GME
A beat that finally got people’s attention
GameStop’s Wednesday pop is coming from a pretty simple place: the company’s second-quarter sales came in better than Wall Street expected. Revenue landed at $790.2 million, ahead of the $756.85 million consensus, and adjusted EPS of 27 cents matched estimates. For a stock that can move like it drank three energy drinks, that was enough to get buyers back in the game.
The revenue mix is doing the heavy lifting
The headline number is still down 18.72% year over year, so no, this isn’t a clean victory lap. But the details were more interesting than the top line alone:
- Collectibles climbed to $356.3 million from $227.6 million a year ago, turning into the star of the show.
- Video games sank to $263.2 million from $494.6 million.
- Pre-owned and refurbished sales fell to $170.7 million from $250 million.
That collectibles surge matters because it hints GameStop is leaning harder into a less cyclical, more margin-friendly corner of the business. In other words: fewer “please buy another console” vibes, more “we sell the stuff people actually collect.”
Profits are looking less dusty
Operating income hit $160.2 million, which GameStop says is the highest second-quarter operating income in company history. That’s the kind of line investors love because it suggests the company can squeeze more profit out of a shrinking revenue base — which, admittedly, is the retail version of making lemonade when someone keeps stealing your lemons.
Management also lifted its fiscal 2026 adjusted EBITDA outlook to “in excess” of $650 million, up from a prior call for more than $600 million. That’s the real investor hook here: the company isn’t just talking about survival, it’s talking about better cash generation.
Big picture: still a turnaround story, not a fairy tale
The stock is still trading below its longer-term moving averages, so traders clearly haven’t declared the comeback complete. But for now, GameStop has delivered something rarer than a midnight console drop: a quarter that actually gave bulls a fresh narrative.