GameStop Announces Lower Q1 Revenue Expectations, Files Mixed Shelf Registration; Shares Drop 11%

GameStop has announced preliminary first-quarter revenue expectations of $872 million to $892 million, significantly lower than the $1.05 billion anticipated by analysts and down from $1.23 billion in the same quarter last year. Additionally, the company has filed a mixed shelf registration with the SEC, allowing it to potentially sell shares and other securities. The mixed shelf offering does not yet have disclosed terms or amounts. GameStop's cash balance has also decreased to $1.083 billion from $1.31 billion in the previous quarter. The company expects a net loss of $27 million to $37 million, compared to a net loss of $50.5 million in the prior year fiscal quarter. Following these announcements, GameStop shares have dropped by 11% in pre-market trading.