# GameStop (GME) Q2 FY2026 earnings

Results filed 2026-09-08 for the quarter ended 2026-08-01. Source page: https://earnings.opennash.com/companies/gme/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1326380/000132638026000050/0001326380-26-000050-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net sales | $790.2 million | down from $972.2 million in the prior year's second quarter | GAAP |
| Operating income | $160.2 million | up from $66.4 million in the prior year's second quarter | GAAP |
| Net income | $298.7 million | up from $168.6 million in the prior year's second quarter | GAAP |
| Diluted income per share | $0.51 | up from $0.31 a year ago | GAAP |
| Adjusted diluted net income per share | 0.27 | up from 0.25 a year ago | non-GAAP |
| Net cash flows provided by operating activities | $62.4 | down from $117.4 a year ago | GAAP |
| Free cash flow | $60.7 | down from $113.3 a year ago | non-GAAP |
| Adjusted EBITDA | $174.0 million | up from $75.7 million in the prior year's second quarter | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Collectibles net sales | $356.3 million | grew 57% year over year |
| Video Games net sales | 263.2 | down from 494.6 a year ago |
| Pre-Owned and Refurbished net sales | 170.7 | down from 250.0 a year ago |
| United States net sales | $608.2 | down from $724.6 a year ago |
| Australia net sales | $120.9 | down from $140.9 a year ago |
| Europe net sales | $61.1 | down from $106.7 a year ago |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Adjusted EBITDA | fiscal year ending January 30, 2027 | in excess of $650 million |

## Key takeaways

1. **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.
2. **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%.
3. **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.
4. **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.
5. **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.

## 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.