GameStop Announces $358 M Cash Note Exchange and Projects Q2 Profit Up to $310 M Amid E‑Bay Gains

GameStop disclosed an amendment to its convertible note exchange that will settle existing noteholders with approximately 55.5 million new shares and a $358.4 million cash payment, fixing the total share count and capping further dilution. GME shares rose about 4% on the news.

The disclosure came alongside preliminary, unaudited second quarter guidance. GameStop expects net income between $290 million and $310 million, versus $168.6 million a year earlier, a year over year increase of roughly 72% at the low end and about 83.8% at the high end. Complete results are not due until September 8, 2026, so these figures are estimates, not final reported earnings.

Sales are guided to $780 million to $800 million, down from $972.2 million a year ago, a decline attributed to store closures, its exit from France, and the fading tailwind of last year's Nintendo Switch 2 launch. Most of the projected profit increase, about $238 million, comes from a gain on GameStop's eBay equity stake, partly offset by roughly $75 million in losses on digital assets and related receivables.

That eBay position is not a negotiated partnership or collaboration. It is the residue of a rejected takeover approach: GameStop CEO Ryan Cohen made a non-binding bid of roughly $55 billion to $56 billion for eBay, which eBay's board rejected as neither credible nor attractive, and GameStop instead holds its stake as a converted equity position.

Analysts will watch whether the fixed share count and cash funded settlement stabilize GameStop's balance sheet, and whether the eBay linked gain proves a one time boost or a recurring contributor once the September 8 audited results come into view.

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