GRAPEVINE, Texas, August 31, 2026--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) ("GameStop" or the "Company") today announced certain preliminary unaudited financial information for the second quarter ended August 1, 2026. The Company is providing this preliminary information in connection with the amendments to its convertible notes exchange announced separately today. On a preliminary basis for the 13 weeks ended August 1, 2026 compared to the 13 weeks ended August 2, 2025: Net sales are expected to be in the range of $780 million to $800 million compared to $972.2 million in the prior year's second quarter. The decrease primarily reflects the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of the Company's France operations. Operating income is expected to be in the range of $150 million to $170 million, compared to $66.4 million in the prior year's 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 year's second quarter. Cash, cash equivalents and marketable securities are expected to be in the range of $5.050 billion to $5.070 billion, compared to $8.694 billion at the close of the prior year's second quarter. During the quarter, the Company converted its previously disclosed derivative position related to eBay Inc. into a direct equity investment, resulting in a decrease in cash, cash equivalents, and marketable securities. The Company's net income for the quarter includes approximately $238 million of net gains related to its eBay Inc. derivative asset and equity investment, partially offset by a loss of approximately $75 million on digital assets and related receivables. As of August 1, 2026, the Company held approximately 43.4 million shares of eBay common stock with a fair value of approximately $4.947 billion. The Company expects to release its complete second quarter results on September 8, 2026. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of terms such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "pro forma," "seeks," "should," "will" or similar expressions. Forward-looking statements are subject to significant risks and uncertainties and actual developments, business decisions, outcomes and results may differ materially from those reflected or described in the forward-looking statements. The following factors, among others, could cause actual developments, business decisions, outcomes and results to differ materially from those reflected or described in the forward-looking statements: the performance of our business and our ability to generate earnings in line with our guidance; economic, social, and political conditions in the markets in which we operate; the competitive nature of the Company's industry; the cyclicality of the video game industry; the Company's dependence on the timely delivery of new and innovative products from its vendors; the impact of technological advances in the video game industry and related changes in consumer behavior on the Company's sales; interruptions to the Company's supply chain or the supply chain of our suppliers; the Company's dependence on sales during the holiday selling season and on the popularity and sale of trading cards; the Company's ability to obtain favorable terms from its current and future suppliers and service providers; the Company's ability to anticipate, identify and react to trends in pop culture with regard to its sales of collectibles; the Company's ability to maintain strong retail and ecommerce experiences for its customers; the Company's ability to keep pace with changing industry technology and consumer preferences; how the Company incorporates artificial intelligence into workflows and processes, including customer-facing and operational activities, and challenges with properly managing its use; the Company's ability to manage its profitability and cost reduction initiatives; the Company's ability to complete its proposed acquisition of eBay Inc.; changes in senior management or the Company's ability to attract and retain qualified personnel; the Company is highly dependent on the services of the Company's Chairman of the Board and Chief Executive Officer, Ryan Cohen; potential damage to the Company's reputation or customers' perception of the Company; the Company's ability, or the ability of the third parties with whom we work, to maintain the security of our information technology systems or data (including customer, associate or Company information); the Company's compliance with stringent and evolving laws and other obligations related to data privacy and security; occurrence of weather events, natural disasters, public health crises and other unexpected events; risks associated with inventory shrinkage; potential failure or inadequacy of the Company's computerized systems; the ability of the Company's third party delivery services to deliver products to the Company's retail locations, fulfillment centers and consumers and changes in the terms the Company has with such service providers; the ability and willingness of the Company's vendors to provide marketing and merchandising support at historical or anticipated levels; restrictions on the Company's ability to purchase and sell pre-owned products; the Company's ability to renew or enter into new leases on favorable terms; unfavorable changes in the Company's global tax rate; legislative actions; the Company's ability to comply with federal, state, local and international laws and regulations and statutes; changes to tariff and import/export regulations; potential litigation and other legal proceedings; the value of the
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