GameStop (NYSE:GME) shares jumped 6.1% following the release of its Q4 2024 earnings report, despite revenue falling short of expectations. The company reported $1.28 billion in revenue for the quarter — 13.2% below analyst forecasts and down 28.5% year over year.

However, adjusted earnings per share (EPS) came in well above expectations at $0.30, compared to the projected $0.08. The operating margin remained stable at 6.2%, matching the same quarter last year.

Free cash flow reached $158.8 million, a sharp turnaround from the -$18.7 million recorded in the same quarter a year ago, potentially signaling a positive shift in the company’s financial trajectory.

GameStop’s market capitalization rose to $11.44 billion. Despite the upbeat earnings and positive cash flow, analysts note that the company’s revenue has declined by an average of 10% per year over the past five years, and the outlook suggests another 1.9% drop in the coming 12 months.

Investors now face the question: does this quarter mark a turning point for GameStop, or is the success short-lived? In any case, the results show a mixed picture — strong earnings performance, but weak sales.