GameStop (GME) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly net income of $389.6 million and record first quarter operating income of $143.3 million, with net sales up 14% year-over-year to $835.3 million, driven by collectibles.

• SG&A expenses decreased to $201.6 million from $228.1 million year-over-year, supporting improved profitability.

• Cash, marketable securities, digital assets, and related receivables totaled $9.7 billion at quarter-end.

• Board approved a new $2.0 billion share repurchase authorization through June 2029.

Financial highlights

• Net sales rose to $835.3 million from $732.4 million year-over-year, with collectibles as the main growth driver.

• Gross profit increased to $340.3 million from $252.8 million, with gross margin improving to 40.7% from 34.5%.

• Operating income reached $143.3 million, reversing a $10.8 million loss in the prior year.

• Net income surged to $389.6 million from $44.8 million year-over-year.

• Adjusted net income was $179.3 million, up from $83.1 million, excluding non-recurring items.

• Free cash flow was $333.1 million, up from $189.6 million year-over-year.

Outlook and guidance

• Forward-looking statements highlight risks from economic, competitive, and industry factors, as well as execution of strategic initiatives and acquisitions.