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  4. [8-K] GameStop Corp. Reports Material Event

eBay gains help lift GameStop (NYSE: GME) Q2 profit

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

GameStop Corp. (GME) amended previously announced exchange agreements for its 0.00% Convertible Senior Notes due 2030 and 2032, under which approximately $1.4 billion of notes will be exchanged and canceled. The revised structure fixes the equity component and shifts part of the consideration to cash. Existing noteholders are now expected to receive in total approximately 55.5 million shares of Class A common stock and $358.4 million in cash, with closing expected on or about September 3, 2026, subject to customary conditions. After closing, approximately $2.8 billion of these convertible notes will remain outstanding.

GameStop also provided preliminary results for the quarter ended August 1, 2026. Net sales are expected at $780–$800 million versus $972.2 million a year earlier, reflecting the prior-year Nintendo Switch 2 launch, planned store closures, and the France divestiture. Despite lower sales, operating income is expected at $150–$170 million versus $66.4 million, and net income at $290–$310 million versus $168.6 million. Cash, cash equivalents and marketable securities are expected at $5.050–$5.070 billion versus $8.694 billion, largely due to converting a derivative position in eBay Inc. into a direct stake of approximately 43.4 million eBay shares with fair value of about $4.947 billion; quarterly net income includes about $238 million of related gains, partially offset by a $75 million loss on digital assets and related receivables.

Positive

  • Operating income roughly doubles year over year to an expected $150–$170 million versus $66.4 million, indicating significantly improved profitability despite lower net sales.
  • Net income rises strongly to an expected $290–$310 million from $168.6 million, aided by gains of approximately $238 million on the eBay derivative and equity investment.
  • Balance sheet strengthened by note exchange: approximately $1.4 billion of 0.00% Convertible Senior Notes are expected to be exchanged and canceled, with terms that fix share issuance at about 55.5 million shares.

Negative

  • Net sales decline materially to an expected $780–$800 million from $972.2 million, driven by the prior-year Nintendo Switch 2 launch, planned store closures, and the France divestiture.
  • Liquidity decreases: cash, cash equivalents and marketable securities are expected at $5.050–$5.070 billion versus $8.694 billion, reflecting redeployment into an eBay equity stake.
  • Significant debt remains outstanding even after the exchange, with about $1.1 billion of 2030 Notes and $1.7 billion of 2032 Notes (approximately $2.8 billion in total) expected to remain.

Filing Explained

The amended exchange remains pending closing, and its approximately 55.5 million shares will be issued through an unregistered private placement to qualifying institutional investors; resale requires registration or another applicable exemption.

