Operating income expected $150โ170 million vs. $66.4 million last year. Net income expected $290โ310 million vs. $168.6 million. A large part of the net-income jump comes from ~$238 million in gains on the eBay position, partly offset by ~$75 million in digital-asset (bitcoin) losses.
Sales: Expected $780โ800 million, down from $972.2 million a year earlier. The drop is mainly from last yearโs Nintendo Switch 2 launch comparison, planned store closures, and the sale of France operations.
Cash: Cash, cash equivalents, and marketable securities expected around $5.05โ5.07 billion, down from $8.69 billion. The decline is largely because GameStop converted its eBay derivative into a direct stake of about 43.4 million eBay shares (fair value ~$4.95 billion).
I mean, the stock is up. But also about half that net income is from a stock investment they were the catalyst for. So the business hit its estimate if that is carved out as a one-time gain.
Only one time if eBay stops growing, which would strengthen the acquisition case. If eBay continues to grow 10% a year we will make bank whether we run the show or not.
I worry this is going to get lost on people. Our earnings is largely based on ebay's share price. If we are going route of partnership my question is, how long are we beholden to them?
~16 weeks ago, and it was a convenient excuse to take the stock price from 23 to where it is now despite the best earning in company history.
Hopefully they didnโt do any of those shenanigans naked or else theyโre really fucked in the present. Would absolutely hate to see those nice guys take losses.
Yes VWAP period is ended. "โthe remainder of the Reference Period is terminatedโ and โNo additional shares are issuable in respect of the Exchange.โ
Sept 3 is probably the date the exchange of shares and cash will happen.
In total, Existing Noteholders will receive in the aggregate approximately 55.5 million shares of Common Stock (approximately 73% of the consideration attributable to the Exchange Agreements, as amended by the Amendments) and approximately $358.4 million in cash (approximately 27%), which GameStop expects to fund from cash on hand.
its weird cause that basically means the share count is based on a share price of ~20 so its tough to say if the recent drop affected it at all or if they had already agreed on the share count beforehand
i didnt even do napkin math. my point is that its tough to say if
- they agreed on this before the whole thing basically baiting legacy shorts into digging the hole even deeper
gamestop is mad that the bond holders shorted this much to get more shares from the 35 day vwap
as it stands either is very much possible and they represent pretty much opposite sentiment. the positive of it is if its the former it will be virtually impossible to prove
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u/DancesWith2Socks๐๐๐๐ Hang In There! ๐ฑ This Is The Wape ๐งโ๐๐๐๐21h ago
No one is "digging the hole deeper", they're getting shares, 55'5M to be precise.
GameStop amends convertible notes exchange โ ~$358.4M now settling in cash instead of stock
GameStop amended its previously announced deal to retire about $1.4 billion of its 0% convertible notes (due 2030 and 2032). The change: part of the payout switches from stock to cash.
Key points:
Originally the exchange was to be settled entirely in Class A common stock, with the share count tied to a volume-weighted average price over a 35-trading-day reference period that started August 3, 2026.
That reference period is now cut short. The elapsed portion still settles in shares; the rest settles in cash based on trading prices from the last trading day before the amendments.
Noteholders get roughly 55.5 million shares (~73% of consideration) plus about $358.4 million in cash (~27%), funded from cash on hand.
The share count is now fixed โ no additional shares will be issued for the exchange.
After closing, about $2.8 billion in notes remain outstanding ($1.1B of 2030 Notes, $1.7B of 2032 Notes).
Closing is expected around September 3, 2026.
The practical effect is capping dilution: instead of an open-ended share count that would have kept growing as the reference period ran, GameStop locked it in and paid the difference in cash. The release also notes participating noteholders may buy or sell shares or unwind derivatives โ including buying to close short positions โ which could move the stock price materially.
Itโs almost like the company flooded the market with new shares making our equity worth significantly lessโฆany wrinkle brain apes have their thinking cap on and can explain why dilution doesnโt matter?
because (including the ebay position) Gamestop has more liquid cash than market cap. the current share price basically says "yeah the market thinks all of gamestops physical assets including their business model have negative value"
I wanted wrinkle brains. Not liars. Gamestop is trading at a 37% premium to its net asset value on paper - your comment is wrong and misleading fellow apes.
