Recent News
June 26, 2026 — GameStop released a fiscal‑year‑2026 outlook projecting adjusted EBITDA in excess of $600 million. June 23, 2026 — the company withdrew the proposed CEO performance award from the proxy statement, citing focus on the proposed eBay transaction. July 7, 2026 — stockholders approved all proposals at the annual meeting, including an amendment increasing authorized Class A shares. August 31, 2026 — GameStop amended its convertible notes exchange so approximately 55.5 million shares will settle in stock and about $358.4 million will settle in cash; the exchange expected to close on or about September 3, 2026. August 31, 2026 — the company provided preliminary Q2 results showing lower net sales but higher operating income and net income ranges, and disclosed conversion of an eBay derivative into a direct equity holding.
Technical Analysis
ADX at 30.6 indicates a strong market trend exists; directional readings show improving bullish pressure as DI+ has completed a dip-and-reversal while DI- declines, implying buyers regained directional control.
MACD sits at -0.56 and has turned higher while the MACD line moved above its signal line (-0.72), a bullish momentum crossover that aligns with short-term upward bias.
MRO at -29.05 implies price trades below the model target and therefore carries potential for an upward correction; the oscillator’s dip-and-reversal supports a price reversion toward the model target.
RSI near 40.7 with a dip-and-reversal indicates momentum shifted off an oversold approach into early accumulation territory without yet reaching neutral strength.
Price action shows the close at $18.97 trading above the 20‑day average ($18.26) and the 12‑day EMA (dip-and-reversal), signaling short-term support; the close remains below the 50‑day ($20.35) and 200‑day ($22.20) averages, which act as intermediate resistance bands.
Ichimoku components place the price below the cloud (Senkou A $22.02; Senkou B $23.16) and below the Kijun ($20.02), suggesting medium-term overhead resistance despite the short-term momentum pickup.
Bollinger bands compress (upper ~ $18.64, lower ~ $17.88) and 20‑day volatility remains low, indicating a lower‑volatility regime that can precede directional expansion once momentum confirms.
Fundamental Analysis
Profitability and cash: operating (EBIT) margin equals 16.605%, above the industry peer mean of 13.246% and well inside the industry peer range; EBIT totals $138.7 million and EBITDA $143.2 million, producing operating leverage that improved QoQ by 26.553% and YoY by 392.438% (as reported). Cash and short‑term investments total $8.3688 billion with a cash ratio of 9.73 and current ratio of 12.40, reflecting a significant liquidity cushion versus operating liabilities.
Revenue and sales efficiency: total revenue of $835.3 million reflects YoY revenue decline of 43.215% and QoQ movement shown as a deep contraction in the reported quarter‑over‑quarter growth metric; asset turnover at 0.0782 trails the industry peer mean of 0.3268, underscoring low sales intensity against the asset base.
Earnings and cash flow: EPS came in at $0.30 versus an estimate of $0.16, a $0.14 beat and an 87.5% surprise ratio. Free cash flow reached $332.9 million with free cash flow yield of 3.201%, above the industry peer mean of 0.562% and showing strong YoY free‑cash growth (300.315%). Cash flow to earnings sits at 122.331%, indicating cash conversion strength.
Capital structure: total debt $4.3391 billion yields debt/EBITDA of 30.30 and debt/equity of 0.7427; the convertible notes amendment fixes a portion of future share consideration, replacing part of the potential share issuance with ~$ $358.4 million in cash and about 55.5 million shares, which narrows the remaining contingent share supply. Interest coverage near 11.96x supports debt servicing capacity.
Market multiples: trailing P/E at 77.3x sits slightly above the industry peer mean (≈76.7x) and below the peer median (≈84.4x); P/B at 1.78 trades below the industry peer mean of 3.91; PS at 12.45 sits above the industry peer mean of 7.88. Enterprise multiple equals 44.48x while free cash flow yield of 3.20% compares favorably to the industry peer mean. These inputs inform valuation.
