GameStop (GME) investor relations material

Executive summary

• Completed a major exchange of $1.4 billion of 2030 Notes and $1.0 billion of 2032 Notes for 55.5 million shares of Class A common stock and $358.4 million in cash, closing on September 3, 2026.

• The exchange was amended to include both cash and stock consideration, replacing the original all-stock settlement structure.

• Achieved record second quarter operating income of $160.2 million, up from $66.4 million year-over-year.

• Net income rose to $298.7 million from $168.6 million in the prior year's quarter.

• Collectibles net sales surged 57% year-over-year to $356.3 million, now 45.1% of total net sales.

Capital allocation and financing

• The exchange agreements were privately negotiated with select holders of the 2030 and 2032 Notes.

• The amendments to the agreements allowed for partial cash settlement based on trading prices at the end of the reference period.

• The exchange reduced outstanding convertible debt and increased the number of shares outstanding.

• Cash, equivalents, and marketable securities decreased to $5.1 billion from $8.7 billion year-over-year.

• Held 43.4 million shares of eBay common stock valued at $4.9 billion.

Significant events and developments

• The exchange closed on September 3, 2026, with the delivery of both shares and cash to noteholders.

• Completed exchanges retiring $1.4 billion of convertible senior notes, reducing long-term debt to $2.8 billion.

• Transitioned to reporting net sales in three categories: Collectibles, Video Games, and Pre-Owned and Refurbished.

• Divestiture of France operations and closure of New Zealand operations impacted results.

• The company expects to recognize a non-cash charge related to the exchange.