GameStop Reports Q1 Financial Results
Grapevine, TX — GameStop released financial results for Q1 ended May 2.
FIRST QUARTER HIGHLIGHTS
Highest quarterly net income in GameStop’s history of $389.6 million. Highest first quarter operating income in GameStop’s history of $143.3 million. Net sales grew 14% year-over-year, driven by collectibles. Cash, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset of $9.7 billion.
FIRST QUARTER OVERVIEW
- Net sales were $835.3 million for the first quarter, compared to $732.4 million in the prior year’s first quarter.
- Selling, general and administrative (“SG&A”) expenses were $201.6 million for the first quarter, compared to $228.1 million in the prior year’s first quarter.
- Operating income was $143.3 million for the first quarter, the highest first quarter operating income in GameStop’s history, compared to an operating loss of $10.8 million in the prior year’s first quarter.
- Excluding impairment and other items, adjusted operating income was $140.5 million for the first quarter compared to an adjusted operating income of $27.5 million in the prior year’s first quarter.
- Net income was $389.6 million for the first quarter, compared to net income of $44.8 million for the prior year’s first quarter.
- Excluding impairments, gain on digital assets and related receivables, unrealized gain on derivative asset, and other items, adjusted net income was $179.3 million for the first quarter compared to an adjusted net income of $73.1 million for the prior year’s first quarter.
- Total cash, cash equivalents, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset were $9.7 billion at the close of the first quarter. This included $8.4 billion of cash, cash equivalents, and marketable securities (compared to $6.4 billion at the close of the prior year’s first quarter), $1.0 billion in collateral pledged for derivative asset during the quarter, and approximately $0.4 billion in digital assets and related receivables.
- On June 2, 2026, the Company’s Board of Directors unanimously approved a discretionary $2.0 billion share repurchase authorization through June 2, 2029, replacing the prior authorization from March 2019.
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| GameStop Corp. Condensed Statements of Operations (in millions, except per share data) (unaudited) |
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| 13 Weeks Ended
May 2, 2026 |
13 Weeks Ended
May 3, 2025 |
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| Net sales | $ | 835.3 | $ | 732.4 | ||||
| Cost of sales | 495.0 | 479.6 | ||||||
| Gross profit | 340.3 | 252.8 | ||||||
| Selling, general and administrative expenses | 201.6 | 228.1 | ||||||
| Asset impairments | (4.6 | ) | 35.5 | |||||
| Operating income (loss) | 143.3 | (10.8 | ) | |||||
| Interest income, net | (83.7 | ) | (56.9 | ) | ||||
| Unrealized gain on derivative asset, net(1) | (268.4 | ) | — | |||||
| Gain on digital assets and related receivables | (1.1 | ) | — | |||||
| Other income, net | (9.9 | ) | (2.2 | ) | ||||
| Income before income taxes | 506.4 | 48.3 | ||||||
| Income tax expense | 116.8 | 3.5 | ||||||
| Net income | $ | 389.6 | $ | 44.8 | ||||
| Net income per share: | ||||||||
| Basic income per share | $ | 0.87 | $ | 0.10 | ||||
| Diluted income per share | $ | 0.66 | $ | 0.09 | ||||
| Weighted-average common shares outstanding: | ||||||||
| Basic | 448.4 | 447.1 | ||||||
| Diluted | 592.3 | 497.9 | ||||||
| Percentage of Net sales: | ||||||||
| Net sales | 100.0 | % | 100.0 | % | ||||
| Cost of sales | 59.3 | 65.5 | ||||||
| Gross profit | 40.7 | 34.5 | ||||||
| Selling, general and administrative expenses | 24.1 | 31.1 | ||||||
| Asset impairments | (0.6 | ) | 4.8 | |||||
| Operating income (loss) | 17.2 | (1.5 | ) | |||||
| Interest income, net | (10.0 | ) | (7.8 | ) | ||||
| Unrealized gain on derivative asset, net | (32.1 | ) | — | |||||
| Gain on digital assets and related receivables | (0.1 | ) | — | |||||
| Other income, net | (1.2 | ) | (0.3 | ) | ||||
| Income before income taxes | 60.6 | 6.6 | ||||||
| Income tax expense | 14.0 | 0.5 | ||||||
| Net income | 46.6 | % | 6.1 | % | ||||
| (1) Represents unrealized gain on put and call option transactions, net of related expenses, entered into by the Company that provide economic exposure to shares of eBay Inc. common stock. | ||||||||
