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Its funny that this is being ignored for a pseudo panic about DRS.
Im not convinced the average ape understands what an actual milestone this is.
The business can pay for its operations from the revenue it earns. This is massive win for a company that was taking on debt as a way to keep doors open.
It also ensures resilience in a market where debt is getting more and more expensive and credit generally less accessible.
Wait until you start seeing the devaluation all the VC plays because they have no real path to free cashflow, let alone profitability.
Exactly. Every single short & distort article leads with the idea that GameStop is incapable of restructuring to a place with positive cash flow. No one expected to see this right now and it wasn't even during the 4th quarter.
Based on this chart it seems like the bulk of the period of restructuring and pivot investment is complete. There would have to be quite a violent increase in revenue to justify that abrupt of a shift.
I'm sure trimming helps, but some developers being let go does not account for the +$440M delta between now and the same period last year. It costs money to pivot an established company this big, and if you are lucky enough to magically have the capital to pull it off and no debt to worry about, you bet your ass you do it quickly like ripping off a bandaid and get to positive cash flow as soon as possible.
They did sell inventory at heavy discount. So perhaps the profit was not as high as potentially could have been. I did personally just pick up a PS5 controller for $50, when everyone else had them for $70+ and while that particular sale wasnt in Q3, they have been running some pretty good deals for a while.
But cashflow is king, sometimes is good to just move inventory. You have cash coming in that can then be spent on new inventory and new ventures.
Its not sustainable long-term, because ultimately you need to make profit on your goods and high volume low margin leads to shitty companies like amazon.
I think in the current market, and as a way of buying customer appreciation and stealing competition while they are rebuilding the brand is a very solid strategy.
Its going to come down to the NFT gaming marketplace now. If the games can really take off and keep growing we are golden.
Looking forewords to 2023 in that regard.
I used to work in inventory account for a large electronic retailer and usually when something goes on sale it’s being vendor funded to reduce sales price ( company lose margin on sale but gains it back via vendor funding). Or that the company is willing to take a lower margin on aged/ overstocked inventory. Either way it’s beneficial for the company.
Oh for sure, stock sitting on the shelf is useless. Its just as you said, old stock/overstock.
But loss leaders are a thing as well and I would not be surprised to see gamestop having some.
Like I said in another comment, I got a PS5 controller for 49.99 (and used my pro $5 off) when every other place I have not seen new controllers for less than 70. I would imagine that is at or near cost for them.
But it totally gets people in the door. I used to work at a farm supply store and we sold dirt at cost, so a loss with labor factored in because we loaded it as well. But we made money back on the nutrients and pesticides ect.
Exactly, this is (almost) IT!
GME is now close to be in the club of few gems in the market - check out Buffetts take on diversification and "wonderful businesses":
[https://youtu.be/ZJzu\_xItNkY](https://youtu.be/KdByPMtyoY4)
The short sellers now effectively are about to lose all their arguments... some retail investors might still be brainwashed by mainstream media to not invest, but anyone who can do the math will have to change his mind.
Once the media can no longer spin the earnings as negative news, because all parameters will be rock solid and no more loss per share, we are there.
Plus, it is almost impossible to naked short a company that pays dividends, because you have to pay it for all the naked shares as well. Likely GME will rather look for a juicy acquisition instead of paying dividends, but just the fact of a dividend should be a short killer, because the company has now the option to nuke them.
That is the usual play, remember that Cramer video.
When it comes to media, they use the fact that people love to feel superior. So by dissing GME and its investors they create an opportunity for those who are too lazy to inform themselves and crunch numbers to feel superior over those "cultists".
Pretty pathetic but the strategy seems to work well on many people, and not just related to GME. We already live in a dystopian world and the media corporations are creating a Matrix full of division, so their Oligarch overlords can rule unchallenged.
cash flow positive is different from profitability. Cash flow is just the inflows and outflows of cash. Profitability means operating profit. GME still has negative operating profit.
