GameStop Discloses Second Quarter 2026 Results

GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today released financial results for the second quarter ended August 1, 2026. The Company’s condensed and consolidated financial statements, including GAAP and non-GAAP results, are below.

SECOND QUARTER HIGHLIGHTS

Operating income of $160.2 million was the highest second quarter operating income in GameStop's history. Collectibles net sales grew 57% year over year to $356.3 million and now represent 45.1% of net sales. The Company had cash, cash equivalents, marketable securities and digital assets and related receivables of $5.4 billion, and investment in eBay Inc. ("eBay") common stock of $4.9 billion as of August 1, 2026. The Company raised its fiscal year 2026 Adjusted EBITDA outlook to in excess of $650 million.

SECOND QUARTER OVERVIEW

• Net sales were $790.2 million for the second quarter, compared to $972.2 million in the prior year's second quarter. The decrease primarily reflects the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of the Company's France operations.
• Collectibles net sales were $356.3 million for the second quarter, or 45.1% of net sales, compared to $227.6 million, or 23.4% of net sales, in the prior year's second quarter.
• Selling, general and administrative (“SG&A”) expenses were $187.1 million for the second quarter, compared to $218.8 million in the prior year's second quarter.
• Operating income was $160.2 million for the second quarter, the highest second quarter operating income in GameStop's history, compared to operating income of $66.4 million in the prior year's second quarter.
  • Excluding impairment and other items, adjusted operating income was $158.7 million for the second quarter compared to adjusted operating income of $64.7 million in the prior year's second quarter.
• Net income was $298.7 million for the second quarter, compared to net income of $168.6 million for the prior year’s second quarter.
  • Excluding impairments, loss (gain) on digital assets and related receivables, gain on derivative asset, unrealized gain on equity investment, and other items, adjusted net income was $161.1 million for the second quarter compared to adjusted net income of $138.3 million for the prior year's second quarter.
• Adjusted EBITDA was $174.0 million for the second quarter, compared to $75.7 million in the prior year's second quarter.
• Total cash, cash equivalents, marketable securities, digital assets and related receivables were $5.4 billion at the close of the second quarter. This included $5.1 billion of cash, cash equivalents, and marketable securities (compared to $8.7 billion at the close of the prior year's second quarter) and $0.3 billion in digital assets and related receivables.
• As of August 1, 2026, the Company held approximately 43.4 million shares of eBay common stock with a fair value of approximately $4.9 billion.
• As previously announced, on September 3, 2026, the Company completed privately negotiated exchanges retiring approximately $1.4 billion aggregate principal amount of its 0.00% Convertible Senior Notes due 2030 and 0.00% Convertible Senior Notes due 2032, reducing total long-term debt to approximately $2.8 billion.

Beginning with this quarter, the Company reports net sales in three categories (Collectibles, Video Games, and Pre-Owned and Refurbished), which aligns with how management views and operates the business. Prior-period amounts have been recast to conform to the new presentation. See “Sales Mix” in Schedule I below.

FISCAL YEAR 2026 OUTLOOK

For the fiscal year ending January 30, 2027, the Company now expects to generate Adjusted EBITDA in excess of $650 million, an increase from its prior outlook of Adjusted EBITDA in excess of $600 million provided on June 26, 2026. Adjusted EBITDA for the first six months of fiscal year 2026 was $339.7 million.

NON-GAAP MEASURES AND OTHER METRICS

As a supplement to the Company’s financial results presented in accordance with U.S. generally accepted accounting principles ("GAAP"), GameStop may use certain non-GAAP measures, such as adjusted SG&A expenses, adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per share, adjusted EBITDA and free cash flow. The Company believes these non-GAAP financial measures provide useful information to investors in evaluating the Company’s core operating performance. Adjusted SG&A expenses, adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA exclude the effect of discretely managed items such as certain transformation costs (including severance and other costs), asset impairments, (gain) loss on digital assets and related receivables, (gain) loss on written options on digital assets, (gain) loss on derivative asset, unrealized (gain) loss on equity investment, as well as divestiture costs, which we believe is useful in providing period to period comparisons. Free cash flow excludes capital expenditures otherwise included in net cash flows provided by (used in) operating activities, and therefore measures our ability to generate additional cash from our business operations, which we believe is an important financial measure for use by investors in evaluating the Company's financial performance. The Company’s definition and calculation of non-GAAP financial measures may differ from that of other companies. Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the Company’s financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the Company’s financial position, results of operations or cash flows and should therefore be considered in assessing the Company’s actual and future financial condition and performance.

