GameStop (GME) · Retail
GameStop Q2 FY2026 earnings: summary, key numbers & outlook
Results filed 8 Sep 2026 · Quarter ended 1 Aug 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
GameStop reported second quarter 2026 net sales of $790.2 million, operating income of $160.2 million and net income of $298.7 million.
GameStop's net sales fell to $790.2 million from $972.2 million a year earlier. The company points to last year's Nintendo Switch 2 launch, planned store closures and the sale of its France operations. Collectibles net sales grew 57% to $356.3 million, now 45.1% of net sales. Operating income rose to $160.2 million from $66.4 million. Net income was $298.7 million, helped by a $166.3 million gain on a derivative asset and a $72.1 million unrealized gain on an equity investment.
Management raised its fiscal 2026 Adjusted EBITDA outlook to in excess of $650 million, up from in excess of $600 million. Adjusted EBITDA for the first six months was $339.7 million. The main tension is that sales are shrinking while profit comes from collectibles and from investment gains. The company holds $4.9 billion of eBay stock, and its filing lists the proposed eBay acquisition as a risk. On September 3 it retired about $1.4 billion of convertible notes, leaving long-term debt of approximately $2.8 billion.
Key numbers
- Net sales · GAAP
- $790.2 million
- Operating income · GAAP
- $160.2 million
- Net income · GAAP
- $298.7 million
- Diluted income per share · GAAP
- $0.51
- Adjusted diluted net income per share · non-GAAP
- 0.27
- Net cash flows provided by operating activities · GAAP
- $62.4M
- Free cash flow · non-GAAP
- $60.7M
- Adjusted EBITDA · non-GAAP
- $174.0 million
down from $972.2 million in the prior year's second quarter
up from $66.4 million in the prior year's second quarter
up from $168.6 million in the prior year's second quarter
up from $0.31 a year ago
up from 0.25 a year ago
down from $117.4 a year ago
down from $113.3 a year ago
up from $75.7 million in the prior year's second quarter
| Segment or metric | Value | Change |
|---|---|---|
| Collectibles net sales | $356.3 million | grew 57% year over year |
| Video Games net sales | $263.2M | down from 494.6 a year ago |
| Pre-Owned and Refurbished net sales | $170.7M | down from 250.0 a year ago |
| United States net sales | $608.2M | down from $724.6 a year ago |
| Australia net sales | $120.9M | down from $140.9 a year ago |
| Europe net sales | $61.1M | down from $106.7 a year ago |
Where each number comes from
- Net sales: “Net sales were $790.2 million for the second quarter, compared to $972.2 million in the prior year's second quarter.”
- Operating income: “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.”
- Net income: “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.”
- Diluted income per share: “Net income per share: Basic income per share | $0.67 | $0.38 Diluted income per share | $0.51 | $0.31 Weighted-average common shares outstanding:”
- Adjusted diluted net income per share: “Adjusted net income per share Basic | $0.36 | $0.31 | $0.77 | $0.49 Diluted | 0.27 | 0.25 | 0.58 | 0.43”
- Net cash flows provided by operating activities: “Net cash flows provided by operating activities | $62.4 | $117.4 | $399.8 | $309.9”
- Free cash flow: “Capital expenditures | (1.7) | (4.1) | (6.2) | (7.0) Free cash flow | $60.7 | $113.3 | $393.6 | $302.9”
- Adjusted EBITDA: “Adjusted EBITDA was $174.0 million for the second quarter, compared to $75.7 million in the prior year's second quarter.”
- Collectibles net sales: “Collectibles net sales grew 57% year over year to $356.3 million and now represent 45.1% of net sales.”