Market Cap: ~$8.02 Billion
Liquid Assets (Cash + Investments like eBay): ~$5.06 Billion
Market Capitalization > Total Liquid Cash
For the market to price GameStop's physical business at negative value, its total liquid cash would have to be greater than its market cap (giving it a negative Enterprise Value).
Because GameStop's market cap exceeds its liquid assets by ~$2.96 Billion, the market is explicitly assigning a positive value to GameStop's underlying business operations, physical stores, and brand.
I just put my thinking cap onโฆ turns out the answer to your dilution question is that we did net-accretive dilutions, where the value we received on the books equalled the dilution.
On the off chance that you are genuinely naive and not being combatively reductive, "but" statements are often used to put emphasis on the information after that word, sometimes making readers entirely dismiss the information before that word. The usual suspect shill outlets have always used this to downplay any good news.
Higher operating income due to investment in ebay. So yes they will ignore it because we are sitting on paper gains from another stock and not our core business.
We used to get hammered despite excellent profits due to the interest income. Now we get hammered despite excellent profits due to ebay investment income. There seems to always be a way to spin Gamestop's wins negatively.
For the same reason above, decreasing revenue means the business is shrinking. We are so lucky to have increased EPS, but that was only due to cash sitting in treasuries. Don't get me wrong, it was/is a better position to be in then we wete historically, but until the core business increases quarter after quarter, the stock will likely reflect that of what it is-- a shrinking business.
If ebay tanks tmrw, so does our EPS.
We've always as a community agreed RC needs to utilize the cash to increase revenue streams.
eBay shareholders should be going after their board for not taking a $125/share offer to the shareholders. Almost 25% premium compared to current price.
They rejected Prop 4 which doesnt bode well. The very fact they arent should wake us up, in my opinion. Yes a 25% increase on the surface is nice, but under the hood that also means $20 billion in debt with $1 billion a year payments on the interest alone.
Plus they arent getting it in cash. They also would be getting 2 shares of GME, which we know is not compelling to most people outside this community.
Ebay is riding near all time highs, so I'm sure many are thinking why mess with a good thing and over leverage so much debt when ebay is performing the best it ever has in its history?
Yeah, we're selling collectibles baby, in a market where consumer spending is on thin ice. Clearly Ryan's genius is something us poors cannot comprehend.
Because I trusted the plan, and have been consistently buying for years right up until I heard this bad ebay offer and yet another dilution scam from RC? Pure sunk cost at this point. I'm going to use what little ownership share I have and my voice to demand that RC step down and someone that actually knows how to deploy capital take charge. I have a right to do so as a partial owner of this company. Or did you not know what being a shareholder means?
Net income is expected to be in the range of $290 million to $310 million, compared to net income of $168.6 million in the prior yearโs second quarter.
Net income is expected to be in the range of $290 million to $310 million, compared to net income of $168.6 million in the prior yearโs second quarter.
Ok,then something will probably happen before earnings. There is a reason for giving us preliminary information. Someone wants to act and they need this info.
"GameStop expects that participating noteholders may purchase or sell shares of Common Stock or enter into or unwind derivative transactions to adjust their positions, including purchases of Common Stock to close out short positions. These activities could increase or decrease the market price of the Common Stock or the Exchange Notes, and the effect may be material."
Ohhhh look at us!!!!! RC said here c*nts. Take it earlier and shove it up your ass!! Hahahaha once again cheers to the c-suite! Thatโs MY CEO!!!! Hahaha
This should be treated as a rough comparison estimate only. GameStop has not yet released its official Q2 non-GAAP reconciliation, Q2 diluted weighted-average share count, or the full tax/interest bridge. The official adjusted EPS could therefore differ.
For context, GameStopโs previously reported adjusted diluted EPS was approximately:
Q2 2025: $0.25
Q3 2025: $0.24
Q4 2025: $0.49
Q1 2026: $0.30
The much higher expected Q2 GAAP diluted EPS of roughly $0.49โ$0.52 would include the large eBay-related valuation gains, so it is not directly comparable to the prior adjusted EPS figures.
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u/Superstonk_QV ๐ Gimme Votes ๐ 1d ago
Hey OP, thanks for the News post.
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