GameStop Corp. reported preliminary unaudited financial results for the second quarter ended August 1, 2026, indicating a 72% increase in net income despite a drop in sales.
Net income is projected between $290 million and $310 million, up from $168.6 million in the same period last year. The increase was primarily driven by a $238 million gain related to the conversion of its derivative position in eBay Inc. into direct equity, partially offset by a $75 million loss on digital assets and receivables. Operating income rose to $150 million-$170 million from $66.4 million a year earlier.
Net sales fell to an estimated $780 million-$800 million, down from $972.2 million in the prior-year quarter. The decline was attributed to the prior-year launch of the Nintendo Switch 2, planned store closures, and the divestiture of operations in France.
Cash, cash equivalents, and marketable securities totaled $5.05 billion-$5.07 billion as of August 1, 2026, a decrease from $8.69 billion at the end of the second quarter of 2025. The reduction reflected the conversion of the eBay derivative position into direct equity holdings, which now stand at approximately 43.4 million shares with a fair value of $4.947 billion.
GameStop provided the preliminary results ahead of amendments to its convertible notes exchange, with full second-quarter results scheduled for release on September 8, 2026.