- Video Games net sales: “Collectibles(1) | $356.3 | 45.1% | $227.6 | 23.4% Video Games(2) | 263.2 | 33.3% | 494.6 | 50.9% Pre-Owned and Refurbished(3) | 170.7 | 21.6% | 250.0 | 25.7%”
- Pre-Owned and Refurbished net sales: “Collectibles(1) | $356.3 | 45.1% | $227.6 | 23.4% Video Games(2) | 263.2 | 33.3% | 494.6 | 50.9% Pre-Owned and Refurbished(3) | 170.7 | 21.6% | 250.0 | 25.7%”
- United States net sales: “As of and for the three months ended August 1, 2026 Net sales | $608.2 | $120.9 | $61.1 | $790.2 Cost of sales | 325.1 | 76.8 | 43.3 | 445.2”
- Australia net sales: “As of and for the three months ended August 1, 2026 Net sales | $608.2 | $120.9 | $61.1 | $790.2 Cost of sales | 325.1 | 76.8 | 43.3 | 445.2”
- Europe net sales: “As of and for the three months ended August 1, 2026 Net sales | $608.2 | $120.9 | $61.1 | $790.2 Cost of sales | 325.1 | 76.8 | 43.3 | 445.2”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $790.2M | −18.7% | −5.4% |
| Operating income | $160.2M | +141.3% | +11.8% |
| Net income | $298.7M | +77.2% | −23.3% |
| Diluted EPS | $0.51 | +64.5% | −22.7% |
| Free cash flow | $60.7M | −46.4% | −81.8% |
| Gross margin | 43.7% | +14.6 pts | +3.0 pts |
| Operating margin | 20.3% | +13.5 pts | +3.1 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Adjusted EBITDA | fiscal year ending January 30, 2027 | in excess of $650 million |
Key takeaways
Collectibles now drive nearly half of sales
Collectibles net sales grew 57% year over year to $356.3 million and now represent 45.1% of net sales, up from 23.4% a year ago.
Sales fell while operating income more than doubled
Net sales were $790.2 million versus $972.2 million, yet operating income was $160.2 million versus $66.4 million. Cost of sales dropped to 56.3% of net sales from 70.9%.
Net income leans on non-operating gains
Net income was $298.7 million, including a $166.3 million gain on a derivative asset and a $72.1 million unrealized gain on an equity investment. Adjusted net income was $161.1 million.
Full-year Adjusted EBITDA outlook raised
The company now expects Adjusted EBITDA in excess of $650 million, up from in excess of $600 million. Adjusted EBITDA for the first six months was $339.7 million.
eBay stake and debt reduction reshape balance sheet
GameStop held approximately 43.4 million eBay shares worth approximately $4.9 billion. On September 3, 2026 it retired approximately $1.4 billion of convertible notes, reducing total long-term debt to approximately $2.8 billion.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q3 FY24 | $860.3M |
| Q4 FY24 | $1.3B * |
| Q1 FY25 | $732.4M |
| Q2 FY25 | $972.2M |
| Q3 FY25 | $821.0M |
| Q4 FY25 | $1.1B * |
| Q1 FY26 | $835.3M |
| Q2 FY26 | $790.2M |
Data
| Q3 FY24 | $0.04 |
| Q1 FY25 | $0.09 |
| Q2 FY25 | $0.31 |
| Q3 FY25 | $0.13 |
| Q1 FY26 | $0.66 |
| Q2 FY26 | $0.51 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q3 FY24 | -3.9% |
| Q4 FY24 | 6.2% |
| Q1 FY25 | -1.5% |
| Q2 FY25 | 6.8% |
| Q3 FY25 | 5.0% |
| Q4 FY25 | 12.2% |
| Q1 FY26 | 17.2% |
| Q2 FY26 | 20.3% |
Data
| Q3 FY24 | $20.0M |
| Q4 FY24 | $158.8M |
| Q1 FY25 | $189.6M |
| Q2 FY25 | $113.3M |
| Q3 FY25 | $107.0M |
| Q4 FY25 | $187.4M |
| Q1 FY26 | $332.9M |
| Q2 FY26 | $60.7M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were GameStop's headline results for the second quarter of fiscal 2026?
Net sales were $790.2 million, down from $972.2 million a year earlier. Operating income was $160.2 million and net income was $298.7 million, or $0.51 per diluted share.
Why did GameStop's sales fall?
The company says the decrease primarily reflects the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of its France operations. Video Games net sales fell to $263.2 million from $494.6 million.
What is GameStop's outlook for the full year?
It now expects Adjusted EBITDA in excess of $650 million for the fiscal year ending January 30, 2027, up from in excess of $600 million previously. Adjusted EBITDA for the first six months was $339.7 million.
How much of net income came from investment gains rather than operations?
Net income of $298.7 million included a $166.3 million gain on a derivative asset and a $72.1 million unrealized gain on an equity investment. These were partly offset by a $75.0 million loss on digital assets and related receivables. Adjusted net income was $161.1 million.
What is GameStop's cash and debt position?
It had $5.4 billion of cash, cash equivalents, marketable securities and digital assets and related receivables, plus $4.9 billion invested in eBay stock. After exchanges completed September 3, 2026, total long-term debt is approximately $2.8 billion.
Documents
SEC filing