GME 10-Q

GameStop Corp. (GME)

10-Q 2026-09-09 For: 2026-08-01

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Added on September 09, 2026

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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 August 1 , 2026, August 2 , 2025 and January 31, 2026	1

	Condensed Consolidated Statements of Operations — For the three and six months ended August 1, 2026 and August 2, 2025	2

	Condensed Consolidated Statements of Comprehensive Income — For the three and six months ended August 1 , 2026 and August 2, 2025	3

	Condensed Consolidated Statements of Cash Flows — For the six months ended August 1 , 2026 and August 2, 2025	4

	Condensed Consolidated Statements of Stockholders’ Equity — For the three and six months ended August 1 , 2026 and August 2, 2025	5

	Notes to Condensed Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

Item 4.	Controls and Procedures	35

PART II — OTHER INFORMATION

Item 1.	Legal Proceedings	36

Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 3.	Defaults Upon Senior Securities	36

Item 4.	Mine Safety Disclosures	36

Item 5.	Other Information	36

Item 6.	Exhibits	37

SIGNATURES		38


	August 1, 2026		August 2, 2025		January 31, 2026
ASSETS
Current assets:
Cash and cash equivalents	$	4,854.3	$	8,694.4	$	6,304.7
Marketable securities	206.0		—		2,709.1
Receivables, net of allowance of $3.8, $0.9 and $4.2, respectively	95.4		45.5		45.0
Digital assets and related receivables	294.1		—		368.4
Merchandise inventories, net	439.0		484.9		403.3
Prepaid expenses and other current assets	36.8		36.6		34.6
Assets held for sale	—		177.0		146.5

Total current assets	5,925.6		9,438.4		10,011.6
Property and equipment, net of accumulated depreciation of $487.3, $567.2 and $488.2, respectively	50.1		52.3		48.3
Digital assets	—		528.6		—
Equity investment	4,946.9		—		—
Operating lease right-of-use assets	158.9		249.9		183.3
Deferred income taxes	16.9		18.8		86.8
Other noncurrent assets	46.4		53.1		58.4
Total assets	$	11,144.8	$	10,341.1	$	10,388.4

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	214.9	$	292.9	$	147.1
Accrued liabilities and other current liabilities	385.1		283.8		283.8
Current portion of operating lease liabilities	79.7		101.5		87.5

Liabilities held for sale	—		151.7		136.1
Total current liabilities	679.7		829.9		654.5
Long-term debt	4,167.8		4,160.9		4,164.3
Operating lease liabilities	85.7		155.5		110.1
Other long-term liabilities	70.2		18.4		15.1

Total liabilities	5,003.4		5,164.7		4,944.0
Stockholders’ equity:
Class A common stock — $.001 par value; 2,500 shares authorized; 449.1, 447.6 and 448.3 shares issued and outstanding, respectively	0.2		0.2		0.2
Additional paid-in capital	5,320.5		5,116.9		5,304.7
Accumulated other comprehensive loss	(72.8)		(72.6)		(65.7)
Retained earnings (loss)	893.5		131.9		205.2
Total stockholders’ equity	6,141.4		5,176.4		5,444.4
Total liabilities and stockholders’ equity	$	11,144.8	$	10,341.1	$	10,388.4


	Three Months Ended				Six Months Ended
	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Net sales	$	790.2	$	972.2	$	1,625.5	$	1,704.6
Cost of sales	445.2		689.1		940.2		1,168.7
Gross profit	345.0		283.1		685.3		535.9
Selling, general and administrative expenses	187.1		218.8		388.7		446.9
Asset impairments	(2.3)		(2.1)		(6.9)		33.4
Operating income	160.2		66.4		303.5		55.6
Interest income, net	(77.1)		(79.6)		(160.8)		(136.5)
Gain on derivative asset, net	(166.3)		—		(434.7)		—
Loss (gain) on digital assets and related receivables	75.0		(28.6)		73.9		(28.6)
Unrealized gain on equity investment	(72.1)		—		(72.1)		—
Other income, net	(19.5)		—		(29.4)		(2.2)
Income before income taxes	420.2		174.6		926.6		222.9
Income tax expense	121.5		6.0		238.3		9.5
Net income	$	298.7	$	168.6	$	688.3	$	213.4

Net income per share:
Basic	$	0.67	$	0.38	$	1.53	$	0.48
Diluted	$	0.51	$	0.31	$	1.17	$	0.42

Weighted-average shares outstanding:
Basic	448.8		447.4		448.6		447.3
Diluted	592.6		546.5		592.5		506.2


	Three Months Ended				Six Months Ended
	August 1, 2026		August 2, 2025		August 1, 2026		August 2, 2025
Net income	$	298.7	$	168.6	$	688.3	$	213.4
Other comprehensive income:
Foreign currency translation adjustment	(6.9)		14.1		(6.5)		21.4

Unrealized gain (loss) on available-for-sale securities	0.2		—		(0.6)		—

Total comprehensive income	$	292.0	$	182.7	$	681.2	$	234.8


			☒			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
Net income	—	—		—		—		298.7		298.7
Foreign currency translation adjustment	—	—		—		(6.9)		—		(6.9)
Stock-based compensation expense, net	—	—		7.3		—		—		7.3
Issuance of Class A Common stock, net of cost	0.4	—		—		—		—		—
Unrealized gain on available-for-sale securities	—	—		—		0.2		—		0.2

Balance at August 1, 2026	449.1	$	0.2	$	5,320.5	$	(72.8)	$	893.5	$	6,141.4


	August 1, 2026		August 2, 2025
Unredeemed customer liabilities	$	164.5	$	113.4
Extended warranties	40.1		48.0
Subscriptions	40.3		41.9
Total performance obligations	$	244.9	$	203.3


