Take-Two Interactive Software, Inc.: Q1 FY2027 earnings call

What management said about Q1 FY2027, from the documents filed with the SEC on 7 August 2026: press release. Guidance figures: 3 raised, 4 lowered, 11 new, 5 kept. The quarter’s numbers.

Key takeaways

Net Bookings fell 3 percent: Total Net Bookings were $1.39 billion, down 3% from $1.42 billion a year earlier. Net Bookings from recurrent consumer spending fell 1% and made up 84% of the total. Source
Net loss was $34.1 million: GAAP net loss was $34.1 million, or $0.18 per share, against $11.9 million, or $0.07 per share, a year earlier. Source
Mobile revenue fell, console rose: Mobile net revenue was $762.3 million, 50% of the total, down from $801.7 million (53%). Console net revenue was $640.5 million, 42%, up from $550.6 million (37%). Source
EBITDA was $167.0 million: Non-GAAP EBITDA was $167.0 million, against $225.5 million a year earlier, per the reconciliation that adds back taxes, interest, depreciation and acquired intangible amortization. Source
Operating cash outflow widened: Net cash used in operating activities was $168.8 million, against $44.7 million a year earlier. Source
Debt mix shifted to short term: Short-term debt, net was $629.9 million at June 30, against $30.0 million at March 31. Long-term debt, net was $1,889.8 million, against $2,488.0 million. Source
Net Bookings expectation reiterated: Management reiterated its fiscal 2027 Net Bookings expectation and cited the November 19 launch of Grand Theft Auto VI alongside continued portfolio execution. Source
Second-quarter guidance first issued: Initial guidance was issued for the quarter ending September 30, 2026, covering net revenue, operating expenses, a GAAP net loss and Net Bookings. Source

“Our excellent first quarter results reflect the power of our portfolio and disciplined execution across all of our labels.”
Strauss Zelnick, Chairman and CEO of Take-Two Interactive

Guidance

Area	Period	Figure	Against last quarter
Total net revenue Source	fiscal year ending March 31, 2027	$7,900 to $8,100	Kept
Cost of revenue Source	fiscal year ending March 31, 2027	$3,538 to $3,658	Raised from $3,504 to $3,626
Operating expenses Source	fiscal year ending March 31, 2027	$4,150 to $4,170	Lowered from $4,180 to $4,200
Interest and other, net Source	fiscal year ending March 31, 2027	$53	Raised from $50
Income before income taxes Source	fiscal year ending March 31, 2027	$159 to $219	Lowered from $166 to $224
Net income Source	fiscal year ending March 31, 2027	$104 to $143
Diluted net income per share Source	fiscal year ending March 31, 2027	$0.55 to $0.75	Kept
Net cash provided by operating activities Source	fiscal year ending March 31, 2027	over $1,000	Kept
Capital expenditures Source	fiscal year ending March 31, 2027	approximately $290	Raised from approximately $200
Non-GAAP EBITDA Source	fiscal year ending March 31, 2027	$993 to $1,053	Lowered from $1,013 to $1,070
Net Bookings Source	fiscal year ending March 31, 2027	$8,000 to $8,200	Kept
Share count, GAAP and management diluted Source	fiscal year ending March 31, 2027	189.4 million	Lowered from 189.7 million
Management reporting tax rate Source	fiscal year ending March 31, 2027	18%	Kept
Total net revenue Source	three months ending September 30, 2026	$1,420 to $1,470	New
Cost of revenue Source	three months ending September 30, 2026	$622 to $638	New
Operating expenses Source	three months ending September 30, 2026	$1,009 to $1,019	New
Interest and other, net Source	three months ending September 30, 2026	$13	New
(Loss) income before income taxes Source	three months ending September 30, 2026	$(224) to $(200)	New
Net (loss) income Source	three months ending September 30, 2026	$(157) to $(140)	New
Net (loss) income per share Source	three months ending September 30, 2026	$(0.84) to $(0.75)	New
Non-GAAP EBITDA Source	three months ending September 30, 2026	$(20) to $4	New
Net Bookings Source	three months ending September 30, 2026	$1,620 to $1,670	New
Share count, GAAP net loss per share Source	three months ending September 30, 2026	187.1 million	New
Share count, management reporting diluted Source	three months ending September 30, 2026	188.5 million	New

