GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (\u201cGameStop\u201d or the \u201cCompany\u201d) today announced that, for the fiscal year ending January 30, 2027 (\"fiscal year 2026\"), the Company currently expects to generate Adjusted EBITDA in excess of $600 million, compared to Adjusted EBITDA of $345.4 million in fiscal year 2025.<\/p>
\nGameStop's leadership team remains focused on advancing the proposed acquisition of eBay, Inc. (\"eBay\"). Additional materials regarding the proposed transaction are forthcoming.<\/p>
\nA Current Report on Form 8-K furnishing the Company's fiscal year 2026 outlook has been filed with the Securities and Exchange Commission and is available at www.sec.gov<\/a> and on the Company's investor relations website at investor.gamestop.com<\/a>.<\/p> \nNON-GAAP MEASURES AND OTHER METRICS<\/b><\/p> \nAs a supplement to the Company\u2019s financial results presented in accordance with U.S. generally accepted accounting principles (\"GAAP\"), GameStop may use certain non-GAAP measures, including adjusted EBITDA. Adjusted EBITDA is a supplemental financial measure of the Company\u2019s performance that is not required by, or presented in accordance with, GAAP. We believe that the presentation of this non-GAAP financial measure provides useful information to investors in assessing our core operating performance, financial condition and results of operations. We define adjusted EBITDA as net income before income taxes, plus interest income, net and depreciation and amortization, excluding stock-based compensation, certain transformation costs (including severance and other costs), business divestitures, asset impairments, gain (loss) on digital assets and related receivables, unrealized gain (loss) on derivative assets, and other non-cash charges. Net income is the GAAP financial measure most directly comparable to adjusted EBITDA. Our non-GAAP financial measures should not be considered as an alternative to the most directly comparable GAAP financial measure. Furthermore, non-GAAP financial measures have limitations as an analytical tool because they exclude some but not all items that affect the most directly comparable GAAP financial measures. Some of these limitations include:<\/p> \nWe compensate for the limitations of adjusted EBITDA as analytical tools by reviewing the comparable GAAP financial measure, understanding the differences between the GAAP and non-GAAP financial measures and incorporating these data points into our decision-making process. Adjusted EBITDA is provided in addition to, and not as an alternative to, the Company\u2019s financial results prepared in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. Because adjusted EBITDA may be defined and determined differently by other companies in our industry, our definitions of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.<\/p> \nWith regards to forward-looking guidance for adjusted EBITDA, we are not able to reconcile the forward-looking non-GAAP measure of adjusted EBITDA to the closest corresponding GAAP measure, net income, without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items.<\/p> \nCAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR<\/b><\/p> \nThis 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\u2019s industry; the cyclicality of the video game industry; the Company\u2019s 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\u2019s sales; interruptions to the Company\u2019s supply chain or the supply chain of our suppliers; the Company\u2019s dependence on sales during the holiday selling season and on the popularity and sale of trading cards; the Company\u2019s ability to obtain favorable terms from its current and future suppliers and service providers; the Company\u2019s ability to anticipate, identify and react to trends in pop culture with regard to its sales of collectibles; the Company\u2019s ability to maintain strong retail and ecommerce experiences for its customers; the Company\u2019s 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\u2019s ability to manage its profitability and cost reduction initiatives; the Company\u2019s ability to complete its proposed acquisition of eBay Inc.; changes in senior management or the Company\u2019s ability to attract and retain qualified personnel; the Company is highly dependent on the services of the Company\u2019s Chairman of the Board and Chief Executive Officer, Ryan Cohen; if the grant of a 100% performance-based nonqualified stock option award (the \u201cCEO Performance Award\u201d) to Mr. Cohen is not approved by the Company\u2019s stockholders or if the Company is unable to adequately incentivize Mr. Cohen to maintain his focus and priorities on the Company, the Company's ability to execute on its strategy and achieve its growth goals may be adversely impacted; the CEO Performance Award, if and to the extent the stock options associated become vested and are exercised, would result in dilution to the Company\u2019s stockholders and could impact the Company\u2019s stock price; potential damage to the Company\u2019s 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\u2019s third party delivery services to deliver products to the Company\u2019s 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\u2019s vendors to provide marketing and merchandising support at historical or anticipated levels; restrictions on the Company\u2019s ability to purchase and sell pre-owned products; the Company\u2019s ability to renew or enter into new leases on favorable terms; unfavorable changes in the Company\u2019s global tax rate; legislative actions; the Company\u2019s 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\u2019s 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\u2019s 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 \u201cWarrants\u201d), 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\u2019s 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\u2019s results of operations from quarter to quarter; the Company\u2019s ability to generate sufficient cash flow to fund its operations; the $1.5 billion 0.00% Convertible Senior Notes due 2030 (the \u201cConvertible 2030 Notes\") and $2,250.0 million 0.00% Convertible Senior Notes due 2032 (the \"Convertible 2032 Notes\" and, collectively with the Convertible 2030 Notes, the \"Convertible Notes\") are the Company\u2019s 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\u2019s ability to incur additional debt; risks associated with the Company\u2019s investment in marketable, nonmarketable and interest-bearing securities, including the impact of such investments on Company\u2019s 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\u2019s derivative strategy can expose it to counterparty risk; and the Company\u2019s 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<\/a> or on the Company\u2019s investor relations website (https:\/\/investor.gamestop.com<\/a>). 