Take-Two (NASDAQ: TTWO) Q1 2027 loss widens, keeps $8B bookings goal
Rhea-AI Filing Summary
Take-Two Interactive Software reported fiscal first quarter 2027 results for the period ended June 30, 2026. GAAP net revenue was $1.53 billion, up slightly year over year, while Net Bookings were $1.39 billion, down 3% but slightly above the company’s guidance range. Recurrent consumer spending represented 84% of both Net Bookings and GAAP net revenue.
The company recorded a GAAP net loss of $34.1 million, or $0.18 per share, versus a $11.9 million loss a year earlier, including a $43.4 million impairment on an unannounced title. EBITDA was $167.0 million. For fiscal 2027, Take-Two expects Net Bookings of $8.0–$8.2 billion, net revenue of $7.9–$8.1 billion, and EBITDA of $993–$1,053 million, and forecasts a Q2 GAAP net loss and EBITDA between $(20) million and $4 million. The release highlights a slate led by the planned November 19, 2026 launch of Grand Theft Auto VI and other major titles.
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Filing Explained
Results remain preliminary pending the Form 10-Q.
This
Under the supplied dilution definition, additional shares increase the total share count and reduce an existing holder’s percentage ownership absent offsetting changes. The filing establishes that share counts increased, but does not quantify the resulting percentage effect on existing holders.
At June 30, the company reported cash and equivalents, short-term investments, current debt, and long-term debt. Operating activities used cash during the quarter; the final figures are to be reported in the Form 10-Q.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GAAP net revenue: $1,533.9 million
Net Bookings: $1,385.9 million
GAAP net loss: $(34.1) million
+5 more
8 metrics
GAAP net revenue
$1,533.9 million
Three months ended June 30, 2026
Net Bookings
$1,385.9 million
First quarter fiscal 2027, down 3% year over year
GAAP net loss
$(34.1) million
Three months ended June 30, 2026; $(0.18) per share
EBITDA
$167.0 million
Three months ended June 30, 2026, non-GAAP measure
FY 2027 Net Bookings outlook
$8,000 to $8,200 million
Fiscal year ending March 31, 2027
FY 2027 EBITDA outlook
$993 to $1,053 million
Fiscal year ending March 31, 2027
Q2 2027 net revenue outlook
$1,420 to $1,470 million
Three months ending September 30, 2026
Net cash used in operating activities
$(168.8) million
Three months ended June 30, 2026
Key Terms
Net Bookings, recurrent consumer spending, EBITDA, deferred revenue, +1 more
5 terms
Net Bookings financial
"Fiscal first quarter Net Bookings were $1.39 billion, slightly above Company's guidance range"
Net bookings measure the total value of contracts, orders or subscriptions a company signs during a period after subtracting cancellations, returns and other order-level reductions; it counts what customers have committed to buy rather than what has already been recorded as revenue. Think of it like a restaurant’s confirmed reservations and menu orders after accounting for no-shows — it signals demand, future sales and business momentum, giving investors a view of upcoming revenue potential.
recurrent consumer spending financial
"Net Bookings from recurrent consumer spending decreased 1% and accounted for 84% of total Net Bookings"
Recurrent consumer spending is the pattern of customers making the same or similar purchases regularly—like subscriptions, routine grocery buys, or repeat service fees—rather than one-time transactions. For investors it signals more predictable revenue and customer loyalty, which can lower sales volatility and support higher valuations; think of it as a steady stream of income like a monthly utility bill versus a single occasional purchase.
EBITDA financial
"EBITDA is defined as GAAP net income (loss) excluding interest income (expense)..."
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
deferred revenue financial
"Change in deferred net revenue and related cost of revenue"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
impairment charge financial
"Cost of revenue included a $43.4 million impairment charge related to the Company's decision not to proceed"
An impairment charge is an accounting write-down taken when a company determines an asset—like a building, patent, or investment—is worth less than its recorded value, similar to lowering the price tag on a used car when damage reduces its resale value. It matters to investors because it reduces reported profits and the company’s asset base, can signal business challenges or one-time losses, and may affect future earnings, creditworthiness, and valuation.
