GameStop Corp.

8. Segment Information

Effective July 8, 2026, we operate ourbusiness intwo geogr aphic segments: United States and Australia. During the second quarter of fiscal 2026, we divested our operations in France, which represented our remaining operating entity in Europe, and previously comprised a third separate reporting segment. During the second quarter of fiscal 2025, we divested our operations in Canada, which previously comprised afourth separate reporting segment.

We identified segments based on a combination of geographic areas and management responsibility. Segment results for the United States include retail operations in 50 states; our ecommerce website www.gamestop.com; and our GameStop Pro® loyalty program. The United States segment also includes general and administrative expenses related to our corporate offices in Grapevine, Texas.

Segment results for Canada reflect retail and ecommerce operations previously conducted in Canada, which were divested during the second quarter of fiscal 2025.

Segment results for Australia include retail and ecommerce operations in Australia. These results also previously included operations in New Zealand, which were closed during the fourth quarter of fiscal 2025.

Current year segment results for Europe include retail and ecommerce operations previously conducted in France, which were divested during the second quarter of fiscal 2026. Segment results for Europe also previously included retail operations in Italy, Germany, Austria, Ireland and Switzerland, all of which were closed or divested prior to fiscal 2025.

Our chief operating decision makers (“CODM”) are our Chief Executive Officer and our Principal Financial and Accounting Officer, who have responsibility for allocating resources and assessing performance for the operating segments. Our CODM measures segment profit using Operating income (loss), which is defined as Net income (loss) adjusted to exclude non‑operating items, including Interest income, net, Income tax expense (benefit), Gain on derivative asset, net, Loss (gain) on digital assets and related receivables, Unrealized gain on equity investment, and Other income, net.

Transactions between our reportable segments consist primarily of royalties, management fees, intersegment loans and related interest. There were no material intersegment sales during the three and six months ended August 1, 2026 and August 2, 2025. Information on total assets by segment is not disclosed as such information is not used by our CODM to evaluate segment performance or to allocate resources and capital.

The following tables present segment information:

(1) Property and equipment, net for France (Europe) is classified as Assets held for sale on our condensed consolidated balance sheets.

(1) Property and equipment, net for France (Europe) is classified as Assets held for sale on our condensed consolidated balance sheets.

9. Assets Held for Sale

During the first quarter of fiscal 2025, management approved a plan to divest the Company’s operations in Canada and France.

During the second quarter of fiscal 2025, the Company completed the sale of its Canadian subsidiary, Electronics Boutique Canada, Inc., which operated its Canadian retail stores and e-commerce business. Prior to the sale, the assets and liabilities of the Canadian operations were classified as held for sale in the Company’s condensed consolidated balance sheets. Upon completion of the sale, those assets and liabilities were derecognized and are no longer reflected in held-for-sale balances in subsequent periods. The proceeds from the sale and related loss on disposal were immaterial to our financial statements.

During the second quarter of fiscal 2026, the Company completed the sale of its French subsidiary, Micromania GameStop SAS, which together with its subsidiaries operated its French retail stores and e-commerce business. Prior to the sale, the assets and liabilities of its French operations were classified as held for sale in the Company's condensed consolidated balance sheets. Upon completion of the sale, those assets and liabilities were derecognized and are no longer reflected in held-for-sale balances in subsequent periods. The proceeds from the sale and related loss were immaterial to our financial statements.

There were no assets and liabilities classified as held for sale as of August 1, 2026. The assets and liabilities classified as held for sale as of August 2, 2025 and January 31, 2026 relate solely to the France operations. The components are as follows:

Based on the estimated fair value of these businesses, less costs to sell, the Company recognized an impairment charge of$33.4 million on assets held for sale related to the French and Canadian disposal groups during the first half of fiscal 2025.

For fiscal 2025 and the first half of fiscal 2026, the Company recognized net impairment charges of$29.8 million and a net impair ment reversalof$6.9 million, respectively, primarily related to the French disposal group. These amounts reflect the remeasurement of the carrying value of the French disposal group to fair value, less costs to sell, and include the impact of currency translation adjustments previously recorded in Accumulated other comprehensive income.

10. Derivative Asset and Related Equity Investment

Derivative Asset

On May 3, 2026, the Company submitted a non-binding proposal (the "Proposal") to acquire 100% of the outstanding shares of eBay for $125.00 per share in a transaction consisting of cash and Company stock.

In connection with the Proposal, during the first half of fiscal 2026, the Company entered into the Put/Call Pairs providing economic exposure to 39,046,658 shares of eBay Common Stock. Each Put/Call Pair, consisting of a non-transferable embedded purchased call option and a non-transferable embedded written put option entered into contemporaneously with the same counterparty, was accounted for as a single forward contract.

The Put/Call Pairs were settleable solely in cash until the Company provided the counterparty with evidence that all applicable filings had been made and any required waiting periods had expired or approvals had been obtained under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act Condition"). The HSR Act Condition was satisfied on June 3, 2026.

The Company presented the gross fair value of the Put/Call Pairs as a Derivative asset and any related cash collateral as Collateral pledged for derivative asset in its condensed consolidated balance sheets.