Valuation: the current valuation as determined by WMDST classifies the stock as under‑valued, driven by large net cash and high free‑cash conversion that offset weak top‑line growth and low asset turnover. The convertible exchange amendment and the company’s stated adjusted EBITDA target for fiscal 2026 materially influence near‑term capital‑structure risk and dilution expectations.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2026-04-30 |
| REPORT DATE: | 2026-06-02 |
| NEXT REPORT DATE: | 2026-09-01 |
| CASH FLOW | Begin Period Cash Flow | $ 6.3 B |
| Operating Cash Flow | $ 337.4 M | |
| Capital Expenditures | $ -4.50 M | |
| Change In Working Capital | $ 172.1 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 1.1 B | |
| End Period Cash Flow | $ 7.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 835.3 M | |
| Forward Revenue | $ 82.4 M | |
| COSTS | ||
| Cost Of Revenue | $ 495.0 M | |
| Depreciation | $ 4.5 M | |
| Depreciation and Amortization | $ 4.5 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 696.6 M | |
| PROFITABILITY | ||
| Gross Profit | $ 340.3 M | |
| EBITDA | $ 143.2 M | |
| EBIT | $ 138.7 M | |
| Operating Income | $ 138.7 M | |
| Interest Income | $ 83.7 M | |
| Interest Expense | — | |
| Net Interest Income | $ 83.7 M | |
| Income Before Tax | $ 506.4 M | |
| Tax Provision | $ 116.8 M | |
| Tax Rate | 23.1 % | |
| Net Income | $ 389.6 M | |
| Net Income From Continuing Operations | $ 389.6 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.16 | |
| EPS Actual | $ 0.30 | |
| EPS Difference | $ 0.14 | |
| EPS Surprise | 87.5 % | |
| Forward EPS | $ 0.34 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.0 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 5.8 B | |
| Total Current Assets | $ 10.7 B | |
| Cash and Short-Term Investments | $ 8.4 B | |
| Cash | $ 7.4 B | |
| Net Receivables | $ 58.8 M | |
| Inventory | $ 423.3 M | |
| Long-Term Investments | $ 63.2 M | |
| LIABILITIES | ||
| Accounts Payable | $ 263.4 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 860.3 M | |
| Net Debt | — | |
| Total Debt | $ 4.3 B | |
| Total Liabilities | $ 5.1 B | |
| EQUITY | ||
| Total Equity | $ 5.8 B | |
| Retained Earnings | $ 594.8 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 13.02 | |
| Shares Outstanding | 448.700 M | |
| Revenue Per-Share | $ 1.86 | |
| VALUATION | Market Capitalization | $ 10.4 B |
| Enterprise Value | $ 6.4 B | |
| Enterprise Multiple | 44.481 | |
| Enterprise Multiple QoQ | 11.397 % | |
| Enterprise Multiple YoY | -82.746 % | |
| Enterprise Multiple IPRWA | high: 177.335 mean: 52.426 median: 50.081 GME: 44.481 low: -78.249 |
|
| EV/R | 7.626 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.878 | |
| Asset To Liability | 2.138 | |
| Debt To Capital | 0.426 | |
| Debt To Assets | 0.395 | |
| Debt To Assets QoQ | -5.833 % | |
| Debt To Assets YoY | 68.373 % | |
| Debt To Assets IPRWA | high: 1.056 median: 0.538 mean: 0.489 GME: 0.395 low: 0.157 |
|
| Debt To Equity | 0.743 | |
| Debt To Equity QoQ | -7.294 % | |
| Debt To Equity YoY | 110.256 % | |
| Debt To Equity IPRWA | high: 4.555 mean: 1.543 median: 1.338 GME: 0.743 low: -2.006 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.78 | |
| Price To Book QoQ | -7.157 % | |
| Price To Book YoY | -28.613 % | |
| Price To Book IPRWA | high: 9.078 mean: 3.914 median: 3.382 GME: 1.78 low: -3.375 |
|
| Price To Earnings (P/E) | 77.251 | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | -52.762 % | |
| Price To Earnings IPRWA | high: 175.209 median: 84.447 GME: 77.251 mean: 76.735 low: -72.826 |
|
| PE/G Ratio | — | |
| Price To Sales (P/S) | 12.449 | |
| Price To Sales QoQ | 31.709 % | |
| Price To Sales YoY | -26.68 % | |
| Price To Sales IPRWA | high: 14.854 GME: 12.449 mean: 7.876 median: 7.406 low: 0.174 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 78.5 | |
| Forward PE/G | — | |
| Forward P/S | 142.934 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 0.176 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.078 | |
| Asset Turnover Ratio QoQ | -25.863 % | |
| Asset Turnover Ratio YoY | -28.578 % | |
| Asset Turnover Ratio IPRWA | high: 0.629 mean: 0.327 median: 0.285 low: 0.164 GME: 0.078 |
|
| Receivables Turnover | 16.094 | |