Item 1.01 Entry into a Material Definitive Agreement Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 3.02 Unregistered Sales of Equity Securities Securities
The company sold equity securities in a private placement or other unregistered transaction.
Item 7.01 Regulation FD Disclosure Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Convertible notes exchanged $1.4 billion aggregate principal amount 0.00% Convertible Senior Notes due 2030 and 2032 to be exchanged and canceled
Shares issued in exchange 55.5 million shares of Common Stock Aggregate shares to Existing Noteholders, approximately 73% of consideration
Cash portion of exchange consideration $358.4 million Approximately 27% of total consideration, expected to be funded from cash on hand
Convertible notes remaining outstanding $2.8 billion $1.1 billion 2030 Notes and $1.7 billion 2032 Notes after closing
Preliminary net sales $780–$800 million Quarter ended August 1, 2026; prior-year second quarter $972.2 million
Preliminary operating income $150–$170 million Quarter ended August 1, 2026; prior-year second quarter $66.4 million
Preliminary net income $290–$310 million Quarter ended August 1, 2026; prior-year second quarter $168.6 million
eBay equity investment fair value $4.947 billion Approximately 43.4 million eBay shares held as of August 1, 2026
0.00% Convertible Senior Notes financial
"its 0.00% Convertible Senior Notes due 2030 and 0.00% Convertible Senior Notes due 2032"
0.00% convertible senior notes are a type of loan that a company issues to investors, which can later be converted into company shares. Because they carry no interest payments, their value mainly depends on the potential for the company's stock price to rise. Investors consider these notes because they offer a chance to benefit from stock growth while providing some priority over other debts if the company faces financial trouble.
volume-weighted average price financial
"based in part on the volume-weighted average price of the Common Stock"
Volume-weighted average price (VWAP) is the average price of a stock over a specific time period where each trade is weighted by the number of shares traded, so larger trades influence the average more than small ones. Investors and traders use VWAP as a reference point to judge whether trades are happening at relatively good or poor prices—like checking the average price paid for an item at a market where bulk purchases count more than single-item buys.
qualified institutional buyer financial
"that is also a “qualified institutional buyer” within the meaning of Rule 144A"
A qualified institutional buyer is a large organization, such as a big investment firm or pension fund, that is trusted to handle complex or substantial financial transactions on its own. Because of their size and expertise, they can trade certain securities without the same level of oversight required for individual investors, making markets more efficient. This status helps facilitate large-scale investments and can provide access to exclusive financial opportunities.
marketable securities financial
"Cash, cash equivalents and marketable securities are expected to be in the range"
Marketable securities are financial assets — such as publicly traded stocks, bonds, and short-term government bills — that a company can quickly sell for cash at a known price. Investors watch them because they show how much ready cash a company can access without selling core operations, like keeping money in a highly liquid savings account versus being tied up in a house, and they affect short-term risk, financial flexibility, and balance-sheet strength.
digital assets financial
"partially offset by a loss of approximately $75 million on digital assets"
Digital assets are electronic files or representations of value stored electronically, such as cryptocurrencies, digital tokens, or digital art. They matter to investors because they can be bought, sold, and used for transactions much like physical assets, but exist entirely in digital form, offering new opportunities for investment and financial innovation.
derivative position financial
"converted its previously disclosed derivative position related to eBay Inc. into a direct equity"
A derivative position is an investor’s current holding in one or more financial contracts whose value is derived from an underlying asset, index, interest rate, or credit instrument — for example options, futures, or swaps. It matters because derivative positions can change an investor’s exposure, risk, and potential obligations without owning the underlying asset, like using a levered or insurance-like tool; they affect margin, cash flow and the overall risk profile of a portfolio.
Net sales $780–$800 million Compared to $972.2 million in the prior-year second quarter
Operating income $150–$170 million Compared to $66.4 million in the prior-year second quarter
Net income $290–$310 million Compared to $168.6 million in the prior-year second quarter
Cash, cash equivalents and marketable securities $5.050–$5.070 billion Compared to $8.694 billion at the close of the prior-year second quarter

FAQ

What convertible notes is GameStop (GME) exchanging and in what amount?
GameStop amended exchange agreements covering approximately $1.4 billion aggregate principal of its 0.00% Convertible Senior Notes due 2030 and 2032. These notes are expected to be exchanged and canceled in return for a mix of GameStop common stock and cash.

How much stock and cash will GameStop (GME) provide in the amended exchange?
Existing noteholders are expected to receive in total approximately 55.5 million shares of GameStop Class A common stock and about $358.4 million in cash, representing roughly 73% of consideration in stock and 27% in cash under the amended terms.

How much of GameStop’s convertible debt will remain after the exchange?
After closing, GameStop expects approximately $1.1 billion of 2030 Notes and $1.7 billion of 2032 Notes to remain outstanding, or about $2.8 billion in aggregate 0.00% Convertible Senior Notes.

What are GameStop’s preliminary Q2 2026 net sales compared to last year?
For the quarter ended August 1, 2026, GameStop expects net sales of $780–$800 million, compared with $972.2 million in the prior-year second quarter. The company cites the prior-year Nintendo Switch 2 launch, planned store closures, and its France divestiture as key drivers.

