GME-WTNYSERetail-Computer & Computer Software StoresUS GAAP · USD

GameStop Corp.

GameStop Corp. is a specialty retailer that sells video games, gaming hardware, accessories, and collectibles through a mix of stores and ecommerce platforms. The company also runs a trade-in program and refurbishment operations that support resale of pre-owned products and broaden its value-oriented assortment.

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Revenue3,630m USD
−5.1 %y/y
Operating profit (EBIT)232m USD
+985.9 %y/y
EBIT margin6.4%
+7.1 ppy/y
Net income418m USD
+218.7 %y/y
Free cash flow597m USD
+360.9 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

-2,00002,0004,0006,0008,000m USD2021: 5,090 m USD2021: EBIT -238 m USD20212022: 6,011 m USD2022: EBIT -369 m USD20222023: 5,927 m USD2023: EBIT -312 m USD20232024: 5,273 m USD2024: EBIT -35 m USD20242025: 3,823 m USD2025: EBIT -26 m USD20252026: 3,630 m USD2026: EBIT 232 m USD20263,630232
RevenueOperating profit (EBIT)

Business

Share of revenue
Hardware and accessories47 %

New and pre-owned gaming consoles, controllers, headsets, and other peripherals.

Software24 %

Physical and digital game software, downloadable content, and in-game currency.

Collectibles29 %

Trading cards, apparel, toys, gadgets, and other pop-culture merchandise.

Trade-in and pre-owned resale0 %

Used-product intake, refurbishment, and resale supported by store trade-ins.

Graded collectibles services0 %

Authentication and grading-related services tied to trading cards and collectibles.

Products

Reported · share of revenue
50.7%29.2%20.1%FY2026100 %
  • Videogamehardwareaccessories50.7 %
  • Collectibles29.2 %
  • Software20.1 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

GameStop sells primarily to consumers who buy video games, consoles, accessories, and entertainment merchandise for personal use. A meaningful part of the model also serves value-seeking buyers and collectors who want pre-owned products, trade-in credit, or graded collectibles. The company’s customer base is shaped by game release cycles, console refreshes, and demand for collectible and pop-culture items.

Core gaming consumers

Buy consoles, controllers, headsets, and new game titles for personal entertainment.

Value-oriented pre-owned shoppers

Buy used games and hardware, often using trade-in credit to lower out-of-pocket spend.

Collectibles and pop-culture buyers

Buy trading cards, apparel, toys, gadgets, and other fan merchandise.

Trading-card collectors

Buy graded collectibles and authentication-related services through select stores.

Strategy

GameStop’s stated strategy is to use cash and other liquidity to maximize shareholder value while optimizing the retail business for profitability. Management is focusing on omnichannel execution, cost containment, and expanding the addressable market through higher-margin offerings such as graded collectibles. The company is also pruning underperforming international assets and store locations to simplify the business and improve efficiency.

Omnichannel retail executionShort term

The company needs stores and ecommerce to work together to defend traffic and improve convenience.

Cost containment and store rationalizationShort term

Closing weak stores and reducing SG&A is central to reaching sustained profitability.

Expand addressable market with collectiblesMedium term

Collectibles and graded cards can diversify revenue and improve margins versus core gaming retail.

Portfolio and capital allocation disciplineMedium term

Management is evaluating investments and acquisitions while preserving flexibility in a changing retail market.

Geography

GameStop operates in four reportable geographic segments: the United States, Canada, Australia, and Europe. The company has been shrinking its international footprint, including store closures in Germany and the sale or planned sale of certain European and North American operations, while the U.S. remains the largest market by store count and sales. Geography matters because product mix, store density, and consumer demand differ by region, and international restructuring can affect revenue, costs, and execution risk.

Risks

GameStop faces structural pressure from digital game downloads, console transitions, and intense competition from mass merchants, online marketplaces, and publishers’ own channels. The company is also exposed to execution risk from store closures, international restructuring, vendor dependence, and its investment portfolio, including Bitcoin and other marketable securities. Because the business still relies on physical product sales and third-party supply chains, changes in consumer behavior or vendor support can quickly affect revenue and margins.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Shift from physical to digital game distribution1Intense retail and ecommerce competition2Vendor concentration and supply disruption3Store portfolio optimization and international exits4Investment portfolio and Bitcoin volatility5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Shift from physical to digital game distributionImpact: HighLikelihood: High

    More console and PC content is delivered digitally, reducing demand for physical software and related store traffic.

    Exposure: Physical software and pre-owned game sales

  2. Intense retail and ecommerce competitionImpact: HighLikelihood: High

    Mass merchants, online marketplaces, and publishers can undercut pricing, convenience, and delivery speed.

    ExposureCore gaming hardwareSoftwareCollectibles sales
  3. Vendor concentration and supply disruptionImpact: HighLikelihood: High

    Sony, Nintendo, and Microsoft account for a majority of new product purchases, so supply or terms changes matter.

    Exposure: Hardware and accessories inventory availability

  4. Store portfolio optimization and international exitsImpact: MediumLikelihood: High

    Closures, disposals, and impairments can pressure sales, create restructuring charges, and reduce scale.

    ExposureU.SCanadaEuropeInternational operations
  5. Investment portfolio and Bitcoin volatilityImpact: MediumLikelihood: Medium

    The company has an investment policy and disclosed Bitcoin exposure, which can introduce mark-to-market swings.

    Exposure: Cash and investment assets

Accounting

Judgemental items
Merchandise inventory valuation

Hardware, software, and collectibles can become obsolete or require markdowns, affecting gross profit.

Impact: Gross margin and inventory write-downs

Store closure and asset impairment accounting

Portfolio optimization and international exits can create lease, asset, and restructuring charges.

Impact: Operating expenses and one-time charges

Fair value accounting for investments and Bitcoin

Market price changes can create gains or losses unrelated to retail operations.

Impact: Other income/expense and earnings volatility

Revenue mix and seasonality

Sales depend on console launches, holiday demand, and the mix between physical and digital products.

Impact: Quarterly revenue comparability

Similar listed companies

Publicly listed companies with a comparable business focus.

Walmart Inc.

WMT · Retail-Variety Stores

Target Corporation

TGT · Retail-Variety Stores

MGM Resorts International

MGM · Hotels & Motels

Funko, Inc.

FNKO · Games, Toys & Children's Vehicles (No Dolls & Bicycles)

Hasbro, Inc

HAS · Games, Toys & Children's Vehicles (No Dolls & Bicycles)

Take-Two Interactive Software, Inc

TTWO · Services-Prepackaged Software

Last updated: 24/09/2026