GameStop posts higher income despite revenue drop in Q2 2026

GameStop Corp. (NYSE: GME) released preliminary unaudited financial results for its second quarter ended August 1, 2026, showing a decline in net sales alongside a rise in net income compared to the same period a year earlier.

Net sales for the 13-week period are expected to fall in the range of $780 million to $800 million, down from $972.2 million in the prior year's second quarter. The company attributed the decrease to the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of its France operations.

Operating income is expected to be in the range of $150 million to $170 million, up from $66.4 million in the year-ago period. Net income is expected to be in the range of $290 million to $310 million, compared to $168.6 million in the prior year's second quarter.

The net income figure includes approximately $238 million in net gains tied to an eBay Inc. derivative asset and equity investment, partially offset by a loss of approximately $75 million on digital assets and related receivables. During the quarter, GameStop converted a previously disclosed derivative position related to eBay into a direct equity investment. As of August 1, 2026, the company held approximately 43.4 million shares of eBay common stock with a fair value of approximately $4.947 billion.

Cash, cash equivalents, and marketable securities are expected to be in the range of $5.050 billion to $5.070 billion, compared to $8.694 billion at the close of the prior year's second quarter, with the decline largely reflecting the conversion into the direct eBay equity stake.

The preliminary results were released in connection with amendments to the company's convertible notes exchange. GameStop expects to release complete second quarter results on September 8, 2026.

You May Also Be Interested In

• GrafTech to permanently close Monterrey graphite electrode plant
• Parsons joins federal water cybersecurity pilot Project Watershed 250
• Kohl's names Ryan Waymire as chief merchandising officer