GameStop Corp. (NYSE: GME) reported second quarter results that beat analyst expectations, posting adjusted earnings per share of $0.27 against a consensus estimate of $0.19.

Revenue came in at $790.2 million, topping the analyst estimate of $756.8 million, though the figure represented an 18.7% decline year-over-year from $972.2 million in the prior year’s second quarter.

The revenue drop was primarily attributed to the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of GameStop’s France operations.

Collectibles net sales surged 57% year-over-year to $356.3 million, now representing 45.1% of total net sales compared to just 23.4% in the prior year’s second quarter.

The collectibles segment has rapidly become the dominant revenue driver for the company, reflecting a deliberate strategic shift away from traditional hardware and software retail.

GameStop achieved operating income of $160.2 million in the quarter, which the company described as the highest second quarter operating income in its history, compared to $66.4 million in the prior year’s second quarter.

Adjusted EBITDA for the second quarter reached $174.0 million, a sharp improvement from $75.7 million recorded in the same period a year earlier.

The company raised its fiscal year 2026 adjusted EBITDA outlook to in excess of $650 million, up from its prior outlook of in excess of $600 million provided on June 26, 2026.

GameStop reported total cash, cash equivalents, marketable securities, digital assets, and related receivables of $5.4 billion as of August 1, 2026.

The company also held approximately 43.4 million shares of eBay Inc. common stock with a fair value of approximately $4.9 billion, representing a substantial asset position on its balance sheet.

On September 3, 2026, GameStop completed privately negotiated exchanges retiring approximately $1.4 billion aggregate principal amount of convertible senior notes, reducing total long-term debt to approximately $2.8 billion.

Despite the strong quarterly results, GameStop’s stock was down 0.4% in after-hours trading Tuesday following the announcement, reflecting measured investor reaction to the mixed revenue picture.