GameStop Discloses Second Quarter 2026 Results
GRAPEVINE, Texas, September 8, 2026 (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.
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.
• 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. 1 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.
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 .
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. 2 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 3 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.
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. 4
13 Weeks Ended 13 Weeks Ended August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── Net sales $ 790.2 $ 972.2 Cost of sales 445.2 689.1 Gross profit 345.0 283.1 Selling, general and administrative 187.1 218.8 expenses Asset impairments -2.3 -2.1 Operating income 160.2 66.4 Interest income, net -77.1 -79.6 Gain on derivative asset, -166.3 — net Loss (gain) on digital assets and 75.0 -28.6 related receivables Unrealized gain on equity -72.1 — investment Other income, net -19.5 — Income before income taxes 420.2 174.6 Income tax expense 121.5 6.0 Net income $ 298.7 $ 168.6 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: Basic 448.8 447.4 Diluted 592.6 546.5 Percentage of Net sales: Net sales 100.0 % 100.0 % Cost of sales 56.3 70.9 Gross profit 43.7 29.1 Selling, general and administrative 23.7 22.5 expenses Asset impairments -0.3 -0.2 Operating income 20.3 6.8 Interest income, net -9.8 -8.2 Gain on derivative asset, -21.0 — net Loss (gain) on digital assets and 9.5 -2.9 related receivables Unrealized gain on equity -9.1 — investment Other income, net -2.5 — Income before income taxes 53.2 18.0 Income tax expense 15.4 0.6 Net income 37.8 % 17.3 %
26 Weeks Ended 26 Weeks Ended August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── Net sales 1,625.5 1,704.6 Cost of sales 940.2 1,168.7 Gross profit 685.3 535.9 Selling, general and administrative 388.7 446.9 expenses Asset impairments -6.9 33.4 Operating income 303.5 55.6 Interest income, net -160.8 -136.5 Gain on derivative asset, -434.7 — net Loss (gain) on digital assets and 73.9 -28.6 related receivables Unrealized gain on equity -72.1 — investment Other income, net -29.4 -2.2 Income before income taxes 926.6 222.9 Income tax expense 238.3 9.5 Net income $ 688.3 $ 213.4 Net income per share: Basic income per share $ 1.53 $ 0.48 Diluted income per share $ 1.17 $ 0.42 Weighted-average common shares outstanding: Basic 448.6 447.3 Diluted 592.5 506.2 Percentage of Net sales: Net sales 100.0 % 100.0 % Cost of sales 57.8 68.6 Gross profit 42.2 31.4 Selling, general and administrative 23.9 26.2 expenses Asset impairments -0.4 2.0 Operating income 18.7 3.3 Interest income, net -9.9 -8.0 Gain on derivative asset, -26.7 — net Loss (gain) on digital assets and 4.5 -1.7 related receivables Unrealized gain on equity -4.4 — investment Other income, net -1.8 -0.1 Income before income taxes 57.0 13.1 Income tax expense 14.7 0.6 Net income 42.3 % 12.5 %
Store 104.2 28.3 17.4 149.9 related Other 25.7 7.6 3.9 37.2 Asset — 0.1 -2.4 -2.3 impair… Operat… income 153.2 8.1 -1.1 160.2 (loss) Intere… income, -77.1 net Gain on deriva… -166.3 asset, net Loss on digital assets 75.0 and related receiv… Unreal… gain on -72.1 equity invest… Other income, -19.5 net Income before 420.2 income taxes Income tax 121.5 expense Net 298.7 income Proper… and 34.1 16.0 — 50.1 equipm… net Capital — 1.7 — 1.7 expend…
(1) Property and equipment, net for France (Europe) was classified in Assets held for sale on our Condensed Consolidated Balance Sheets.
(1) Property and equipment, net for France (Europe) was classified in Assets held for sale on our Condensed Consolidated Balance Sheets.
