GameStop beats second quarter estimates on collectibles

Investing.com -- GameStop Corp. (NYSE: GME) reported second quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.27 beating the consensus estimate of $0.19. Revenue of $790.2 million also surpassed the analyst estimate of $756.8 million, though it declined 18.7% YoY from $972.2 million in the prior year's second quarter.

The revenue decline was primarily attributed to the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of the company's France operations. However, collectibles net sales surged 57% YoY to $356.3 million, now representing 45.1% of total net sales compared to 23.4% in the prior year's second quarter. The company achieved operating income of $160.2 million, which it described as the highest second quarter operating income in its history, compared to $66.4 million in the prior year's second quarter.

GameStop's stock was down 0.4% in after-hours trading Tuesday following the announcement.

The company raised its fiscal year 2026 adjusted EBITDA outlook to in excess of $650 million, up from its prior outlook of in excess of $600 million provided on June 26, 2026. The midpoint of this guidance suggests expectations above the previous target. Adjusted EBITDA for the second quarter was $174.0 million, compared to $75.7 million in the prior year's second quarter.

GameStop reported total cash, cash equivalents, marketable securities, digital assets and related receivables of $5.4 billion as of August 1, 2026. The company also held approximately 43.4 million shares of eBay Inc. common stock with a fair value of approximately $4.9 billion. On September 3, 2026, GameStop completed privately negotiated exchanges retiring approximately $1.4 billion aggregate principal amount of convertible senior notes, reducing total long-term debt to approximately $2.8 billion.

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