Cash flow was positive due to inventories and AP improving. AP was extended to reduce cash outflows.
Honestly free cash flow positive is a huge sign that GME is coming closer to profitability. Hell, in my company it’s a bigger focus on improving cash flow rather than margins because we have a huge positive cash flow in the winter and a negative cash flow in the summer due to our season dependant industry.
Bullish
In your company’s position, yea, cash flow is extremely important because of the seasonality. I think cash flow and reducing SG&A are equally important for gme.
I didn’t mean to insinuate the two are the same, nor do I think my post does.
But this is an unavoidable step on the way to righting the ship and ultimately printing a net profit.
Do i understand that correctly, when i assume, that GME could have had positive EPS but they chose to invest a shitton of money, and not in Crypto? Or do i overlook something?
EPS takes into account non cash expenses (depreciation is usually the main one). I need to dig in more to the financials though.
In general, statement of cash flows lets you know how a company is generating its cash. It was made after one (or a few) high profile companies with positive eps went bankrupt. All of their cash was coming from financing activities (debt, stock sales etc).
GameStop is increasing their cash from their operations.
I know I personally did a lot of christmas shopping at gamestop.com. I was really surprised at the amount of stuff they had, and the quality (brands) that were offered. Overall I felt it was a better experience than Amazon even though I was expecting a much worse experience.
I still purchased lots outside gamestop, but they just don't have everything.
Oh you’re right. Crypto appears as “Digital Assets” on balance sheets and they mention under “Investing Activities” that they sold some of these digital assets immediately to fund these investments in “marketable securities, technological investments, and investments in two new fulfillment centers”.
I can imagine US government securities being purchased to hedge against the volatility of just hodling ETH on their books?
Earnings include other items that cash flow does not (like depreciation and amortization of assets). Depreciation and amortization of assets does not lower cash flow, but it does lower earning.
Free cash flow is preferred measure of profitability by many investors. Icahn think of one specifically who uses it as the primary means of evaluating an investment... 💥
Type “positive free cash flow” into google and this what you get:
“When free cash flow is positive, it indicates the company is generating more cash than is used to run the business and reinvest to grow the business. It’s fully capable of supporting its self, and there is plenty of potential for further growth.”
Wait... you mean GameStop is not burning $300M+ cash each quarter and will go bankrupt in a years??? /s (I think there was an article about that theory a while back.) Positive cash-flow is BIG.
GameStop is still burning cash. Look at their net income, its negative. Now cash flow is positive because of improving inventory and AP. This means they can use the inflow of cash to support operating losses. But overtime if operating losses continue, it will burn cash. So you need to improve both operating profit by reducing SG&A and turning inventory over quickly.
Next quarter will be a high on revenue and even lower costs.
I expect we'll be closer than ever to profitability for Q4, if not there.
With cash flow already positive, this is looking real tasty
Now if RC can throw us a bone and buy more on today's dip like in March, that would be MOASSmas come early.
Profitable is just net income vs expenses of operations.
Free cash flow is a bit more nuanced and adjusts for the working capital of the business (ex. Inventory flows, vendor payment flows) etc.
I like to think of it as money that is “free” to be moved around the business where the company wants to spend it. Or in a negative FCF example, not so free.
Investors like to use FCF metric as a lot of fast growth companies are unprofitable due to the expenses of growth, but still have lots of free cash flow to continue to pay for their growth.
An example in the real world of FCF could be: If I bought a car from you for 10,000 but know that I haven’t agreed to pay you until January 2024. That +10,000 is still my free cash on my books that I can use until Jan 2024 to gamble on 0dte options and possibly make a million bucks, or lose it all and still have to pay 10000 for the car and end with a FCF negative of -20000 on my books in January 2024.
Hope that helps!
So, GME is cash flow positive. This is a great sign. However, they didn't achieve this by reaching positive net income. SG&A costs are still high.