August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS: Current assets: Cash and cash equivalents $ 4,854.3 $ 8,694.4 Marketable securities 206.0 — Receivables,net of allowance of $3.8 and 95.4 45.5 $0.9, respectively Digital assets and related 294.1 — receivables Merchandise inventories, net 439.0 484.9 Prepaid expenses and other current 36.8 36.6 assets Assets held for sale — 177.0 Total current assets 5,925.6 9,438.4 Property and equipment, net of accumulated depreciation of $487.3 50.1 52.3 and $567.2, respectively Digital assets — 528.6 Equity investment 4,946.9 — Operating lease right-of-use 158.9 249.9 assets Deferred income taxes 16.9 18.8 Other noncurrent assets 46.4 53.1 Total assets $ 11,144.8 $ 10,341.1 LIABILITIES AND STOCKHOLDERS’ EQUITY: Current liabilities: Accounts payable $ 214.9 $ 292.9 Accrued liabilities and other current 385.1 283.8 liabilities Current portion of operating lease 79.7 101.5 liabilities Liabilities held for sale — 151.7 Total current liabilities 679.7 829.9 Long-term debt 4,167.8 4,160.9 Operating lease liabilities 85.7 155.5 Other long-term liabilities 70.2 18.4 Total liabilities 5,003.4 5,164.7 Total stockholders’ equity 6,141.4 5,176.4 Total liabilities and stockholders’ $ 11,144.8 $ 10,341.1 equity
13 Weeks Ended 13 Weeks Ended August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 298.7 $ 168.6 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and 4.6 4.7 amortization Stock-based compensation 7.3 6.3 expense, net Loss (gain) on digital assets and 75.0 -28.6 related receivables Gain on derivative asset -203.6 — Unrealized gain on -72.1 — equity investment Deferred income taxes 62.1 — Loss on disposal of property and 0.3 0.9 equipment, net Asset impairments -2.3 -2.1 Other, net -18.1 3.0 Changes in operating assets and liabilities: Receivables, net -37.8 -2.2 Merchandise inventories, -19.2 -72.1 net Prepaid expenses and other current 1.3 -0.8 assets Prepaid income taxes and income taxes -42.8 -8.8 payable Accounts payable and 7.5 53.6 accrued liabilities Operating lease right-of-use assets and -1.5 -1.1 liabilities Changes in other 3.0 -4.0 long-term liabilities Net cash flows provided by operating 62.4 117.4 activities Cash flows from investing activities: Capital expenditures -1.7 -4.1 Purchases of marketable -0.7 -52.5 securities Proceeds from maturities and sales of 763.3 41.4 marketable securities Purchase of digital — -500.0 assets Proceeds from collateral pledged for 983.3 — derivative asset Proceeds from written options on digital 12.4 — assets Cash paid for equity -4,386.3 — investment Proceeds from other divestitures, net of — -5.6 cash disposed Other 21.7 -2.5 Net cash flows used in investing -2,608.0 -523.3 activities Cash flows from financing activities: Proceeds from the issuance of — 2,700.0 convertible debt Debt issuance costs from convertible — -21.6 debt Repayments of debt — -3.1 Repayments of French -1.4 — term loans Proceeds from equity awards directly 2.6 2.3 withheld from employees for tax purposes Payments to tax authorities for equity -2.6 -2.3 awards directly withheld from employees Net cash flows (used in) provided by -1.4 2,675.3 financing activities Exchange rate effect on cash, cash 3.5 0.1 equivalents and restricted cash Less: Net change in cash balance — 40.3 classified as assets held for sale (Decrease) Increase in cash, cash -2,543.5 2,309.8 equivalents, and restricted cash Cash, cash equivalents and restricted 7,411.8 6,424.1 cash at beginning of period Cash, cash equivalents and restricted $ 4,868.3 $ 8,733.9 cash at end of period
26 Weeks Ended 26 Weeks Ended August 1, 2026 August 2, 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net income $ 688.3 $ 213.4 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 9.1 10.3 Stock-based compensation expense, 15.8 11.8 net Loss (gain) on digital assets and 73.9 -28.6 related receivables Gain on derivative asset -488.9 — Unrealized gain on equity -72.1 — investment Deferred income taxes 123.5 — Loss (gain) on disposal of property and 0.4 -0.6 equipment, net Asset impairments -6.9 33.4 Other, net -25.9 2.6 Changes in operating assets and liabilities: Receivables, net -44.7 9.8 Merchandise inventories, net -35.8 -82.2 Prepaid expenses and other current 10.3 5.9 assets Prepaid income taxes and income taxes -3.3 -10.4 payable Accounts payable and accrued 161.0 163.9 liabilities Operating lease right-of-use assets and -8.2 -1.7 liabilities Changes in other long-term 3.3 -17.7 liabilities Net cash flows provided by operating 399.8 309.9 activities Cash flows from investing activities: Capital expenditures -6.2 -7.0 Purchases of marketable securities -7.1 -67.2 Proceeds from maturities and sales of 2,491.2 64.0 marketable securities Cash paid for equity investment -4,386.3 — Collateral pledged for derivative -983.3 — asset Proceeds from collateral pledged for 983.3 — derivative asset Proceeds from written options on digital 18.2 — assets Purchase of digital assets — -500.0 Proceeds from other divestitures, net of — -3.4 cash disposed Other 25.1 -2.4 Net cash flows used in investing -1,865.1 -516.0 activities Cash flows from financing activities: Proceeds from the issuance of — 4,200.0 convertible debt Debt issuance costs from convertible — -40.9 debt Repayments of debt — -5.8 Proceeds from the exercise of 0.1 — warrants Proceeds from equity awards directly 5.5 4.6 withheld from employees for tax purposes Payments to tax authorities for equity -5.5 -4.6 awards directly withheld from employees Net cash flows provided by financing 0.1 4,153.3 activities Exchange rate effect on cash, cash 5.4 6.0 equivalents and restricted cash Less: Net change in cash balance — -9.1 classified as assets held for sale (Decrease) Increase in cash, cash -1,459.8 3,944.1 equivalents, and restricted cash Cash, cash equivalents and restricted 6,328.1 4,789.8 cash at beginning of period Cash, cash equivalents and restricted $ 4,868.3 $ 8,733.9 cash at end of period
(unaudited) Beginning in the second quarter of fiscal 2026, the Company presents net sales in the categories below. Prior-period amounts have been recast to conform.
