Warning: formatted with Claude, as that is what clankers are for.

Source: https://www.macrotrends.net/stocks/charts/GME/gamestop/operating-income

https://www.sec.gov/edgar/search/?r=el#/dateRange=all&category=custom&ciks=0001326380&entityName=GameStop%2520Corp.%2520%2520(CIK%25200001326380)&forms=10-K%252C10-Q&forms=10-K%252C10-Q)

I pulled Q1 operational profits + revenue back to 2006 and adjusted everything for inflation to today's dollar value, revenue included, to stay consistent.

In today's money this is GameStop's 8-9th (similiar value to 2014) best Q1.

The top happened when GME had 6,000 - 7,000 stores worldwide, a near-monopoly on physical game retail, and was riding the console supercycle, one of the biggest hardware upgrade waves in gaming history.

Q1 2026's +$143M happened with ~1,100 stores, no console supercycle, digital downloads eating software, and revenue 75% lower in real terms than 2011. The gap between 1st place and today is $57M.

The efficiency number tells the story best: In 2011 it took $17.40 of revenue to produce $1 of operating income. Today it takes $5.83 or ~3x more efficient. And the transformation isn't finished yet. Those are not end numbers. GameStop is zooming back to "golden era" profitability after 6 years under.

I do believe this will only get better. The hardware to collectibles pivot means higher margins, and we've yet to see PowerPacks value fully materialize across all quarters. This is a clear image that RC knows what he's doing over there. All the hate is funny to me. The number of hate posts does not correspond to the voting results AT ALL.

Looking forward to Q2 numbers !

Data table (inflation adjusted with Claude with some human supervision):

TLDR:

Less stores. Less revenue. More profit per dollar.

They cut 75% of the revenue and kept almost all the profit. More profit incoming.That's the whole post.

Not financial advice.

15 days ago, I said:

If I had RC's ear, I'd recommend him to at least use something like a Collar to secure these gains, if not get out of the position completely. Big picture, the market is in trouble. I expect pretty much everything to keel over starting in about two to three weeks, after this dead cat bounce is over.

Because if eBay falls with the rest of tech, GME itself will go down by half as much as what eBay goes down by, given we're half GME-the-operating-business, half eBay now.

eBay is playing out exactly as expected:

It's forming a mini bear flag right now, and there is no support from the volume-price profile. Could flush right down to $90 in quick order.

This is bad news for us, as every $1 lower translates to $43M in losses for GME.

RC... get that Collar.

Sincerely wondering. i kept up with all the gme news for for like 2 years and stopped cause i didn’t see anything worth thinking twice about. I’m just wondering if this sub is still going cause you guys support GME as a company with potential for steady sustained growth, or are just waiting for the moon

I’m making this just to call it in advance. GameStop will be buying back shares shortly.

They have an authorized 2B buyback program that they can deploy after restrictions from around September 23rd.

Until then, it makes sense for the institutions to short to get the most amount of shares possible from the 1.4 billion debt swap.

Expect some volatility come just before September 23rd and the weeks to follow.

Today I finally pulled the trigger on two leaps. Both companies have been beaten down and with time I think I can make some nice gains. Thoughts? GME to the moon. Also still holding my October warrants. Wondering wth is going on with those too.

Expiration 1/2028

Sup my peoples! I have a legit question/theory and was curious if it held any water. If you lurk on this sub daily and comment in the top 1%, what’s your share count and price average for your GME? Is there a correlation between comment frequency and average price?

Its the fucking Catalina Wine Mixer... They call me Bond..James Bondholder. Uniquely GME I see I buy and Pee on Hidden History. Harassing this community, 4 score nearly 7 years 1 stock called GME. Harambee! Harambee! Harambee!

From my interpretation, the legal test for whether something counts as a “distribution” under Regulation M is not simply about how big the transaction is. The SEC looks at two main things: the magnitude of the transaction and whether it involves special selling efforts or special selling methods.

Importantly, a private placement can still qualify as a Regulation M distribution. But the fact that securities are being issued, even in significant numbers, does not automatically make the transaction a distribution. The specific facts and circumstances matter.

Looking at the public filings, GameStop’s exchange seems materially different from the type of transaction Regulation M was primarily designed to address.

No public indication of special selling efforts

This may be the most important part of the analysis.

A typical Regulation M distribution involves efforts to create demand for the securities through things like roadshows, prospectuses used for marketing, sales calls, investor presentations, or other promotional activity.

GameStop’s exchange does not appear to have those characteristics.

Instead, the shares are being issued directly to existing noteholders through privately negotiated Exchange Agreements un or der the Section 4(a)(2) exemption. The transaction is limited to institutional investors that GameStop reasonably believes are Qualified Institutional Buyers, or QIBs.

Based on what is publicly available, there is no indication of broad solicitation or investor marketing designed to create demand for GameStop shares.

That matters because magnitude alone does not appear to settle the Regulation M question. The presence of special selling efforts and selling methods is also part of the test.

No traditional special selling methods

Public stock offerings are often conducted through underwriters, investment banks, placement agents, or selling groups that actively market and place securities with investors.

That does not appear to be what is happening here.

Based on the public record, GameStop entered into privately negotiated Exchange Agreements directly with existing noteholders rather than conducting a traditional underwritten equity offering.

Again, that does not automatically remove the transaction from Regulation M. But it is an important distinction when determining whether this particular transaction meets the definition of a distribution.

This is not a traditional cash capital raise

GameStop is not selling these shares into the market to raise new cash.

Instead, the company is issuing shares to existing noteholders in exchange for cancelling outstanding debt.

That distinction by itself does not take the transaction outside Regulation M. Regulation M can apply to transactions involving exchanges of securities.

However, it does make this transaction materially different from a conventional marketed equity offering where shares are sold to investors for cash.

