million, or 59.0%, increase in the sale of collectibles. This was partially offset by a $119.3 million, or 26.7%, decline in the sale of software and a $19.1 million, or 2.0% decline in the sale of hardware and accessories. The decrease in net sales in our Canada segment was due to the divestiture Canada in the second quarter of fiscal 2025. The decrease in net sales in our Europe segment was primarily due to the divestiture of Italy, and the closure of our operations in Germany, both occurring during the second half of fiscal 2024.
Current wording
During the nine months ended November 1, 2025, net sales in our Europe and Canada segments decreased by 37.8% and 69.8%, respectively, compared to the prior year while the net sales in the Australia and United States segments increased by 29.7% and 9.6%, respectively, compared to the prior year. The decrease in consolidated net sales for the nine months ended November 1, 2025 compared to the prior year was primarily due to a $193.6 million, or 26.9%, decline in the sale of software and a $69.1 million, or 5.0% decline in the sale of hardware and accessories, partially offset by a $247.9 million, or 55.4%, increase in the sale of collectibles. The decrease in net sales in our Canada segment was due to the divestiture of Canada in the second quarter of fiscal 2025. The decrease in net sales in our Europe segment was primarily due to the divestiture of Italy, and the closure of our operations in Germany, both occurring during the second half of fiscal 2024.
Previous wording
During thesix months ended August 2, 2025, gross profit increased $42.6 million, or 8.6%, compared to the prior year. Gross profit as a percentage of net sales increased to 31.4%, compared to 29.4% in the prior year. The increase in gross profit, as well as gross profit as a percentage of net sales, is primarily due to a shift to higher margin product categories, specifically collectibles and preowned hardware and accessories. Sales of collectibles as a percentage of total net sales increased to 25.8% for thesix months ended August 2, 2025, compared to 16.4% in the prior year. Sales of preowned hardware and accessories as a percentage of total net sales increased to 15.2% for thesix months ended August 2, 2025, compared to 12.3% in the prior year.
Current wording
During the three months ended November 1, 2025, gross profit increased $16.2 million, or 6.3%,compared to the prior year. Gross profit as a percentage of net sales increased to 33.3%, compared to 29.9% in the prior year. The increase in gross profit as well as gross profit as a percentage of net sales, is primarily due to a shift to higher margin product categories, specifically collectibles. Sales of collectibles as a percentage of total net sales increased to 31.2% for the three months ended November 1, 2025, compared to 19.9% in the prior year.
Previous wording
During the three months ended August 2, 2025, gross profit increased $34.3 million, or 13.8%, compared to the prior year. The increase in gross profit is primarily due to an increase in sales of hardware and accessories, as well as the increase in sales of collectibles. Sales of hardware and accessories as a percentage of total net sales increased to 60.9% for the three months ended August 2, 2025, compared to 56.5% in the prior year. Sales of collectibles as a percentage of total net sales increased to 23.4% for the three months ended August 2, 2025, compared to 17.5% in the prior year. Gross profit as a percentage of net sales declined to 29.1%, compared to 31.2% in the prior year primarily due to sales of hardware and accessories increasing more than sales of collectibles during the second quarter of fiscal 2025. Hardware and accessories is a lower margin product category than collectibles.
Current wording
During thenine months ended November 1, 2025, gross profit increased $58.8 million, or 7.8%, compared to the prior year. Gross profit as a percentage of net sales increased to 32.0%, compared to 29.5% in the prior year. The increase in gross profit, as well as gross profit as a percentage of net sales, is primarily due to a shift to higher margin product categories, specifically collectibles. Sales of collectibles as a percentage of total net sales increased to 27.5% for thenine months ended November 1, 2025, compared to 17.6% in the prior year.
Previous wording
During the three months ended August 2, 2025, SG&A expenses decreased $52.0 million, or 19.2%, compared to the prior year. SG&A expenses as a percentage of sales decreased to 22.5%, compared to 33.9% in the prior year.
Current wording
During the three months ended November 1, 2025, SG&A expenses decreased $60.6 million, or 21.5%, compared to the prior year. SG&A expenses as a percentage of sales decreased to 27.0%, compared to 32.8% in the prior year.
Previous wording
The decrease in SG&A expenses for the three months ended August 2, 2025 compared to the prior year is primarily due to a reduction in labor-related, consulting services, and marketing costs of $30.3 million, driven by our continued focus on cost reduction efforts. Additionally, store-related costs and depreciation decreased by $24.9 million and $2.9 million, respectively, in the current year, primarily in connection with prior year store closures and international divestitures.
