GameStop reported its highest second-quarter operating income in company history, while rapidly growing collectibles sales and raising its fiscal 2026 adjusted EBITDA outlook.
Operating income reached $160.2 million, compared with $66.4 million in the prior-year quarter. Adjusted operating income increased to $158.7 million from $64.7 million, while adjusted EBITDA more than doubled to $174 million from $75.7 million.
Net income increased to $298.7 million from $168.6 million, while adjusted net income rose to $161.1 million from $138.3 million.
Despite the improvement in profitability, net sales declined to $790.2 million from $972.2 million. GameStop attributed the decline primarily to comparison with the previous year’s Nintendo Switch 2 launch, planned store closures and the divestiture of its France operations.
Collectibles continued becoming a larger part of the business. Collectibles revenue increased 57% to $356.3 million and represented 45.1% of total quarterly sales, compared with $227.6 million, or 23.4% of sales, a year earlier.
GameStop ended the quarter with $5.4 billion of cash, cash equivalents, marketable securities, digital assets and related receivables, including $5.1 billion in cash and marketable securities and $300 million in digital assets and related receivables.
The company also held approximately 43.4 million eBay shares valued at $4.9 billion as of August 1.
On <a href="https://comicvibe.com/here-are-our-ps-plus-premium-and-extra-games-for-september/” title=”Here are our PS Plus Premium and Extra games for September”>September 3, GameStop completed privately negotiated exchanges that retired approximately $1.4 billion of convertible senior notes, reducing total long-term debt to approximately $2.8 billion.
Beginning this quarter, GameStop reorganized its sales reporting into three categories: Collectibles, Video Games, and Pre-Owned and Refurbished, reflecting how management now evaluates the business.
GameStop raised its fiscal 2026 adjusted EBITDA outlook to more than $650 million, up from its previous forecast of more than $600 million. Adjusted EBITDA for the first six months of the fiscal year totaled $339.7 million.
