GameStop Corp. (NYSE:GME) reported second-quarter adjusted earnings per share of $0.27, above the analyst consensus estimate of $0.19, while revenue exceeded expectations despite declining from the prior-year period.
Revenue was $790.2 million, compared with the analyst estimate of $756.8 million and $972.2 million in the second quarter a year earlier, representing a year-over-year decline of 18.7%.
The company attributed the revenue comparison primarily to the Nintendo Switch 2 launch in the prior-year period, planned store closures and the divestiture of its operations in France.
GameStop shares were up 0.7% in premarket trading on Wednesday following the results.
Collectibles sales increase to $356.3 million
Collectibles net sales rose 57% year over year to $356.3 million and accounted for 45.1% of GameStop’s total net sales during the quarter. That compared with 23.4% of total sales in the same period last year.
Operating income increased to $160.2 million from $66.4 million a year earlier. GameStop described the figure as the highest second-quarter operating income in its history.
Adjusted EBITDA reached $174.0 million, compared with $75.7 million in the prior-year quarter.
GameStop raises fiscal 2026 adjusted EBITDA outlook
GameStop increased its fiscal 2026 adjusted EBITDA guidance to more than $650 million.
The previous outlook, issued on June 26, called for adjusted EBITDA of more than $600 million.
The company reported $5.4 billion of cash, cash equivalents, marketable securities, digital assets and related receivables as of August 1, 2026.
GameStop also held approximately 43.4 million shares of eBay Inc. (NASDAQ:EBAY), which had a fair value of about $4.9 billion.
Convertible note exchanges reduce long-term debt
On September 3, GameStop completed privately negotiated exchanges that retired approximately $1.4 billion in aggregate principal amount of convertible senior notes.
Following the transactions, the company’s total long-term debt was approximately $2.8 billion.
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