GameStop Corp 10-Q for FY2027 Q1

GameStop Corp. (GME)

10-Q 2026-06-11 For: 2026-05-02

Added on June 11, 2026

About this 10-Q

GameStop Corp filed this 10-Q on June 11, 2026, covering the quarter ended May 2, 2026 (FY2027 Q1).

Headline figures

Quarter ended May 2, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $835.3M; up 14.0% from $732.4M a year earlier
Net income: $389.6M; up 769.6% from net income of $44.8M a year earlier
Diluted EPS: $0.66; up 633.3% from $0.09 a year earlier

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Delaware		20-2733559
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

625 Westport Parkway		76051
Grapevine,	Texas
(Address of principal executive offices)		(Zip Code)



Part I — FINANCIAL INFORMATION
		Page No.
Item 1.	Financial Statements (unaudited)	1

	Condensed Consolidated Balance Sheets — As of May 2, 2026, May 3, 2025 and January 31, 2026	1

	Condensed Consolidated Statements of Operations — For the three months ended May 2 , 202 6 and May 3, 2025	2

	Condensed Consolidated Statements of Comprehensive Income — For the three months ended May 2 , 202 6 and May 3, 2025	3

	Condensed Consolidated Statements of Cash Flows — For the three months ended May 2 , 202 6 and May 3, 2025	4

	Condensed Consolidated Statements of Stockholders’ Equity — For the three months ended May 2 , 202 6 and May 3, 2025	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30

Item 4.	Controls and Procedures	30

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 3.	Defaults Upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	31

Item 6.	Exhibits	32

SIGNATURES		33


	May 2, 2026		May 3, 2025		January 31, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	7,397.6	$	6,385.8	$	6,304.7
Marketable securities	970.5		—		2,709.1
Receivables, net of allowance of $3.9, $0.9 and $4.2, respectively	58.8		44.1		45.0
Derivative asset	285.3		—		—
Collateral pledged for derivative asset	983.3		—		—
Digital assets and related receivables	369.6		—		368.4
Merchandise inventories, net	423.3		421.3		403.3
Prepaid expenses and other current assets	27.7		29.3		34.6
Assets held for sale	152.4		226.2		146.5

Total current assets	10,668.5		7,106.7		10,011.6
Property and equipment, net of accumulated depreciation of $492.6, $572.5 and $488.2, respectively	51.9		54.2		48.3
Operating lease right-of-use assets	164.7		272.5		183.3
Deferred income taxes	26.0		18.7		86.8
Other noncurrent assets	63.2		50.5		58.4
Total assets	$	10,974.3	$	7,502.6	$	10,388.4

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	263.4	$	198.4	$	147.1
Accrued liabilities and other current liabilities	372.5		328.4		283.8
Current portion of operating lease liabilities	81.4		113.3		87.5

Liabilities held for sale	143.0		207.2		136.1
Total current liabilities	860.3		847.3		654.5
Long-term debt	4,166.1		1,480.7		4,164.3
Operating lease liabilities	91.6		167.8		110.1
Other long-term liabilities	14.2		19.4		15.1

Total liabilities	5,132.2		2,515.2		4,944.0
Stockholders’ equity:
Class A common stock — $.001 par value; 1,000 shares authorized; 448.7, 447.3 and 448.3 shares issued and outstanding, respectively	0.2		0.2		0.2
Additional paid-in capital	5,313.2		5,110.6		5,304.7
Accumulated other comprehensive loss	(66.1)		(86.7)		(65.7)
Retained earnings (loss)	594.8		(36.7)		205.2
Total stockholders’ equity	5,842.1		4,987.4		5,444.4
Total liabilities and stockholders’ equity	$	10,974.3	$	7,502.6	$	10,388.4


	Three Months Ended
	May 2, 2026		May 3, 2025
Net sales	$	835.3	$	732.4
Cost of sales	495.0		479.6
Gross profit	340.3		252.8
Selling, general and administrative expenses	201.6		228.1
Asset impairments	(4.6)		35.5


Operating income (loss)	143.3		(10.8)
Interest income, net	(83.7)		(56.9)
Unrealized gain on derivative asset, net	(268.4)		—
Gain on digital assets and related receivables	(1.1)		—
Other income, net	(9.9)		(2.2)
Income before income taxes	506.4		48.3
Income tax expense	116.8		3.5
Net income	$	389.6	$	44.8

Net income per share:
Basic	$	0.87	$	0.10
Diluted	$	0.66	$	0.09

Weighted-average shares outstanding:
Basic	448.4		447.1
Diluted	592.3		497.9


	Three Months Ended
	May 2, 2026		May 3, 2025
Net income	$	389.6	$	44.8
Other comprehensive income:
Foreign currency translation adjustment	0.4		7.3

Unrealized loss on available-for-sale securities	(0.8)		—

Total comprehensive income	$	389.2	$	52.1


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


			☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Class A Common Stock			Additional Paid-in Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance at January 31, 2026	448.3	$	0.2	$	5,304.7	$	(65.7)	$	205.2	$	5,444.4
Net income	—	—		—		—		389.6		389.6
Foreign currency translation adjustment	—	—		—		0.4		—		0.4

Stock-based compensation expense, net	—	—		8.5		—		—		8.5
Issuance of Class A Common stock, net of cost	0.4	—		—		—		—		—
Unrealized loss on available-for-sale securities	—	—		—		(0.8)		—		(0.8)