What changed from last quarter

Guidance raised: Capital expenditures expectation raised to approximately $290 million from approximately $200 million. Source
Guidance raised: Full-year cost of revenue range raised at both ends, to $3,538 to $3,658 million from $3,504 to $3,626 million. Source
Guidance lowered: Full-year operating expense range lowered to $4,150 to $4,170 million from $4,180 to $4,200 million. Source
Guidance lowered: Full-year pre-tax income range lowered to $159 to $219 million from $166 to $224 million. Source
Guidance lowered: Full-year non-GAAP EBITDA range lowered to $993 to $1,053 million from $1,013 to $1,070 million. Source
New guidance: Initial guidance issued for the fiscal second quarter ending September 30, 2026. Source
Guidance kept: Fiscal 2027 Net Bookings expectation of $8.0 billion to $8.2 billion is reiterated; net revenue, diluted EPS and operating cash flow ranges are also unchanged. Source
New: NBA 2K27 release date set for September 4, 2026; the prior release listed it as TBA September 2026. Source

Quarter results and growth drivers

Net Bookings fell 3 percent: Total Net Bookings were $1.39 billion, down 3% from $1.42 billion a year earlier. Net Bookings from recurrent consumer spending fell 1% and made up 84% of the total. Source
GAAP net revenue rose to $1.53 billion: GAAP net revenue was $1.53 billion against $1.50 billion a year earlier. Recurrent consumer spending revenue rose 3% and made up 84% of total GAAP net revenue. Source
Net loss was $34.1 million: GAAP net loss was $34.1 million, or $0.18 per share, against $11.9 million, or $0.07 per share, a year earlier. Source

Platform, region and channel mix

Mobile revenue fell, console rose: Mobile net revenue was $762.3 million, 50% of the total, down from $801.7 million (53%). Console net revenue was $640.5 million, 42%, up from $550.6 million (37%). Source
PC and other revenue declined: PC and other net revenue was $131.1 million, 8% of the total, against $151.5 million (10%) a year earlier. Source
Bookings by platform shifted to console: Net Bookings by platform were mobile $739.5 million (53%), console $525.2 million (38%) and PC and other $121.2 million (9%), against $792.8 million, $474.4 million and $155.9 million. Source
United States share of revenue steady: United States net revenue was $920.0 million, 60% of the total, up from $900.4 million. International net revenue was $613.9 million, 40%, up from $603.4 million. Source
Digital channel dominates revenue: Digital online net revenue was $1,507.3 million, 98% of the total, against $1,476.6 million (98%) a year earlier. Source

“we are reiterating our Fiscal 2027 Net Bookings outlook of $8.0 to $8.2 billion”
Strauss Zelnick, Chairman and CEO of Take-Two Interactive

Titles, releases and largest contributors

Named largest Net Bookings contributors: The largest contributors to Net Bookings were NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker and Toy Blast. Source
Summer update released July 14: The Grand Theft Auto Online Kortz Center Heist Summer Update was released on July 14, 2026 across PS4, PS5, Xbox One, Xbox Series X|S and PC. Source

Operating costs and expense mix

Cost of revenue rose on development: Total cost of revenue was $651.4 million against $558.8 million a year earlier. Software development costs and royalties rose to $135.1 million from $30.1 million. Source
Operating expense lines moved differently: Selling and marketing fell to $369.7 million from $409.2 million. Research and development rose to $273.8 million and general and administrative to $226.3 million. Source
Stock-based compensation rose: Stock-based compensation was $86.0 million against $40.7 million a year earlier, as shown in the cash flow statement. Source

“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”
Strauss Zelnick, Chairman and CEO of Take-Two Interactive

Operating result and EBITDA

Operating result moved to a loss: Loss from operations was $35.5 million, against income of $21.6 million a year earlier. Gross profit was $882.5 million, against $945.0 million. Source
EBITDA was $167.0 million: Non-GAAP EBITDA was $167.0 million, against $225.5 million a year earlier, per the reconciliation that adds back taxes, interest, depreciation and acquired intangible amortization. Source