How did GameStop’s preliminary Q2 2026 profitability change year over year?
Preliminary operating income is expected at $150–$170 million versus $66.4 million a year ago, and net income at $290–$310 million versus $168.6 million, reflecting improved profitability and substantial gains of about $238 million on eBay-related investments.

What is the size of GameStop’s eBay investment as of August 1, 2026?
As of August 1, 2026, GameStop held approximately 43.4 million shares of eBay common stock with a fair value of about $4.947 billion. The quarter’s net income includes approximately $238 million of net gains tied to this derivative asset and equity investment.

When will GameStop (GME) release full Q2 2026 results?
GameStop expects to release its complete second quarter 2026 results on September 8, 2026. The figures currently disclosed are preliminary, unaudited estimates and may change following completion of normal quarter-end procedures and reviews.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES
 SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K



Current Report
Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): August 31, 2026

 
GameStop Corp.
(Exact name of Registrant as specified in its charter)
Delaware
 
 
1-32637
 
 
20-2733559
(State or Other Jurisdiction
of Incorporation)
 
 
(Commission
File Number)
 
 
(IRS Employer
Identification No.)
   
625 Westport Parkway, Grapevine, TX 76051
(817) 424-2000
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)
 
Not Applicable
 (Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common StockGMENYSE
Warrants to Purchase Common Stock, par value $0.001 per shareGME WSNYSE
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 1.01    Entry into a Material Definitive Agreement

As previously disclosed, on August 2, 2026, GameStop Corp. (the “Company”) entered into (i) privately negotiated exchange agreements (the “2030 Notes Exchange Agreements”) with a limited number of existing holders (the “2030 Existing Noteholders”) of its 0.00% Convertible Senior Notes due 2030 (the “2030 Notes”), and (ii) privately negotiated exchange agreements (the “2032 Notes Exchange Agreements” and, together with the 2030 Notes Exchange Agreements, the “Exchange Agreements”) with a limited number of existing holders (the “2032 Existing Noteholders” and, together with the 2030 Existing Noteholders, the “Existing Noteholders”) of its 0.00% Convertible Senior Notes due 2032 (the “2032 Notes”), in each case relating to the exchange (the “Exchange”) of such 2030 Notes and 2032 Notes held by the Existing Noteholders for shares of the Company’s Class A common stock, $0.001 par value per share (“Common Stock”). Pursuant to the Exchange Agreements, the Company agreed to exchange approximately (i) $400 million aggregate principal amount of the outstanding 2030 Notes, and (ii) $1.0 billion aggregate principal amount of the outstanding 2032 Notes (collectively, the “Exchange Notes”) held by the Existing Noteholders.

On August 31, 2026, the Company entered into amendments to each of the Exchange Agreements (the “Amendments”). As originally structured, the Exchange was to be settled entirely in shares of Common Stock, with the number of shares based in part on the volume-weighted average price of the Common Stock over a 35 trading day reference period that began on August 3, 2026 (the “Reference Period”). As amended, the remainder of the Reference Period is terminated. Consideration attributable to the elapsed portion of the Reference Period will still be settled in shares, and the remaining consideration will be settled in cash, in an amount based on trading prices on the last trading day prior to the Amendments. In total, the Existing Noteholders will receive in the aggregate approximately 55.5 million shares of Common Stock (approximately 73% of the consideration attributable to the Exchange Agreements, as amended by the Amendments) and approximately $358.4 million in cash (approximately 27%).

The closing of the exchange is expected to occur on or about September 3, 2026, subject to satisfaction of the customary closing conditions set forth in the Exchange Agreements.

Item 2.02    Results of Operations and Financial Condition

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

On August 31, 2026, the Company issued a press release announcing certain preliminary financial results for its second quarter ended August 1, 2026. A copy of the press release is attached hereto as Exhibit 99.1.

The information contained in this Item 2.02 “Results of Operations and Financial Condition” of this Current Report, including the exhibit, shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as otherwise expressly set forth therein.

