GameStop issued preliminary second-quarter earnings Monday, projecting net income of $290 million to $310 million for the 13 weeks ended Aug. 1, up from $168.6 million a year ago. The forecast includes about $238 million in net gains tied to its eBay derivative asset and equity investment, partially offset by a roughly $75 million loss on digital assets and related receivables. The company converted its eBay derivative position into direct equity during the quarter, reducing cash and marketable securities. CEO Ryan Cohen, who holds a 7.78% stake in eBay per a May SEC filing, previously made an unsolicited $56 billion offer to buy the e-commerce firm, which eBay rejected as "neither credible nor attractive."

Second-quarter net sales are projected between $780 million and $800 million, down from $972.2 million last year, reflecting the prior-year Nintendo Switch 2 launch, planned store closures, and the divestiture of French operations.

Separately, GameStop amended exchange agreements for its 0.00% Convertible Senior Notes due 2030 and 2032, canceling roughly $1.4 billion in notes. The amended terms settle the elapsed reference period in shares and the remainder in cash, rather than entirely in Class A common stock.