GameStop Q1 Profit Sets Company Record as Net Sales Grow 14% to $835.3 million

TLDR

• GameStop reported $389.6 million in quarterly net income, setting a new company profit record mark.
• Net sales increased 14% year over year to $835.3 million, with collectibles driving growth momentum.
• Operating income reached $143.3 million, the strongest first quarter operating result in GameStop history record.
• Cash, securities, digital assets and collateral totaled $9.7 billion at the quarter’s close for GameStop.
• The board approved a $2 billion share repurchase authorization running through June 2029 for GameStop.

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GameStop reported a record quarterly net income of $389.6 million as first-quarter net sales rose 14% to $835.3 million, led by collectibles. The company also posted $143.3 million in operating income, reversing a prior-year operating loss and marking its strongest first-quarter operating performance.

The retailer ended the quarter with $9.7 billion across cash, securities, digital assets, receivables and pledged collateral. GameStop’s board also approved a discretionary $2 billion share repurchase authorization through June 2029, replacing a buyback plan that had been in place since 2019.

Revenue and operating performance

Operating income reached $143.3 million, which GameStop described as the highest first-quarter operating income in its history. In the same quarter last year, the company reported an operating loss of $10.8 million.

Selling, general and administrative expenses declined to $201.6 million from $228.1 million in the prior-year quarter. The reduction in SG&A expenses came as the company reported higher sales and stronger operating results.

Adjusted operating income was $140.5 million, excluding impairment and other items. That compared with adjusted operating income of $27.5 million in the prior-year quarter.

Net income and adjusted results

GameStop said adjusted net income was $179.3 million for the quarter. The adjusted figure excluded impairments, gains on digital assets and related receivables, unrealized gains on a derivative asset, and other items.

The prior-year adjusted net income figure was $73.1 million. The company’s reported net income was higher than adjusted net income because certain gains and other excluded items were included in the GAAP result.

The company did not provide detailed category sales figures in the excerpted release, but it identified collectibles as the source of year-over-year sales growth. The statement also reported continued movement in investment-related assets during the quarter.

Cash position and buyback authorization

GameStop ended the quarter with $9.7 billion in cash, cash equivalents, marketable securities, digital assets and related receivables, and collateral pledged for a derivative asset. That total included $8.4 billion of cash, cash equivalents and marketable securities.

The company also reported $1.0 billion in collateral pledged for a derivative asset during the quarter. Digital assets and related receivables totaled about $0.4 billion at quarter end.

On June 2, 2026, GameStop’s board unanimously approved a discretionary $2.0 billion share repurchase authorization through June 2, 2029. The new program replaced the prior repurchase authorization from March 2019.

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