GameStop forecasts $600M+ EBITDA for FY2027, a twelvefold jump from $50M in FY2024. eBay buys PSA parent's grading business to capture collectibles fees. Alpha Scores: GME 36, EBAY 51.
GameStop shares jumped after the company said it expects adjusted EBITDA above $600 million for the fiscal year ending January 2027. The forecast, disclosed in a regulatory filing, is the first forward-looking profit target the video-game retailer has given since the meme-stock era of 2021.
The projection implies a sharp turnaround. GameStop reported adjusted EBITDA of about $50 million in fiscal 2024. The company did not break down a detailed path to the new figure. The filing cited cost cuts and a shift toward higher-margin collectibles. GameStop has closed hundreds of locations over the past two years. It added trading cards and action figures to its shelves, leaning into a category that has driven foot traffic and average ticket size at other retailers.
GameStop holds roughly $4.6 billion in cash from its 2021 share sales, which it has used to buy Treasuries and other short-term instruments. The company has not said whether that cash will fund further acquisitions or share buybacks.
Separately, eBay said it would buy the collectibles authentication and grading business of PSA parent Collectors Holdings. The price was not disclosed. The deal gives eBay control over grading for trading cards, coins, and autographs. eBay already runs authentication hubs in several U.S. cities. Bringing grading in-house lets the platform capture fees that previously went to third-party services. The company said it expects the deal to close in the second half of 2025.
GameStop’s target depends on collectibles sales picking up. eBay’s acquisition locks in the infrastructure to profit from the same category.
GameStop’s stock page on AlphaScala shows an Alpha Score of 36 out of 100, a Mixed rating that reflects the gap between its cash position and operating performance. eBay’s score is 51, also Mixed, suggesting the market has not fully priced in the authentication push.
GameStop reports first-quarter earnings in early June. EBay expects to close the Collectors deal in the second half of 2025.
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