stockrowLatest quarter
GameStop reported Q2 FY2027 revenue of $790.2 million, down from $972.2 million a year earlier. Diluted earnings per share rose to $0.51 from $0.31.
In its filing for the three months ended August 1, 2026, GameStop attributed the sales decline primarily to lower video game and pre-owned sales following the prior-year launch of the Nintendo Switch 2. The company said collectibles sales increased, primarily because of continued growth in trading cards.
GameStop reported gross margin of 43.7%, up from 29.1% a year earlier, and operating margin of 20.3%, up from 6.83%. In its filing, the company attributed the gross-margin increase primarily to a shift toward higher-margin categories, including collectibles. It also reported a $75.0 million quarterly loss on digital assets and related receivables, reflecting a decline in the market price of Bitcoin.
GameStop reported quarterly free cash flow of $60.7 million, compared with −$386.7 million a year earlier.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $790.2 million | $972.2 million | −18.7% |
| Diluted EPS | $0.51 | $0.31 | 64.5% |
| Gross margin | 43.7% | 29.1% | 14.5 percentage points |
| Operating margin | 20.3% | 6.83% | 13.4 percentage points |
| Free cash flow | $60.7 million | −$386.7 million | — |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.25 | $0.19 | Beat by 31.6% |
| Revenue | $972.2 million | $900.0 million | Beat by 8.02% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
No earnings call is available. In its filing, GameStop said it continued to expand store space and roll out fixtures for collectibles, while exploring new product and service offerings.
Guidance
GameStop said it now expects adjusted EBITDA in excess of $650 million for the fiscal year ending January 30, 2027, compared with its prior outlook for adjusted EBITDA in excess of $600 million.