Earnings Snapshot
GAAP net revenue: $1,533.9 million · Guidance included
Fiscal first quarter 2027 ended June 30, 2026
GAAP net revenue
$1,533.9 million
up from $1,503.8 million in the prior-year quarter
Net Bookings
$1,385.9 million
decreased 3% from $1,423.1 million a year earlier
GAAP net loss
$(34.1) million
compared with a net loss of $(11.9) million a year earlier
EBITDA
$167.0 million
down from $225.5 million in the prior-year quarter
Guidance
For fiscal 2027, the company expects Net Bookings of $8,000 to $8,200 million, EBITDA of $993 to $1,053 million, and Q2 Net Bookings of $1,620 to $1,670 million.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Take-Two (TTWO)'s Q1 fiscal 2027 revenue and Net Bookings?
Take-Two reported GAAP net revenue of $1,533.9 million and Net Bookings of $1,385.9 million for Q1 fiscal 2027. Net Bookings decreased 3% from $1,423.1 million a year earlier, and recurrent consumer spending represented 84% of both revenue and Net Bookings.
Did Take-Two (TTWO) post a profit or loss in Q1 fiscal 2027?
Take-Two recorded a GAAP net loss of $34.1 million, or $0.18 per share, in Q1 fiscal 2027, compared with a $11.9 million loss a year earlier. Cost of revenue included a $43.4 million impairment from discontinuing development of an unannounced third-party title.
What is Take-Two (TTWO)'s fiscal 2027 outlook for Net Bookings and EBITDA?
For the year ending March 31, 2027, Take-Two expects Net Bookings of $8,000 to $8,200 million and EBITDA of $993 to $1,053 million. The company also projects GAAP net revenue of $7,900 to $8,100 million and uses an anticipated management tax rate of 18%.
What guidance did Take-Two (TTWO) provide for Q2 fiscal 2027?
For Q2 ending September 30, 2026, Take-Two projects GAAP net revenue of $1,420 to $1,470 million and Net Bookings of $1,620 to $1,670 million. Guidance implies a GAAP net loss of $(157) to $(140) million and EBITDA between $(20) million and $4 million.
How important is recurrent consumer spending to Take-Two (TTWO)'s results?
Recurrent consumer spending is significant, contributing 84% of both GAAP net revenue and Net Bookings in Q1 fiscal 2027. This includes virtual currency, add-on content, in-game purchases, and advertising across key franchises such as NBA 2K, Grand Theft Auto, and mobile titles.
What does Take-Two (TTWO)'s upcoming release pipeline include?
The announced lineup includes Grand Theft Auto VI for PS5 and Xbox Series X|S on November 19, 2026 and NBA 2K27 on September 4, 2026, plus future titles like PGA TOUR 2K27, WWE 2K27, mobile games such as Top Goal and CSR 3, and new IP including Judas.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 7, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission | (IRS Employer | ||||||
| of incorporation) | File Number) | Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||||||||
Registrant’s telephone number, including area code (646) 536-2842
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 | Results of Operations and Financial Condition | ||||
On August 7, 2026 , Take-Two Interactive Software, Inc. (the “Company”) issued a press release announcing the financial results of the Company for its first fiscal quarter ended June 30, 2026. A copy of the press release is attached to this Current Report as Exhibit 99.1 and is incorporated by reference herein.
The information included in this Current Report on Form 8-K, including Exhibit 99.1 hereto, that is furnished pursuant to this Item 2.02 shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, the information included in this Current Report on Form 8-K, including Exhibit 99.1 hereto, that is furnished pursuant to this Item 2.02 shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference into such filing.
Item 9.01 | Financial Statements and Exhibits | ||||
| (d) | Exhibits: | |||||||
99.1 | Press Release dated August 7, 2026 relating to Take-Two Interactive Software, Inc.’s financial results for its first fiscal quarter ended June 30, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||
| (Registrant) | ||||||||
| By: | /s/ Matthew Breitman | |||||||
| Matthew Breitman | ||||||||
| Chief Governance Officer & Corporate Secretary | ||||||||
Date: | ||||||||
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Exhibit 99.1
 | ||||||||
| FOR IMMEDIATE RELEASE | ||||||||
| CONTACT: | |||||
| (Investor Relations) | (Corporate Press) | ||||
| Nicole Shevins | Alan Lewis | ||||
| Senior Vice President | Head of Global Corporate Communications | ||||
| Investor Relations & Corporate Communications | Take-Two Interactive Software, Inc. | ||||
| Take-Two Interactive Software, Inc. | (646) 536-2983 | ||||
| (646) 536-3005 | Alan.Lewis@take2games.com | ||||
| Nicole.Shevins@take2games.com | |||||
Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2027
Fiscal first quarter Net Bookings were $1.39 billion, slightly above Company's guidance range
Company updates fiscal year 2027 outlook and reiterates expectation for Net Bookings of $8.0 to $8.2 billion
New York, NY – August 7, 2026 – Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the first quarter of its fiscal year 2027, ended June 30, 2026. For further information, please see the first quarter fiscal 2027 results slide deck posted to the Company’s investor relations website at take2games.com/ir.