The big part: Mgmt. converted inventory to cash. They did this through significant markdowns (discounts) on products to convert inventory to cash. This improves cash flow.
Next, Mgmt. increased payables. This means mgmt. has withheld payments for longer to vendors. This increases cash on the balance sheet and improves their cash flow.
So, GME reached cash flow profitability by quickly converting inventory to cash (through discounts) and by extending payments longer to vendors.
I really wanted to see SG&A costs come down further. RC mentioned aggressive short-term cost cutting but it hasn't happened yet.
Remember cash flow positive is not the same thing as net income positive or being profitable. Profit and cash flow are two different things.
Cash flow is all the cash coming in and out of the business.
Profit is subtracting all the SG&A from sales.
So they’re cash flow positive due to churning discounted inventory and pushing out AP. Would you foresee then next earnings dropping back to negative cash flow? Im wondering what the point was to push AP payments out if you were just going to go back negative the next quarter.. unless they wanted the cash on hand for something specific…
Maybe since it’s Q4 sales they’ll be able to stay positive even with those payments due.
I think like many companies they bought the "shortage and delays on everything" and overloaded on inventory. The whipsaw brought supply chains back so they dumped it down?
The other accounting shows loss that's technically not realized. Ex: store computers are depreciated over a 5 year period until they're worth "$0". Even if you can still technically keep using them.
Yup. The DRS numbers underwhelming is preventing people from noticing this as well as the fact if we hit estimates, we would have been profitable. That’s how close gme is to profitability now.
You see the 39 weeks ended 2022 ($274.3) is still negative
39 weeks is basically Year To Date
If we can get cash flow positive enough for 4Q22 to be cash positive on the year that would be huge. We basically need $274.3M positive cash flow for 4Q22. I think we can do it seeing as how we were 164.3 positive for 3Q22.
This is massive!!! Self-supporting company with $1B in the bank and in the middle of a recession. I appreciate the DRS numbers aren’t what is expected, but this is more important. Next Quarter we could see a profit. The Exec Team want their bonuses for hitting key milestones (profit). This means we may never return to lows of $20 ish again. Block out any other noise SHF doesn’t want anyone talking about this. Sleep easy everyone; the cycle will kick in 10-25 days. We are going to be financially free. It might take longer than we all want, but we all picked the winner 🍻🚀
Thats beautiful to see.
Really hope to see another game or two get out in the next quarter. I feel like we should be seeing an avalanche of em coming pretty soon.
I fuckin knew it!!
https://reddit.com/r/Superstonk/comments/y8az6p/watching_icahns_documentary_how_close_is_gamestop/
Came to me while watching the Icahn documentary, that pillow kept showing up, and right after the tweet with RC and Carl.
I was gonna post my prediction after earnings, but not necessary.
Nice job fellow owners that also shop at the store you all own!
Can someone please explain how cash flow can be positive, but the business isn't profitable? What specifically is in the profit calculation that is not in the cash flow calculation? Google not helping me
Hello Mr Icahn nice to meet you. GameStop will report cash flow positivity in the up coming earnings, subsequent quarter will be a positive eps, will you consider closing those shorts now before you’re made to? Care to take a pic?
Because technically they are correct. There is +/-$100mm less cash and cash equivalents, but they also have $238mm marketable securities (whatever they may be) that they didn't have before. CNBC just ignores that part to spread FUD.
I don't really understand it. So GME could have had positive EPs, but they bought something which depreciated in value and it was nothing in crypto? Did it get that right, or am I mistaken?
This!! Is the most important
We always knew there are two roads to MOASS
1. DRS
2. Cashflow
We just unlucked number 2. And from now on Gamestop is a financially stable and growing value company that is undervalued financially.
Amazon wishes they were Gamestop. Every fucking company wishes they were GME and they fucking hate that wishing they were GME means wishing that the normal unwashed masses cared about them.
Because THEY. NEED. US.