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.<\/p> \nPreliminary Financial Information<\/b><\/p> \nWe 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\u2019s 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.<\/p> \nNo Offer or Solicitation<\/b><\/p> \nThis communication relates to a business combination involving GameStop and eBay that has been proposed by GameStop (the \u201cProposed Transaction\u201d). This communication is for informational purposes only and is neither an offer to sell or purchase, nor the solicitation of an offer to buy or sell, any securities (or the solicitation of any proxy or vote with respect to any matter), nor shall there be any sale or purchase, issuance or other transfer of securities (or the solicitation of any proxy or other vote) with respect to the Proposed Transaction or otherwise in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.<\/p> \nCertain Information Regarding Participants<\/b><\/p> \nGameStop and its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the Proposed Transaction, should the Proposed Transaction and any such solicitation occur. Information about the directors and executive officers of GameStop is set forth in GameStop\u2019s definitive proxy statement for the 2026 Annual Meeting of Stockholders to be held July 7, 2026 at 10:00 a.m. CDT, which was filed with the SEC on May 22, 2026 (as supplemented from time to time, the \u201c2026 Proxy Statement\u201d), which is available here, including under the headings \u201cProposal 1: Election of Directors\u201d, \u201cDirector Nomination Process\u201d, \u201cThe Director Nominees\u201d, \u201cDirector Nominee Qualifications and Experience\u201d, \u201cBiographies of Director Nominees\u201d, \u201cThe Board of Directors\u201d, \u201cCorporate Governance\u201d, \u201cDirector Compensation\u201d, \u201cExecutive Officers\u201d, \u201cSecurity Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters\u201d, \u201cCompensation Committee Interlocks and Insider Participation\u201d, \u201cProposal No. 2: Advisory Vote on Executive Compensation\u201d, \u201cCompensation Discussion and Analysis\u201d, \u201cOffer Letters and Severance\/Change in Control Benefits\u201d, \u201cCompensation Committee Report on Executive Compensation\u201d, \u201cExecutive Compensation Tables\u201d, \u201cCEO Pay Ratio\u201d, \u201cPay Versus Performance\u201d, \u201cEquity Grant Practices\u201d, \u201cSecurities Authorized for Issuance Under Equity Compensation Plans\u201d, \u201cAudit Committee Matters\u201d, \u201cCertain Relationships and Related Transactions\u201d, \u201cProposal 4: Approval of CEO Performance Award\u201d, \u201cSummary of the Proposed CEO Performance Award\u201d, \u201cReasons for Approval of the CEO Performance Award\u201d, \u201cMarket Capitalization Hurdles with Cumulative Performance EBITDA Hurdles Create Real Value for Stockholders\u201d, \u201cBackground of the CEO Performance Award\u201d, \u201cKey Terms of the Proposed CEO Performance Award\u201d, \u201cOther Details Regarding the Proposed CEO Performance Award\u201d, \u201cThe Compensation Committee\u2019s Assessment of the CEO Performance Award\u201d, \u201cPractical Implications of the CEO Performance Award\u201d and \u201cAppendix A: CEO Performance Award Agreement\u201d. To the extent holdings of such persons in the Company\u2019s securities have changed since the amounts described in the 2026 Proxy Statement, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. Additional information can also be found in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended January 31, 2026, filed with the SEC on March 24, 2026, which is available here.<\/p> \nAs of the date hereof, GameStop directly beneficially owns 4,343,725 shares of common stock of eBay, par value $0.001 per share (the \u201cCommon Stock\u201d), and has further entered into the long-side of a series of American-style put\/call option transactions (the \u201cPut\/Call Pairs\u201d), expiring February 23, 2028, with an unaffiliated financial institution counterparty that provide economic exposure to a further 39,046,658 shares of Common Stock. The Put\/Call Pairs were only settleable in cash until such time as GameStop provided the unaffiliated financial institution counterparty with reasonable evidence that all applicable filings had been made and any applicable waiting periods had expired or approvals had been received, as applicable, under the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended (the \u201cHSR Act Condition\u201d). On June 3, 2026, the HSR Act Condition was satisfied, and as a result, GameStop (in the case of the call portion of the Put\/Call Pairs) and the unaffiliated financial institution counterparty (in the case of the put portion of the Put\/Call Pairs) electing to settle the Put\/Call Pairs now have the option, but not the obligation, to elect for physical settlement of the shares of Common Stock underlying such Put\/Call Pairs in lieu of cash settlement. GameStop does not have voting power or dispositive power with respect to the shares of Common Stock underlying such Put\/Call Pairs unless and until such Put\/Call Pairs are physically settled for Common Stock. On May 3, 2026, GameStop delivered to the board of directors of eBay a non-binding proposal to acquire all of the outstanding Common Stock that it does not already own at a price of $125 per share of Common Stock, to be paid in a combination of cash and GameStop common stock. As a result of the foregoing, GameStop may be deemed to have direct or indirect interests with respect to eBay that are in addition to, or different from, those of other eBay shareholders.<\/p> \nFurther information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in any proxy statement\/prospectus and\/or other relevant materials to be filed with the SEC in connection with the Proposed Transaction when they become available.<\/p> \nDisclaimer<\/b><\/p> \nAny information concerning eBay contained in this communication has been taken from, or based upon, publicly available information. Although GameStop does not have any information that would indicate that any information contained in this communication that has been taken from such documents is inaccurate or incomplete, GameStop does not take any responsibility for the accuracy or completeness of such information. To date, GameStop has not had access to the books and records of eBay.<\/p>\n