---
title: "GameStop Previews Q2 Earnings, Exchanges Convertible Debt"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/297528845.md"
description: "GameStop shares rose nearly 5% in premarket trading after the company projected Q2 net income of $290-$310 million, driven by a $238 million gain from its eBay investment. Despite a sales decline to $780-$800 million due to store closures and prior-year comparisons, operating income is expected to surge. Additionally, GameStop amended its convertible debt exchange, settling part with cash instead of stock, which helps fix share issuance."
datetime: "2026-08-31T13:24:20.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/297528845.md)
  - [en](https://longbridge.com/en/news/297528845.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/297528845.md)
generator: "portal-rs"
---

# GameStop Previews Q2 Earnings, Exchanges Convertible Debt

**GameStop Corp** (NYSE:GME) stock gained almost 5% in Monday premarket trading as investors weighed weaker preliminary second-quarter sales, stronger profit expectations and changes to the company’s convertible-note exchange.

## Q2 Sales Fall As Profit Climbs

GameStop expects second-quarter 2026 net sales of $780 million to $800 million (against an analyst consensus estimate of $756.85 million), down from $972.2 million a year earlier.

The company attributed the decline mainly to the prior-year Nintendo Switch 2 launch, planned store closures and the divestiture of its France operations.

Operating income is expected to rise to $150 million-$170 million from $66.4 million. Net income is projected at $290 million-$310 million, up from $168.6 million a year earlier.

GameStop said quarterly net income includes about $238 million in gains tied to its **eBay Inc** (NASDAQ:EBAY) derivative asset and equity investment, partially offset by roughly $75 million in losses on digital assets and related receivables.

## eBay Investment Weighs On Cash Balance

GameStop expects cash, cash equivalents and marketable securities of $5.050 billion to $5.070 billion, down from $8.694 billion a year earlier.

The company converted its previously disclosed eBay derivative position into a direct equity investment during the quarter.

As of Aug. 1, GameStop held approximately 43.4 million eBay shares with a fair value of about $4.947 billion.

## GameStop Shifts Part Of Debt Exchange To Cash

Separately, GameStop amended its previously announced exchange involving approximately $1.4 billion of convertible senior notes due in 2030 and 2032.

GameStop will now settle the exchange with approximately 55.5 million shares and $358.4 million in cash instead of using stock for the entire transaction. The amendment fixes the total number of shares issuable, with no additional shares due.

About $2.8 billion of the 2030 and 2032 notes will remain outstanding after the exchange closes.

GameStop expects the amended exchange to close around Sept. 3 and plans to report complete second-quarter results on Sept. 8.

**GME Stock Price Activity:** GameStop shares were up 4.76% at $18.72 during premarket trading on Monday, according to Benzinga Pro data.

 **Read Also: GameStop Stock Slips on Dilution Concerns – Here's Why** 

*Image Via Shutterstock*

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## Related News & Research

- [eBay Just Gave GameStop Stock a Boost. Here's What to Know.](https://longbridge.com/en/news/297551707.md)
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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**