26 26 Weeks Weeks Ended Ended August August 1, 2, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net Perc… Net Perc… Net Sales of Sales of Sal… Total Total Col… $ 705.2 43.4 % $ 439.1 25.7 % Vid… 549.8 33.8 % 844.8 49.6 % Gam… Pre… and 370.5 22.8 % 420.7 24.7 % Ref… Tot… $ 1,625… 100.0 % $ 1,704… 100.0 % (1) Inc… new and pre… tra… car… and oth… col… pro… act… fig… sta… rep… and oth… fig… app… plu… boa… gam… bui… set… and oth… toy… home goo… and oth… ret… pro… for col… and ent… of gam… ent… and pop cul… and fees ear… from fac… the sub… of cus… tra… car… to a thi… aut… and gra… ser… Col… pro… are cla… in this cat… bas… on the nat… of the pro… irr… of whe… the pro… is new or pre… (2) Inc… new vid… game har… acc… and sof… (bo… phy… and dig… dig… cur… inc… pla… poi… and gift car… red… for dig… gam… and con… PC gam… pro… and ext… pro… war… sold on new pro… (3) Inc… pre… and ref… vid… game har… phy… vid… game sof… acc… and con… ele… acq… pri… thr… our cus… tra… pro… and ext… pro… war… sold on pre… pro… This cat… exc… pre… col… pro… whi… are inc… in Col…
The following tables reconcile the Company's selling, general and administrative expenses (“SG&A expense”), operating income (loss), net income (loss) and net income (loss) per share as presented in its unaudited consolidated statements of operations and prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) to its adjusted SG&A expense, adjusted operating income (loss), adjusted net income (loss), adjusted net income (loss) per share and adjusted EBITDA. The diluted weighted-average shares outstanding used to calculate adjusted net income per share may differ from GAAP weighted-average shares outstanding. Under GAAP, basic and diluted weighted-average shares outstanding are the same in periods where there is a net loss. The tax adjustments below for the 13 and 26 weeks ended August 1, 2026 include provisions for the tax effects of non-GAAP adjustments. There was no tax impact of non-GAAP adjustments for the 13 and 26 weeks ended August 2, 2025 due to the availability of net operating loss carryforwards and related valuation allowances. The reconciliations below are from continuing operations only.
The following table reconciles the Company's cash flows provided by operating activities as presented in its unaudited Consolidated Statements of Cash Flows and prepared in accordance with GAAP to its free cash flow. Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use by investors in evaluating the Company’s financial performance.
Adjusted EBITDA, adjusted SG&A expense, adjusted operating income (loss), adjusted net income (loss) and adjusted net income (loss) per share are supplemental financial measures of the Company’s performance that are not required by, or presented in accordance with, GAAP. We believe that the presentation of these non-GAAP financial measures provides useful information to investors in assessing our financial condition and results of operations. We define adjusted EBITDA as net income before income taxes, plus interest income, net and depreciation and amortization, excluding stock-based compensation, certain transformation costs (including severance and other costs) , business divestitures, 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 on equity investment, and other non-cash charges. Net income is the GAAP financial measure most directly comparable to adjusted EBITDA. Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measure. Furthermore, non-GAAP financial measures have limitations as an analytical tool because they exclude some but not all items that affect the most directly comparable GAAP financial measures. Some of these limitations include:
• certain items excluded from adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure;
• adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;
• adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements; and
• our computations of adjusted EBITDA may not be comparable to other similarly titled measures of other companies.
We compensate for the limitations of adjusted EBITDA, adjusted SG&A expense, adjusted operating income (loss), adjusted net income (loss) and adjusted net income (loss) per share as analytical tools by reviewing the comparable GAAP financial measure, understanding the differences between the GAAP and non-GAAP financial measures and incorporating these data points into our decision-making process. Adjusted EBITDA, adjusted SG&A expense, adjusted operating income (loss), adjusted net income (loss) and adjusted net income (loss) per share are provided in addition to, and not as an alternative to, the Company’s financial results prepared in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because adjusted EBITDA, adjusted SG&A expense, adjusted operating income (loss), adjusted net income (loss) and adjusted net income (loss) per share may be defined and determined differently by other companies in our industry, our definitions of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Full text with the tables
Exhibit 99.1
GameStop Discloses Second Quarter 2026 Results
GRAPEVINE, Texas, September 8, 2026 (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.
1
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.
2
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
3
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.
4
GameStop Corp.