For the three and six months ended August 1, 2026, the Company recognized gains on the derivative asset, net, of$166.3 million and$434.7 million, respectively, in its condensed consolidated statements of operations as a component of non-operating income.

Equity Investment

On July 15, 2026, the Company exercised all outstanding Put/Call Pairs and acquired direct beneficial ownership of 39,046,658 shares of eBay Common Stock for aggregate cash consideration of $3,955.2 million, reflecting an average strike price of$101.30 per share. Upon settlement, the Company derecognized the derivative asset and recognized the shares received at their settlement-date fair value of $4,402.9 million, comprising the cash paid upon exercise and the $447.7 million fair value of the derivative asset derecognized. The $983.3 million of cash collateral previously pledged under the Master Agreement was returned to the Company upon settlement. During the six months ended August 1, 2026, the Company recognized$40.1 million of transaction costs and$1.2 million of execution fees associated with the Put/Call Pairs within Gain on derivative asset, net.

In addition, the Company acquired 4,343,725 shares of eBay Common Stock through open-market purchases for aggregate cash consideration of $472.3 million, or an average of $108.73 per share.

As of August 1, 2026, the Company beneficially owned an aggregate of 43,390,383 shares of eBay Common Stock, representing approximately 9.8% of the outstanding eBay Common Stock, with a fair value of approximately $4.9 billion. The investment is classified as a noncurrent Equity investment on the condensed consolidated balance sheets, reflecting management's intent to hold the investment on a long-term basis.

For the three and six months ended August 1, 2026, the Company recognized an Unrealized gain on equity investment of$72.1 million in the condensed consolidated statements of operations as a non-operating activity.

The following table presents the Company's total aggregate cost basis in the eBay Common Stock, which reflects the cash paid to acquire the shares, and its relationship to the fair value of the investment as of August 1, 2026:

(1) At the average strike price per share.

(2) Expensed in the gain on derivative asset, net.

Of the $560.6 million of cumulative appreciation over cost basis, $488.9 million was recognized in Gain on derivative asset, net, as changes in the fair value of the Put/Call Pairs prior to and upon settlement (before $54.2 million of related fees and transaction costs recognized in the same line), and $72.1 million was recognized in Unrealized gain on equity investment following settlement. Cost basis is a supplemental measure and differs from the carrying value of the Equity investment, which is measured at fair value with changes recognized in earnings.

11. Digital Assets and Related Receivables

The Company measures its in-scope Digital assets at fair value under ASC 350-60 with fair value determined in accordance with ASC 820. Bitcoin is initially recorded at cost, and subsequently remeasured using unadjusted quoted prices in the principal market that we have identified for Bitcoin (currently, the Coinbase exchange), which we consider an active market. Because the fair value is derived from quoted prices for an identical asset in an active market, Bitcoin is classified within Level 1 of the fair value hierarchy. Unrealized gains and losses from changes in Bitcoin's fair value are recognized in the condensed consolidated statements of operations as Gain on digital assets and related receivables, and are presented as nonoperating activity.

During the second quarter of fiscal 2025, the Company purchased 4,710 Bitcoin.

During the fourth quarter of fiscal 2025, the Company entered into an agreement (the "Collateral Agreement") with Coinbase Credit, Inc. ("Coinbase"), under which the Company sold covered call options on a portion of the Bitcoin it owns. The options are accounted for as derivatives under ASC 815 and are not designated as hedging instruments.

Our covered-call contracts are over-the-counter ("OTC") derivatives entered into with Coinbase and are typically short-dated. Under the agreements, Bitcoin is pledged as collateral and can be rehypothecated, re-pledged, or otherwise deployed by Coinbase. As of August 1, 2026, we had outstanding covered-call option contracts referencing approximately 2,000 Bitcoin, with a strike price of$70,000 and a maturity extending through September 25, 2026. These contracts resulted in a derivative liability on digital assets and related receivables of $2.0 million as of August 1, 2026, which is presented within Accrued liabilities and other current liabilities. During the first half of fiscal 2026, changes in the fair value of covered-call option contracts, including contracts that matured prior to August 1, 2026, resulted in a gain of approximately $13.8 million. No derivative assets were recognized as of the reporting date related to covered-call options. Premiums received at inception are initially recorded on the condensed consolidated balance sheets and subsequently reflected in earnings consistent with the subsequent fair value changes of the related options.

The fair value of these written options is measured using standard option-pricing models incorporating observable market inputs, including Bitcoin spot prices, implied volatility, and time to expiration. As such, the options are classified as Level 2 within the fair value hierarchy. Changes in the fair value of the options are recognized in earnings within Other income, net, classified as nonoperating activity. This presentation is consistent with the treatment of fair value changes related to our Digital assets and related receivables, which are recognized in earnings within "Gain (loss) on digital assets and related receivables," also classified as nonoperating activity.