| GameStop Corp. Condensed Statements of Operations by Segment (in millions, except per share data) (unaudited) |
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| United
States |
Australia | Europe | Total | |||||||||||
| As of and for the three months ended May 2, 2026 | ||||||||||||||
| Net sales | $ | 651.1 | $ | 99.6 | $ | 84.6 | $ | 835.3 | ||||||
| Cost of sales | 368.8 | 65.3 | 60.9 | 495.0 | ||||||||||
| Gross profit | 282.3 | 34.3 | 23.7 | 340.3 | ||||||||||
| Selling, general and administrative expenses: | 137.7 | 34.0 | 29.9 | 201.6 | ||||||||||
| Store related | 112.2 | 26.8 | 28.8 | 167.8 | ||||||||||
| Other | 25.5 | 7.2 | 1.1 | 33.8 | ||||||||||
| Asset impairments | — | 0.3 | (4.9 | ) | (4.6 | ) | ||||||||
| Operating income (loss) | 144.6 | — | (1.3 | ) | 143.3 | |||||||||
| Interest income, net | (83.7 | ) | ||||||||||||
| Unrealized gain on derivative asset, net | (268.4 | ) | ||||||||||||
| Gain on digital assets and related receivables | (1.1 | ) | ||||||||||||
| Other income, net | (9.9 | ) | ||||||||||||
| Income before income taxes | 506.4 | |||||||||||||
| Income tax expense | 116.8 | |||||||||||||
| Net income | 389.6 | |||||||||||||
| Property and equipment, net(1) | 35.8 | 16.1 | — | 51.9 | ||||||||||
| Capital expenditures | 3.4 | 1.1 | — | 4.5 | ||||||||||
| (1) Property and equipment, net for France (Europe) is classified in Assets held for sale on our Condensed Consolidated Balance Sheets. | ||||||||||||||
| United
States |
Canada | Australia | Europe | Total | |||||||||||||||
| As of and for the three months ended May 3, 2025 | |||||||||||||||||||
| Net sales | $ | 537.5 | $ | 38.2 | $ | 81.9 | $ | 74.8 | $ | 732.4 | |||||||||
| Cost of sales | 343.6 | 28.2 | 55.0 | 52.8 | 479.6 | ||||||||||||||
| Gross profit | 193.9 | 10.0 | 26.9 | 22.0 | 252.8 | ||||||||||||||
| Selling, general and administrative expenses: | 160.3 | 13.9 | 32.3 | 21.6 | 228.1 | ||||||||||||||
| Store related | 131.6 | 11.3 | 26.6 | 22.4 | 191.9 | ||||||||||||||
| Other | 28.7 | 2.6 | 5.7 | (0.8 | ) | 36.2 | |||||||||||||
| Asset impairments | — | 18.3 | — | 17.2 | 35.5 | ||||||||||||||
| Operating income (loss) | 33.6 | (22.2 | ) | (5.4 | ) | (16.8 | ) | (10.8 | ) | ||||||||||
| Interest income, net | (56.9 | ) | |||||||||||||||||
| Other income, net | (2.2 | ) | |||||||||||||||||
| Income before income taxes | 48.3 | ||||||||||||||||||
| Income tax expense | 3.5 | ||||||||||||||||||
| Net income | 44.8 | ||||||||||||||||||
| Property and equipment, net(1) | 37.5 | — | 16.7 | — | 54.2 | ||||||||||||||
| Capital expenditures | 1.2 | 0.1 | 1.0 | 0.6 | 2.9 | ||||||||||||||
| (1) Property and equipment, net for Canada and France (Europe) is classified in Assets held for sale on our Condensed Consolidated Balance Sheets. | |||||||||||||||||||
| GameStop Corp. Condensed Consolidated Balance Sheets (in millions) (unaudited) |
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| May 2, 2026 | May 3, 2025 | |||||
| ASSETS: | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 7,397.6 | $ | 6,385.8 | ||
| Marketable securities | 970.5 | — | ||||
| Receivables, net of allowance of $3.9 and $0.9, respectively | 58.8 | 44.1 | ||||
| Derivative asset | 285.3 | — | ||||
| Collateral pledged for derivative asset | 983.3 | — | ||||
| Digital assets and related receivables | 369.6 | — | ||||
| Merchandise inventories, net | 423.3 | 421.3 | ||||
| Prepaid expenses and other current assets | 27.7 | 29.3 | ||||
| Assets held for sale | 152.4 | 226.2 | ||||
| Total current assets | 10,668.5 | 7,106.7 | ||||
| Property and equipment, net of accumulated depreciation of $492.6 and $572.5, respectively | 51.9 | 54.2 | ||||
| Operating lease right-of-use assets | 164.7 | 272.5 | ||||
| Deferred income taxes | 26.0 | 18.7 | ||||
| Other noncurrent assets | 63.2 | 50.5 | ||||
| Total assets | $ | 10,974.3 | $ | 7,502.6 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 263.4 | $ | 198.4 | ||
| Accrued liabilities and other current liabilities | 372.5 | 328.4 | ||||
| Current portion of operating lease liabilities | 81.4 | 113.3 | ||||
| Liabilities held for sale | 143.0 | 207.2 | ||||
| Total current liabilities | 860.3 | 847.3 | ||||
| Long-term debt | 4,166.1 | 1,480.7 | ||||
| Operating lease liabilities | 91.6 | 167.8 | ||||
| Other long-term liabilities | 14.2 | 19.4 | ||||
| Total liabilities | 5,132.2 | 2,515.2 | ||||
