GRAPEVINE, Texas, June 2, 2026, 16:59 CDT
- GameStop reported first-quarter sales up 14% to $835.3 million, with collectibles leading gains. Net income hit a record $389.6 million for the company. SEC
- Directors signed off on a fresh $2 billion buyback plan that runs through June 2, 2029, phasing out the 2019 authorization. SEC
- GameStop’s results come as the company is still pushing eBay, following its rejected $55.5 billion bid in cash and stock. GameStop Investor Relations
GameStop Corp. turned in its biggest ever quarterly net income and announced a $2 billion share buyback Tuesday. The retailer, which has shifted focus further into trading cards, toys and collectibles, reported first-quarter net income of $389.6 million, up from $44.8 million a year ago. SEC
GameStop is under pressure to show it can still make money as its core business takes hits from more gamers buying online or downloading titles. Collectibles brought in 41.8% of net sales last quarter, a jump from 28.9% a year ago. Hardware and accessories slid to 39.9% of sales from 47.1%. Software also fell, dropping to 18.3% from 24.0%. SEC
The quarter also put the spotlight back on capital allocation. GameStop finished with $9.7 billion in cash, marketable securities, digital assets, and related receivables, plus collateral tied to derivative assets, only weeks after CEO Ryan Cohen tried to take over eBay. SEC
Net sales came in at $835.3 million, up from $732.4 million. Operating income reached $143.3 million after the company posted a $10.8 million operating loss in the same period last year. The swing was helped by reduced selling, general and administrative expenses, a main overhead measure. SEC
GameStop posted a headline profit, but some of it is on paper. The company’s net income was lifted by a $268.4 million unrealized gain on a derivative asset linked to eBay shares, which swings with the market, and a $1.1 million gain from digital assets and related receivables. Adjusted net income, which takes out those gains and impairments, was $179.3 million. SEC
GameStop shares gained 7.4% after hours on the results, according to Reuters. The move came after the retailer reported growth in collectibles, a category close to eBay’s core market of enthusiasts and resellers. Reuters
GameStop’s buyback is discretionary. The company said it can buy back Class A shares at its own pace, depending on market conditions and legal limits, but there’s no firm commitment to repurchase a set amount. The buyback authorization can also be ended at any time. Stock Titan
GameStop’s push to buy eBay is still the big topic for the stock. GameStop offered $125 per eBay share in cash and stock, putting the deal’s value near $55.5 billion. The company says it has built a 5% economic stake in eBay through derivatives and common stock. GameStop Investor Relations
eBay turned down the bid on May 12. Board chairman Paul Pressler told Cohen in a letter that the offer was “neither credible nor attractive,” pointing to shaky financing, leverage, operational risks, and concerns around GameStop’s governance and executive pay. eBay Investor Relations
eBay faces plenty of competition. The company posted first-quarter revenue of $3.1 billion, with gross merchandise volume at $22.2 billion. CEO Jamie Iannone said eBay was building its role as “the marketplace of choice for enthusiasts.” eBay Inc.
Skepticism about a hostile bid is direct. Don Bilson at Gordon Haskett told Reuters there’s “zero chance” a tender offer would work. Mark Cohen, former director of retail studies at Columbia Business School, said Cohen “had enough money to make the claim but not enough money to make his claim stick.” Reuters
GameStop faces a risk that one good quarter won’t prove collectibles can keep driving the business. The company cautioned that results hinge on trading card demand, its skill with pop-culture trends, share buyback timing, and risks from concentrated bets, derivatives, and digital assets. SEC