CEO Comments
Strauss Zelnick, Chairman and CEO of Take-Two Interactive, stated: “Our excellent first quarter results reflect the power of our portfolio and disciplined execution across all of our labels. With these positive trends and excitement around the November 19th launch of Grand Theft Auto VI, we are reiterating our Fiscal 2027 Net Bookings outlook of $8.0 to $8.2 billion. Looking further ahead, we expect to sustain this new level of scale and generate strong cash flows, setting us on a path to deliver continued growth and long-term shareholder returns.”
First Quarter Fiscal 2027 Financial and Operational Highlights
•Total Net Bookings* decreased 3% to $1.39 billion compared to $1.42 billion during last year’s fiscal first quarter.
◦Net Bookings from recurrent consumer spending** decreased 1% and accounted for 84% of total Net Bookings.
◦The largest contributors to Net Bookings were NBA® 2K, the Grand Theft Auto® series, Toon Blast™, Match Factory!™, Empires & Puzzles™, the Red Dead Redemption® series, Words With Friends™, Color Block Jam™, WWE® 2K, Zynga Poker™, and Toy Blast™.
•GAAP net revenue was $1.53 billion, compared to $1.50 billion in last year’s fiscal first quarter.
◦Recurrent consumer spending** increased 3% and accounted for 84% of total GAAP net revenue.
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◦The largest contributors to GAAP net revenue were NBA 2K, the Grand Theft Auto series, Toon Blast, Empires & Puzzles, Match Factory!, the Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker, and Merge Dragons™.
•GAAP net loss was $34.1 million, or $0.18 per share, as compared to $11.9 million, or $0.07 per share, for the comparable period last year. Cost of revenue included a $43.4 million impairment charge related to the Company's decision not to proceed with further development of an unannounced title in its pipeline from a third-party developer.
* Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.
First Quarter Fiscal 2027 Financial Results
The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business:
| Three Months Ended June 30, 2026 | ||||||||||||||||||||||||||||||||||||||
| Financial Data | ||||||||||||||||||||||||||||||||||||||
| in millions | Statement of Operations | Change in deferred net revenue and related cost of revenue | Stock-based compensation | Amortization of acquired intangibles | Business acquisition | Other (a) | ||||||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||||
| Total net revenue | $ | 1,533.9 | (148.0) | |||||||||||||||||||||||||||||||||||
| Cost of revenue | 651.4 | (15.6) | (3.1) | (154.9) | ||||||||||||||||||||||||||||||||||
| Gross profit | 882.5 | (132.4) | 3.1 | 154.9 | ||||||||||||||||||||||||||||||||||
| Operating expenses | 918.0 | (82.9) | (13.5) | (2.4) | ||||||||||||||||||||||||||||||||||
| (Loss) income from operations | (35.5) | (132.4) | 86.0 | 168.4 | 2.4 | |||||||||||||||||||||||||||||||||
| Interest and other, net | (13.8) | 0.4 | 2.2 | 3.2 | ||||||||||||||||||||||||||||||||||
| (Loss) income before income taxes | (49.3) | (132.0) | 86.0 | 168.4 | 4.6 | 3.2 | ||||||||||||||||||||||||||||||||
| Non-GAAP | ||||||||||||||||||||||||||||||||||||||
| EBITDA | 167.0 | (132.0) | 86.0 | 2.9 | 3.2 | |||||||||||||||||||||||||||||||||
•The above table utilizes a management tax rate of 18%
•Share count used to calculate management reporting diluted net income per share is 187.8 million
(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar, (ii) fair value adjustments related to certain equity investments, and (iii) a gain from the sale of marketable securities.
