Q2 Net Sales $790.2M, Raises FY26 Adjusted EBITDA Outlook

GameStop reported net sales for the second quarter of $790.2 million, a decrease from $972.2 million in the same quarter last year. This decline was primarily attributed to the prior year's launch of the Nintendo Switch 2, along with planned store closures and the divestiture of the company's operations in France. Despite the drop in sales, the company achieved its highest second-quarter operating income in its history, reaching $160.2 million, compared to $66.4 million in the prior year.

The company's collectibles segment continued to be a strong performer, with net sales growing by 57% year-over-year to $356.3 million. Collectibles now represent 45.1% of total net sales, up from 23.4% in the prior year's second quarter. Diluted earnings per share for the quarter were $0.51, an increase from $0.31 in the second quarter of the previous year.

GameStop also updated its fiscal year 2026 Adjusted EBITDA outlook, now expecting it to be in excess of $650 million. This is an increase from the previous outlook of over $600 million, provided on June 26, 2026. The Adjusted EBITDA for the first six months of fiscal year 2026 stood at $339.7 million.

As of August 1, 2026, GameStop held $5.4 billion in cash, cash equivalents, marketable securities, and digital assets. This included approximately 43.4 million shares of eBay common stock, valued at approximately $4.9 billion. The company also announced that it had completed privately negotiated exchanges to retire 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 its total long-term debt to approximately $2.8 billion.