Condensed Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
13 Weeks Ended 13 Weeks Ended
August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
Net sales $ 790.2 $ 972.2
Cost of sales 445.2 689.1
Gross profit 345.0 283.1
Selling, general and
administrative 187.1 218.8
expenses
Asset impairments -2.3 -2.1
Operating income 160.2 66.4
Interest income, net -77.1 -79.6
Gain on derivative asset, -166.3 —
net
Loss (gain) on digital
assets and 75.0 -28.6
related receivables
Unrealized gain on equity -72.1 —
investment
Other income, net -19.5 —
Income before income taxes 420.2 174.6
Income tax expense 121.5 6.0
Net income $ 298.7 $ 168.6
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:
Basic 448.8 447.4
Diluted 592.6 546.5
Percentage of Net sales:
Net sales 100.0 % 100.0 %
Cost of sales 56.3 70.9
Gross profit 43.7 29.1
Selling, general and
administrative 23.7 22.5
expenses
Asset impairments -0.3 -0.2
Operating income 20.3 6.8
Interest income, net -9.8 -8.2
Gain on derivative asset, -21.0 —
net
Loss (gain) on digital
assets and 9.5 -2.9
related receivables
Unrealized gain on equity -9.1 —
investment
Other income, net -2.5 —
Income before income taxes 53.2 18.0
Income tax expense 15.4 0.6
Net income 37.8 % 17.3 %
5
26 Weeks Ended 26 Weeks Ended
August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
Net sales 1,625.5 1,704.6
Cost of sales 940.2 1,168.7
Gross profit 685.3 535.9
Selling, general and
administrative 388.7 446.9
expenses
Asset impairments -6.9 33.4
Operating income 303.5 55.6
Interest income, net -160.8 -136.5
Gain on derivative asset, -434.7 —
net
Loss (gain) on digital
assets and 73.9 -28.6
related receivables
Unrealized gain on equity -72.1 —
investment
Other income, net -29.4 -2.2
Income before income taxes 926.6 222.9
Income tax expense 238.3 9.5
Net income $ 688.3 $ 213.4
Net income per share:
Basic income per share $ 1.53 $ 0.48
Diluted income per share $ 1.17 $ 0.42
Weighted-average common
shares
outstanding:
Basic 448.6 447.3
Diluted 592.5 506.2
Percentage of Net sales:
Net sales 100.0 % 100.0 %
Cost of sales 57.8 68.6
Gross profit 42.2 31.4
Selling, general and
administrative 23.9 26.2
expenses
Asset impairments -0.4 2.0
Operating income 18.7 3.3
Interest income, net -9.9 -8.0
Gain on derivative asset, -26.7 —
net
Loss (gain) on digital
assets and 4.5 -1.7
related receivables
Unrealized gain on equity -4.4 —
investment
Other income, net -1.8 -0.1
Income before income taxes 57.0 13.1
Income tax expense 14.7 0.6
Net income 42.3 % 12.5 %
6
GameStop Corp.
Condensed Consolidated Statements of Operations by Segment
(in millions, except per share data)
(unaudited)
As of
and for
the
three
months
ended
August United
1, 2026 States Austral… Europe Total
──────────────────────────────────────────────────────────────────────────────
Net $ 608.2 $ 120.9 $ 61.1 $ 790.2
sales
Cost of 325.1 76.8 43.3 445.2
sales
Gross 283.1 44.1 17.8 345.0
profit
Sellin…
general
and 129.9 35.9 21.3 187.1
admini…
expens…
Store 104.2 28.3 17.4 149.9
related
Other 25.7 7.6 3.9 37.2
Asset — 0.1 -2.4 -2.3
impair…
Operat…
income 153.2 8.1 -1.1 160.2
(loss)
Intere…
income, -77.1
net
Gain on
deriva… -166.3
asset,
net
Loss on
digital
assets 75.0
and
related
receiv…
Unreal…
gain on -72.1
equity
invest…
Other
income, -19.5
net
Income
before 420.2
income
taxes
Income
tax 121.5
expense
Net 298.7
income
Proper…
and 34.1 16.0 — 50.1
equipm…
net
Capital — 1.7 — 1.7
expend…
7
As of
and for
the
three
months
ended
August United
2, 2025 States Austral… Europe Total
──────────────────────────────────────────────────────────────────────────────
Net $ 724.6 $ 140.9 $ 106.7 $ 972.2
sales
Cost of 509.3 99.1 80.7 689.1
sales
Gross 215.3 41.8 26.0 283.1
profit
Sellin…
general
and 151.6 35.8 31.4 218.8
admini…
expens…
Store 129.2 28.6 26.8 184.6
related
Other 22.4 7.2 4.6 34.2
Asset — — -2.1 -2.1
impair…
Operat…
income 63.7 6.0 -3.3 66.4
(loss)
Intere…
income, -79.6
net
Unreal…
gain on -28.6
digital
assets
Income
before 174.6
income
taxes
Income
tax 6.0
expense
Net 168.6
income
Proper…
and 35.8 16.5 — 52.3
equipm…
net(1)
Capital 2.6 1.5 — 4.1
expend…
(1) Property and equipment, net for France (Europe) was classified in Assets
held for sale on our Condensed Consolidated Balance Sheets.