Balance at May 2, 2026	448.7	$	0.2	$	5,313.2	$	(66.1)	$	594.8	$	5,842.1


	May 2, 2026		May 3, 2025
Unredeemed customer liabilities	$	110.6	$	146.7
Extended warranties	43.7		46.5
Subscriptions	42.1		43.8
Total performance obligations	$	196.4	$	237.0


	May 2, 2026		May 3, 2025
Contract liability fiscal year beginning balance	$	194.9	$	228.9
Increase to contract liabilities (1)	170.6		210.1
Decrease to contract liabilities (2)	(169.5)		(185.3)
Other adjustments (3)	0.4		(16.7)
Contract liability ending balance	$	196.4	$	237.0


	May 2, 2026
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value
Assets
Level 1:

Marketable securities(1)	$	971.3	$	—	$	(0.8)	$	970.5
Digital assets(2)	0.2		—		(0.1)		0.1
Level 2:
Derivative asset(3)	—		285.3		—		285.3
Digital assets receivable(2)	428.0		—		(58.4)		369.6
Company-owned life insurance(4)	0.1		—		—		0.1
Total assets	$	1,399.6	$	285.3	$	(59.3)	$	1,625.6
Liabilities
Level 2:

Derivative liability on digital assets(5)	$	5.4	$	3.0	$	—	$	8.4
Nonqualified deferred compensation(5)	0.1		—		—		0.1
Total liabilities	$	5.5	$	3.0	$	—	$	8.5


	May 3, 2025
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value
Assets
Level 1:

Time deposits(6)	$	11.4	$	—	$	—	$	11.4
Level 2:

Company-owned life insurance(4)	0.1		—		—		0.1
Total assets	$	11.5	$	—	$	—	$	11.5
Liabilities
Level 2:

Nonqualified deferred compensation(5)	0.1		—		—		0.1
Total liabilities	$	0.1	$	—	$	—	$	0.1


	United States		Australia		Europe		Total
As of and for the three months ended May 2, 2026
Net sales	$	651.1	$	99.6	$	84.6	$	835.3
Cost of sales	368.8		65.3		60.9		495.0
Gross profit	282.3		34.3		23.7		340.3
Selling, general and administrative expenses:	137.7		34.0		29.9		201.6
Store related	112.2		26.8		26.3		165.3
Other	25.5		7.2		3.6		36.3
Asset impairments	—		0.3		(4.9)		(4.6)
Operating income (loss)	144.6		—		(1.3)		143.3
Interest income, net							(83.7)
Unrealized gain on derivative asset, net							(268.4)
Gain on digital assets and related receivables							(1.1)
Other income, net							(9.9)
Income before income taxes							506.4
Income tax expense							116.8
Net income							389.6

Property and equipment, net(1)	35.8		16.1		—		51.9
Capital expenditures	$	3.4	$	1.1	$	—	$	4.5


	United States		Canada		Australia		Europe		Total
As of and for the three months ended May 3, 2025
Net sales	$	537.5	$	38.2	$	81.9	$	74.8	$	732.4
Cost of sales	343.6		28.2		55.0		52.8		479.6
Gross profit	193.9		10.0		26.9		22.0		252.8
Selling, general and administrative expenses:	160.3		13.9		32.3		21.6		228.1
Store related	131.6		11.3		26.6		22.4		191.9
Other	28.7		2.6		5.7		(0.8)		36.2

Asset impairments	—		18.3		—		17.2		35.5
Operating income (loss)	33.6		(22.2)		(5.4)		(16.8)		(10.8)
Interest income, net									(56.9)
Other income, net									(2.2)
Income before income taxes									48.3
Income tax expense									3.5
Net income									44.8

Property and equipment, net (1)	37.5		—		16.7		—		54.2
Capital expenditures	$	1.2	$	0.1	$	1.0	$	0.6	$	2.9


	Average Strike Price(1)		Stock Price		Number of Options(2)	Unrealized Gain(2)
Derivative Asset	$	91.20	$	104.07	22,176,000	$	285,296,080


	Three Months Ended
	May 2, 2026		May 3, 2025		Change
Cash provided by operating activities	$	337.4	$	192.5	$	144.9
Cash provided by investing activities	742.9		7.3		735.6
Cash provided by financing activities	1.5		1,478.0		(1,476.5)
Exchange rate effect on cash, cash equivalents and restricted cash	1.9		5.9		(4.0)
Net change in cash balance classified as assets held for sale	—		(49.4)		49.4
Increase in cash, cash equivalents and restricted cash	$	1,083.7	$	1,634.3	$	(550.6)


	GAMESTOP CORP.

Date: June 11, 2026	By:	/s/ Daniel Moore
		Daniel Moore
		Principal Financial and Accounting Officer


1			I have reviewed this report on Form 10-Q of GameStop Corp.;


2			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


	Quantity(1)	Cost Basis		Fair Value		Cumulative Unrealized Gain (Loss)
Bitcoin	1.0	0.2		0.1		(0.1)

Total digital assets held as of May 2, 2026	1.0	$	0.2	$	0.1	$	(0.1)


3			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4			The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a.			designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b.			designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			c.			evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d.			disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


			a.			all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


			b.			any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date:	June 11, 2026	By:	/s/ Ryan Cohen
			Ryan Cohen
			President, Chief Executive Officer and Chairman
			(Principal Executive Officer)
			GameStop Corp.