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How GameStop (GME) makes money
GameStop (GME) made $790M of revenue in the second quarter fiscal 2027 (Q2 FY27), -19% from a year earlier. Collectibles brought in $356M (45%); Video Games brought in $263M (33%); Pre--Owned and Refurbished brought in $171M (22%). Of every dollar of revenue, 44¢ was left as gross profit, 20¢ was left as operating profit, 38¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q2 FY27
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Collectibles | $356M | 45.1% | — | +57% |
| Video Games | $263M | 33.3% | — | -47% |
| Pre--Owned and Refurbished | $171M | 21.6% | — | -32% |
Where each dollar of revenue goes
| Line | Q2 FY27 | % of revenue |
|---|---|---|
| Revenue | $790M | 100.0% |
| Cost of revenue | $445M | 56.3% |
| Gross profit | $345M | 43.7% |
| Operating expenses | $185M | 23.4% |
| Operating profit | $160M | 20.3% |
| Income tax | $122M | 15.4% |
| Net earnings | $299M | 37.8% |
| Operating cash flow | $62.4M | 7.9% |
| Free cash flow | $60.7M | 7.7% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q2 FY27 | $790M | -19% |
| Q1 FY27 | $835M | +14% |
| Q4 FY26 | $1.1B | -14% |
| Q3 FY26 | $821M | -5% |
| Q2 FY26 | $972M | +22% |
| Q1 FY26 | $732M | -17% |
| Q4 FY25 | $1.3B | -28% |
From GameStop's 10-Q filed Sep 9, 2026 (on EDGAR).
Questions
How does GameStop make money?
GameStop (GME) made $790M of revenue in the second quarter fiscal 2027 (Q2 FY27), -19% from a year earlier. Collectibles brought in $356M (45%); Video Games brought in $263M (33%); Pre--Owned and Refurbished brought in $171M (22%). Of every dollar of revenue, 44¢ was left as gross profit, 20¢ was left as operating profit, 38¢ was left as net earnings.
What is GameStop's biggest business?
Collectibles: $356M in the second quarter fiscal 2027, 45% of revenue, +57% from a year earlier.
What is GameStop's profit margin?
Net earnings were $299M, 37.8% of revenue, in the second quarter fiscal 2027; the operating margin was 20.3%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.