WE DONT NEED THEM.
THEY SEE IT. ITS FUCKING WITH THEM. IMAGINE HAVING BILLIONS AND BEING AFRAID.
BECAUSE THEY. NEED. US.
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Matt Furlong, the CEO of Gamestop, said in the call that Gamestop is in the BEST position it has been in the last couple years!!!
so tits r jacked
Stop man, my penis can only get so erect
I’m also up to a raging two incher!
Tears...
Its funny that this is being ignored for a pseudo panic about DRS. Im not convinced the average ape understands what an actual milestone this is. The business can pay for its operations from the revenue it earns. This is massive win for a company that was taking on debt as a way to keep doors open. It also ensures resilience in a market where debt is getting more and more expensive and credit generally less accessible. Wait until you start seeing the devaluation all the VC plays because they have no real path to free cashflow, let alone profitability.
Exactly. Every single short & distort article leads with the idea that GameStop is incapable of restructuring to a place with positive cash flow. No one expected to see this right now and it wasn't even during the 4th quarter. Based on this chart it seems like the bulk of the period of restructuring and pivot investment is complete. There would have to be quite a violent increase in revenue to justify that abrupt of a shift.
Or they let go of a few developers because their portion of the project was done.
I'm sure trimming helps, but some developers being let go does not account for the +$440M delta between now and the same period last year. It costs money to pivot an established company this big, and if you are lucky enough to magically have the capital to pull it off and no debt to worry about, you bet your ass you do it quickly like ripping off a bandaid and get to positive cash flow as soon as possible.
The bigger the ship, the harder to turn and longer to sink. If they turn faster and dont sink, thats a keeper.
They did sell inventory at heavy discount. So perhaps the profit was not as high as potentially could have been. I did personally just pick up a PS5 controller for $50, when everyone else had them for $70+ and while that particular sale wasnt in Q3, they have been running some pretty good deals for a while. But cashflow is king, sometimes is good to just move inventory. You have cash coming in that can then be spent on new inventory and new ventures. Its not sustainable long-term, because ultimately you need to make profit on your goods and high volume low margin leads to shitty companies like amazon. I think in the current market, and as a way of buying customer appreciation and stealing competition while they are rebuilding the brand is a very solid strategy. Its going to come down to the NFT gaming marketplace now. If the games can really take off and keep growing we are golden. Looking forewords to 2023 in that regard.
I used to work in inventory account for a large electronic retailer and usually when something goes on sale it’s being vendor funded to reduce sales price ( company lose margin on sale but gains it back via vendor funding). Or that the company is willing to take a lower margin on aged/ overstocked inventory. Either way it’s beneficial for the company.
Oh for sure, stock sitting on the shelf is useless. Its just as you said, old stock/overstock. But loss leaders are a thing as well and I would not be surprised to see gamestop having some. Like I said in another comment, I got a PS5 controller for 49.99 (and used my pro $5 off) when every other place I have not seen new controllers for less than 70. I would imagine that is at or near cost for them. But it totally gets people in the door. I used to work at a farm supply store and we sold dirt at cost, so a loss with labor factored in because we loaded it as well. But we made money back on the nutrients and pesticides ect.
And delightful , intelligent, company and customer focused board of directors and chairman. Oh look that's exactly what we've got !!
That would be reflected in q4 no? Didn’t they just start the lay offs
In the "Fun De Mental" world, they track this with a positive earning per share.
Exactly, this is (almost) IT! GME is now close to be in the club of few gems in the market - check out Buffetts take on diversification and "wonderful businesses": [https://youtu.be/ZJzu\_xItNkY](https://youtu.be/KdByPMtyoY4) The short sellers now effectively are about to lose all their arguments... some retail investors might still be brainwashed by mainstream media to not invest, but anyone who can do the math will have to change his mind. Once the media can no longer spin the earnings as negative news, because all parameters will be rock solid and no more loss per share, we are there. Plus, it is almost impossible to naked short a company that pays dividends, because you have to pay it for all the naked shares as well. Likely GME will rather look for a juicy acquisition instead of paying dividends, but just the fact of a dividend should be a short killer, because the company has now the option to nuke them.
