10-Q · June 11, 2026
GameStop's Q1 2026 report highlights strong financial performance with revenue reaching $835.3 million, surpassing estimates by 8.96%, and a notable EPS of $0.30, exceeding expectations of $0.11. The company reported a…
Earnings analysis · 10-Q
GME earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
GameStop delivered a strong operational quarter despite an 18.7% revenue decline, with gross margin rising to 43.7% and operating income increasing 141.3% to $160.2 million as Collectibles grew 56.5%. Cash generation…
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GameStop delivered a strong operational quarter despite an 18.7% revenue decline, with gross margin rising to 43.7% and operating income increasing 141.3% to $160.2 million as Collectibles grew 56.5%. Cash generation improved, but reported earnings benefited materially from a $166.3 million derivative gain and a $72.1 million eBay investment gain, while digital assets produced a $75.0 million loss. The large eBay investment, Bitcoin exposure and continued contraction in Video Games and Pre-Owned sales temper the otherwise favorable margin and cost-control trend.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.27
What stood out
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Collectibles offset part of revenue decline
Quarterly revenue declined $182.0 million, or 18.7%, to $790.2 million versus $972.2 million in the prior-year quarter. The decline was driven by a $231.4 million reduction in Video Games sales, partly offset by a $128.7 million increase in Collectibles.
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Major gross-margin expansion
Gross margin expanded to 43.7% from 29.1%, a 14.6-percentage-point improvement, as Collectibles reached 45.1% of sales versus 23.4% last year while Video Games fell to 33.3% from 50.9%.
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Operating profit more than doubled
Operating income increased $93.8 million, or 141.3%, to $160.2 million, while SG&A declined $31.7 million, or 14.5%, to $187.1 million. Management attributed the SG&A reduction partly to $18.5 million lower store-related rent and occupancy costs.
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Large liquidity and investment base
The Company held $4,854.3 million of cash and cash equivalents and $206.0 million of marketable securities as of August 1, 2026, for a combined $5,060.3 million. It also held approximately $4.9 billion of eBay common stock at fair value.
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Operating cash generation improved
Operating cash flow rose to $399.8 million from $309.9 million in the prior-year six-month period. Investing cash use increased to $1,865.1 million, primarily because of the eBay equity investment; the filing does not separately disclose capital expenditures, so free cash flow cannot be determined.
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Collectibles became the core growth engine
Collectibles sales increased to $356.3 million, or 45.1% of quarterly sales, from $227.6 million, or 23.4%, in the prior-year quarter. Six-month Collectibles sales rose 60.6% to $705.2 million.
What to watch
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Legacy gaming sales contracted sharply
Revenue remains exposed to difficult comparisons and weak legacy categories: quarterly Video Games sales fell 46.8% to $263.2 million and Pre-Owned and Refurbished sales fell 31.7% to $170.7 million. Management attributed much of the decline to the prior-year Nintendo Switch 2 launch.
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Bitcoin exposure creates earnings volatility
The Company recognized a $75.0 million quarterly loss on digital assets and related receivables, versus a $28.6 million gain in the prior-year quarter. The filing states the loss reflected a decline in Bitcoin’s market price, demonstrating material earnings volatility.
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Large eBay investment concentration
Capital allocation is becoming a material concentration risk: the Company held approximately $4.9 billion of eBay stock while cash, cash equivalents and marketable securities totaled $5,060.3 million. The Company also used $1,865.1 million in investing cash during the first six months, primarily for the eBay investment.
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Tax rate normalized higher
Quarterly tax expense increased to $121.5 million from $6.0 million, and the effective tax rate rose to 28.9% from 3.4%, as prior-year U.S. net operating loss carryforwards and valuation allowance benefits were substantially exhausted.
Management's outlook
The 10-Q provides no new quantitative revenue or EPS guidance. The filing reiterates that the Company is actively evaluating acquisitions requiring significant capital deployment, but states it has no binding agreement for a specific transaction; it also says it does not anticipate closing a significant number of stores in fiscal 2026. The previously disclosed fiscal 2026 Adjusted EBITDA outlook above $650 million was raised in the prior 8-K, not updated in this filing.
Earlier filings 4
10-K · March 24, 2026
GameStop’s 2026 Form 10-K frames the company as a capital-rich operator shifting toward two pillars: active capital allocation (acquisitions/investments) and maximizing cash flow from its legacy retail footprint. The…
10-Q · December 9, 2025
GameStop reported a profitability inflection in the quarter: net sales declined to $821.0 million (from $860.3M) but gross profit rose to $273.4 million and operating income turned positive at $41.3 million (versus an…
10-Q · June 11, 2024
GameStop reported Q1 net sales of $881.8M, down $355.3M (−28.7%) vs. $1,237.1M a year ago; gross profit was $244.5M and gross margin improved to 27.7% from 23.2%. Operating loss narrowed to $50.6M from $58.4M a year…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.