| Total stockholders’ equity | 5,842.1 | 4,987.4 | ||||
| Total liabilities and stockholders’ equity | $ | 10,974.3 | $ | 7,502.6 | ||
| GameStop Corp. Condensed Consolidated Statements of Cash Flows (in millions) (unaudited) |
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| 13 Weeks Ended
May 2, 2026 |
13 Weeks Ended
May 3, 2025 |
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| Cash flows from operating activities: | ||||||||
| Net income | $ | 389.6 | $ | 44.8 | ||||
| Adjustments to reconcile net income to net cash flows from operating activities: | ||||||||
| Depreciation and amortization | 4.5 | 5.6 | ||||||
| Stock-based compensation expense, net | 8.5 | 5.5 | ||||||
| Gain on digital assets and related receivables | (1.1 | ) | — | |||||
| Unrealized gain on derivative asset | (285.1 | ) | — | |||||
| Deferred income taxes | 61.4 | — | ||||||
| Loss (gain) on disposal of property and equipment, net | 0.1 | (1.5 | ) | |||||
| Asset impairments | (4.6 | ) | 35.5 | |||||
| Other, net | (7.8 | ) | (0.4 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Receivables, net | (6.9 | ) | 12.0 | |||||
| Merchandise inventories, net | (16.6 | ) | (10.1 | ) | ||||
| Prepaid expenses and other current assets | 9.0 | 6.7 | ||||||
| Prepaid income taxes and income taxes payable | 39.5 | (1.6 | ) | |||||
| Accounts payable and accrued liabilities | 153.5 | 110.3 | ||||||
| Operating lease right-of-use assets and liabilities | (6.7 | ) | (0.6 | ) | ||||
| Changes in other long-term liabilities | 0.3 | (13.7 | ) | |||||
| Net cash flows provided by operating activities | 337.6 | 192.5 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures | (4.5 | ) | (2.9 | ) | ||||
| Purchases of marketable securities | (6.4 | ) | (14.7 | ) | ||||
| Proceeds from maturities and sales of marketable securities | 1,727.9 | 22.6 | ||||||
| Collateral pledged for derivative asset | (983.3 | ) | — | |||||
| Proceeds from written options on digital assets | 5.8 | — | ||||||
| Proceeds from other divestitures, net of cash disposed | — | 2.2 | ||||||
| Other | 3.4 | 0.1 | ||||||
| Net cash flows provided by investing activities | 742.9 | 7.3 | ||||||
| Cash flows from financing activities: | ||||||||
| Proceeds from the issuance of convertible debt | — | 1,500.0 | ||||||
| Debt issuance costs from convertible debt | — | (19.3 | ) | |||||
| Repayments of debt | — | (2.7 | ) | |||||
| Proceeds from French term loans | 1.4 | — | ||||||
| Proceeds from the exercise of warrants | 0.1 | — | ||||||
| Proceeds from equity awards directly withheld from employees for tax purposes | 2.9 | 2.3 | ||||||
| Payments to tax authorities for equity awards directly withheld from employees | (2.9 | ) | (2.3 | ) | ||||
| Net cash flows provided by financing activities | 1.5 | 1,478.0 | ||||||
| Exchange rate effect on cash, cash equivalents and restricted cash | 1.7 | 5.9 | ||||||
| Less: Net change in cash balance classified as assets held for sale | — | (49.4 | ) | |||||
| Increase in cash, cash equivalents, and restricted cash | 1,083.7 | 1,634.3 | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 6,328.1 | 4,789.8 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 7,411.8 | $ | 6,424.1 | ||||
| Schedule I Sales Mix (in millions) (unaudited) |
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| 13 Weeks Ended May 2, 2026 | 13 Weeks Ended May 3, 2025 | |||||||||||
| Net | Percent | Net | Percent | |||||||||
| Net Sales: | Sales | of Total | Sales | of Total | ||||||||
| Hardware and accessories(1) | $ | 333.7 | 39.9 | % | $ | 345.3 | 47.1 | % | ||||
| Software (2) | 152.7 | 18.3 | % | 175.6 | 24.0 | % | ||||||
| Collectibles (3) | 348.9 | 41.8 | % | 211.5 | 28.9 | % | ||||||
| Total | $ | 835.3 | 100.0 | % | $ | 732.4 | 100.0 | % | ||||
| (1) Includes sales of new and pre-owned hardware, accessories, hardware bundles in which hardware and digital or physical software are sold together in a single SKU, interactive game figures, strategy guides, mobile and consumer electronics. | ||||||||||||
| (2) Includes sales of new and pre-owned video game software, digital software and PC entertainment software. | ||||||||||||
| (3) Includes the sale of apparel, toys, trading cards, gadgets, other retail products for pop culture and technology enthusiasts, and submission services for the authentication and grading of trading cards. | ||||||||||||
GameStop Corp.