Current wording
The decrease in SG&A expenses for the three months ended November 1, 2025 compared to the prior year is primarily due to a reduction in labor-related, consulting services, and marketing costs of $23.6 million, driven by our continued focus on cost reduction efforts. Additionally, store-related costs and depreciation decreased by $27.4 million and $4.0 million, respectively, in the current year, primarily in connection with prior year store closures and international divestitures.
Previous wording
During the six months ended August 2, 2025, SG&A expenses decreased $119.0 million, or 21.0%, compared to the prior year. SG&A expenses as a percentage of sales decreased to 26.2%, compared to 33.7% in the prior year.
Current wording
During the nine months ended November 1, 2025, SG&A expenses decreased $179.6 million, or 21.2%, compared to the prior year. SG&A expenses as a percentage of sales decreased to 26.5%, compared to 33.4% in the prior year.
Previous wording
The decrease in SG&A expenses for the six months ended August 2, 2025 compared to the prior year is primarily due to a reduction in labor-related, consulting services, and marketing costs of $55.6 million, driven by our continued focus on cost reduction efforts. Additionally, store-related costs and depreciation decreased by $46.4 million and $14.2 million, respectively, in the current year, primarily in connection with prior year store closures and international divestitures.
Current wording
The decrease in SG&A expenses for the nine months ended November 1, 2025 compared to the prior year is primarily due to a reduction in labor-related, consulting services, and marketing costs of $79.2 million, driven by our continued focus on cost reduction efforts. Additionally, store-related costs and depreciation decreased by $73.8 million and $18.1 million, respectively, in the current year, primarily in connection with prior year store closures and international divestitures.
Previous wording
The asset impairment reversal in the current quarter was the result of the remeasurement of the carrying value of the French disposal group compared to its fair value.
Current wording
During the three months ended November 1, 2025, we recognized a $10.7 million asset impairment expense, compared to an $8.6 million impairment expense for the prior year period. Asset impairment as a percentage of sales was 1.3% for the three months ended November 1, 2025. The asset impairment expense in the current quarter was primarily the result of the remeasurement of the carrying value of the French disposal group compared to its fair value. The asset impairment expense in the prior year was primarily due to a plan approved by management in the third quarter of fiscal 2024 to divest the Company's operations in Italy.
Previous wording
The asset impairment expense in the current year was due to a plan approved by management in the first quarter of fiscal 2025 to divest the Company's operations in Canada and France, and the corresponding reclassification of all related assets and liabilities as held for sale. This resulted in the Company recognizing an impairment expense of $18.3 million and $15.1 million for the Canadian disposal group and French disposal group, respectively, during the current year.
Current wording
During the nine months ended November 1, 2025, asset impairment expense was $44.1 million, compared to an $8.6 million asset impairment expense in the prior year period. Asset impairment as a percentage of sales was 1.7% for the nine months ended November 1, 2025. The asset impairment expense in the current year was primarily due to a plan approved by management in the first quarter of fiscal 2025 to divest the Company's operations in Canada and France, and the corresponding reclassification of all related assets and liabilities as held for sale. Impairment expense of $18.3 million was recorded on the Canadian disposal group during the first fiscal quarter, and the divestiture was completed during the second fiscal quarter. Impairment expense of $23.1 million has been recorded on the French disposal group during the current year, reflecting remeasurements of the carrying value of the French disposal group compared to its fair value. The asset impairment expense in the prior year was primarily due to a plan approved by management in the third quarter of fiscal 2024 to divest the Company's operations in Italy.
Previous wording
During the three and six months ended August 2, 2025, we recognized net interest income of $79.6 million and $136.5 million, respectively, compared to net interest income of $39.5 million and $54.4 million for the three and six months ended August 3, 2024. Net interest income increased primarily due to higher balances of cash and cash equivalents resulting from the issuance and sale of shares of our common stock in the ATM Offerings as well as the issuance of the Convertible 2030 Notes and Convertible 2032 Notes.
Current wording
During the nine months ended November 1, 2025, we recognized net interest income of $185.5 million, compared to net interest income of $108.6 million for the nine months ended November 2, 2024. Net interest income increased primarily due to higher balances of cash and cash equivalents resulting from the issuance and sale of shares of our common stock in the ATM Offerings in fiscal 2024 as well as the issuance of the Convertible 2030 Notes and Convertible 2032 Notes, partially offset by a noncash, nonrecurring interest charge of $42.2 million related to the issuance of warrants during the third quarter of fiscal 2025 to the holders of the Convertible 2030 and Convertible 2032 Notes.