8
As of
and
for
the
six
months
ended
August
1, United
2026 States Austra… Europe Total
──────────────────────────────────────────────────────────────────────────────
Net $ 1,259… $ 220.5 $ 145.7 $ 1,625…
sales
Cost
of 693.9 142.1 104.2 940.2
sales
Gross 565.4 78.4 41.5 685.3
profit
Selli…
gener…
and 267.6 69.9 51.2 388.7
admin…
expen…
Store 216.4 55.1 43.7 315.2
relat…
Other 51.2 14.8 7.5 73.5
Asset — 0.4 -7.3 -6.9
impai…
Opera…
income 297.8 8.1 -2.4 303.5
(loss)
Inter…
incom… -160.8
net
Gain
on
deriv… -434.7
asset,
net
Loss
on
digit…
assets 73.9
and
relat…
recei…
Unrea…
gain
on -72.1
equity
inves…
Other
incom… -29.4
net
Income
before 926.6
income
taxes
Income
tax 238.3
expen…
Net 688.3
income
Prope…
and 34.1 16.0 — 50.1
equip…
net
Capit… 3.4 2.8 — 6.2
expen…
9
As
of
and
for
the
six
mo…
en…
Au…
2, Uni…
20… Sta… Can… Aust… Euro… Total
──────────────────────────────────────────────────────────────────────────────
Net $ 1,2… $ 38.2 $ 222… $ 181… $ 1,7…
sa…
Co…
of 852… 28.2 154… 133… 1,1…
sa…
Gr… 409… 10.0 68.7 48.0 535…
pr…
Se…
ge…
and 311… 13.9 68.1 53.0 446…
ad…
ex…
St… 260… 11.3 55.2 49.2 376…
re…
Ot… 51.1 2.6 12.9 3.8 70.4
As… — 18.3 — 15.1 33.4
im…
Op…
in… 97.3 -22… 0.6 -20… 55.6
(l…
In…
in… -13…
net
Un…
ga…
on -28…
di…
as…
Ot…
in… -2.2
net
In…
be… 222…
in…
ta…
In…
tax 9.5
ex…
Net 213…
in…
Pr…
and 35.8 — 16.5 — 52.3
eq…
ne…
Ca… 3.8 0.1 2.5 0.6 7.0
ex…
(1) Property and equipment, net for France (Europe) was classified in Assets
held for sale on our Condensed Consolidated Balance Sheets.
10
GameStop Corp.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS:
Current assets:
Cash and cash equivalents $ 4,854.3 $ 8,694.4
Marketable securities 206.0 —
Receivables,net of allowance of
$3.8 and 95.4 45.5
$0.9, respectively
Digital assets and related 294.1 —
receivables
Merchandise inventories, net 439.0 484.9
Prepaid expenses and other current 36.8 36.6
assets
Assets held for sale — 177.0
Total current assets 5,925.6 9,438.4
Property and equipment, net of
accumulated depreciation of $487.3 50.1 52.3
and
$567.2, respectively
Digital assets — 528.6
Equity investment 4,946.9 —
Operating lease right-of-use 158.9 249.9
assets
Deferred income taxes 16.9 18.8
Other noncurrent assets 46.4 53.1
Total assets $ 11,144.8 $ 10,341.1
LIABILITIES AND STOCKHOLDERS’
EQUITY:
Current liabilities:
Accounts payable $ 214.9 $ 292.9
Accrued liabilities and other
current 385.1 283.8
liabilities
Current portion of operating lease 79.7 101.5
liabilities
Liabilities held for sale — 151.7
Total current liabilities 679.7 829.9
Long-term debt 4,167.8 4,160.9
Operating lease liabilities 85.7 155.5
Other long-term liabilities 70.2 18.4
Total liabilities 5,003.4 5,164.7
Total stockholders’ equity 6,141.4 5,176.4
Total liabilities and
stockholders’ $ 11,144.8 $ 10,341.1
equity
11
GameStop Corp.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
13 Weeks Ended 13 Weeks Ended
August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating activities:
Net income $ 298.7 $ 168.6
Adjustments to reconcile
net income to
net cash flows from
operating
activities:
Depreciation and 4.6 4.7
amortization
Stock-based compensation 7.3 6.3
expense, net
Loss (gain) on digital
assets and 75.0 -28.6
related receivables
Gain on derivative asset -203.6 —
Unrealized gain on -72.1 —
equity investment
Deferred income taxes 62.1 —
Loss on disposal of
property and 0.3 0.9
equipment, net
Asset impairments -2.3 -2.1
Other, net -18.1 3.0
Changes in operating
assets and
liabilities:
Receivables, net -37.8 -2.2
Merchandise inventories, -19.2 -72.1
net
Prepaid expenses and
other current 1.3 -0.8
assets
Prepaid income taxes and
income taxes -42.8 -8.8
payable
Accounts payable and 7.5 53.6
accrued liabilities
Operating lease
right-of-use assets and -1.5 -1.1
liabilities
Changes in other 3.0 -4.0
long-term liabilities
Net cash flows provided
by operating 62.4 117.4
activities
Cash flows from
investing activities:
Capital expenditures -1.7 -4.1
Purchases of marketable -0.7 -52.5
securities
Proceeds from maturities
and sales of 763.3 41.4
marketable securities
Purchase of digital — -500.0
assets
Proceeds from collateral
pledged for 983.3 —
derivative asset
Proceeds from written
options on digital 12.4 —
assets
Cash paid for equity -4,386.3 —
investment
Proceeds from other
divestitures, net of — -5.6
cash disposed
Other 21.7 -2.5
Net cash flows used in
investing -2,608.0 -523.3
activities
Cash flows from
financing activities:
Proceeds from the
issuance of — 2,700.0
convertible debt
Debt issuance costs from
convertible — -21.6
debt
Repayments of debt — -3.1
Repayments of French -1.4 —
term loans
Proceeds from equity
awards directly 2.6 2.3
withheld from employees
for tax purposes
Payments to tax