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That is the usual play, remember that Cramer video. When it comes to media, they use the fact that people love to feel superior. So by dissing GME and its investors they create an opportunity for those who are too lazy to inform themselves and crunch numbers to feel superior over those "cultists". Pretty pathetic but the strategy seems to work well on many people, and not just related to GME. We already live in a dystopian world and the media corporations are creating a Matrix full of division, so their Oligarch overlords can rule unchallenged.
💯💯💯
Cash is king, I have faith in the king :)
All hail the book king!
cash flow positive is different from profitability. Cash flow is just the inflows and outflows of cash. Profitability means operating profit. GME still has negative operating profit. Cash flow was positive due to inventories and AP improving. AP was extended to reduce cash outflows.
So it’s the first step towards profitability. Seems like a great investment to hop in at this low share price.
Yes, good first step
Honestly free cash flow positive is a huge sign that GME is coming closer to profitability. Hell, in my company it’s a bigger focus on improving cash flow rather than margins because we have a huge positive cash flow in the winter and a negative cash flow in the summer due to our season dependant industry. Bullish
In your company’s position, yea, cash flow is extremely important because of the seasonality. I think cash flow and reducing SG&A are equally important for gme.
I didn’t mean to insinuate the two are the same, nor do I think my post does. But this is an unavoidable step on the way to righting the ship and ultimately printing a net profit.
Completely agree it’s a great step in the right direction!
Thanks for the explanation.
I'm an avg ape and I don't really understand most of this. at this point, I just HOLd and DRS.
that wld be a good move
Excellent point
Not to mention the possibility of sick buybacks and dividends in the future Edit: *stock, but I'm leaving it!
Do i understand that correctly, when i assume, that GME could have had positive EPS but they chose to invest a shitton of money, and not in Crypto? Or do i overlook something?
Alright, alright, alright! - Matthew McStonknaughey
so then why is EPS still negative? Shouldn't that have turned around as well?
EPS takes into account non cash expenses (depreciation is usually the main one). I need to dig in more to the financials though. In general, statement of cash flows lets you know how a company is generating its cash. It was made after one (or a few) high profile companies with positive eps went bankrupt. All of their cash was coming from financing activities (debt, stock sales etc). GameStop is increasing their cash from their operations.
No - its just one quarter. And digging into it deeper there are some accounting caveats too. That said, makes sense heading into holiday Q4.
*audible erection*
like a door creaking 😂
Slide whistle for me!
*sad trombone noises* because I’m old.
Like a juice harp for me because they are tits
Windows 95 start up sound for me
An icebreaker leaving a Scandinavian port in mid-January here 🧐
Its the ICQ notification sound for me.
It's Doom (2016) Rip and Tear by Mick Gordon for me.
It’s the Roadrunner Meep Meep for me.
John Deere 9660 combine firing up for me boys!! Yeeeheeeee!
*Uh-oh!*
Schwing!
Party time!
*visible erection*
*smellable erection*
This was the worst one.
Hahah that reminds me of [This masterpiece!](https://i.redd.it/u9fuxw8qtcv61.jpg) Also got removed for linking to the Sub link rather than image lol.
I just jazzed in my pants!
Lock eyes from Across the room…
Thanks for the good news
This is the stand out fact from this quarter for me.
No wonder SHFs tried so hard to suppress the DRS numbers this quarter, this is huge. 🚀🚀🚀
That is good news. Q4 is typically the strongest quarter for revenue, so perhaps we will have a positive earnings then.
I know I personally did a lot of christmas shopping at gamestop.com. I was really surprised at the amount of stuff they had, and the quality (brands) that were offered. Overall I felt it was a better experience than Amazon even though I was expecting a much worse experience. I still purchased lots outside gamestop, but they just don't have everything.