Cash, debt and capital

Operating cash outflow widened: Net cash used in operating activities was $168.8 million, against $44.7 million a year earlier. Source
Cash balance declined in quarter: Cash and cash equivalents were $1,364.9 million at June 30, 2026, down from $1,545.5 million at March 31, 2026. Short-term investments were $461.7 million. Source
Debt mix shifted to short term: Short-term debt, net was $629.9 million at June 30, against $30.0 million at March 31. Long-term debt, net was $1,889.8 million, against $2,488.0 million. Source
No debt repaid this quarter: Common stock issuance was $31.8 million, against $1,219.6 million a year earlier. No debt was repaid this quarter, against $600.0 million a year earlier. Source
Capital spending and acquisitions: Purchases of fixed assets were $25.0 million, against $25.1 million. Asset acquisitions were $15.8 million, against $4.4 million. Source
Treasury stock held flat: Treasury stock was $(1,020.6) million at both dates, with 23.7 million shares held at both dates. Source

Fiscal 2027 and second-quarter guidance

Net Bookings expectation reiterated: Management reiterated its fiscal 2027 Net Bookings expectation and cited the November 19 launch of Grand Theft Auto VI alongside continued portfolio execution. Source
Cost and profit ranges revised: Management lowered the full-year ranges for operating expenses, pre-tax income and non-GAAP EBITDA, and raised the ranges for cost of revenue and capital expenditures. Source
Second-quarter guidance first issued: Initial guidance was issued for the quarter ending September 30, 2026, covering net revenue, operating expenses, a GAAP net loss and Net Bookings. Source

Strategy and portfolio approach

Live services and pipeline focus: Key assumptions cite an ongoing focus on the live services portfolio and the new game pipeline, along with performance on current-generation systems. Source
Stated strategy: hit experiences on every platform: The company describes its strategy as creating hit entertainment experiences across platforms relevant to its audience, through a variety of business models. Source

Coming up, as management said on 7 August 2026

Grand Theft Auto VI launch: Grand Theft Auto VI is listed for PS5 and Xbox Series X|S on November 19, 2026. Source
Form 10-Q to carry final figures: Final data for the quarter will appear in the Quarterly Report on Form 10-Q for the period ended June 30, 2026. Source
Titles still without release dates: 2K PGA TOUR 2K27 and 2K WWE 2K27 are listed as TBA, as are other titles in the announced lineup. Source

Risks management discussed

Operational: Management listed mobile player acquisition costs and live services execution among factors affecting performance. Source
Demand: Assumptions depend on continued growth in the installed base of PlayStation 5 and Xbox Series X|S consoles. Source
External: Guidance assumes the current economic backdrop continues and that titles are delivered on time. Source

Earlier plans management reported on

Ahead: The company reported first-quarter Net Bookings as slightly above its guidance range. Source
Not stated: Management reiterated this fiscal 2027 Net Bookings expectation without describing its progress against it. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

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 19 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.
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
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

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.

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	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

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.

Fiscal Second Quarter Ending September 30, 2026

	Three Months Ending September 30, 2026
		Financial Data
$ in millions except for per share amounts	Outlook	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

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

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.

Cautionary Note Regarding Forward-Looking Statements

Forward-looking statements notice

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.

	Three Months Ended June 30,
	2026	2025
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except per share amounts)
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

	June 30, 2026	March 31, 2026
	(Unaudited)
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
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

	Three Months Ended June 30,
	2026	2025
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
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	1,638.1	1,559.2
Cash, cash equivalents, and restricted cash and cash equivalents, end of period	$1,446.1	$2,116.2

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.

	Three Months Ended June 30, 2026		Three Months Ended June 30, 2025
	Amount	% of total	Amount	% of total
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue and Net Bookings by Content, Platform Mix, Distribution Channel, and Geographic Region
(in millions)
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)

	Three Months Ended June 30,
	2026	2025
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURE
(in millions)
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

	Fiscal Year Ending March 31, 2027
Outlook
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

	Three Months Ending September 30, 2026
Outlook
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

Contacts
(Investor Relations) · Nicole Shevins · Senior Vice President · Investor Relations & Corporate Communications · Take-Two Interactive Software, Inc. · (646) 536-3005 · Nicole.Shevins@take2games.com
(Corporate Press) · Alan Lewis · Head of Global Corporate Communications · Take-Two Interactive Software, Inc. · (646) 536-2983 · Alan.Lewis@take2games.com