GameStop Q2 2026 preliminary results: sales down, profit up

GameStop Q2 2026 preliminary results: sales down, profit up

Mon, August 31, 2026 at 4:38 PM GMT+3 2 min read

• GME +3.89%
• EBAY -0.72%

GameStop posted preliminary second-quarter results on Monday showing net income between $290 million and $310 million, up from $168.6 million in the same period a year ago, even as net sales fell to a range of $780 million to $800 million from $972.2 million.

The retailer said net income for the quarter reflects approximately $238 million in net gains from its eBay derivative asset and equity investment, with that figure partially reduced by around $75 million in losses on digital assets and related receivables. Operating income is expected to land between $150 million and $170 million, compared with $66.4 million in the prior-year quarter.

Sales declined for several reasons, the company said, including the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of its France operations. GameStop said it expects to release complete second-quarter results on September 8.

During the quarter, the company converted a previously disclosed derivative position related to eBay into a direct equity investment. As of August 1, GameStop held roughly 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 $5.05 billion to $5.07 billion, down from $8.69 billion at the close of the prior year's second quarter, reflecting the conversion.

GameStop also announced Monday that it is amending a previously disclosed plan to exchange approximately $1.4 billion in convertible notes for Class A common stock. Under the revised terms, noteholders will receive roughly 55.5 million shares of common stock — about 73% of the consideration — and approximately $358.4 million in cash, or about 27%, which GameStop said it expects to fund from cash on hand. The exchange is now expected to close on or about September 3. GameStop stock rose 5% in premarket trading on Monday, after the amended structure limited the dilution shareholders would face from new share issuances.

The original exchange agreement, announced earlier this month, was structured to be settled entirely in stock, with the number of shares determined by the average volume-weighted price of GameStop stock over a 35-day reference period. The amendment terminates the remainder of that reference period, fixing the total number of shares to be issued.

GameStop has been building a stake in eBay as part of a broader takeover pursuit. In the first quarter, GameStop CEO Ryan Cohen put forward a non-binding proposal to acquire all of eBay's outstanding shares at $125 apiece, split between cash and stock. eBay's board rejected the offer, calling it "neither credible nor attractive." Following the exchange closing, approximately $1.1 billion of 2030 convertible notes and $1.7 billion of 2032 convertible notes will remain outstanding, the company said.