GameStop (NYSE:GME) stock soared by 10% in premarket trading following impressive second-quarter results that showed a return to profitability backed by strong sales in hardware and collectibles.

The video game retailer reported earnings of $0.25 per share, surpassing the expected $0.16, with revenue reaching $972.2 million, compared to the prior year’s $798.3 million, exceeding estimates of $823.3 million.

Operating income witnessed remarkable recovery, improving to $66.4 million from a loss of $22 million just a year ago. Selling, general, and administrative expenses also decreased, standing at $218.8 million, down from $270.8 million in the previous year. The company’s net income surged to $168.6 million, an increase from $14.8 million. Adjusted net income increased to $138.3 million compared to $5.2 million last year.

Collectibles saw a whopping 63% growth year-over-year, while revenue from hardware and accessories climbed by 31% to $592.1 million, buoyed by the demand linked to the anticipated Nintendo Switch 2 and an exciting lineup of game releases enhancing console sales.