GameStop Guides to $600M+ Adjusted EBITDA Despite Declining Sales

GameStop guided to Adjusted EBITDA exceeding $600 million for fiscal year 2026, up from $345 million the prior year — yet the WSJ reports this comes alongside lower revenue. Profits rising on shrinking sales. EBITDA strips out interest, taxes, depreciation, and amortization to approximate cash operating earnings. Without segment-level disclosure, the source of margin expansion remains unexplained.