Collectibles Gain Importance
GameStop’s net sales reached $790.2 million, down from $972.2 million a year earlier. The decline was mainly linked to the prior-year launch of the Nintendo Switch 2, planned store closures, and the divestiture of the company’s French operations. However, collectibles sales rose 57% year over year to $356.3 million. The category accounted for 45.1% of total sales, compared with 23.4% a year earlier.
GameStop Stock Price Performance Over the Past Five Years
(Source: Google Finance)
Profitability Surpasses Last Year
Selling, general, and administrative expenses declined from $218.8 million to $187.1 million. As a result, operating profit increased from $66.4 million to a record $160.2 million, while net income rose from $168.6 million to $298.7 million. Adjusted EBITDA reached $174 million, compared with $75.7 million a year earlier. At the end of the quarter, GameStop held $5.4 billion in cash, marketable securities, digital assets, and related receivables. It also owned approximately 43.4 million eBay shares with a fair value of $4.9 billion.
Higher Outlook Signals Growing Confidence
The company raised its adjusted EBITDA outlook for fiscal 2026 from more than $600 million to over $650 million. Adjusted EBITDA for the first six months reached $339.7 million. In early September, GameStop also repaid approximately $1.4 billion of convertible notes, reducing its long-term debt to around $2.8 billion. Looking ahead, a key question will be whether growth in collectibles and continued cost savings can sustainably offset weaker overall sales.
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