GameStop reports preliminary Q2 results with soaring profits despite falling sales

GameStop’s revenue is shrinking. Its profits are ballooning. And the reason has less to do with selling video games than it does with owning a chunk of eBay. The company released preliminary unaudited results for its fiscal second quarter ending August 1, 2026, showing net sales projected between $780 million and $800 million. That’s a meaningful step down from the $972.2 million it posted in the same quarter last year, a decline driven by store closures, its exit from France, and the fading tailwind of the Nintendo Switch 2 launch. Profits tell a different story While the top line contracted, GameStop’s bottom line went in the opposite direction. Operating income is expected to land between $150 million and $170 million, more than double the $66.4 million from Q2 2025. Net income looks even more dramatic, projected at $290 million to $310 million. That’s roughly 75% higher than the $168.6 million posted a year ago. The engine behind that profit surge: a net gain of approximately $238 million tied to GameStop’s investment in eBay. The company converted a derivative position into direct ownership of 43.4 million eBay shares, a stake valued at roughly $4.947 billion at quarter’s end....