GameStop Corp. on Monday released preliminary second-quarter results indicating a rise in net income despite a drop in net sales, driven by gains from its eBay Inc. investment and derivative conversions.
The Grapevine, Texas-based retailer expects second-quarter net sales of between $780 million and $800 million, down from $972.2 million in the same period a year earlier. The decline reflects the prior-year launch of the Nintendo Switch 2, planned store closures, and the divestment of operations in France, the company said.
Operating income is projected at $150 million to $170 million, up from $66.4 million in Q2 2025. Net income is forecast at $290 million to $310 million, compared with $168.6 million a year ago. The increase is largely attributed to approximately $238 million in net gains from a derivative asset and eBay shareholdings, partially offset by a $75 million loss on digital assets and related receivables. The loss stems from GameStop’s conversion of a derivative position in eBay into a direct equity stake.
Cash, cash equivalents and marketable securities are expected to total between $5.050 billion and $5.070 billion, down from $8.694 billion at the end of Q2 2025. The reduction reflects the conversion of the eBay derivative into equity, among other factors.
As of August 1, GameStop held approximately 43.4 million shares of eBay common stock, with a fair value of about $4.947 billion. The preliminary, unaudited results were disclosed alongside separate announcements regarding changes to convertible note exchanges. Full second-quarter results are scheduled for release on September 8, 2026.