Previous wording
During the three months ended August 2, 2025, the unrealized gain on digital assets increased by $28.6 million, or 100%, compared to the prior year and as a percentage of sales was 2.9% for the three months ended August 2, 2025. During the six months ended August 2, 2025, unrealized gain on digital assets increased by $28.6 million, or 100%, compared to the prior year and as a percentage of sales was 1.7% for the six months ended August 2, 2025.
Current wording
During the three months ended November 1, 2025, the unrealized loss on digital assets increased by $9.2 million, or 100%, compared to the prior year. Unrealized loss on digital assets as a percentage of sales was 1.1% for the three months ended November 1, 2025. During the nine months ended November 1, 2025, unrealized gain on digital assets increased by $19.4 million, or 100%, compared to the prior year. Unrealized gain on digital assets as a percentage of sales was 0.8% for the nine months ended November 1, 2025.
Previous wording
The increase in unrealized gain on digital assets for the three and six months ended August 2, 2025 was due to the Company purchasing 4,710 of Bitcoin during the second quarter of fiscal 2025.
Current wording
The unrealized loss on digital assets for the three months ended November 1, 2025 and the unrealized gain on digital assets for the nine months ended November 1, 2025 was due to the Company purchasing 4,710 of Bitcoin during the second quarter of fiscal 2025.
Previous wording
We recognized income tax expense of $6.0 million for the three months ended August 2, 2025, compared to an income tax expense of $2.7 million for the three months ended August 3, 2024. Our effective income tax rate was 3.4% for the three months ended August 2, 2025 compared to 15.4% for the three months ended August 3, 2024.
Current wording
We recognized income tax expense of $7.0 million for the three months ended November 1, 2025, compared to an income tax expense of $3.4 million for the three months ended November 2, 2024. Our effective income tax rate was 8.3% for the three months ended November 1, 2025 compared to 16.3% for the three months ended November 2, 2024.
Previous wording
We recognized income tax expense of $9.5 million for the six months ended August 2, 2025, compared to an income tax benefit of$0.7 millionfor the six months August 3, 2024. Our effective income tax rate was 4.3% for the six months ended August 2, 2025 compared to 3.8% for the six months ended August 3, 2024.
Current wording
We recognized income tax expense of $16.5 million for the nine months ended November 1, 2025, compared to an income tax expense of$2.6 millionfor the nine months November 2, 2024. Our effective income tax rate was 5.4% for the nine months ended November 1, 2025 compared to 100.0% for the nine months ended November 2, 2024.
Previous wording
Our effective income tax rate for the three and six months ended August 2, 2025 was primarily due to forecasted income taxes due in certain jurisdictions in which we operate, partially offset by tax benefits recognized in the current period.
Current wording
Our effective income tax rate for the three and nine months ended November 1, 2025 was primarily due to forecasted income taxes due in certain jurisdictions in which we operate, partially offset by tax benefits recognized in the current period.
Previous wording
Our principal sources of liquidity are cash on hand and cash provided by operations. As of August 2, 2025, we had total unrestricted cash and cash equivalents on hand of$8,694.4 million.
Current wording
Our principal sources of liquidity are cash on hand and cash provided by operations. As of November 1, 2025, we had total unrestricted cash and cash equivalents on hand of$7,842.7 million.
Previous wording
Our marketable securities are carried at fair value and include investments in certain highly-rated short-term government notes, government bills, and time deposits. During the first quarter of fiscal 2025, we reclassified the investment portfolios' aggregate balance of $11.4 million, all of which had an original maturity in excess of 90 days and less than one year, to Assets held for sale in the Condensed Consolidated Balance Sheets. Following the reclassification, the amount is no longer included in the total marketable securities balance. As of August 2, 2025, the investment portfolios' aggregate balance within Assets held for sale is$23.2 million. See Item 1, Part I, "Notes to the Consolidated Financial Statements,"Note 4, "Fair Value Measurements," for additional information.
Current wording
Our marketable securities are carried at fair value and primarily include investments in certain highly-rated short-term government notes, government bills, and time deposits. During the first quarter of fiscal 2025, we reclassified$11.4 million ofthe investment portfolios' balance, all of which had an original maturity in excess of 90 days and less than one year, to Assets held for sale in the Condensed Consolidated Balance Sheets. Following the reclassification, the amount is no longer included in the total marketable securities balance. As of November 1, 2025, the investment portfolios' aggregate balance within Assets held for sale is immaterial. See Item 1, Part I, "Notes to the Consolidated Financial Statements,"Note 4, "Fair Value Measurements," for additional information.