authorities for equity -2.6 -2.3
awards directly withheld
from employees
Net cash flows (used in)
provided by -1.4 2,675.3
financing activities
Exchange rate effect on
cash, cash 3.5 0.1
equivalents and
restricted cash
Less: Net change in cash
balance — 40.3
classified as assets
held for sale
(Decrease) Increase in
cash, cash -2,543.5 2,309.8
equivalents, and
restricted cash
Cash, cash equivalents
and restricted 7,411.8 6,424.1
cash at beginning of
period
Cash, cash equivalents
and restricted $ 4,868.3 $ 8,733.9
cash at end of period
12
26 Weeks Ended 26 Weeks Ended
August 1, 2026 August 2, 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from operating
activities:
Net income $ 688.3 $ 213.4
Adjustments to reconcile net
income to
net cash flows from operating
activities:
Depreciation and amortization 9.1 10.3
Stock-based compensation expense, 15.8 11.8
net
Loss (gain) on digital assets and 73.9 -28.6
related receivables
Gain on derivative asset -488.9 —
Unrealized gain on equity -72.1 —
investment
Deferred income taxes 123.5 —
Loss (gain) on disposal of
property and 0.4 -0.6
equipment, net
Asset impairments -6.9 33.4
Other, net -25.9 2.6
Changes in operating assets and
liabilities:
Receivables, net -44.7 9.8
Merchandise inventories, net -35.8 -82.2
Prepaid expenses and other current 10.3 5.9
assets
Prepaid income taxes and income
taxes -3.3 -10.4
payable
Accounts payable and accrued 161.0 163.9
liabilities
Operating lease right-of-use
assets and -8.2 -1.7
liabilities
Changes in other long-term 3.3 -17.7
liabilities
Net cash flows provided by
operating 399.8 309.9
activities
Cash flows from investing
activities:
Capital expenditures -6.2 -7.0
Purchases of marketable securities -7.1 -67.2
Proceeds from maturities and sales
of 2,491.2 64.0
marketable securities
Cash paid for equity investment -4,386.3 —
Collateral pledged for derivative -983.3 —
asset
Proceeds from collateral pledged
for 983.3 —
derivative asset
Proceeds from written options on
digital 18.2 —
assets
Purchase of digital assets — -500.0
Proceeds from other divestitures,
net of — -3.4
cash disposed
Other 25.1 -2.4
Net cash flows used in investing -1,865.1 -516.0
activities
Cash flows from financing
activities:
Proceeds from the issuance of — 4,200.0
convertible debt
Debt issuance costs from
convertible — -40.9
debt
Repayments of debt — -5.8
Proceeds from the exercise of 0.1 —
warrants
Proceeds from equity awards
directly 5.5 4.6
withheld from employees for tax
purposes
Payments to tax authorities for
equity -5.5 -4.6
awards directly withheld from
employees
Net cash flows provided by
financing 0.1 4,153.3
activities
Exchange rate effect on cash, cash 5.4 6.0
equivalents and restricted cash
Less: Net change in cash balance — -9.1
classified as assets held for sale
(Decrease) Increase in cash, cash -1,459.8 3,944.1
equivalents, and restricted cash
Cash, cash equivalents and
restricted 6,328.1 4,789.8
cash at beginning of period
Cash, cash equivalents and
restricted $ 4,868.3 $ 8,733.9
cash at end of period
13
Schedule I
Sales Mix
(in millions)
(unaudited)
Beginning in the second quarter of fiscal 2026, the Company presents net sales
in the categories below. Prior-period amounts have been recast to conform.
13 13
Weeks Weeks
Ended Ended
August August
1, 2,
2026 2025
──────────────────────────────────────────────────────────────────────────────
Net Perc… Net Perc…
Net Sales of Sales of
Sal… Total Total
Col… $ 356.3 45.1 % $ 227.6 23.4 %
Vid… 263.2 33.3 % 494.6 50.9 %
Gam…
Pre…
and 170.7 21.6 % 250.0 25.7 %
Ref…
Tot… $ 790.2 100.0 % $ 972.2 100.0 %
26 26
Weeks Weeks
Ended Ended
August August
1, 2,
2026 2025
──────────────────────────────────────────────────────────────────────────────
Net Perc… Net Perc…
Net Sales of Sales of
Sal… Total Total
Col… $ 705.2 43.4 % $ 439.1 25.7 %
Vid… 549.8 33.8 % 844.8 49.6 %
Gam…
Pre…
and 370.5 22.8 % 420.7 24.7 %
Ref…
Tot… $ 1,625… 100.0 % $ 1,704… 100.0 %
(1)
Inc…
new
and
pre…
tra…
car…
and
oth…
col…
pro…
act…
fig…
sta…
rep…
and
oth…
fig…
app…
plu…
boa…
gam…
bui…
set…
and
oth…
toy…
home
goo…
and
oth…
ret…
pro…
for
col…
and
ent…
of
gam…
ent…
and
pop
cul…
and
fees
ear…
from
fac…
the
sub…
of
cus…
tra…
car…
to a
thi…
aut…
and
gra…
ser…
Col…
pro…
are
cla…
in
this
cat…
bas…
on
the
nat…
of
the
pro…
irr…
of
whe…
the
pro…
is
new
or
pre…
(2)
Inc…
new
vid…
game
har…
acc…
and
sof…
(bo…
phy…
and
dig…
dig…
cur…
inc…
pla…
poi…
and
gift
car…
red…
for
dig…
gam…
and
con…
PC
gam…
pro…
and
ext…
pro…
war…
sold
on
new
pro…
(3)
Inc…
pre…
and
ref…
vid…
game
har…
phy…
vid…
game
sof…
acc…
and
con…
ele…
acq…
pri…
thr…
our
cus…
tra…
pro…
and
ext…
pro…
war…
sold
on
pre…
pro…
This
cat…
exc…
pre…
col…
pro…
whi…
are
inc…
in
Col…
14
GameStop Corp.
