GME 8-K — Smart Summary

GameStop Corp. reported Q1 FY2026 (13 weeks ended May 2, 2026) financial results on June 2, 2026, delivering its highest quarterly net income in company history at $389.6M and its highest first quarter operating income at $143.3M. Net sales grew 14% year-over-year to $835.3M, driven by collectibles. The Company also announced a new $2B share repurchase authorization.

• Net sales: $835.3M vs. $732.4M prior year Q1, +14% YoY
• Gross profit: $340.3M (40.7% of net sales) vs. $252.8M (34.5% of net sales) prior year Q1
• SG&A expenses: $201.6M vs. $228.1M prior year Q1, a decrease of $26.5M
• Operating income: $143.3M (17.2% of net sales) vs. operating loss of ($10.8M) prior year Q1; adjusted operating income $140.5M vs. $27.5M prior year Q1
• Net income: $389.6M (46.6% of net sales) vs. $44.8M prior year Q1, highest quarterly net income in company history
• GAAP Basic EPS: $0.87 vs. $0.10 prior year Q1; GAAP Diluted EPS: $0.66 vs. $0.09 prior year Q1
• Adjusted net income: $179.3M vs. $83.1M prior year Q1; Adjusted diluted EPS: $0.30 vs. $0.17 prior year Q1
• Adjusted EBITDA: $163.4M vs. $38.6M prior year Q1
• Net cash flows provided by operating activities: $337.6M vs. $192.5M prior year Q1
• Free cash flow (non-GAAP): $333.1M vs. $189.6M prior year Q1

• United States: Net sales $651.1M, operating income $144.6M (vs. $537.5M net sales and $33.6M operating income prior year Q1)
• Australia: Net sales $99.6M, operating income $0 (vs. $81.9M net sales and ($5.4M) operating loss prior year Q1)
• Europe: Net sales $84.6M, operating loss ($1.3M) (vs. $74.8M net sales and ($16.8M) operating loss prior year Q1; prior year also included Canada segment with $38.2M net sales)
• Hardware and accessories: $333.7M (39.9% of total) vs. $345.3M (47.1%) prior year Q1
• Software: $152.7M (18.3% of total) vs. $175.6M (24.0%) prior year Q1
• Collectibles: $348.9M (41.8% of total) vs. $211.5M (28.9%) prior year Q1, primary driver of YoY growth

• Total cash, cash equivalents, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset: $9.7B at close of Q1
• Cash and cash equivalents: $7.4B as of May 2, 2026 vs. $6.4B as of May 3, 2025
• Marketable securities: $970.5M as of May 2, 2026 (vs. $0 as of May 3, 2025)
• Digital assets and related receivables: approximately $400M ($369.6M on balance sheet)
• Collateral pledged for derivative asset: $1B ($983.3M on balance sheet)
• Long-term debt: $4.2B as of May 2, 2026 vs. $1.5B as of May 3, 2025; includes $1.5B 0.00% Convertible Senior Notes due 2030 and $2.3B 0.00% Convertible Senior Notes due 2032
• On June 2, 2026, Board of Directors unanimously approved a discretionary $2B share repurchase authorization through June 2, 2029, replacing the prior authorization from March 2019
• Capital expenditures: $4.5M for Q1 FY2026 vs. $2.9M prior year Q1

• No direct quotes from CEO or CFO were included in the press release.

• No forward guidance for next quarter or full year was provided in the press release.

• Net sales were $835.3M for the 13 weeks ended May 2, 2026, up 14% year-over-year from $732.4M in the prior year's first quarter; collectibles represented 41.8% of net sales ($348.9M), hardware and accessories 39.9% ($333.7M), and software 18.3% ($152.7M).
• Operating income was $143.3M (the highest first quarter operating income in GameStop's history), compared to an operating loss of $10.8M in the prior year's first quarter; adjusted operating income was $140.5M versus $27.5M in the prior year.
• Net income was $389.6M (the highest quarterly net income in GameStop's history), compared to $44.8M in the prior year's first quarter; basic EPS was $0.87 and diluted EPS was $0.66.
• Adjusted net income was $179.3M for the first quarter compared to $83.1M in the prior year's first quarter; adjusted diluted EPS was $0.30 versus $0.17.
• Adjusted EBITDA was $163.4M for the first quarter, compared to $38.6M in the prior year's first quarter.
• SG&A expenses decreased to $201.6M from $228.1M in the prior year's first quarter; gross profit margin improved to 40.7% from 34.5%.
• Total cash, cash equivalents, marketable securities, digital assets and related receivables, and collateral pledged for derivative asset were $9.7B at quarter close, including $8.4B in cash, cash equivalents, and marketable securities (vs. $6.4B in prior year's first quarter), $1B in collateral pledged for derivative asset, and approximately $400M in digital assets and related receivables.
• The income statement included an unrealized gain on derivative asset of $268.4M (net), representing unrealized gain on put and call option transactions providing economic exposure to shares of eBay Inc. common stock, and a gain on digital assets and related receivables of $1.1M.
• Long-term debt increased to $4.2B as of May 2, 2026, from $1.5B as of May 3, 2025, reflecting outstanding Convertible Notes including $1.5B 0.00% Convertible Senior Notes due 2030 and $2.3B 0.00% Convertible Senior Notes due 2032.
• On June 2, 2026, the Board of Directors unanimously approved a new discretionary $2B share repurchase authorization through June 2, 2029, replacing the prior authorization from March 2019; the authorization covers Class A common stock, does not require repurchase of any specific number of shares, and may be terminated at any time.
• Free cash flow was $333.1M for the first quarter (operating cash flow of $337.6M less capital expenditures of $4.5M), compared to free cash flow of $189.6M in the prior year's first quarter.