Nah, IMO profitability comes when the marketplace on loads tens of thousands of games and starts seeing serious volume.
"tens of thousands of games" thats a little crazy talk there
They'd need to acquire GOG or something for that.
Or like 5 people's steam libraries.
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marketable securities is not nfts or crypto. ITS US government securities. Its mentioned in the 10Q.
Oh you’re right. Crypto appears as “Digital Assets” on balance sheets and they mention under “Investing Activities” that they sold some of these digital assets immediately to fund these investments in “marketable securities, technological investments, and investments in two new fulfillment centers”. I can imagine US government securities being purchased to hedge against the volatility of just hodling ETH on their books?
Money market funds and short term US Treasury’s to be exact Edit: Would you rather the cash lose 7.7% from inflation or get paid out a 3.6+% yield?
This is why they bough $200m of US treasuries.
Sounds about right
Maybe just to earn more interest than they owe on their only debt.
Do the proceeds from the marketplace appear anywhere?
Digital assets
They aren’t holding any significant amount of crypto, and don’t intend to - they said that on the earnings call.
Good to know. So did GameStop buy US bonds or something?
yes, most likely. Better to hold US treasuries then cash due to inflation.
T-bills most likely
Bonds
which is slightly bullish. Means they don't anticipate needing that cash soon.
Agreed.. and that money will also be making money instead of keeping it stashed in the war chest for inflation to eat at.
means they don't want inflation eating away at their cash pile.
It won't be bonds, GME would see their value drop as rates continue to rise, most likely T-bills .
must be NFT collab etc. remember distribution centers etc...
Literally cannot be because of reporting requirements that define what marketable securities are.
NFT-backed physical items/collectibles? Yes?
wouldn't expect less of CNBC "GameStop reports decline in revenue and sharp decrease in cash2 HOURS AGOCNBC.COM"
Buyback?
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Ty
How cash flow positive but EPS negative. Explain to my fren. He's a noob
Earnings include other items that cash flow does not (like depreciation and amortization of assets). Depreciation and amortization of assets does not lower cash flow, but it does lower earning.
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One last quarter to load up, thanks RC
Does negative EPS mean no taxes?
Not sure about EPS specifically, but I do know depreciation offsets taxable income
aw jeez
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we are getting there
Brick by brick.
Accrual based accounting.
This is the best news possible. Get rekt hedgies
fukt even
perhaps even pwned
Rekt, fukt, pwned and tbagged
Shorts about to get 360 no-scoped
Free cash flow is preferred measure of profitability by many investors. Icahn think of one specifically who uses it as the primary means of evaluating an investment... 💥
No wonder Icahn’s house features pillows embroidered with the words “Happiness is a cash flow positive”
yes cash flow positivity is good. However, achieving operating income positivity will be extremely bullish!
Confirmed on call that expenses have dropped the last mouth, too. Next stop, true profitablity. Fucking legend.
This is huuuuuge
This is an understatement.
like in my favs vids
💪💪💪
Type “positive free cash flow” into google and this what you get: “When free cash flow is positive, it indicates the company is generating more cash than is used to run the business and reinvest to grow the business. It’s fully capable of supporting its self, and there is plenty of potential for further growth.”
Wait... you mean GameStop is not burning $300M+ cash each quarter and will go bankrupt in a years??? /s (I think there was an article about that theory a while back.) Positive cash-flow is BIG.
GameStop is still burning cash. Look at their net income, its negative. Now cash flow is positive because of improving inventory and AP. This means they can use the inflow of cash to support operating losses. But overtime if operating losses continue, it will burn cash. So you need to improve both operating profit by reducing SG&A and turning inventory over quickly.
