GameStop Releases Second Quarter Financial Results, Shows Positive Growth

GRAPEVINE, Texas, Sept. 10, 2024 - GameStop Corp. (NYSE: GME) announced its financial results for the second quarter that ended on August 3, 2024. The company's condensed and consolidated financial statements, including GAAP and non-GAAP results, were released along with supplemental information.

The company reported adjusted SG&A expenses, adjusted operating loss, adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA, and free cash flow. These non-GAAP financial measures were used to evaluate GameStop's core operating performance by excluding certain transformation costs, asset impairments, severance, and divestiture costs.

GameStop believes that these non-GAAP financial measures provide valuable information for investors to assess its financial condition and performance. However, it acknowledges that the definition and calculation of these measures may differ from other companies and should be considered in conjunction with GAAP financial results.

The company emphasized that forward-looking statements made in the press release are subject to risks and uncertainties, and actual outcomes may differ from the expectations presented. Factors such as economic, social, and political conditions, competition, changes in consumer behavior, disruptions in the supply chain, and potential litigation could impact GameStop's financial position and results of operations.

To reconcile its financial statements, GameStop provided tables that compared the GAAP figures to adjusted SG&A expenses, operating loss, net income (loss), net income (loss) per share, and EBITDA. These reconciliations help investors understand the adjustments made to GAAP results.

Furthermore, the company shared its free cash flow, which measures its ability to generate additional cash from business operations. GameStop believes that free cash flow is an important metric for investors to evaluate the company's financial performance.

By presenting adjusted EBITDA, adjusted SG&A expenses, adjusted operating loss, adjusted net income (loss), and adjusted net income (loss) per share, GameStop aims to provide investors with a comprehensive view of its financial condition and results of operations. However, it cautions that these non-GAAP measures have limitations and should not be considered as alternatives to the directly comparable GAAP measures.

The release concluded by stating that the company does not have an obligation to publicly update any forward-looking statements unless required by applicable securities laws. Any updates will take into account new information, future developments, and changes in circumstances.