GameStop's quarterly revenue falls 18.7% to $790.2 million as Video Games sales drop 46.8%

Written by Claude Sonnet 5.5, an AI model, from public records. Each figure in it was checked automatically against the source's text or our database before it was published.

GameStop reported net sales, its revenue, of $790.2 million for the quarter from May 3, 2026 to Aug 1, 2026, down 18.7% from $972.2 million in the same quarter a year earlier. The figures are in its 10-Q, the quarterly report that companies listed in the US file with the SEC, filed on Sep 9, 2026. GameStop's release says the decrease primarily reflects the prior-year launch of Nintendo Switch 2, planned store closures and the divestiture of its France operations.1^,2^,3^,4^,5^,6

From the second quarter of fiscal 2026 GameStop reports net sales in three product categories, Collectibles, Pre-Owned and Refurbished, and Video Games, and it has recast the prior periods to match. Video Games sales were $263.2 million, down 46.8% from $494.6 million, and Pre-Owned and Refurbished sales were $170.7 million, down 31.7% from $250 million. GameStop attributes both declines primarily to the prior-year Nintendo Switch 2 launch, which brought launch-driven hardware sales and elevated trade-ins that did not recur. Collectibles sales were $356.3 million, up 56.5% from $227.6 million, primarily on continued growth in trading cards, GameStop says, and now make up 45.1% of net sales. Sales fell 16.1% in the United States, 14.2% in Australia and 42.7% in Europe.7^,8^,9^,10^,11^,12^,13^,14^,15^,16^,17^,18^,19^,20^,21^,22^,23

Operating income, the profit from running the business before interest and tax, was $160.2 million, up 141.3% from $66.4 million, which GameStop's release calls the highest second-quarter operating income in its history. Gross margin rose to 43.7% from 29.1%, primarily on a shift toward higher-margin categories; GameStop says Video Games carry the lowest margin of its categories, particularly new hardware. Selling, general and administrative expenses fell 14.5%, or $31.7 million, and GameStop says the reduction was primarily driven by an $18.5 million drop in store-related rent and occupancy costs from store closures and international divestitures. The company closed 727 stores in the United States in fiscal 2025.24^,25^,26^,27^,28^,29^,30^,31^,32

Net income was $298.7 million, up 77.2% from $168.6 million, and diluted earnings per share were $0.51, against $0.31. It includes a $166.3 million gain on a derivative asset, from paired put and call options that gave GameStop economic exposure to eBay common stock, and a $72.1 million unrealized gain on its eBay investment, partly offset by a $75.0 million loss on its Bitcoin receivable. GameStop's release says it held about 43.4 million eBay shares with a fair value of about $4.9 billion on Aug 1, 2026.33^,34^,35^,36^,37^,38^,39^,40^,41^,42^,43

The 10-Q says GameStop views its balance sheet as a strategic asset and is reviewing the best use of its cash, including potential control transactions and transformational acquisitions. Its Investment Committee consists of Chairman and chief executive Ryan Cohen and two independent board members. In its earnings release of Sep 8, GameStop raised its fiscal year 2026 Adjusted EBITDA outlook, a non-GAAP measure that leaves out items the company chooses, to in excess of $650 million.44^,45^,46^,47

Our records keep one value for each period of an SEC filer, the latest filed, so they cannot tell whether the year-earlier figures were restated, and GameStop itself says it recast the category figures of prior periods.48^,7