GameStop Q1 2026 earnings: record profit, $2 billion buyback

Net income reached $835.3 million, up from $732.4 cardinal successful the aforesaid play a twelvemonth earlier. Collectibles — which see trading cards, apparel, toys, and popular civilization merchandise — accounted for $348.9 million, oregon astir 42% of full revenue, compared with $211.5 million, oregon astir 29%, a twelvemonth ago. Hardware and accessories fell to $333.7 cardinal from $345.3 million, portion bundle declined to $152.7 cardinal from $175.6 million.

Operating income came successful astatine $143.3 million, compared with an operating nonaccomplishment of $10.8 cardinal successful the prior-year quarter. Selling, wide and administrative expenses fell to $201.6 cardinal from $228.1 million. The grounds nett income fig was boosted by a $268.4 cardinal unrealized summation connected options tied to eBay stock, arsenic good arsenic $83.7 cardinal successful involvement income. Excluding those items and different one-time charges, adjusted nett income was $179.3 million.

Set to expire connected June 2, 2029, the $2 cardinal buyback supersedes an authorization GameStop had enactment successful spot backmost successful March 2019, the institution said. GameStop held $9.7 cardinal successful full cash, marketable securities, integer assets and related receivables, and collateral pledged for a derivative plus astatine the adjacent of the quarter.

GameStop banal roseate much than 7% successful after-hours trading, according to Reuters.

The beardown results travel arsenic GameStop pursues a bid to get eBay. GameStop CEO Ryan Cohen enactment guardant a non-binding connection to acquisition each of eBay's outstanding shares astatine $125 apiece, divided arsenic betwixt currency and GameStop stock, valuing eBay's equity astatine astir $55.5 billion. eBay's committee rejected the offer, calling it "neither credible nor attractive," citing concerns astir financing viability, indebtedness burden, and governance. A caller Securities and Exchange Commission filing showed GameStop's eBay ownership had climbed to astir 7.78%, The Wall Street Journal reported.

The buyback marks a notable displacement successful absorption for a institution that spent caller periods raising superior aggressively. GameStop carried $4.17 cardinal successful semipermanent indebtedness astatine the extremity of the quarter, up sharply from $1.48 cardinal a twelvemonth prior, reflecting a drawstring of convertible enactment issuances.