Gamestop Corporation - Class A

GameStop Corp. delivered a standout first quarter for fiscal 2026, reporting adjusted earnings of $0.30 per diluted share on revenue of $835.30 million, a 14% increase from $732.40 million a year ago, as a rapid shift toward higher-margin collectibles reshaped the company's financial profile. The collectibles category, encompassing apparel, toys, trading cards, and authentication services, surged to $348.90 million from $211.50 million, now representing 41.8% of total sales, and helped drive gross margin expansion to 40.7% from 34.5%. Operating income swung to $143.30 million from an operating loss of $10.80 million, aided by a $26.50 million reduction in SG&A expenses to $201.60 million despite the stronger top line. GAAP net income reached $389.60 million, though that figure included a $268.40 million unrealized gain tied to derivative positions linked to GameStop's proposed acquisition of eBay. Free cash flow climbed to $333.10 million, and the board authorized a new $2.00 billion share repurchase program through June 2029.