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Outlook for Fiscal Year 2027
Take-Two is updating its outlook for the fiscal year and providing its initial outlook for its fiscal second quarter ending September 30, 2026:
Fiscal Year Ending March 31, 2027
The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
| Fiscal Year Ending March 31, 2027 | ||||||||||||||||||||||||||||||||
| Financial Data | ||||||||||||||||||||||||||||||||
| $ in millions except for per share amounts | Outlook (b) | Change in deferred net revenue and related cost of revenue | Stock-based compensation | Amortization of acquired intangibles | Other | |||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||
| Total net revenue | $7,900 to $8,100 | $100 | ||||||||||||||||||||||||||||||
| Cost of revenue | $3,538 to $3,658 | $(10) | $(83) | $(567) | ||||||||||||||||||||||||||||
| Operating expenses | $4,150 to $4,170 | $(349) | $(51) | |||||||||||||||||||||||||||||
| Interest and other, net | $53 | $(8) | ||||||||||||||||||||||||||||||
| Income before income taxes | $159 to $219 | $110 | $432 | $618 | $8 | |||||||||||||||||||||||||||
| Net income | $104 to $143 | |||||||||||||||||||||||||||||||
| Diluted net income per share | $0.55 to $0.75 | |||||||||||||||||||||||||||||||
| Net cash provided by operating activities | over $1,000 | |||||||||||||||||||||||||||||||
| Capital expenditures | approximately $290 | |||||||||||||||||||||||||||||||
| Non-GAAP | ||||||||||||||||||||||||||||||||
| EBITDA | $993 to $1,053 | $110 | $432 | |||||||||||||||||||||||||||||
| Operational metric | ||||||||||||||||||||||||||||||||
| Net Bookings | $8,000 to $8,200 | |||||||||||||||||||||||||||||||
•Management reporting tax rate anticipated to be 18%
•Share count used to calculate GAAP and management reporting diluted net income per share is expected to be 189.4 million
(b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.
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Fiscal Second Quarter Ending September 30, 2026
The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Three Months Ending September 30, 2026 | ||||||||||||||||||||||||||||||||
| Financial Data | ||||||||||||||||||||||||||||||||
| $ in millions except for per share amounts | Outlook (b) | Change in deferred net revenue and related cost of revenue | Stock-based compensation | Amortization of acquired intangibles | Other | |||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||
| Total net revenue | $1,420 to $1,470 | $200 | ||||||||||||||||||||||||||||||
| Cost of revenue | $622 to $638 | $10 | $(4) | $(136) | ||||||||||||||||||||||||||||
| Operating expenses | $1,009 to $1,019 | $(86) | $(13) | |||||||||||||||||||||||||||||
| Interest and other, net | $13 | $(1) | ||||||||||||||||||||||||||||||
| (Loss) income before income taxes | $(224) to $(200) | $190 | $90 | $149 | $1 | |||||||||||||||||||||||||||
| Net (loss) income | $(157) to $(140) | |||||||||||||||||||||||||||||||
| Net (loss) income per share | $(0.84) to $(0.75) | |||||||||||||||||||||||||||||||
| Non-GAAP | ||||||||||||||||||||||||||||||||
| EBITDA | $(20) to $4 | $190 | $90 | |||||||||||||||||||||||||||||
| Operational metric | ||||||||||||||||||||||||||||||||
| Net Bookings | $1,620 to $1,670 | |||||||||||||||||||||||||||||||
•Management reporting tax rate anticipated to be 18%
•Share count used to calculate GAAP net loss per share is expected to be 187.1 million
•Share count used to calculate management reporting diluted net income per share is expected to be 188.5 million
(b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.
Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following have been released since April 1, 2026:
| Label | Product | Platforms | Release Date | ||||||||
| Rockstar Games | Grand Theft Auto Online Kortz Center Heist Summer Update | PS4, PS5, Xbox One, Xbox Series X|S, PC | July 14, 2026 | ||||||||
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Take-Two's future lineup announced to-date includes:
| Label | Product | Platforms | Release Date | ||||||||
| 2K | NBA 2K27 | PS5, Xbox Series X|S, Switch 2, PC | September 4, 2026 | ||||||||
| Rockstar Games | Grand Theft Auto VI | PS5, Xbox Series X|S | November 19, 2026 | ||||||||
| 2K | PGA TOUR 2K27 | TBA | TBA | ||||||||
| 2K | WWE 2K27 | TBA | TBA | ||||||||
| Zynga | Top Goal | iOS, Android | TBA | ||||||||
| Zynga | CSR 3 | iOS, Android | TBA | ||||||||
| Ghost Story Games | Judas | PS5, Xbox Series X|S, PC | TBA | ||||||||
| 2K | Project ETHOS | TBA | TBA | ||||||||
| 2K | BioShock next iteration | TBA | TBA | ||||||||
Conference Call
Take-Two will host a conference call today at 8:00 a.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (833) 461-5787 (Meeting ID: 773792521). A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.
