GameStop has published its preliminary Q2 results, showing a slide in overall revenue but a mighty profit boost from its stake in eBay.
GameStop's Q2 estimates give insight into the retailer's current market position. The company expects to have made $780 - $800 million in revenue in Q2, down a significant -19% from last year; revenue was higher in 2025 due to Nintendo Switch 2's release.
Q2 profits are a different story. GameStop management expects to recognize tens of millions of dollars from its conversion of eBay derivatives into a direct equity investment. Essentially, this means that GameStop previously went through intermediaries for its eBay share value, but has now instead converted that to a direct investment, and these direct investments can pull in more profit.
As a result, Q2 operating profit is expected to be around $150 - $170 million, up 125 - 156% over last year's $66.4 million.
Net income will be even higher, at $290 - $310 million, which is a big boost for the company--GameStop had previously made $168.6 million net income in Q2 2025.
GameStop CEO Ryan Cohen hasn't been coy in his ambitions to buy eBay, combine it with GameStop's existing infrastructure, and create a new kind of retail empire. GameStop has slowly and steadily bought up eBay shares over the past few months. Cohen's company owns 43.4 million eBay shares, about 9.75% of outstanding stock.
Cohen has made interesting claims with his plan, saying that the GameStop-eBay combination would lead to an in-game digital marketplace of sorts. Right now, both GameStop and eBay are big drivers of the collectible card gaming market--a segment that pulls in tremendous profits due to its relatively low-cost production.
Here's what Ryan Cohen said in an interview from earlier this year:
"eBay is a platform that I can build into something much more profitable and much larger.
"The ability to take GameStop stores, and our experience in gaming and refurbished tech and collectibles, and combine with eBay and be a leader in live commerce, build out an in-game digital marketplace, use the stores for same-day authentication, and ultimately pull out significant costs.
"And none of these things come at the expense of growth, it's actually the opposite: the more efficient you get, the easier it is to grow. It makes too much sense. That's why I want to buy it--it's not that complicated. There is such overlap in the businesses, and my experience is in e-commerce."
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