| Receivables Turnover Ratio QoQ | -27.493 % | |
| Receivables Turnover Ratio YoY | 15.368 % | |
| Receivables Turnover Ratio IPRWA | high: 84.878 GME: 16.094 mean: 13.44 median: 11.006 low: 0.276 |
|
| Inventory Turnover | 1.198 | |
| Inventory Turnover Ratio QoQ | -18.307 % | |
| Inventory Turnover Ratio YoY | 12.564 % | |
| Inventory Turnover Ratio IPRWA | high: 2.237 GME: 1.198 mean: 0.73 median: 0.674 low: 0.308 |
|
| Days Sales Outstanding (DSO) | 5.67 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 32.129 | |
| Cash Conversion Cycle Days QoQ | -22.975 % | |
| Cash Conversion Cycle Days YoY | -5.68 % | |
| Cash Conversion Cycle Days IPRWA | high: 216.016 GME: 32.129 median: 23.354 mean: 18.387 low: -69.767 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.085 | |
| CapEx To Revenue | -0.005 | |
| CapEx To Depreciation | -1.0 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 10.0 B | |
| Net Invested Capital | $ 10.0 B | |
| Invested Capital | $ 10.0 B | |
| Net Tangible Assets | $ 5.8 B | |
| Net Working Capital | $ 9.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 9.727 | |
| Current Ratio | 12.401 | |
| Current Ratio QoQ | -18.93 % | |
| Current Ratio YoY | 47.85 % | |
| Current Ratio IPRWA | GME: 12.401 high: 2.705 mean: 1.175 median: 1.02 low: 0.49 |
|
| Quick Ratio | 11.909 | |
| Quick Ratio QoQ | -18.879 % | |
| Quick Ratio YoY | 50.932 % | |
| Quick Ratio IPRWA | GME: 11.909 high: 2.011 mean: 0.354 median: 0.253 low: 0.068 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 30.301 | |
| Cost Of Debt | 0.159 % | |
| Interest Coverage Ratio | 11.957 | |
| Interest Coverage Ratio QoQ | -4.279 % | |
| Interest Coverage Ratio YoY | 461.539 % | |
| Interest Coverage Ratio IPRWA | high: 93.279 median: 14.225 mean: 14.026 GME: 11.957 low: -58.921 |
|
| Operating Cash Flow Ratio | 0.554 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 26.103 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 5.64 % | |
| Revenue Growth | -24.359 % | |
| Revenue Growth QoQ | -170.591 % | |
| Revenue Growth YoY | -43.215 % | |
| Revenue Growth IPRWA | high: 41.226 % median: 7.268 % mean: -0.532 % GME: -24.359 % low: -54.332 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 40.74 % | |
| Gross Margin QoQ | 16.31 % | |
| Gross Margin YoY | 18.029 % | |
| Gross Margin IPRWA | high: 96.274 % median: 43.946 % mean: 40.929 % GME: 40.74 % low: 10.662 % |
|
| EBIT Margin | 16.605 % | |
| EBIT Margin QoQ | 26.553 % | |
| EBIT Margin YoY | 392.438 % | |
| EBIT Margin IPRWA | high: 20.591 % GME: 16.605 % median: 14.315 % mean: 13.246 % low: -19.594 % |
|
| Return On Sales (ROS) | 16.605 % | |
| Return On Sales QoQ | 26.553 % | |
| Return On Sales YoY | 392.438 % | |
| Return On Sales IPRWA | high: 20.591 % GME: 16.605 % median: 14.315 % mean: 13.178 % low: -19.598 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 332.9 M | |
| Free Cash Flow Yield | 3.201 % | |
| Free Cash Flow Yield QoQ | 78.329 % | |
| Free Cash Flow Yield YoY | 109.902 % | |
| Free Cash Flow Yield IPRWA | high: 20.691 % GME: 3.201 % median: 0.869 % mean: 0.562 % low: -12.625 % |
|
| Free Cash Growth | 77.641 % | |
| Free Cash Growth QoQ | 3.328 % | |
| Free Cash Growth YoY | 300.315 % | |
| Free Cash Growth IPRWA | high: 135.714 % GME: 77.641 % mean: -77.256 % median: -79.412 % low: -406.119 % |
|
| Free Cash To Net Income | 0.854 | |
| Cash Flow Margin | 57.057 % | |
| Cash Flow To Earnings | 1.223 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 3.647 % | |
| Return On Assets QoQ | 198.445 % | |
| Return On Assets YoY | 444.328 % | |
| Return On Assets IPRWA | high: 5.232 % GME: 3.647 % median: 3.102 % mean: 2.969 % low: -7.602 % |
|
| Return On Capital Employed (ROCE) | 1.371 % | |
| Return On Equity (ROE) | 0.067 | |
| Return On Equity QoQ | 183.908 % | |
| Return On Equity YoY | 642.65 % | |
| Return On Equity IPRWA | high: 0.267 GME: 0.067 median: 0.052 mean: 0.011 low: -0.276 |
|
| DuPont ROE | 6.904 % | |
| Return On Invested Capital (ROIC) | 1.066 % | |
| Return On Invested Capital QoQ | 17.79 % | |
| Return On Invested Capital YoY | 201.13 % | |
| Return On Invested Capital IPRWA | high: 14.851 % median: 11.692 % mean: 8.999 % GME: 1.066 % low: -8.65 % |
|