	August 1, 2026		August 2, 2025
Contract liability fiscal year beginning balance	$	194.9	$	228.9
Increase to contract liabilities (1)	380.0		428.4
Decrease to contract liabilities (2)	(330.0)		(454.2)
Other adjustments (3)	—		0.2
Contract liability ending balance	$	244.9	$	203.3


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

Marketable securities(1)	$	206.6	$	—	$	(0.6)	$	206.0
Digital assets(2)	0.2		—		(0.1)		0.1
Equity investment(7)	4,874.8		72.1		—		4,946.9
Level 2:
Digital assets receivable(2)	428.0		—		(134.0)		294.0
Company-owned life insurance(3)	0.1		—		—		0.1
Total assets	$	5,509.7	$	72.1	$	(134.7)	$	5,447.1
Liabilities
Level 2:

Derivative liability on digital assets and related receivable(4)	$	2.0	$	—	$	—	$	2.0
Nonqualified deferred compensation(5)	0.1		—		—		0.1
Total liabilities	$	2.1	$	—	$	—	$	2.1


	August 2, 2025
	Adjusted Cost		Unrealized Gains		Unrealized Losses		Fair Value
Assets
Level 1:

Time deposits(6)	$	23.2	$	—	$	—	$	23.2
Digital assets(2)	500.0		28.6		—		$	528.6
Level 2:

Company-owned life insurance(3)	0.1		—		—		0.1
Total assets	$	523.3	$	28.6	$	—	$	551.9
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 August 1, 2026
Net sales	$	608.2	$	120.9	$	61.1	$	790.2
Cost of sales	325.1		76.8		43.3		445.2
Gross profit	283.1		44.1		17.8		345.0
Selling, general and administrative expenses:	129.9		35.9		21.3		187.1
Store related	104.2		28.3		17.4		149.9
Other	25.7		7.6		3.9		37.2
Asset impairments	—		0.1		(2.4)		(2.3)
Operating income (loss)	153.2		8.1		(1.1)		160.2
Interest income, net							(77.1)
Gain on derivative asset, net							(166.3)
Loss on digital assets and related receivables							75.0
Unrealized gain on equity investment							(72.1)
Other income, net							(19.5)
Income before income taxes							420.2
Income tax expense							121.5
Net income							298.7

Property and equipment, net	34.1		16.0		—		50.1
Capital expenditures	$	—	$	1.7	$	—	$	1.7


	United States		Canada		Australia		Europe		Total
As of and for the six months ended August 2, 2025
Net sales	$	1,262.1	$	38.2	$	222.8	$	181.5	$	1,704.6
Cost of sales	852.9		28.2		154.1		133.5		1,168.7
Gross profit	409.2		10.0		68.7		48.0		535.9
Selling, general and administrative expenses:	311.9		13.9		68.1		53.0		446.9
Store related	260.8		11.3		55.2		49.2		376.5
Other	51.1		2.6		12.9		3.8		70.4
Asset impairments	—		18.3		—		15.1		33.4
Operating income (loss)	97.3		(22.2)		0.6		(20.1)		55.6
Interest income, net									(136.5)
Unrealized gain on digital assets									(28.6)
Other income, net									(2.2)
Income before income taxes									222.9
Income tax expense									9.5
Net income									213.4

Property and equipment, net(1)	35.8		—		16.5		—		52.3
Capital expenditures	3.8		0.1		2.5		0.6		7.0


	# of Shares	Price Per Share		Aggregate Value
Cash paid on settlement of Put/Call Pairs(1)	39,046,658	$	101.30	$	3,955.2
Less: Funding and execution costs(2)				(41.2)
Cost basis - option-delivered shares	39,046,658	100.24		3,914.0
Direct open-market purchases	4,343,725	108.73		472.3
Total aggregate cost basis	43,390,383	101.09		4,386.3
Fair value at August 1, 2026 ($114.01/share)				4,946.9
Cumulative appreciation over cost basis				560.6


	Six Months Ended
	August 1, 2026		August 2, 2025		Change
Cash provided by operating activities	$	399.8	$	309.9	$	89.9
Cash used in investing activities	(1,865.1)		(516.0)		(1,349.1)
Cash provided by financing activities	0.1		4,153.3		(4,153.2)
Exchange rate effect on cash, cash equivalents and restricted cash	5.4		6.0		(0.6)
Net change in cash balance classified as assets held for sale	—		(9.1)		9.1
(Decrease) Increase in cash, cash equivalents and restricted cash	$	(1,459.8)	$	3,944.1	$	(5,403.9)


	GAMESTOP CORP.

Date: September 9, 2026	By:	/s/ Daniel Moore
		Daniel Moore
		Principal Financial and Accounting Officer


			Very truly yours,
			GameStop Corp.

			By Name: Mark Robinson Title: General Counsel


Investor:
___________________, in its capacity as described in the first paragraph hereof By Name: Title:


	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 August 1, 2026	1.0	$	0.2	$	0.1	$	(0.1)


Exchanging Investor	Aggregate Principal Amount of Exchanged Notes	Shares
		As determined per “Shares” below


Exchanging Investor	Aggregate Principal Amount of Exchanged Notes	Cash Consideration	Shares


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;


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:	September 9, 2026	By:	/s/ Ryan Cohen
			Ryan Cohen
			President, Chief Executive Officer and Chairman
			(Principal Executive Officer)
			GameStop Corp.