GameStop Corp. (GME) Q2 2026 Earnings Summary

Executive Summary

GameStop’s fiscal Q2 2026 (ended August 2, 2025) delivered a decisive beat: net sales of $972.2M vs Wall Street consensus ~$823.2M*, with GAAP diluted EPS of $0.31 and adjusted diluted EPS of $0.25, both above consensus ~$0.155* . Values retrieved from S&P Global.
Operating income swung to $66.4M from a $(22.0)M loss YoY as SG&A fell sharply; net income reached $168.6M (17.3% margin), aided by interest income and non-operating items excluded from adjusted figures .
Mix shift and cost discipline continued: Collectibles rose to 23.4% of sales (vs 17.5% YoY), software declined to 15.7% (from 26.0%), and SG&A dropped to 22.5% of sales (from 33.9%) .
Capital actions are material catalysts: Company announced a warrant dividend (1 warrant per 10 shares, $32.00 strike, expiring Oct 30, 2026; up to ~$1.9B potential gross proceeds if fully exercised) and built cash to $8.7B; Bitcoin holdings valued at $528.6M .
Shares reacted positively around the print, with premarket gains reported following the beat .

What Went Well and What Went Wrong

What Went Well

Strong top-line and operating turnaround: Revenue $972.2M (+21.8% YoY) and operating income $66.4M vs $(22.0)M YoY, reflecting lower SG&A and category mix shift .
Cost discipline: SG&A fell to $218.8M (22.5% of sales) from $270.8M (33.9%) YoY, underpinning the margin recovery .
Balance sheet strength and capital optionality: Cash and equivalents reached $8.694B; warrant dividend provides “the option to participate in the Company’s capital raising on a non-dilutive basis” with potential proceeds up to ~$1.9B if fully exercised .

What Went Wrong

Gross margin compression and software softness: Gross margin declined to 29.1% from 31.2% YoY; software mix fell to 15.7% from 26.0%, indicating category pressure .
Europe remained a drag: Q2 regional operating loss of $(3.3)M in Europe, highlighting continued international headwinds amid portfolio rationalization .
Non-operating volatility: Results included an unrealized gain on digital assets line item and outsized interest income, which are excluded from adjusted metrics but add earnings variability .

Financial Results

Metric	Q4 2025 (oldest)	Q1 2026	Q2 2026 (newest)
Revenue ($USD Millions)	$1,282.6	$732.4	$972.2
GAAP Diluted EPS ($)	$0.29	$0.09	$0.31
Adjusted Diluted EPS ($)	$0.30	$0.17	$0.25
Gross Margin (%)	28.3%	34.5%	29.1%
EBIT Margin (%)	6.2% (Operating earnings %)	-1.5% (Operating loss %)	6.8% (Operating income %)
Net Income Margin (%)	10.2%	6.1%	17.3%

Estimate comparison (Wall Street consensus vs. actual):

Metric	Q4 2025	Q1 2026	Q2 2026
Revenue Consensus Mean ($USD Millions)	$1,477.4*	$754.2*	$823.2*
Revenue Actual ($USD Millions)	$1,282.6	$732.4	$972.2
Primary EPS Consensus Mean ($)	$0.08*	$0.04*	$0.155*
GAAP Diluted EPS ($)	$0.29	$0.09	$0.31

Values retrieved from S&P Global.

Segment breakdown (Net Sales by geography):

Region	Q2 2024	Q2 2026
United States ($USD Millions)	$545.6	$724.6
Canada ($USD Millions)	$37.7	$0.0 (divested)
Australia ($USD Millions)	$87.8	$140.9
Europe ($USD Millions)	$127.2	$106.7
Total ($USD Millions)	$798.3	$972.2

KPIs (Sales Mix and Cash Metrics):

KPI	Q4 2025	Q1 2026	Q2 2026
Hardware & Accessories (% of sales)	56.6%	47.1%	60.9%
Software (% of sales)	22.3%	24.0%	15.7%
Collectibles (% of sales)	21.1%	28.9%	23.4%
Free Cash Flow ($USD Millions)	$158.8	$189.6	$113.3
Cash & Cash Equivalents ($USD Millions)	$4,756.9	$6,385.8	$8,694.4
Bitcoin Holdings (period-end, $USD Millions)	N/A	Purchased 4,710 BTC post-Q1 (disclosed)	$528.6

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3/FY 2026	N/A	No formal guidance provided in press release filings	Maintained (no guidance)
Margins	Q3/FY 2026	N/A	No formal guidance provided in press release filings	Maintained (no guidance)
OpEx	Q3/FY 2026	N/A	No formal guidance; company emphasizes adjusted SG&A as non-GAAP metric	Maintained (no guidance)
Capital actions	FY 2026	N/A	Warrant dividend: 1 per 10 shares, $32 strike, exp. 10/30/26; potential proceeds up to ~$1.9B	New

Note: GameStop did not hold a conference call in Q4 FY2024 and typically does not issue formal quarterly guidance in these releases .

