GameStop (NYSE: GME) Q2 2026: Collectibles Hit 45% of Sales, Operating Income Doubles

Q2 2026 Results

GameStop Corp. (NYSE: GME) posted Q2 2026 adjusted EPS of $0.27, beating the $0.19 consensus estimate, while revenue of $790.2 million exceeded the $756.8 million analyst estimate despite declining 18.7% year over year from $972.2 million. The quarter's defining story was a sharp mix shift toward collectibles, which drove a 141.3% increase in GAAP operating income even as total net sales fell.

Key Metrics

• Collectibles net sales: $356.3 million, up 57% year over year, representing 45.1% of total net sales vs. 23.4% in the prior-year quarter
• GAAP operating income: $160.2 million, the highest second-quarter operating income in GameStop's history, vs. $66.4 million in Q2 2025
• Gross margin: 43.7% in Q2 2026, compared to 29.1% in Q2 2025, an expansion of 14.6 percentage points
• GAAP net income: $298.7 million, up 77.2% from $168.6 million in the prior-year quarter
• Adjusted EBITDA: $174.0 million, compared to $75.7 million in Q2 2025
• Capital expenditures: $1.7 million for the quarter

What Drove the Results

Adjusted EPS of $0.27 beat the $0.19 consensus by 42.1%, and revenue of $790.2 million beat the $756.8 million estimate by 4.4%. The 18.7% year-over-year revenue decline reflects the prior year's Nintendo Switch 2 launch cycle, planned store closures, and the divestiture of GameStop's France operations, none of which recurred in Q2 2026.

The operational divergence between lower revenue and sharply higher profitability is explained by three factors: cost of sales fell 35.4% year over year to $445.2 million, expanding gross profit to $345.0 million from $283.1 million; SG&A expenses declined 14.5% to $187.1 million; and the collectibles segment, which carries a higher margin profile, grew from 23.4% to 45.1% of total net sales. These dynamics lifted the GAAP operating margin to 20.3% from 6.8% in the prior-year quarter.

GAAP net income of $298.7 million diverged from adjusted net income of $161.1 million. The gap is attributable to several non-cash items running through the income statement, including a $166.3 million gain on a derivative asset, a $72.1 million unrealized gain on GameStop's eBay Inc. equity investment, and a $75.0 million loss on digital assets. As of August 1, 2026, GameStop held approximately 43.4 million shares of eBay common stock with a fair value of approximately $4.9 billion.

Why It Matters

GameStop raised its fiscal year 2026 Adjusted EBITDA outlook to in excess of $650 million, up from its prior outlook of in excess of $600 million provided on June 26, 2026. The company reported Adjusted EBITDA of $339.7 million for the first six months of fiscal year 2026, implying the raised full-year target requires the second half to produce at least $310.3 million. The guidance increase reflects management's confidence in the collectibles trajectory sustaining through the remainder of the fiscal year ending January 30, 2027.

Beyond operations, GameStop disclosed that on September 3, 2026, it completed privately negotiated exchanges retiring approximately $1.4 billion in aggregate principal of its 0.00% Convertible Senior Notes due 2030 and 2032, reducing total long-term debt to approximately $2.8 billion. Total cash, cash equivalents, marketable securities, and digital assets stood at $5.4 billion at quarter-end.

Wall Street View

Analyst coverage of GameStop remains sparse and skewed negative, with the available consensus reflecting more Sell ratings than Buy or Hold recommendations. The Q2 results and raised full-year guidance represent the clearest operational case management has made in recent quarters for the collectibles pivot, though whether that reshapes analyst sentiment remains to be assessed against subsequent filings.

Investor Takeaway

The structural case in Q2 2026 rests on whether the 45.1% collectibles mix is durable or benefited from timing factors that may not repeat. With adjusted EBITDA for the first half already at $339.7 million and the full-year target raised to in excess of $650 million, the back half of fiscal 2026 faces a meaningful execution bar. Shares closed at $18.89 on Tuesday, September 8, 2026, down -1.41%, while the S&P 500 declined 0.55%.