Schedule II
(in millions, except per share data)
(unaudited)
Non-GAAP results
The following tables reconcile the Company's selling, general and administrative
expenses (“SG&A expense”), operating income (loss), net income (loss) and net
income (loss) per share as presented in its unaudited consolidated statements of
operations and prepared in accordance with U.S. generally accepted accounting
principles (“GAAP”) to its adjusted SG&A expense, adjusted operating income
(loss), adjusted net income (loss), adjusted net income (loss) per share and
adjusted EBITDA. The diluted weighted-average shares outstanding used to
calculate adjusted net income per share may differ from GAAP weighted-average
shares outstanding. Under GAAP, basic and diluted weighted-average shares
outstanding are the same in periods where there is a net loss. The tax
adjustments below for the 13 and 26 weeks ended August 1, 2026 include
provisions for the tax effects of non-GAAP adjustments. There was no tax impact
of non-GAAP adjustments for the 13 and 26 weeks ended August 2, 2025 due to the
availability of net operating loss carryforwards and related valuation
allowances. The reconciliations below are from continuing operations only.
13 August 13 August 26 August 26 Augu…
Weeks 1, Weeks 2, Weeks 1, Weeks 2,
Ended 2026 Ended 2025 Ended 2026 Ended 2025
──────────────────────────────────────────────────────────────────────────────
Adju…
SG&A
expe…
SG&A $ 187.1 $ 218.8 $ 388.7 $ 446.9
expe…
Tran… -0.8 -0.4 -2.6 -3.2
cost…
Adju…
SG&A $ 186.3 $ 218.4 $ 386.1 $ 443.7
expe…
Adju…
Oper…
Inco…
Oper… $ 160.2 $ 66.4 $ 303.5 $ 55.6
inco…
Tran… 0.8 0.4 2.6 3.2
cost…
Asset -2.3 -2.1 -6.9 33.4
impa…
Adju…
oper… $ 158.7 $ 64.7 $ 299.2 $ 92.2
inco…
Adju…
Net
Inco…
Net $ 298.7 $ 168.6 $ 688.3 $ 213.4
Inco…
Tran… 0.8 0.4 2.6 3.2
cost…
Dive…
and — — — -2.2
other
Asset -2.3 -2.1 -6.9 33.4
impa…
Loss
(gai…
on
digi… 75.0 -28.6 73.9 -28.6
asse…
and
rela…
rece…
(Gai…
loss
on
writ… -16.1 — -13.8 —
opti…
on
digi…
asse…
Gain
on
deri… -166.3 — -434.7 —
asse…
net
Unre…
gain
on -72.1 — -72.1 —
equi…
inve…
Inco…
tax
impa… 43.4 — 108.2 —
of
adju…
Adju…
net $ 161.1 $ 138.3 $ 345.5 $ 219.2
inco…
Adju…
net
inco…
per
share
Basic $ 0.36 $ 0.31 $ 0.77 $ 0.49
Dilu… 0.27 0.25 0.58 0.43
Numb…
of
shar…
used
in
adju…
calc…
Basic 448.8 447.4 448.6 447.3
Dilu… 592.6 546.5 592.5 506.2
(1)
Tran…
costs
incl…
seve…
stoc…
comp…
forf…
rela…
to
work…
opti…
effo…
and
depa…
of
key
pers…
adju…
to
rese…
for
expe…
for
cons…
and
advi…
rela…
to
tran…
init…
and
other
costs
in
conn…
with
the
tran…
init…
(2)
Asset
impa…
in
the
curr…
year
incl…
amou…
incu…
in
conn…
with
the
dive…
of
our
oper…
in
Fran…
and
the
clos…
of
our
oper…
in
New
Zeal…
Asset
impa…
in
the
prior
year
incl…
amou…
incu…
in
conn…
with
the
dive…
of
Fran…
and
Cana…
(3)
Calc…
using
the
Comp…
blen…
stat…
tax
rate
of
appr…
24%.