With regard to the Company's fiscal year 2026 Adjusted EBITDA outlook, the Company is not able to reconcile this forward-looking non-GAAP measure to the closest corresponding GAAP measure, net income, without unreasonable efforts because it is unable to predict the ultimate outcome of certain significant items.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of terms such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "pro forma," "seeks," "should," "will" or similar expressions. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: the performance of our business and our ability to generate earnings in line with our guidance; economic, social, and political conditions in the markets in which we operate; the competitive nature of the Company’s industry; the cyclicality of the video game industry; the Company’s dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Company’s sales; interruptions to the Company’s supply chain or the supply chain of our suppliers; the Company’s dependence on sales during the holiday selling season and on the popularity and sale of trading cards; the Company’s ability to obtain favorable terms from its current and future suppliers and service providers; the Company’s ability to anticipate, identify and react to trends in pop culture with regard to its sales of collectibles; the Company’s ability to maintain strong retail and ecommerce experiences for its customers; the Company’s ability to keep pace with changing industry technology and consumer preferences; how the Company incorporates artificial intelligence into workflows and processes, including customer-facing and operational activities, and challenges with properly managing its use; the Company’s ability to manage its profitability and cost reduction initiatives; the Company’s ability to complete its proposed acquisition of eBay; changes in senior management or the Company’s ability to attract and retain qualified personnel; the Company is highly dependent on the services of the Company’s Chairman of the Board and Chief Executive Officer, Ryan Cohen; potential damage to the Company’s reputation or customers' perception of the Company; the Company's ability, or the ability of the third parties with whom we work, to maintain the security of our information technology systems or data (including customer, associate or Company information); the Company's compliance with stringent and evolving laws and other obligations related to data privacy and security; occurrence of weather events, natural disasters, public health crises and other unexpected events; risks associated with inventory shrinkage; potential failure or inadequacy of the Company's computerized systems; the ability of the Company’s third party delivery services to deliver products to the Company’s retail locations, fulfillment centers and consumers and changes in the terms the Company has with such service providers; the ability and willingness of the Company’s vendors to provide marketing and merchandising support at historical or anticipated levels; restrictions on the Company’s ability to purchase and sell pre-owned products; the Company’s ability to renew or enter into new leases on favorable terms; unfavorable changes in the Company’s global tax rate; legislative actions; the Company’s ability to comply with federal, state, local and international laws and regulations and statutes; changes to tariff and import/export regulations; potential litigation and other legal proceedings; the value of the Company's investment holdings; concentration of the Company's investment portfolio into one or fewer holdings; the recognition of losses in a particular investment even if the Company has not sold the investment; the execution and timing of share repurchases, if any, under the share repurchase authorization; volatility in the Company’s stock price, including volatility due to potential short squeezes; continued high degrees of media coverage by third parties; the availability and future sales of substantial amounts of the Company’s Class A common stock; the issuance of the Company's Class A common stock upon the exercise of the warrants declared as part of the October 7, 2025 distribution to the holders of record of the Company's Class A common stock and holders of the Convertible Notes, in the form of warrants to purchase shares of common stock (the “Warrants”), may depress our stock price; future issuance of additional warrants may adversely affect the market price of the Warrants and the market price of the Company’s Class A common stock; the Warrants do not automatically exercise, and any Warrant that is not exercised prior to their expiration date will lose all financial value; fluctuations in the Company’s results of operations from quarter to quarter; the Company’s ability to generate sufficient cash flow to fund its operations; the $1.5 billion 0.00% Convertible Senior Notes due 2030 (the “2030 Notes") and $2,700 million 0.00% Convertible Senior Notes due 2032 (the "2032 Notes" and, collectively with the 2030 Notes, the "Convertible Notes") are the Company’s obligations only, and substantially all of our operations are conducted through, and a portion of our consolidated assets are held by, our subsidiaries; servicing the Convertible Notes requires a significant amount of cash, and the Company may not have sufficient cash flow from our business to make such payments, and we may incur additional indebtedness in the future; the Company’s ability to incur additional debt; risks associated with the Company’s investment in marketable, nonmarketable and interest-bearing securities, including the impact of such investments on Company’s financial results; the Company's investment policy permits investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stable coins, and to the extent the Company holds Bitcoin or U.S. dollar denominated stable coins, the Company will be exposed to certain risks associated with Bitcoin or stable coins, respectively; the Company’s derivative strategy can expose it to counterparty risk; and the Company’s ability to maintain effective internal control over financial reporting. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found in GameStop's most recent Annual Report on Form 10-K and other filings made from time to time with the SEC and available at www.sec.gov or on the Company’s investor relations website (https://investor.gamestop.com). Forward-looking statements contained in this press release speak only as of the date of this press release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Preliminary Financial Information

With respect to the Company's fiscal year 2026 outlook set forth above, all such projected financial information is preliminary and forward-looking. This estimate is not a comprehensive statement of the Company's financial position or results of operations, and there is no assurance that the Company will achieve its forecasted results within the relevant period or otherwise. Actual results may differ materially from this estimate.

GameStop Investor Relations
817-424-2001
ir@gamestop.com