GameStop reported a sharp improvement in first-quarter (Q1) earnings and operating performance, supported by continued growth in its collectibles business, which helped drive a 14% increase in net sales for the quarter ended 2 May 2026.
For the period, the US video game retailer reported net sales of $835.3m, compared with $732.4m in the same period a year earlier
Net income climbed to $389.6m from $44.8m, boosted in part by an unrealised gain on a derivative asset of $268.4m, reflecting put and call option transactions linked to eBay common stock. The company also recorded a gain on digital assets and related receivables of $1.1m and other income of $9.9m, against income tax expense of $116.8m. Selling, general and administrative expenses fell to $201.6m from $228.1m, contributing to operating income of $143.3m against an operating loss of $10.8m a year earlier.
On an adjusted basis, operating income was $140.5m versus $27.5m in Q1 FY25, and adjusted net income reached $179.3m, compared with $73.1m in the prior-year period. Basic earnings per share rose to $0.87 from $0.10 while diluted earnings per share increased to $0.66 from $0.09. Geographically, the US was the dominant contributor, generating net sales of $651.1m and operating income of $144.6m.