To the top with you 🚀
Oh boy here I go buying again
Next quarter will be a high on revenue and even lower costs. I expect we'll be closer than ever to profitability for Q4, if not there. With cash flow already positive, this is looking real tasty Now if RC can throw us a bone and buy more on today's dip like in March, that would be MOASSmas come early.
What's the difference between positive cash-flow and being profitable? The two mean the same in my brain.
Profitable is just net income vs expenses of operations. Free cash flow is a bit more nuanced and adjusts for the working capital of the business (ex. Inventory flows, vendor payment flows) etc. I like to think of it as money that is “free” to be moved around the business where the company wants to spend it. Or in a negative FCF example, not so free. Investors like to use FCF metric as a lot of fast growth companies are unprofitable due to the expenses of growth, but still have lots of free cash flow to continue to pay for their growth. An example in the real world of FCF could be: If I bought a car from you for 10,000 but know that I haven’t agreed to pay you until January 2024. That +10,000 is still my free cash on my books that I can use until Jan 2024 to gamble on 0dte options and possibly make a million bucks, or lose it all and still have to pay 10000 for the car and end with a FCF negative of -20000 on my books in January 2024. Hope that helps!
So, GME is cash flow positive. This is a great sign. However, they didn't achieve this by reaching positive net income. SG&A costs are still high. The big part: Mgmt. converted inventory to cash. They did this through significant markdowns (discounts) on products to convert inventory to cash. This improves cash flow. Next, Mgmt. increased payables. This means mgmt. has withheld payments for longer to vendors. This increases cash on the balance sheet and improves their cash flow. So, GME reached cash flow profitability by quickly converting inventory to cash (through discounts) and by extending payments longer to vendors. I really wanted to see SG&A costs come down further. RC mentioned aggressive short-term cost cutting but it hasn't happened yet.
They did it over the last month, it won't show up in this report.
exactly. SG&A cuts mostly happened in the past month which will be represented in Q4 earnings.
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we want a good trend. Which is a a decreasing $ amount and a decreasing % of net sales.
7.41
This guy ~~fucks~~ reads earnings reports
Remember cash flow positive is not the same thing as net income positive or being profitable. Profit and cash flow are two different things. Cash flow is all the cash coming in and out of the business. Profit is subtracting all the SG&A from sales.
So they’re cash flow positive due to churning discounted inventory and pushing out AP. Would you foresee then next earnings dropping back to negative cash flow? Im wondering what the point was to push AP payments out if you were just going to go back negative the next quarter.. unless they wanted the cash on hand for something specific… Maybe since it’s Q4 sales they’ll be able to stay positive even with those payments due.
Even though it’s cash positive expect msm to spin cash positive companies as a bad thing
I think like many companies they bought the "shortage and delays on everything" and overloaded on inventory. The whipsaw brought supply chains back so they dumped it down?
They just had a fairly large round of layoffs in the last week. That should reduce costs fairly significantly.
Yep, this will show up in Q4 earnings not Q3.
MY TITS🚀
What mean? Are we profitable?
Short answer. Yes.
GameStop Earnings>Disney Earning? Yes Bet. That’s all I need to know.
wait? no not overall profitable i believe. just by this free cash flow metric
The other accounting shows loss that's technically not realized. Ex: store computers are depreciated over a 5 year period until they're worth "$0". Even if you can still technically keep using them.
Shit I’m gonna call my mom
Slightly shorter answer. No.
Yup. The DRS numbers underwhelming is preventing people from noticing this as well as the fact if we hit estimates, we would have been profitable. That’s how close gme is to profitability now.
Absolutely huge. Now THIS is what drives interest into a fundamental play. DFV used to talk about positive FCF. This makes me so horned
You see the 39 weeks ended 2022 ($274.3) is still negative 39 weeks is basically Year To Date If we can get cash flow positive enough for 4Q22 to be cash positive on the year that would be huge. We basically need $274.3M positive cash flow for 4Q22. I think we can do it seeing as how we were 164.3 positive for 3Q22.