Item 3.02    Unregistered Sales of Equity Securities

The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

The Common Stock will be issued to the Existing Noteholders in a private placement in reliance on the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) provided by Section 4(a)(2) of the Securities Act. Each Existing Noteholder participating in the Exchange is required to be an institutional “accredited investor” within the meaning of Rule 501(a)(1), (2), (3), or (7) of Regulation D under the Securities Act that is also a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act. The Company is relying on this exemption from registration based in part on representations made by the Existing Noteholders in the Exchange Agreements.


Item 7.01    Regulation FD Disclosure

The information set forth under Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.



On August 31, 2026, the Company issued a press release announcing that it entered into amendments to the Exchange Agreements described in this Current Report on Form 8-K. The press release is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

The foregoing information is furnished pursuant to Item 7.01 “Regulation FD Disclosure,” and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filing, except as expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits.
(d)        Exhibits.
99.1         Press Release issued by GameStop Corp., dated August 31, 2026.
99.2         Press Release issued by GameStop Corp., dated August 31, 2026.
104        Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
GAMESTOP CORP.
(Registrant)
Date: August 31, 2026
By:/s/ Daniel Moore
 
 

Daniel Moore
Principal Financial and Accounting Officer



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GameStop Announces Second Quarter 2026 Preliminary Results

August 31, 2026

GRAPEVINE, Texas--(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.

Contacts
GameStop Corp. Investor Relations
(817) 424-2001
ir@gamestop.com
Source: GameStop Corp.

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
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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 Company's investment holdings; concentration of the Company's investment portfolio into one or fewer holdings; the recognition of losses in a particular investment even if the Company has not sold the investment; the execution and timing of share repurchases, if any, under the share repurchase authorization; volatility in the Company’s stock price, including volatility due to potential short squeezes; continued high degrees of media coverage by third parties; the availability and future sales of substantial amounts of the Company’s Class A common stock; the issuance of common stock upon the exercise of the warrants declared as part of the October 7, 2025 distribution to the holders of record of the Company's Class A common stock and holders of the Convertible Notes, in the form of warrants to purchase shares of common stock (the “Warrants”), may depress our stock price; future issuance of additional warrants may adversely affect the market price of the Warrants and the market price of the Company’s common stock; the Warrants do not automatically exercise, and any Warrant that is not exercised prior to their expiration date will lose all financial value; fluctuations in the Company’s results of operations from quarter to quarter; the Company’s ability to generate sufficient cash flow to fund its operations; the $1.5 billion 0.00% Convertible Senior Notes due 2030 (the “Convertible 2030 Notes") and $2.7 billion 0.00% Convertible Senior Notes due 2032 (the "Convertible 2032 Notes" and, collectively with the Convertible 2030 Notes, the "Convertible Notes") are the Company’s obligations only, and substantially all of our operations are conducted through, and a portion of our consolidated assets are held by, our subsidiaries; servicing the Convertible Notes requires a significant amount of cash, and the Company may not have sufficient cash flow from our business to make such payments, and we may incur additional indebtedness in the future; the Company’s ability to incur additional debt; risks associated with the Company’s investment in marketable, nonmarketable and interest-bearing securities, including the impact of such investments on Company’s financial results; the Company's investment policy permits investments in certain cryptocurrency assets, including Bitcoin and U.S. dollar-denominated stable coins, and to the extent the Company holds Bitcoin or U.S. dollar denominated stable coins, the Company will be exposed to certain risks associated with Bitcoin or stable coins, respectively; the Company’s derivative strategy can expose it to counterparty risk; and the Company’s ability to maintain effective internal control over financial reporting. Additional factors that could cause results to differ materially from those reflected or described in the forward-looking statements can be found in GameStop's most recent Annual Report on Form 10-K and other filings made from time to time with the Securities and Exchange Commission and available at www.sec.gov or on the Company’s investor relations website (https://investor.gamestop.com). Forward-looking statements contained in this Press Release speak only as of the date of this Press Release. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.

