Core Insights - Take-Two Interactive reported optimistic plans for the upcoming Nintendo Switch2 platform, with CEO Strauss Zelnick expressing strong confidence in the new system's potential [1][2] Group 1: Company Strategy - Take-Two plans to launch four games at the debut of Switch2, which is a more robust lineup compared to previous launches on new Nintendo platforms [2] - The four titles include "Civilization VII" (launching June 5), new entries in the "NBA 2K" and "WWE 2K" series (release dates TBD), and "Borderlands 4" (launching September 12) [2] - Zelnick indicated that the company is considering porting classic titles, hinting at the possibility of "GTA V" and "Red Dead Redemption 2" being available on Switch2 in the future [2] Group 2: Industry Context - Zelnick noted that Nintendo's unprecedented support for third-party developers is a significant factor in Take-Two's increased investment in the Switch2 platform [2] - The company aims to meet player demands while acknowledging that not all games will be released on every platform, emphasizing the importance of classic game ports as a strategic approach [2][4]

Core Insights - Tiger Global's total market value for Q1 2025 reached $26.6 billion, a slight increase from $26.5 billion in the previous quarter, reflecting a quarter-over-quarter growth of 5.36% [1][2] - The fund added 5 new stocks to its portfolio, increased holdings in 14 stocks, reduced holdings in 2 stocks, and completely exited 9 stocks during the quarter [1][2] - The top 10 holdings accounted for 62.74% of the total portfolio value [1][2] Holdings Overview - The largest holding is Meta (META.US) with approximately 7.47 million shares valued at about $4.3 billion, representing 16.18% of the portfolio [2][3] - Microsoft (MSFT.US) is the second-largest holding with around 6.24 million shares valued at approximately $2.3 billion, which is 8.81% of the portfolio, showing a 16.78% increase in shares from the previous quarter [3][4] - Other significant holdings include Sea (SE.US), Google (GOOGL.US), and Amazon (AMZN.US), with respective portfolio percentages of 7.87%, 5.99%, and 4.71% [3][4] Trading Activity - The top five new purchases included Applovin (APP.US), Zillow-C (Z.US), GE Vernova (GE.US), Block (XYZ.US), and Zillow-A (ZG.US) [4][5] - The top five sold-out positions were Apollo Global Management (APO.US), Qualcomm (QCOM.US), Uber (UBER.US), Datadog (DDOG.US), and Atlassian (TEAM.US) [5][6] - The turnover rate for the portfolio was 25.93%, indicating a relatively active trading strategy [2]

Company Performance - Take-Two Interactive reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.08 per share, and significantly up from $0.31 per share a year ago [1] - The company posted revenues of $1.58 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.13% and up from $1.35 billion year-over-year [3] - Take-Two has surpassed consensus EPS estimates in all four of the last quarters, with a recent earnings surprise of 0.93% [2][3] Stock Performance - Take-Two shares have increased approximately 24.7% since the beginning of the year, compared to a gain of 0.2% for the S&P 500 [4] - The current Zacks Rank for Take-Two is 3 (Hold), indicating expected performance in line with the market in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.30 on revenues of $1.3 billion, and for the current fiscal year, it is $6.60 on revenues of $7.95 billion [8] - The estimate revisions trend for Take-Two is mixed, and changes in earnings expectations may occur following the recent earnings report [5][7] Industry Context - The Gaming industry, to which Take-Two belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, which may impact stock performance [9] - Another company in the same industry, GDEV Inc., is expected to report quarterly earnings of $0.18 per share, reflecting a year-over-year change of +280% [10]

Core Viewpoint - The delay of "Grand Theft Auto 6" is being framed by Take-Two's CEO as a positive investment for a groundbreaking project, despite Wall Street's skepticism [1][2]. Company Performance - Take-Two's shares fell by more than 8% following the announcement of the game's delay until 2026 [2]. - The company's stock experienced another dip ahead of the earnings call, with forecasts falling short of expectations primarily due to the delay of "GTA VI" [2]. Game Development Insights - The CEO emphasized that the ambition and complexity of "Grand Theft Auto 6" surpass any previous titles from Rockstar, aiming to deliver an extraordinary entertainment experience [2][3]. - The "Grand Theft Auto" series has been described as a standard bearer for both Take-Two and the gaming industry since its inception [3]. Market Research and Future Outlook - Take-Two conducts extensive market research, which has yielded impressive results, although the CEO refrained from claiming success until the game's release [3]. - Despite the delay, executives remain optimistic about the company's overall success for the year, citing upcoming releases such as "Borderlands 4" and "Mafia: The Old Country" [3].