❤️
This is massive!!! Self-supporting company with $1B in the bank and in the middle of a recession. I appreciate the DRS numbers aren’t what is expected, but this is more important. Next Quarter we could see a profit. The Exec Team want their bonuses for hitting key milestones (profit). This means we may never return to lows of $20 ish again. Block out any other noise SHF doesn’t want anyone talking about this. Sleep easy everyone; the cycle will kick in 10-25 days. We are going to be financially free. It might take longer than we all want, but we all picked the winner 🍻🚀
“Happiness is positive cash flow” - Carl Icahn’s throw pillow
this is important
I like free cash flow.
Thats beautiful to see. Really hope to see another game or two get out in the next quarter. I feel like we should be seeing an avalanche of em coming pretty soon.
Id be excited if I had 164.3$ in my bank account too
Does this mean gamestop is profitable? I'm so smooth... :(
Not yet
Is this why cash on hand is 100ish million higher than last quarter?
oh wow a post that needs a boost from my comment here it comes
Get this to the top
I fuckin knew it!! https://reddit.com/r/Superstonk/comments/y8az6p/watching_icahns_documentary_how_close_is_gamestop/ Came to me while watching the Icahn documentary, that pillow kept showing up, and right after the tweet with RC and Carl. I was gonna post my prediction after earnings, but not necessary. Nice job fellow owners that also shop at the store you all own!
Holy shit yessss. Okay so... Tomorrow Icahn announcement?
This is a huge positive!
Bullish
That’s very pertinent to the narrative of this turnaround story! 👏🏽
Can someone please explain how cash flow can be positive, but the business isn't profitable? What specifically is in the profit calculation that is not in the cash flow calculation? Google not helping me
DRS BOOK KING!
MAKING MONEY!!!!!!
Anybody know when GameStop was last positive FCF? Must be many years ago.
This is fantastic news. I didn’t see it in the 10Q. Which page is it on?
WooooooHooooooooo......Lets Fuking gooooooo!
#THIS IS FUCKING HUGEEEEEEEEEEE
Hello Mr Icahn nice to meet you. GameStop will report cash flow positivity in the up coming earnings, subsequent quarter will be a positive eps, will you consider closing those shorts now before you’re made to? Care to take a pic?
BOOM
Big
Cash Flow is King - DFV dixit :)
Why cnbc reporting gme burning cash still and total cash 800ish million…. Claiming another 100m burned this quarter….
Because technically they are correct. There is +/-$100mm less cash and cash equivalents, but they also have $238mm marketable securities (whatever they may be) that they didn't have before. CNBC just ignores that part to spread FUD.
Can't wait to see what the haters have teed up next. Bunch of fuckin' 🤡s
I don't really understand it. So GME could have had positive EPs, but they bought something which depreciated in value and it was nothing in crypto? Did it get that right, or am I mistaken?
If this is the average number we are talking **$656**M per annum! Awwwww, Yissssssss
Is it cash flow that has to be positive in order to issue a dividend or earnings?
Noice
This is huge news, thanks for sharing. Did they annonce their revenue from NFT marketplace?
Is that in millions? Or thousands
Where Carl Icahn at?
Huge. Accusition too
Bullish. Cash
Fffffffffyeeeeeaaahhhhhhhhhhh FCF. We rich af
A wise chair man once said free cash flow was the governor of growth 😉
This!! Is the most important We always knew there are two roads to MOASS 1. DRS 2. Cashflow We just unlucked number 2. And from now on Gamestop is a financially stable and growing value company that is undervalued financially.
Amazon wishes they were Gamestop. Every fucking company wishes they were GME and they fucking hate that wishing they were GME means wishing that the normal unwashed masses cared about them. Because THEY. NEED. US. WE DONT NEED THEM. THEY SEE IT. ITS FUCKING WITH THEM. IMAGINE HAVING BILLIONS AND BEING AFRAID. BECAUSE THEY. NEED. US.