Non-GAAP Financial Measure
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles.
The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition.
This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial tables to this press release.
Final Results
The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Quarterly Report on Form 10-Q for the period ended June 30, 2026.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, and Zynga. Our strategy is to create hit entertainment experiences, delivered on every platform relevant to our audience through a variety of sound business models. Our pillars - creativity, innovation, and efficiency - guide us as we strive to create the highest quality, most captivating experiences for our consumers. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their respective holders.
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Cautionary Note Regarding Forward-Looking Statements
The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software, Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns) outlook, are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties, including risks relating to the timely release and significant market acceptance of our games; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; and the ability to maintain acceptable pricing levels on our games.
Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
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| TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | ||||||||||||||
| (in millions, except per share amounts) | ||||||||||||||
| Three Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net revenue: | ||||||||||||||
| Game | $ | 1,422.8 | $ | 1,382.5 | ||||||||||
| Advertising | 111.1 | 121.3 | ||||||||||||
| Total net revenue | 1,533.9 | 1,503.8 | ||||||||||||
| Cost of revenue: | ||||||||||||||
| Product costs | 187.8 | 210.4 | ||||||||||||
| Game intangibles | 154.3 | 158.5 | ||||||||||||
| Software development costs and royalties | 135.1 | 30.1 | ||||||||||||
| Licenses | 99.5 | 70.9 | ||||||||||||
| Internal royalties | 74.7 | 88.9 | ||||||||||||
| Total cost of revenue | 651.4 | 558.8 | ||||||||||||
| Gross profit | 882.5 | 945.0 | ||||||||||||
| Selling and marketing | 369.7 | 409.2 | ||||||||||||
| Research and development | 273.8 | 256.4 | ||||||||||||
| General and administrative | 226.3 | 207.4 | ||||||||||||
| Depreciation and amortization | 48.2 | 50.4 | ||||||||||||
| Total operating expenses | 918.0 | 923.4 | ||||||||||||
| (Loss) income from operations | (35.5) | 21.6 | ||||||||||||
| Interest and other, net: | ||||||||||||||
| Interest income | 22.8 | 16.5 | ||||||||||||
| Interest expense | (30.4) | (38.9) | ||||||||||||
| Other income/(expense), net | (6.2) | (13.0) | ||||||||||||
| Interest and other, net | (13.8) | (35.4) | ||||||||||||
| Loss before income taxes | (49.3) | (13.8) | ||||||||||||
| Benefit from income taxes | (15.2) | (1.9) | ||||||||||||
| Net loss | $ | (34.1) | $ | (11.9) | ||||||||||
| Loss per share: | ||||||||||||||
| Basic and diluted loss per share | $ | (0.18) | $ | (0.07) | ||||||||||
| Weighted average shares outstanding | ||||||||||||||
| Basic | 186.2 | 180.8 | ||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| (in millions, except per share amounts) | ||||||||||||||
| June 30, 2026 | March 31, 2026 | |||||||||||||
| (Unaudited) | ||||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 1,364.9 | $ | 1,545.5 | ||||||||||
| Short-term investments | 461.7 | 443.8 | ||||||||||||
| Restricted cash and cash equivalents | 14.0 | 13.2 | ||||||||||||
Accounts receivable, net of allowances of $0.8 and $0.9 at June 30, 2026 and March 31, 2026, respectively | 606.9 | 737.0 | ||||||||||||
| Software development costs and licenses | 36.0 | 68.8 | ||||||||||||
| Contract assets | 69.7 | 89.7 | ||||||||||||
| Prepaid expenses and other | 403.9 | 301.5 | ||||||||||||
| Total current assets | 2,957.1 | 3,199.5 | ||||||||||||
| Fixed assets, net | 429.6 | 445.4 | ||||||||||||
| Right-of-use assets | 321.9 | 334.6 | ||||||||||||
| Software development costs and licenses, net of current portion | 2,395.0 | 2,277.5 | ||||||||||||
| Goodwill | 1,060.9 | 1,061.9 | ||||||||||||
| Other intangibles, net | 1,493.6 | 1,653.2 | ||||||||||||
