GameStop now generates more revenue from collectibles than video games.

The original meme stock is not the retail video game chain that was famously portrayed in the movie "Dumb Money."

GameStop (GME) late Tuesday said in the second quarter it generated 45% of its sales from collectibles, up from 23% last year. Video games are now a third of its revenue, compared to 51% in 2025, while pre-owned and refurbished segments, which includes old consoles as well as games, are 22% of all sales, versus a previous level of 26%.

Sales fell sharply, by 19% to $790.2 million, after the prior-year launch of Nintendo Switch 2, planned store closures, and the divestiture of the company's France operations, GameStop said. But the company was more profitable.

The Grapevine, Tex.-headquartered retailer lifted its target for annual adjusted earnings before interest, tax, depreciation and amortization to "in excess of $650 million" from its previous outlook of $600 million, after earning $339.7 million on that metric in the first half of the year.

GameStop said it has $5.4 billion in cash and equivalents at the end of the second quarter, vs. $8.7 billion last year, and some $300 million in digital assets and related receivables.

GameStop shares rose 0.6% in premarket trade. The stock has slipped 6% this year.

-Steve Goldstein