Interactive GameStop Q2 FY2026 results and balance sheet — click any row to learn what each line means
Q2 paired a smaller top line with record second-quarter operating income. Click any row to see the accounting underneath.
2026 FY25
comparative Jan 31
2026
Earnings Highlights · Q2 FY2026 earnings release · 13 weeks ended August 1, 2026
Income Statement
The quarter's operating business improved sharply even as revenue fell. Reported net income also includes large non-operating gains and losses, so the operating lines are the cleaner read on the retail business.
Reported net income rose 77.2%. The quarter included a $166.3M gain on the derivative asset, a $72.1M unrealized gain on the eBay equity investment, and a $75.0M loss on digital assets and related receivables. Those marks are not recurring retail sales profit.
The decline primarily reflects the prior-year Nintendo Switch 2 launch, planned store closures, and the divestiture of France operations. The smaller top line did not prevent much higher operating profit.
Gross profit grew while sales fell, taking gross margin to 43.7% from 29.1%. The release's new sales mix shows Collectibles at 45.1% of revenue, versus 23.4% a year ago.
GameStop called this its highest second-quarter operating income in history. Adjusted operating income was $158.7M, compared with $64.7M in Q2 FY2025.
Adjusted EBITDA was $174.0M versus $75.7M. For FY2026, management raised its outlook to above $650M from above $600M; first-half adjusted EBITDA was $339.7M.
Adjusted EPS was $0.36 basic and $0.27 diluted. The diluted share count was 592.6M versus 448.8M basic, reflecting potential dilution from convertible notes and warrants.
Cash Flow Statement
The quarter's cash movement was dominated by the eBay equity investment. The six-month cash picture is stronger than the standalone quarter, but Q2 itself converted less operating profit into cash than the prior-year comparison.
Quarterly operating cash flow fell $55.0M year over year. For the first six months, however, operating cash flow was $399.8M versus $309.9M a year ago.
Free cash flow equals operating cash flow less $1.7M of capital expenditures. First-half free cash flow was $393.6M, up from $302.9M.
Investing cash flow was negative primarily because GameStop paid $4.3863B for an equity investment. That outflow was partly offset by $763.3M of proceeds from maturing or sold marketable securities and $983.3M of collateral returned from the derivative position.
The current quarter had no new convertible-debt proceeds. The prior-year comparison included the $2.7B issuance of convertible notes.
Cash, cash equivalents and restricted cash fell by $2.544B during Q2, largely reflecting the eBay investment. The balance-sheet cash and marketable securities total was $5.060B at August 1.
Sales Mix & Capital Allocation
Q2 introduces a new three-category sales presentation. It makes the mix shift visible: Collectibles became the largest category while GameStop deployed billions into an eBay equity investment.
Collectibles now lead the reported mix. Video Games were $263.2M (33.3%) versus $494.6M (50.9%), and Pre-Owned and Refurbished were $170.7M (21.6%) versus $250.0M (25.7%). Prior-year amounts were recast to conform.
The balance sheet carries GameStop's eBay common-stock investment at approximately $4.9B. GameStop paid $4.3863B for the investment during Q2 and recorded a $72.1M unrealized gain on the position in the income statement.
The current-asset balance was $294.1M at quarter-end. The release also reports a $16.1M gain on written options on digital assets in its adjusted-net-income reconciliation; both marks are separate from the eBay equity investment.
After quarter-end, GameStop completed privately negotiated exchanges retiring approximately $1.4B of its 0.00% convertible notes due 2030 and 2032. The company said the exchange reduced total long-term debt to approximately $2.8B.
Assets and liabilities held for sale were both zero at August 1, 2026, versus $177.0M and $151.7M respectively a year earlier. Q2 asset impairments also include costs connected with the France divestiture and New Zealand closure.
GameStop Corp Q2 FY2026 earnings release · fiscal period ended August 1, 2026 · amounts in millions USD unless stated