| Long-term restricted cash and cash equivalents | 67.2 | 79.4 | ||||||||||||
| Other assets | 338.9 | 331.7 | ||||||||||||
| Total assets | $ | 9,064.2 | $ | 9,383.2 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 179.5 | $ | 211.0 | ||||||||||
| Accrued expenses and other current liabilities | 914.3 | 1,117.8 | ||||||||||||
| Deferred revenue | 988.4 | 1,159.9 | ||||||||||||
| Lease liabilities | 71.5 | 70.1 | ||||||||||||
| Short-term debt, net | 629.9 | 30.0 | ||||||||||||
| Total current liabilities | 2,783.6 | 2,588.8 | ||||||||||||
| Long-term debt, net | 1,889.8 | 2,488.0 | ||||||||||||
| Non-current deferred revenue | 26.1 | 29.7 | ||||||||||||
| Non-current lease liabilities | 353.5 | 370.2 | ||||||||||||
| Non-current software development royalties | 71.1 | 84.5 | ||||||||||||
| Deferred tax liabilities, net | 197.9 | 182.3 | ||||||||||||
| Other long-term liabilities | 133.8 | 128.8 | ||||||||||||
| Total liabilities | $ | 5,455.8 | $ | 5,872.3 | ||||||||||
| Stockholders' equity: | ||||||||||||||
Preferred stock, $0.01 par value, 5.0 shares authorized: no shares issued and outstanding at June 30, 2026 and March 31, 2026 | — | — | ||||||||||||
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 210.7 and 209.1 shares issued and 187.0 and 185.4 outstanding at June 30, 2026 and March 31, 2026, respectively | 2.1 | 2.1 | ||||||||||||
| Additional paid-in capital | 12,095.8 | 11,953.7 | ||||||||||||
Treasury stock, at cost; 23.7 and 23.7 common shares at June 30, 2026 and March 31, 2026, respectively | (1,020.6) | (1,020.6) | ||||||||||||
| Accumulated deficit | (7,391.1) | (7,357.0) | ||||||||||||
| Accumulated other comprehensive loss | (77.8) | (67.3) | ||||||||||||
| Total stockholders' equity | $ | 3,608.4 | $ | 3,510.9 | ||||||||||
| Total liabilities and stockholders' equity | $ | 9,064.2 | $ | 9,383.2 | ||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | ||||||||||||||
| (in millions) | ||||||||||||||
| Three Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Operating activities: | ||||||||||||||
| Net loss | $ | (34.1) | $ | (11.9) | ||||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
| Amortization and impairment of software development costs and licenses | 107.5 | 46.1 | ||||||||||||
| Stock-based compensation | 86.0 | 40.7 | ||||||||||||
| Noncash lease expense | 14.5 | 13.1 | ||||||||||||
| Amortization and impairment of intangibles | 168.5 | 174.8 | ||||||||||||
| Depreciation | 40.1 | 42.1 | ||||||||||||
| Interest expense | 30.4 | 38.9 | ||||||||||||
| Other, net | 6.7 | 16.9 | ||||||||||||
| Changes in assets and liabilities: | ||||||||||||||
| Accounts receivable | 130.0 | 114.8 | ||||||||||||
| Software development costs and licenses | (173.0) | (164.6) | ||||||||||||
| Prepaid expenses, other current and other non-current assets | (104.6) | (43.5) | ||||||||||||
| Deferred revenue | (174.9) | (72.3) | ||||||||||||
| Accounts payable, accrued expenses and other liabilities | (265.9) | (239.8) | ||||||||||||
| Net cash used in operating activities | (168.8) | (44.7) | ||||||||||||
| Investing activities: | ||||||||||||||
| Change in bank-time deposits | (17.9) | (0.7) | ||||||||||||
| Purchases of fixed assets | (25.0) | (25.1) | ||||||||||||
| Purchases of long-term investments | (4.9) | (6.6) | ||||||||||||
| Asset acquisitions | (15.8) | (4.4) | ||||||||||||
| Proceeds from sale of marketable securities | 11.2 | — | ||||||||||||
| Net cash used in investing activities | (52.4) | (36.8) | ||||||||||||
| Financing activities: | ||||||||||||||
| Tax payment related to net share settlements on restricted stock awards | (1.3) | (1.3) | ||||||||||||
| Issuance of common stock | 31.8 | 1,219.6 | ||||||||||||
| Repayment of debt | — | (600.0) | ||||||||||||
| Net cash provided by financing activities | 30.5 | 618.3 | ||||||||||||
| Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents | (1.3) | 20.2 | ||||||||||||
| Net change in cash, cash equivalents, and restricted cash and cash equivalents | (192.0) | 557.0 | ||||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1) | 1,638.1 | 1,559.2 | ||||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1) | $ | 1,446.1 | $ | 2,116.2 | ||||||||||
(1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Condensed Consolidated Balance Sheet.