Preliminary Financial Information

We report our financial results in accordance with U.S. generally accepted accounting principles. All projected financial information in this Press Release is preliminary. These estimates are not a comprehensive statement of our financial position and results of operations. There is no assurance that the Company will achieve its forecasted results within the relevant period or otherwise. Actual results may differ materially from these estimates as a result of actual quarter-end results, the completion of normal quarter-end accounting procedures and adjustments, including the execution of our internal control over financial reporting, the completion of the preparation and management’s review of our financial statements for the relevant period and the subsequent occurrence or identification of events prior to the filing of our financial results for the relevant period with the Securities and Exchange Commission
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GameStop Announces Amendment to Convertible Notes Exchange; Approximately $358.4 Million to be Settled in Cash in Lieu of Stock

August 31, 2026

GRAPEVINE, Texas – (BUSINESS WIRE) –– GameStop Corp. (NYSE: GME) (“GameStop”) today announced that it has entered into amendments (the “Amendments”) to its previously announced exchange agreements (the “Exchange Agreements”) with certain existing holders (the “Existing Noteholders”) of its 0.00% Convertible Senior Notes due 2030 (the “2030 Notes”) and 0.00% Convertible Senior Notes due 2032 (the “2032 Notes” and, together with the 2030 Notes, the “Exchange Notes”), pursuant to which approximately $1.4 billion aggregate principal amount of Exchange Notes will be exchanged and canceled (the “Exchange”).
As originally structured, the Exchange was to be settled entirely in shares of GameStop’s Class A common stock (the “Common Stock”), with the number of shares based in part on the volume-weighted average price of the Common Stock over a 35 trading day reference period that began on August 3, 2026 (the “Reference Period”).
As amended, the remainder of the Reference Period is terminated. Consideration attributable to the elapsed portion of the Reference Period will still be settled in shares, and the remaining consideration will be settled in cash, in an amount based on trading prices on the last trading day prior to the Amendments. By settling the remaining consideration in cash, GameStop has fixed the total number of shares issuable in respect of the Exchange. No additional shares are issuable in respect of the Exchange.
In total, Existing Noteholders will receive in the aggregate approximately 55.5 million shares of Common Stock (approximately 73% of the consideration attributable to the Exchange Agreements, as amended by the Amendments) and approximately $358.4 million in cash (approximately 27%), which GameStop expects to fund from cash on hand.
Following the closing of the Exchange, approximately $1.1 billion of 2030 Notes and $1.7 billion of 2032 Notes, or approximately $2.8 billion in aggregate, will remain outstanding.
The Exchange, as amended, is now expected to close on or about September 3, 2026, subject to customary closing conditions.
Additional information regarding the Amendments is included in GameStop’s Current Report on Form 8-K filed today with the Securities and Exchange Commission.
The offering, issuance and sale of the Common Stock have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction, and the Common Stock may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and such other securities laws.
GameStop expects that participating noteholders may purchase or sell shares of Common Stock or enter into or unwind derivative transactions to adjust their positions, including purchases of Common Stock to close out short positions. These activities could increase or decrease the market price of the Common Stock or the Exchange Notes, and the effect may be material.
This press release is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall it constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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, including statements concerning the timing of the closing of the Exchange, the number of shares issuable and amount of cash payable in respect of the Exchange Agreements, as amended by the Amendments, and the expected effects of the Amendments on GameStop’s outstanding indebtedness and capital structure. These statements are based on GameStop’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties and changes in circumstances that may cause actual results to differ materially, including market risks, trends and conditions. These and other risks are more fully described in GameStop’s filings with the Securities and Exchange Commission, including the “Risk Factors” sections of its
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Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and its Quarterly Report on Form 10-Q for the fiscal quarter ended May 2, 2026. Forward-looking statements speak only as of the date of this press release, and GameStop disclaims any obligation to update them.

Contacts
GameStop Corp. Investor Relations
(817) 424-2001
ir@gamestop.com
Source: GameStop Corp


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