In connection with the covered-call strategy, the Company pledged 4,709 Bitcoin (the "Pledged Bitcoin") as collateral. Under the terms of the Collateral Agreement, Coinbase maintains the right to rehypothecate, commingle, or unilaterally sell the Pledged Bitcoin, and the Company concluded that control of the Pledged Bitcoin transferred to Coinbase. Accordingly, during the fourth quarter of fiscal 2025, the Company derecognized the Pledged Bitcoin and recognized a Digital assets receivable representing the fair value of its contractual right to receive equivalent Bitcoin in the future. The Digital assets receivable is presented within Digital assets and related receivables on the condensed consolidated balance sheets as of both August 1, 2026 and January 31, 2026, and remains subject to the Collateral Agreement. The receivable is due within the next 12 months and accordingly is classified as a current asset.

The Digital assets receivable is remeasured at fair value at each reporting date in accordance with ASC 820. The receivable's fair value is determined using Level 2 inputs, specifically the unadjusted quoted prices in active markets for the underlying crypto asset (Bitcoin). While the value of the receivable is directly derived from the market price of Bitcoin, the receivable itself is not a traded instrument; therefore, it is classified within Level 2 of the fair value hierarchy. Changes in the fair value of the Digital assets receivable are recognized within Gain on digital assets and related receivables in the condensed consolidated statements of operations and are presented as nonoperating activity.

The following table presents the Company's digital asset holdings as of August 1, 2026:

(1) Actual Bitcoin quantity held; not in millions.

The Company recorded a loss of $75.0 million and $73.9 million, respectively, on Digital assets and related receivables during the three and six months ended August 1, 2026. The Company did not purchase or sell any Bitcoin during the first half of fiscal 2026.

12. Income Taxes

Our interim tax provision was determined using an estimated annual effective tax rate ("AETR") applied to ordinary pre-tax income, adjusted for the tax effects of discrete items recognized during the six months ended August 1, 2026.

We recognized income tax expense of$121.5 millionfor the three months ended August 1, 2026, representing an effective tax rate of 28.9%, compared to income tax expense of$6.0 million, or an effective tax rate of 3.4%, for the three months ended August 2, 2025.

The increase in income tax expense was driven primarily by significantly higher pre-tax income for the three months ended August 1, 2026. The increase in the effective tax rate reflects that the prior-year period benefited from the utilization of U.S. net operating loss carryforwards and the related release of valuation allowances, which were substantially exhausted by the end of fiscal 2025. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily attributable to state income taxes and losses for which no corresponding tax benefit was recognized.

We recognized income tax expense of $238.3 million for thesix months ended August 1, 2026, representing an effective tax rate of 25.7%, compared to income tax expense of $9.5 million, or an effective tax rate of 4.3%, for thesix months ended August 2, 2025.

The increase in income tax expense was driven primarily by significantly higher pre-tax income for the six months ended August 1, 2026. The increase in the effective tax rate reflects that the prior-year period benefited from the utilization of U.S. net operating loss carryforwards and the related release of valuation allowances, which were substantially exhausted by the end of fiscal 2025. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily attributable to state income taxes and losses for which no corresponding tax benefit was recognized.

On July 4, 2025, the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The legislation makes permanent certain expiring provisions of the Tax Cuts and Jobs Act, modifies the U.S. international tax framework, and restores certain favorable business tax provisions. The OBBBA's provisions take effect on various dates between 2025 and 2027. The Company has evaluated the legislation and does not expect it to have a material impact on its estimated fiscal 2026 effective tax rate. The Company will continue to monitor implementing guidance and regulations.

13. Related Party Transactions

One of the Company's directors, Nat Turner, also serves as the Chairman and Chief Executive Officer of Collectors Holdings, Inc. ("Collectors"), the parent company of Professional Sports Authenticator ("PSA"). As a result, Collectors and PSA are considered related parties under ASC 850, Related Party Disclosures.

During the third quarter of the fiscal year ended February 1, 2025, the Company announced that it had entered into a collaboration with Collectors through its PSA division. Under this arrangement, the Company became an authorized PSA dealer, and PSA provides authentication and grading services for trading cards through select GameStop stores across the United States.

During the second quarter of fiscal 2025, the Company launched Power Packs, a digital trading card platform developed in collaboration with PSA.

Transactions with Collectors and PSA were not mate rial, individually or in the aggregate, during the first two quarters of fiscal 2026 and 2025.

14. Share Repurchase Program

During the second quarter of fiscal 2026, the Board approved a new discretionary $2.0 billion share repurchase authorization to replace the previous share repurchase authorization. Under the new share repurchase authorization, the Company may repurchase shares of its Class A common stock from time to time in compliance with SEC regulations and other legal requirements, and subject to market conditions and other factors. The repurchase authorization does not require the Company to acquire any specific number of shares and may be terminated at any time. The new share repurchase authorization expires on June 2, 2029.

As of August 1, 2026, the Company had not repurchased any of its shares of Class A common stock under the program.

15. Subsequent Events

On August 2, 2026, 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 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 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. 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 Class A common stock, with the number of shares based in part on the volume-weighted average price of the Class A 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. The Exchange closed on September 3, 2026. In total, the Existing Noteholders received in the aggregate approximately 55.5 million shares of Class A common stock and approximately $358.4 million in cash.

GameStop expects to recognize a non-cash charge in connection with the Exchange.