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||||||||||||||
| Net Revenue and Net Bookings by Content, Platform Mix, Distribution Channel, and Geographic Region | ||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by content | ||||||||||||||||||||||||||
| Recurrent consumer spending | $ | 1,289.8 | 84 | % | $ | 1,256.1 | 84 | % | ||||||||||||||||||
| Full game and other | 244.1 | 16 | % | 247.7 | 16 | % | ||||||||||||||||||||
| Total Net revenue | $ | 1,533.9 | 100 | % | $ | 1,503.8 | 100 | % | ||||||||||||||||||
| Net Bookings by content | ||||||||||||||||||||||||||
| Recurrent consumer spending | $ | 1,169.4 | 84 | % | $ | 1,183.5 | 83 | % | ||||||||||||||||||
| Full game and other | 216.5 | 16 | % | 239.6 | 17 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 1,385.9 | 100 | % | $ | 1,423.1 | 100 | % | ||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by platform | ||||||||||||||||||||||||||
| Mobile | $ | 762.3 | 50 | % | $ | 801.7 | 53 | % | ||||||||||||||||||
| Console | 640.5 | 42 | % | 550.6 | 37 | % | ||||||||||||||||||||
| PC and other | 131.1 | 8 | % | 151.5 | 10 | % | ||||||||||||||||||||
| Total Net revenue | $ | 1,533.9 | 100 | % | $ | 1,503.8 | 100 | % | ||||||||||||||||||
| Net Bookings by platform | ||||||||||||||||||||||||||
| Mobile | $ | 739.5 | 53 | % | $ | 792.8 | 56 | % | ||||||||||||||||||
| Console | 525.2 | 38 | % | 474.4 | 33 | % | ||||||||||||||||||||
| PC and other | 121.2 | 9 | % | 155.9 | 11 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 1,385.9 | 100 | % | $ | 1,423.1 | 100 | % | ||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by distribution channel | ||||||||||||||||||||||||||
| Digital online | $ | 1,507.3 | 98 | % | $ | 1,476.6 | 98 | % | ||||||||||||||||||
| Physical retail and other | 26.6 | 2 | % | 27.2 | 2 | % | ||||||||||||||||||||
| Total Net revenue | $ | 1,533.9 | 100 | % | $ | 1,503.8 | 100 | % | ||||||||||||||||||
| Net Bookings by distribution channel | ||||||||||||||||||||||||||
| Digital online | $ | 1,368.6 | 99 | % | $ | 1,405.1 | 99 | % | ||||||||||||||||||
| Physical retail and other | 17.3 | 1 | % | 18.0 | 1 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 1,385.9 | 100 | % | $ | 1,423.1 | 100 | % | ||||||||||||||||||
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | |||||||||||||||||||||||||
| Amount | % of total | Amount | % of total | |||||||||||||||||||||||
| Net revenue by geographic region | ||||||||||||||||||||||||||
| United States | $ | 920.0 | 60 | % | $ | 900.4 | 60 | % | ||||||||||||||||||
| International | 613.9 | 40 | % | 603.4 | 40 | % | ||||||||||||||||||||
| Total Net revenue | $ | 1,533.9 | 100 | % | $ | 1,503.8 | 100 | % | ||||||||||||||||||
| Net Bookings by geographic region | ||||||||||||||||||||||||||
| United States | $ | 805.4 | 58 | % | $ | 836.6 | 59 | % | ||||||||||||||||||
| International | 580.5 | 42 | % | 586.5 | 41 | % | ||||||||||||||||||||
| Total Net Bookings | $ | 1,385.9 | 100 | % | $ | 1,423.1 | 100 | % | ||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | |||||||||||||||||||||||||||||||||||
| ADDITIONAL DATA | |||||||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Net revenue | Cost of revenue- Product costs | Cost of revenue- Game intangibles | Cost of revenue- Software development costs and royalties | Cost of revenue- Licenses | Cost of revenue- Internal royalties | |||||||||||||||||||||||||||||
| As reported | $ | 1,533.9 | $ | 187.8 | $ | 154.3 | $ | 135.1 | $ | 99.5 | $ | 74.7 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of revenue | (148.0) | (2.9) | (12.1) | (0.6) | |||||||||||||||||||||||||||||||