Key Metrics - Take-Two Interactive reported Q4 2024 revenue of $1.40 billion, which is a 13% increase compared to Q4 2025 revenue of $1.58 billion, beating expectations [1] - Earnings per share for Q4 2024 were ($17.02), which missed expectations as it is projected to be ($21.08) for Q4 2025 [1] - Net bookings increased by 17%, from $1.35 billion in Q4 2024 to $1.58 billion in Q4 2025 [1] - EBITDA improved from a loss of $19.6 million in Q4 2024 to a profit of $161 million in Q4 2025 [1] Fiscal Performance - Take-Two finished fiscal 2025 with strong double-digit revenue and net bookings growth, with approximately 75% of net bookings coming from recurrent consumer spending [2] - Major contributors to net bookings included Grand Theft Auto V and Grand Theft Auto Online [2] Earnings Impact - The company faced significant earnings losses due to impairment charges from previous acquisitions, writing off $3.55 billion related to goodwill and $176 million in acquisition-related intangible assets [3] - This led to earnings per share being deeply negative [3] Future Outlook - The delay of Grand Theft Auto VI to May 2026 has pushed expectations for fiscal 2026 revenue to between $5.95 billion and $6.05 billion, with net bookings projected between $5.9 billion and $6.0 billion [4] - For comparison, net bookings in fiscal 2025 were $5.65 billion [4] - The company anticipates a net loss between $439 million and $499 million for fiscal 2026 [4] Market Reaction - Following the fourth-quarter report, Take-Two's shares fell approximately 2.5% in after-hours trading, reflecting a weak outlook for fiscal 2026 [5] - The earnings miss was attributed to charges that do not necessarily reflect the company's operating performance [5] Upcoming Releases - Fiscal 2027 is expected to be Take-Two's biggest year, driven by the new Grand Theft Auto franchise installment [6] - Significant releases planned for fiscal 2026 include Borderlands 4 and multiple new sports games, although none are expected to match the sales of GTA VI [6] - The company is expected to maintain a steady performance in fiscal 2026 as it prepares for the release of the first new GTA game in over a decade [6]

Financial Data and Key Metrics Changes - The company reported fourth quarter net bookings of $1,580,000,000, which was at the top of the guidance range [8][27] - For fiscal year 2025, net bookings reached $5,650,000,000, also at the top of the guidance range [29] - GAAP net revenue increased by 13% to $1,580,000,000 in the fourth quarter and rose 5% to $5,630,000,000 for the fiscal year [29][30] - Operating expenses increased by 44% to $4,600,000,000 in the fourth quarter due to an impairment expense of $3,600,000,000 related to goodwill and acquired intangible assets [29][30] Business Line Data and Key Metrics Changes - NBA 2K25 sold nearly 10,000,000 units, a 7% increase compared to NBA 2K24, with engagement metrics showing significant growth [11][12] - WWE 2K25 received critical acclaim with a Metacritic score of 84 for Xbox Series X, and recurrent consumer spending grew by 20% during the quarter [13][14] - Zynga's performance was strong, with Match Factory exceeding expectations and Color Block Jam becoming a top 10 downloaded game in the US Apple App Store [18][19] Market Data and Key Metrics Changes - The mobile gaming segment remains challenging, but Zynga is noted for regularly creating new hits, with Match Factory and Color Block Jam being profitable [49][51] - The company expects recurrent consumer spending to be flat compared to fiscal 2025, representing 76% of net bookings for fiscal 2026 [31] Company Strategy and Development Direction - The company plans to release approximately 38 titles through fiscal 2028, with 13 titles expected in fiscal 2026 [22][25] - The release of Grand Theft Auto VI is anticipated to significantly enhance the company's financial profile and establish a new baseline for net bookings [21][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming pipeline and the potential for record levels of net bookings, particularly with the release of Grand Theft Auto VI [21][35] - The company is focused on delivering value to consumers and maintaining a player-first approach [21][38] Other Important Information - The company has implemented a cost reduction program and is working on improving operational efficiency [27][29] - The direct-to-consumer business has become a significant part of the company's strategy, particularly following the acquisition of Zynga [74] Q&A Session Summary Question: Pricing strategy for Mafia - Management explained that variable pricing is a long-standing strategy aimed at delivering more value to consumers [38][39] Question: Goodwill impairment related to Zynga - Management confirmed that the impairment was a partial impairment of one of the reporting units, resulting from updated long-term expectations [40] Question: Operating margins and structural changes - Management stated there is no reason to believe operating margins cannot return to previous levels, emphasizing ongoing cost reduction efforts [44] Question: Mobile segment performance - Management acknowledged the challenges in mobile gaming but highlighted Zynga's success in creating new hits [49][51] Question: Anticipated demand for Grand Theft Auto VI - Management noted the unprecedented anticipation for Grand Theft Auto VI, supported by record trailer views and ongoing engagement with existing titles [58][90]