Previous wording
In fiscal 2021, the six separate unsecured term loans held by our French subsidiary, Micromania SAS, for a total of €40.0 million, were extended for five years. During the first quarter of fiscal 2025, we reclassified the French Term Loans to Liabilities held for sale on the Condensed Consolidated Balance Sheets where it continues to be measured at the lower of its carrying amount and fair value less costs to sell. As of August 2, 2025, $13.2 million remains outstanding and classified in Liabilities held for sale.
Current wording
In fiscal 2021, the six separate unsecured term loans held by our French subsidiary, Micromania SAS, for a total of €40.0 million, were extended for five years. During the first quarter of fiscal 2025, we reclassified the French Term Loans to Liabilities held for sale on the Condensed Consolidated Balance Sheets where it continues to be measured at the lower of its carrying amount and fair value less costs to sell. As of November 1, 2025, $10.2 million remains outstanding and classified in Liabilities held for sale.
Previous wording
We maintain uncommitted facilities with certain lenders that provide for the issuance of letters of credit and bank guarantees, at times supported by cash collateral. As of August 2, 2025, we had letters of credit and other bank guarantees outstanding in the amount of $8.7 million.
Current wording
We maintain uncommitted facilities with certain lenders that provide for the issuance of letters of credit and bank guarantees, at times supported by cash collateral. As of November 1, 2025, we had letters of credit and other bank guarantees outstanding in the amount of $6.6 million.
Previous wording
Pursuant to the prospectus supplement relating to the ATM Offering filed with the SEC on June 7, 2024, (the “June Prospectus Supplement”), we sold an aggregate of 75.0 million additional Common Shares for aggregate gross proceeds before commissions and offering expenses of approximately 2,137.0 million.
Current wording
Pursuant to the prospectus supplement relating to the ATM Offering filed with the SEC on June 7, 2024, (the “June Prospectus Supplement”), we sold an aggregate of 75.0 million additional Common Shares for aggregate gross proceeds before commissions and offering expenses of approximately$2.1 billion.
Previous wording
On June 17, 2025, we completed a private offering of $2,250 million aggregate principal of 0.00% Convertible Senior Notes due 2032 (the "Convertible 2032 Notes"). Pursuant to the purchase agreement between the Company and the initial purchaser of the Notes, the Company granted the initial purchaser an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $450 million aggregate principal amount of Notes. The Convertible 2032 Notes are general unsecured obligation of the Company. The Convertible 2032 Notes were issued pursuant to an Indenture, dated June 17, 2025, between the Company and the Trustee, as trustee.
Current wording
On June 17, 2025, we completed a private offering of $2,250 million aggregate principal of 0.00% Convertible Senior Notes due 2032 (the "Convertible 2032 Notes" and, collectively with the Convertible 2030 Notes, the "Convertible Notes"). Pursuant to the purchase agreement between the Company and the initial purchaser of the Notes, the Company granted the initial purchaser an option to purchase, for settlement within a period of 13 days from, and including, the date the Notes are first issued, up to an additional $450 million aggregate principal amount of Notes. The Convertible 2032 Notes are general unsecured obligation of the Company. The Convertible 2032 Notes were issued pursuant to an Indenture, dated June 17, 2025, between the Company and the Trustee, as trustee.
Previous wording
Cash flows provided by oper ating activities were$309.9 million during the six months ended August 2, 2025, compared to cash flows used in operating activities of $41.2 million during the six months ended August 3, 2024.
Current wording
Cash flows provided by oper ating activities were$421.2 million during the nine months ended November 1, 2025, compared to cash flows used in operating activities of $16.6 million during the nine months ended November 2, 2024.
Previous wording
Cash flows provided by operating activities during the six months ended August 2, 2025 were primarily due to the impact of our net income, as well as an increase in accounts payable and accrued liabilities, partially offset by an increase in merchandise inventories.
Current wording
Cash flows provided by operating activities during the nine months ended November 1, 2025 were primarily due to the impact of our net income, as well as an increase in accounts payable and accrued liabilities, partially offset by an increase in merchandise inventories.
Previous wording
Cash flows used in operating activities for the six months ended August 3, 2024 were primarily due to a decrease in accounts payable and accrued liabilities, as well as the impact of our net loss, partially offset by a decrease in accounts receivable and a decrease in merchandise inventory.