Earnings Call Themes & Trends

No Q2 2026 earnings call transcript was published; themes are drawn from press releases/8-Ks.

Topic	Previous Mentions (Q4 2025 and Q1 2026)	Current Period (Q2 2026)	Trend
Cost discipline / SG&A	SG&A $282.5M in Q4; adjusted SG&A framework highlighted	SG&A $218.8M (22.5% of sales), large YoY reduction	Improving cost run-rate
Category mix shift	Q4: Collectibles 21.1%; Q1: Collectibles 28.9%	Q2: Collectibles 23.4%; Software down to 15.7%	Mix diversifying, software softer
International portfolio	Italy divested; Germany wind-down; Q1: Canada divested; France held-for-sale	Canada net sales 0; Europe operating loss persists	Ongoing rationalization; Europe still a drag
Capital structure & liquidity	Q4 cash $4.76B; Q1 issued $1.5B convert and cash $6.39B	Q2 issued $2.7B convert; cash $8.69B; warrant dividend announced	Liquidity rising; optionality increasing
Digital assets	Policy discussed; Q1 BTC purchases disclosed	Bitcoin holdings valued $528.6M	Adds earnings volatility (non-GAAP excludes)

Management Commentary

“The transaction provides GameStop shareholders the option to participate in the Company’s capital raising on a non-dilutive basis. If exercised, the warrants are expected to generate up to approximately $1.9 billion of gross proceeds…” (GameStop press release, Sept 9, 2025) .
Non-GAAP emphasis: Company continues to present adjusted SG&A, adjusted operating income, adjusted net income per share, and adjusted EBITDA to reflect core operating performance excluding transformation costs, asset impairments, unrealized gain/loss on digital assets, severance, and divestiture costs .

Q&A Highlights

No Q2 2026 earnings call transcript available; GameStop did not hold a call in Q4 FY2024 and no call materials were furnished for Q2 2026 . As a result, no Q&A clarifications are available in the public record.

Estimates Context

Coverage remained sparse (two estimates), but the company posted a significant beat: revenue $972.2M vs $823.2M* and GAAP diluted EPS $0.31 vs $0.155* . Values retrieved from S&P Global.
Prior quarters show similar dynamics: Q1 2026 revenue $732.4M vs $754.2M* (slight miss), but adjusted EPS $0.17 vs $0.04* (beat); Q4 2025 revenue $1,282.6M vs $1,477.4M* (miss), GAAP EPS $0.29 vs $0.08* (beat) . Values retrieved from S&P Global.

Key Takeaways for Investors

Strong beat and margin recovery: Q2 2026 revenue and EPS outpaced consensus; operating margin improved to 6.8% and net margin to 17.3%, supported by SG&A reductions . Values retrieved from S&P Global.
Category mix evolution: Collectibles expanded to 23.4% of sales while software contracted to 15.7%, shaping future gross margin profiles and merchandising focus .
International restructuring benefits: Canada exit completed; Europe remains a headwind with $(3.3)M operating loss, but portfolio rationalization lowers complexity and SG&A .
Liquidity and capital optionality: Cash reached $8.694B; warrant dividend (GME WS) and recent convert issuance provide pathways to fund investments/acquisitions without immediate dilution .
Non-operating items add volatility: Interest income and digital asset mark-to-market affect GAAP results; adjusted metrics strip these effects for core performance tracking .
Near-term trading catalysts: Warrant distribution mechanics ($32.00 strike, Oct 30, 2026 expiry) and trading under GME WS may drive incremental flows and investor engagement .
Watch holiday quarter and category momentum: Q4 seasonality is critical; monitor collectibles strength vs. software softness and Europe turnaround efforts .

Additional Notes:

Q2 2026 corresponds to the fiscal quarter ended August 2, 2025 in GameStop’s reporting calendar .
Estimates marked with asterisks are Values retrieved from S&P Global.