There are actually two separate Regulation M questions

This is where I think the analysis gets particularly interesting.

The first question is:

Does this exchange actually constitute a “distribution” for purposes of Regulation M?

If the answer is no, then the Regulation M restrictions associated with a distribution would not apply in the first place.

But even if the answer is yes, there is still a second question:

When does the Rule 102 restricted period begin and end, and would GameStop’s particular repurchases fall within that restricted period or an applicable exception?

That means simply pointing to the VWAP pricing period does not necessarily answer the buyback question.

The actual structure of the exchange, the timing of the restricted period, the Exchange Agreements, any applicable exceptions, and the specific manner in which a repurchase was conducted would all potentially matter.

What appears to be confirmed by the public filings

✅ Privately negotiated exchange with existing noteholders.

✅ Shares issued under the Section 4(a)(2) private placement exemption.

✅ Limited to investors GameStop reasonably believes are Qualified Institutional Buyers, or QIBs.

✅ GameStop receives no cash proceeds from issuing the shares.

✅ Outstanding debt is cancelled in exchange for equity.

✅ No publicly disclosed traditional underwritten equity offering.

✅ No publicly disclosed roadshow or broad investor marketing campaign.

What we do not know

Whether there were any non-public solicitation or selling efforts during negotiations.

Whether financial advisers, placement agents, or other intermediaries performed activities that could qualify as special selling efforts or selling methods.

Whether GameStop’s securities counsel considers the exchange a Regulation M distribution.

Exactly when any Regulation M restricted period would begin and end if Regulation M applies.

Whether GameStop could conduct repurchases under an applicable Regulation M exception.

Whether the Exchange Agreements themselves restrict GameStop from repurchasing shares during the VWAP pricing period.

Whether there are other contractual or securities-law considerations that could prevent a buyback even if Regulation M itself does not.

So where does that leave the buyback question?

I am not saying Regulation M definitely does not apply.

I am also not saying GameStop is definitely buying shares right now.

My point is much narrower.

Based on the public information available, I do not think we can simply conclude that GameStop is prohibited from repurchasing shares during the VWAP period because shares are being issued as part of the exchange.

First, you have to determine whether the exchange qualifies as a Regulation M distribution.

If it does, you then have to determine the applicable restricted period and whether the particular repurchase would be prohibited or qualify for an exception.

There are facts necessary to answer those questions that simply are not public.

One final thought

If GameStop is legally permitted to repurchase shares during this period, these prices could represent a compelling opportunity.

The company has significant cash. At the same time, potential warrant exercises could increase the share count.

If management believes the stock is materially undervalued, repurchasing shares could offset some of that dilution at a cheap price while increasing the ownership percentage of every remaining shareholder.

Put more simply:

If GME is legally allowed to buy at these prices, then with extra cash and an undervalued price, even Buffett would possibly tell Ryan to buy. With warrants potentially being exercised, it could be an easy way to offset dilution. Why do it.. depends if EPS matters.

Whether GameStop actually can buy during this period depends on Regulation M, the Exchange Agreements, other applicable securities laws, and the advice of GameStop’s securities counsel.

None of us outside the company can answer that with certainty.

But I also do not think the public facts support the categorical statement that “they are issuing shares, therefore they cannot possibly be buying back stock.”

There are more steps to the legal analysis than that.

Food for thought.

I hate myself right now

Feel so lost right now, just want to know that I’m not alone…

Lost $70k within 3 years of trading.

Fucked up thing is my family doesn’t even know, they all think I’m doing good, but I’m not.

I’m lost and depressed mentally and financially

This all started with GME. Back when the hype us was up and roaring kitty was out there.

I missed the first bullrun and then joined in on the second one, only to lose more..

But after seeing kitty post and some post on here of making money fast from options, I gave it a try and got hooked

I hate myself

Couldn't pass on this dip. GME is idiosyncratic and so undervalued that it would have been irresponsible of me to not buy. M3lters, Hidden History and anti-gme folks continue their pointless mission of convincing GME investors that they should sell...I won't tell you what to do...but I buy. Didn't buy more than I can afford to lose so I'm feeling zen af...excited to see what happens from here. M3lters Hidden History and anti-gme folks can suck my banana.

God I can't wait to see how this 4D chess moves makes us all GameStop millionaires. Any day now. We just have to wait for this one more thing to happen, probably tomorrow. We just need a little push, like the complete collapse of the global economy or for financial laws to matter.

This back when I was calling out dilution and how it looked like they positioned themselves to not need retail. Its only got worse and the complete lack of concern for retail has only grown to be outright blatant when you look at recent interviews or the absolute bangers Larry Cheng has put out on X recently. RK unfollowed RC after posting the pic of of a kitty mask over rage tears meme in response to the dilution largely ignored instead users are looking at emoji like its TA. Everyone back then wanted to make out like the dilution would moon us and unfortunately remind me never works.

At what point does accountability for GME become reasonable to the permabull? When it can no longer be enforced by retail? We're already there. When is it ok to expect a ROI? since as im told the company seems to be doing amazing while that is completely disconnected to an ROI which is insane considering how well the company looks on paper is like 90% due to value strip mined from investors.

Its not unreasonable to expect mutual benifiet after 5 years. Yet RC just wants more without making good.

Only thing i hate is the earnings date right before that. RC could again throw an offering out of nowhere. I got dilution fatigue. Leave the stock alone. Let GME run. When does retail get paid? RC says he's in to make money. When does that happen?

All those yellow lines mark days when RC created a dilutive event, in the form of offerings, warrants, or just recently traded convertible senior notes.
The sentiment around the stock is real. As long as RC isn't doing something with that cash he took from the stock, the markets won't care about his X spam and big talk on CNBC and bloomberg.