Schedule II
(in millions, except per share data)
(unaudited)
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| May 2, 2026 | May 3, 2025 | |||||||
| Adjusted SG&A expense | ||||||||
| SG&A expense | $ | 201.6 | $ | 228.1 | ||||
| Transformation costs(1) | (1.8 | ) | (2.8 | ) | ||||
| Adjusted SG&A expense | $ | 199.8 | $ | 225.3 | ||||
| Adjusted Operating Income (Loss) | ||||||||
| Operating income (loss) | $ | 143.3 | $ | (10.8 | ) | |||
| Transformation costs(1) | 1.8 | 2.8 | ||||||
| Asset impairments(2) | (4.6 | ) | 35.5 | |||||
| Adjusted operating income (loss) | $ | 140.5 | $ | 27.5 | ||||
| Adjusted Net Income | ||||||||
| Net Income | $ | 389.6 | $ | 44.8 | ||||
| Transformation costs(1) | 1.8 | 2.8 | ||||||
| Divestitures and other | — | — | ||||||
| Asset impairments(2) | (4.6 | ) | 35.5 | |||||
| Gain on digital assets and related receivables | (1.1 | ) | — | |||||
| Unrealized gain on derivative asset | (268.4 | ) | — | |||||
| Income tax impact of adjustments | 62.0 | — | ||||||
| Adjusted net income | $ | 179.3 | $ | 83.1 | ||||
| Adjusted net income per share | ||||||||
| Basic | $ | 0.40 | $ | 0.19 | ||||
| Diluted | 0.30 | 0.17 | ||||||
| Number of shares used in adjusted calculation | ||||||||
| Basic | 448.4 | 447.1 | ||||||
| Diluted | 592.3 | 497.9 | ||||||
| (1) Transformation costs include severance, stock-based compensation forfeitures related to workforce optimization efforts and departures of key personnel, adjustments to reserves for expenses for consultants and advisors related to transformation initiatives, and other costs in connection with the transformation initiatives. | ||||||||
| (2) Asset impairments include amounts incurred in connection with the divestiture of our operations in France and New Zealand in the current year, and France and Canada in the prior year. | ||||||||
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| May 2, 2026 | May 3, 2025 | |||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||
| Net income | $ | 389.6 | $ | 44.8 | ||||
| Interest income, net | (83.7 | ) | (56.9 | ) | ||||
| Depreciation and amortization | 4.5 | 5.6 | ||||||
| Income tax expense | 116.8 | 3.5 | ||||||
| EBITDA | $ | 427.2 | $ | (3.0 | ) | |||
| Stock-based compensation | 8.5 | 5.5 | ||||||
| Transformation costs(1) | 1.8 | 2.8 | ||||||
| Divestitures and other | — | (2.2 | ) | |||||
| Asset impairments(2) | (4.6 | ) | 35.5 | |||||
| Gain on digital assets and related receivables | (1.1 | ) | — | |||||
| Unrealized gain on derivative asset | (268.4 | ) | — | |||||
| Adjusted EBITDA | $ | 163.4 | $ | 38.6 | ||||
| (1) Transformation costs include severance, stock-based compensation forfeitures related to workforce optimization efforts and departures of key personnel, adjustments to reserves for expenses for consultants and advisors related to transformation initiatives, and other costs in connection with the transformation initiatives. | ||||||||
| (2) Asset impairments include amounts incurred in connection with the divestiture of our operations in France and New Zealand in the current year, and France and Canada in the prior year. | ||||||||
GameStop Corp.
Schedule III
(in millions)
(unaudited)
Non-GAAP results
The following table reconciles the Company’s cash flows provided by operating activities as presented in its unaudited Consolidated Statements of Cash Flows and prepared in accordance with GAAP to its free cash flow. Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use by investors in evaluating the Company’s financial performance.
| 13 Weeks Ended | 13 Weeks Ended | ||||||
| May 2, 2026 | May 3, 2025 | ||||||
| Net cash flows provided by operating activities | $ | 337.6 | $ | 192.5 | |||
| Capital expenditures | (4.5 | ) | (2.9 | ) | |||
| Free cash flow | $ | 333.1 | $ | 189.6 | |||