Current wording
Cash flows used in operating activities for the nine months ended November 2, 2024 were due to an increase in merchandise inventories, partially offset by an increase in accounts payable and accrued liabilities.
Previous wording
Cash flows used in investing activities were $516.0 million during the six months ended August 2, 2025 compared to cash flows provided by investing activities of $268.2 million during the six months ended August 3, 2024.
Current wording
Cash flows used in investing activities were $1,495.9 million during the nine months ended November 1, 2025 compared to cash flows provided by investing activities of $247.7 million during the nine months ended November 2, 2024.
Previous wording
Cash flows used in investing activities during the six months ended August 2, 2025 were primarily due to the purchase of digital assets (Bitcoin) in the second quarter of fiscal 2025.
Current wording
Cash flows used in investing activities during the nine months ended November 1, 2025 were primarily due to the purchase of digital assets during the second fiscal quarter, the purchase of marketable securities during the third fiscal quarter, and routine capital expenditures.
Previous wording
Cash provided by investing activities during the six months ended August 3, 2024 were primarily due to proceeds from the maturity of marketable securities.
Current wording
Cash provided by investing activities during the nine months ended November 2, 2024 were primarily due to proceeds from the maturity of marketable securities and proceeds from the sale of property and equipment in our Europe segment, partially offset by purchases of marketable securities and routine capital expenditures.
Previous wording
Cash flows provided by fina ncing activities were $4,153.3 million during the six months ended August 2, 2025 compared to $3,050.2 million during the six months ended August 3, 2024.
Current wording
Cash flows provided by fina ncing activities were $4,150.0 million during the nine months ended November 1, 2025 compared to $3,445.5 million during the nine months ended November 2, 2024.
Previous wording
Cash flows provided by financing activities during the six months ended August 2, 2025 were primarily due to gross proceeds of $4,200.0 million received from the issuance of Convertible 2030 Notes and the Convertible 2032 Notes, partially offset by their respective issuance costs as well as repayments on our government-guaranteed low interest French term loans due October 2022 through October 2026.
Current wording
Cash flows provided by financing activities during the nine months ended November 1, 2025 were primarily due to gross proceeds of $4,200.0 million received from the issuance of the Convertible 2030 Notes and the Convertible 2032 Notes, partially offset by their respective issuance costs and repayments on our government-guaranteed low interest French term loans due October 2022 through October 2026.
Previous wording
Cash flows provided by financing activities during the six months ended August 3, 2024 were primarily due to gross proceeds of$3,070.4 million received from the issuance of common stock in connection with the ATM Offering, partially offset by issuance costs from the ATM Offering and repayments on our government-guaranteed low interest French term loans due October 2022 through October 2026.
Current wording
Cash flows provided by financing activities during the nine months ended November 2, 2024 were primarily due to gross proceeds of$3,468.5 million received from the issuance of common stock in connection with the ATM Offering, partially offset by issuance costs from the ATM Offering and repayments on our government-guaranteed low interest French term loans due October 2022 through October 2026.
Previous wording
Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and exclude certain disclosures required under GAAP for complete consolidated financial statements. Preparation of these statements requires us to make judgments and estimates. Some accounting policies have a significant impact on amounts reported in these condensed consolidated financial statements. For a summary of significant accounting policies and the means by which we develop estimates thereon, see “Part II—Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report on Form 10-K. There have been no material changes to our critical accounting policies from those included in our 2024 Annual Report on Form 10-K.
Current wording
Our condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and exclude certain disclosures required under GAAP for complete consolidated financial statements. Preparation of these statements requires us to make judgments and estimates. Some accounting policies have a significant impact on amounts reported in these condensed consolidated financial statements. For a summary of significant accounting policies and the means by which we develop estimates thereon, see “Part II—Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Annual Report on Form 10-K. There have been no material changes to our critical accounting policies from those included in our 2024 Annual Report on Form 10-K, other than the valuation of warrants described above.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
During the six months ended August 2, 2025, asset impairment expense was $33.4 million, compared to no asset impairment expense in the prior year period. Asset impairment as a percentage of sales was 2.0% for the six months ended August 2, 2025.
Previous report — wording carried elsewhere
Our effective income tax rate for the three and six months ended August 3, 2024 was primarily due to the recognition of tax benefits on certain period losses, partially offset by forecasted income taxes due in certain jurisdictions in which we operate.