| Stock-based compensation | (3.1) | ||||||||||||||||||||||||||||||||||
| Amortization of acquired intangibles | (0.6) | (154.3) | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2026 | Selling and marketing | Research and development | General and administrative | Depreciation and amortization | Interest and other, net | ||||||||||||||||||||||||||||||
| As reported | $ | 369.7 | $ | 273.8 | $ | 226.3 | $ | 48.2 | $ | (13.8) | |||||||||||||||||||||||||
| Net effect from deferred revenue and related cost of revenue | 0.4 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | (23.8) | (19.4) | (39.7) | ||||||||||||||||||||||||||||||||
| Amortization of acquired intangibles | (5.6) | (7.9) | |||||||||||||||||||||||||||||||||
| Acquisition related expenses | (0.5) | (1.9) | 2.2 | ||||||||||||||||||||||||||||||||
| Other | 3.2 | ||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | Net revenue | Cost of revenue - Product costs | Cost of revenue -Game intangibles | Cost of revenue- Software development costs and royalties | Cost of revenue- Licenses | Cost of revenue- Internal royalties | |||||||||||||||||||||||||||||
| As reported | $ | 1,503.8 | $ | 210.4 | $ | 158.5 | $ | 30.1 | $ | 70.9 | $ | 88.9 | |||||||||||||||||||||||
| Net effect from deferred revenue and related cost of revenue | (80.7) | (3.6) | (7.9) | 0.2 | |||||||||||||||||||||||||||||||
| Stock-based compensation | 41.0 | ||||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (0.8) | (158.5) | |||||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2025 | Selling and marketing | Research and development | General and administrative | Depreciation and amortization | Interest and other, net | ||||||||||||||||||||||||||||||
| As reported | $ | 409.2 | $ | 256.4 | $ | 207.4 | $ | 50.4 | $ | (35.4) | |||||||||||||||||||||||||
| Net effect from deferred revenue and related cost of revenue | 0.4 | ||||||||||||||||||||||||||||||||||
| Stock-based compensation | (24.4) | (21.1) | (36.2) | ||||||||||||||||||||||||||||||||
| Amortization and impairment of acquired intangibles | (7.2) | (8.3) | |||||||||||||||||||||||||||||||||
| Acquisition related expenses | (0.3) | (3.6) | 5.5 | ||||||||||||||||||||||||||||||||
| Impact of business reorganization | (0.4) | 5.0 | (0.4) | ||||||||||||||||||||||||||||||||
| Other | (2.1) | ||||||||||||||||||||||||||||||||||
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | ||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURE | ||||||||||||||
| (in millions) | ||||||||||||||
| Three Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Net loss | $ | (34.1) | $ | (11.9) | ||||||||||
| Benefit from income taxes | (15.2) | (1.9) | ||||||||||||
| Interest income | (22.8) | (16.5) | ||||||||||||
| Interest expense | 30.4 | 38.9 | ||||||||||||
| Depreciation and amortization | 48.2 | 50.4 | ||||||||||||
| Amortization of acquired intangibles | 160.5 | 166.5 | ||||||||||||
| EBITDA | $ | 167.0 | $ | 225.5 | ||||||||||
| Outlook | ||||||||
| Fiscal Year Ending March 31, 2027 | ||||||||
| Net income | $104 to $143 | |||||||
| Provision for income taxes | $55 to $76 | |||||||
| Interest expense, net | $41 | |||||||
| Depreciation | $175 | |||||||
| Amortization of acquired intangibles | $618 | |||||||
| EBITDA | $993 to $1,053 | |||||||
| Outlook | ||||||||
| Three Months Ending September 30, 2026 | ||||||||
| Net loss | $(157) to $(140) | |||||||
| Benefit from income taxes | $(67) to $(60) | |||||||
| Interest expense, net | $11 | |||||||
| Depreciation | $44 | |||||||
| Amortization of acquired intangibles | $149 | |||||||
| EBITDA | $(20) to $4 | |||||||