GameStop Corp. 8-K
Earnings
Convertible-note exchange shifts partly to cash, fixing share issuance; eBay investment gains lift preliminary profit.
Filed 2026-08-31 06:23 ET
- 1.01 Entry into a Material Agreement
- 2.02 Results of Operations
- 3.02 Unregistered Sales of Equity
- 7.01 Regulation FD Disclosure
- 9.01 Financial Statements and Exhibits
Summary
Preliminary Q2 2026 results and amended convertible-note exchange. GameStop revised the exchange of ≈$1.4B principal amount of 0.00% notes due 2030 and 2032 to settle part of the consideration in cash, fixing the shares to be issued. The exchange is expected to close on or about 9/3/2026, subject to customary conditions.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Net sales | $780M-$800M | $972.2M | -19.8% to -17.7% |
| Operating income | $150M-$170M | $66.4M | +126% to +156% |
| Net income | $290M-$310M | $168.6M | +72.0% to +83.9% |
- The sales decline primarily reflects the prior-year Nintendo Switch 2 launch, planned store closures and the divestiture of France operations.
- Net income includes ≈$238M of net gains related to the eBay derivative asset and equity investment, partly offset by an ≈$75M loss on digital assets and related receivables. At 8/1/2026, GameStop held 43.4M eBay shares with a fair value of ≈$4.95B.
- Cash, cash equivalents and marketable securities: $5.05B-$5.07B, vs $8.69B at the close of Q2 2025; the decrease includes converting the eBay derivative position into a direct equity investment. For the exchange, holders will receive ≈55.5M shares (≈73% of consideration) and ≈$358.4M cash (≈27%), funded from cash on hand, for ≈$1.4B principal amount of notes. After closing, ≈$2.8B principal will remain outstanding: ≈$1.1B of 2030 notes and ≈$1.7B of 2032 notes.
Guidance
No guidance in this filing.
Investor Takeaways
- Watch for the exchange closing around 9/3/2026, subject to customary conditions.
- GameStop expects to release complete Q2 results on 9/8/2026; those results will confirm the preliminary ranges.
The summary is written by an AI model reading the filing.
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