CluenexGameStop GME
GameStop scores weak on business quality (4.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What GameStop does
GameStop sells video games, hardware, and collectibles through its physical stores and website, making money primarily from retail transactions with gamers.
- What it does best
GameStop holds $9.0 billion in cash and a net cash position of $4.9 billion, giving it a pristine fortress balance sheet that outmuscles peers like Best Buy.
- The main risk
Revenue shrank 5.0% over the last year, threatening the core retail base as physical game sales continue shifting toward digital downloads.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit at 13.9% and free cash flow margins are exceptional, landing in the top decile of the sector. The business generates high cash conversion despite shrinking top-line scale.
The brand commands a cult-like retail following among gamers, ranking in the top quartile for gross margins at 37.9% against peers, though digital rivals limit true defensive barriers.
Revenue is shrinking at a 5.0% annual rate, fading rapidly compared to historical levels as physical retail demand contracts.
With $9.0 billion in cash and zero net debt, the balance sheet is rock-solid. Free cash flow hit $674.0 million, getting stronger fast.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
5 insiders bought $76.4M on the open market. 1 sold $177K outside pre-planned sales.
Our sealed record on GME
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
GameStop scores weak on the Cluenex quality check (4.3 of 10), measured against its own industry. Profitability is fair, moat weak, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 5 insiders bought $76.4M on the open market. 1 sold $177K outside pre-planned sales.
Dec 7, 2026.
See GME today
- Today's verdict on GME, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “GameStop (GME)”, https://cluenex.com/stocks/gme/, data as of Oct 10, 2026.