15
13 August 13 August 26 August 26 Augu…
Weeks 1, Weeks 2, Weeks 1, Weeks 2,
Ended 2026 Ended 2025 Ended 2026 Ended 2025
──────────────────────────────────────────────────────────────────────────────
Reco…
of
Net
Inco…
to
Adju…
EBIT…
Net $ 298.7 $ 168.6 $ 688.3 $ 213.4
inco…
Inte…
inco… -77.1 -79.6 -160.8 -136…
net
Depr…
and 4.6 4.7 9.1 10.3
amor…
Inco…
tax 121.5 6.0 238.3 9.5
expe…
EBIT… $ 347.7 $ 99.7 $ 774.9 $ 96.7
Stoc… 7.3 6.3 15.8 11.8
comp…
Tran… 0.8 0.4 2.6 3.2
cost…
Dive…
and — — — -2.2
other
Asset -2.3 -2.1 -6.9 33.4
impa…
Loss
(gai…
on
digi… 75.0 -28.6 73.9 -28.6
asse…
and
rela…
rece…
(Gai…
loss
on
writ… -16.1 — -13.8 —
opti…
on
digi…
asse…
Gain
on -166.3 — -434.7 —
deri…
asset
Unre…
gain
on -72.1 — -72.1 —
equi…
inve…
Adju… $ 174.0 $ 75.7 $ 339.7 $ 114.3
EBIT…
(1)
Tran…
costs
incl…
seve…
stoc…
comp…
forf…
rela…
to
work…
opti…
effo…
and
depa…
of
key
pers…
adju…
to
rese…
for
expe…
for
cons…
and
advi…
rela…
to
tran…
init…
and
other
costs
in
conn…
with
the
tran…
init…
(2)
Asset
impa…
in
the
curr…
year
incl…
amou…
incu…
in
conn…
with
the
dive…
of
our
oper…
in
Fran…
and
the
clos…
of
our
oper…
in
New
Zeal…
Asset
impa…
in
the
prior
year
incl…
amou…
incu…
in
conn…
with
the
dive…
of
Fran…
and
Cana…
16
GameStop Corp.
Schedule III
(in millions)
(unaudited)
Non-GAAP results
The following table reconciles the Company's cash flows provided by operating
activities as presented in its unaudited Consolidated Statements of Cash Flows
and prepared in accordance with GAAP to its free cash flow. Free cash flow is
considered a non-GAAP financial measure. Management believes, however, that free
cash flow, which measures our ability to generate additional cash from our
business operations, is an important financial measure for use by investors in
evaluating the Company’s financial performance.
13 August 13 August 26 August 26 Augu…
Weeks 1, Weeks 2, Weeks 1, Weeks 2,
Ended 2026 Ended 2025 Ended 2026 Ended 2025
──────────────────────────────────────────────────────────────────────────────
Net
cash
flows
prov… $ 62.4 $ 117.4 $ 399.8 $ 309.9
by
oper…
acti…
Capi… -1.7 -4.1 -6.2 -7.0
expe…
Free
cash $ 60.7 $ 113.3 $ 393.6 $ 302.9
flow
Non-GAAP Measures and Other Metrics
Adjusted EBITDA, adjusted SG&A expense, adjusted operating income (loss),
adjusted net income (loss) and adjusted net income (loss) per share are
supplemental financial measures of the Company’s performance that are not
required by, or presented in accordance with, GAAP. We believe that the
presentation of these non-GAAP financial measures provides useful information to
investors in assessing our financial condition and results of operations. We
define adjusted EBITDA as net income before income taxes, plus interest income,
net and depreciation and amortization, excluding stock-based compensation,
certain transformation costs (including severance and other costs) , business
divestitures, 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 on equity investment, and other non-cash
charges. Net income is the GAAP financial measure most directly comparable to
adjusted EBITDA. Our non-GAAP financial measures should not be considered as an
alternative to the most directly comparable GAAP financial measure. Furthermore,
non-GAAP financial measures have limitations as an analytical tool because they
exclude some but not all items that affect the most directly comparable GAAP
financial measures. Some of these limitations include:
• certain items excluded from adjusted EBITDA are significant components in
understanding and assessing a company’s financial performance, such as a
company’s cost of capital and tax structure;
• adjusted EBITDA does not reflect our cash expenditures or future requirements
for capital expenditures or contractual commitments;
• adjusted EBITDA does not reflect changes in, or cash requirements for, our
working capital needs;
• although depreciation and amortization are non-cash charges, the assets being
depreciated and amortized will often have to be replaced in the future, and
adjusted EBITDA does not reflect any cash requirements for such replacements;
and
• our computations of adjusted EBITDA may not be comparable to other similarly
titled measures of other companies.
We compensate for the limitations of adjusted EBITDA, adjusted SG&A expense,
adjusted operating income (loss), adjusted net income (loss) and adjusted net
income (loss) per share as analytical tools by reviewing the comparable GAAP
financial measure, understanding the differences between the GAAP and non-GAAP
financial measures and incorporating these data points into our decision-making
process. Adjusted EBITDA, adjusted SG&A expense, adjusted operating income
(loss), adjusted net income (loss) and adjusted net income (loss) per share are
provided in addition to, and not as an alternative to, the Company’s financial
results prepared in accordance with GAAP, and should not be considered in
isolation or as a substitute for analysis of our results as reported under GAAP.
Because adjusted EBITDA, adjusted SG&A expense, adjusted operating income
(loss), adjusted net income (loss) and adjusted net income (loss) per share may
be defined and determined differently by other companies in our industry, our
definitions of these non-GAAP financial measures may not be comparable to
similarly titled measures of other companies, thereby diminishing their utility.
Contact
GameStop Investor Relations
817-424-2001
ir@gamestop.com
17