GameStop's Sales Fell About 19% and Its Operating Income More Than Doubled. Collectibles Are Now 45% of the Store.

GameStop reported second-quarter results on September 8, 2026, for the quarter ended August 1. Net sales fell to $790.2 million from $972.2 million a year earlier, a decline of about 19%. Operating income went the other way, rising to $160.2 million from $66.4 million. The company describes that as the highest second-quarter operating income in its history.

The sales decline was flagged in advance. In preliminary results issued on August 31, GameStop attributed it to three things: the prior-year launch of the Nintendo Switch 2, planned store closures, and the divestiture of its France operations. None of those are demand shocks in the ordinary sense. Two are decisions the company made itself.

Where the Money Came From

• Collectibles: $356.3 million, 45.1% of net sales, up 57% year over year.
• Video games: $263.2 million, 33.3% of net sales.
• Pre-owned and refurbished: $170.7 million, 21.6% of net sales.

That ordering is the story. A business that was built to sell new and used video games now takes the largest single share of its revenue from trading cards, figures and similar merchandise. Selling, general and administrative expenses fell to $187.1 million from $218.8 million, so the smaller sales base carried a smaller cost base with it.

The Balance Sheet Is Doing Something Different From the Stores

Net income was $298.7 million, against $168.6 million a year earlier, and diluted earnings per share were $0.51 against $0.31. Those figures are not a read on the retail operation. In its preliminary release, GameStop said the quarter included roughly $238 million of eBay-related gains, partly offset by about $75 million of losses on digital assets.

At the quarter end the company held $4,854.3 million of cash and cash equivalents, $206.0 million of marketable securities, and $294.1 million of digital assets and related receivables. It also held about 43.4 million eBay shares, valued in the release at $4.9 billion — a position larger than the whole year of sales the retail business is on track to produce.

Long-term debt stood at $4,167.8 million at the quarter end, against $4,160.9 million a year earlier. That changed after the balance sheet date: GameStop said that on September 3, 2026, it completed privately negotiated exchanges retiring approximately $1.4 billion aggregate principal amount of convertible notes, reducing total long-term debt to approximately $2.8 billion.

The Guidance

GameStop said it now expects to generate adjusted EBITDA in excess of $650 million for fiscal 2026, up from a prior outlook of in excess of $600 million. First-half adjusted EBITDA was $339.7 million, so the raised figure implies the second half roughly matching the first.