Financial Data and Key Metrics Changes - The company reported fourth quarter net bookings of $1,580,000,000, which was at the top of the guidance range [6][26] - GAAP net revenue increased by 13% to $1,580,000,000, while GAAP net revenue for the fiscal year rose by 5% to $5,630,000,000 [28][29] - Operating expenses increased by 44% to $4,600,000,000 due to an impairment expense of $3,600,000,000 related to goodwill and acquired intangible assets [28][29] - Recurrent consumer spending grew by 14% year over year, accounting for 77% of net bookings [27] Business Line Data and Key Metrics Changes - NBA 2K25 posted near record performance with nearly 10,000,000 units sold, a 7% increase compared to NBA 2K24 [10] - WWE 2K25 achieved a Metacritic score of 84 on Xbox Series X, with recurrent consumer spending up 20% during the quarter [12] - Zynga's Match Factory and Color Block Jam both showed strong performance, with Match Factory exceeding expectations and Color Block Jam becoming profitable within four months [16][17] Market Data and Key Metrics Changes - The mobile gaming segment remains challenging, but Zynga is noted for regularly creating new hits, with Match Factory and Color Block Jam being profitable [46][47] - The company expects recurrent consumer spending to be flat compared to fiscal 2025, representing 76% of net bookings for fiscal 2026 [30] Company Strategy and Development Direction - The company plans to release 13 titles in fiscal 2026, including major franchises like Mafia and Borderlands [21][23] - The release of Grand Theft Auto VI is anticipated to significantly enhance the company's financial profile, with expectations for record levels of net bookings [20][33] - The company is focusing on delivering value to consumers through variable pricing strategies [36][91] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming pipeline and the potential for long-term growth, particularly with the release of Grand Theft Auto VI [33][34] - The company is addressing challenges in the gaming industry and is confident in its ability to deliver results [108] Other Important Information - The company has a robust release schedule with approximately 38 titles planned through fiscal 2028 [21] - The anticipated release of Grand Theft Auto VI is expected to set a new baseline for the business [20] Q&A Session Summary Question: Discussion on Mafia's pricing strategy - Management explained that variable pricing is part of their strategy to deliver more value to consumers [36][37] Question: Goodwill impairment related to Zynga - Management confirmed that the impairment was a partial impairment of one of their units, resulting from updated long-term expectations [38] Question: Future operating margins - Management indicated that there is no reason to believe they cannot reach previous operating margin levels, despite increased development costs [42] Question: Mobile segment performance - Management acknowledged the challenges in mobile gaming but highlighted Zynga's success in creating new hits [46][48] Question: Anticipation for Grand Theft Auto VI - Management noted the record excitement for GTA VI, driven by ongoing engagement with GTA V and the success of the recent trailer [86][90] Question: Impact of console price increases - Management stated that their guidance would not be meaningfully affected by potential price increases in the gaming ecosystem [96] Question: Internal royalty line increase - Management explained that the increase in internal royalties is driven by product mix changes [103]

Financial Performance & Results - Q4 FY2025 GAAP Net Revenue was $1583 million, exceeding the guidance range of $1519 million to $1619 million[6] - Q4 FY2025 Net Bookings reached $1582 million, hitting the top of the guidance range of $1480 million to $1580 million[8] - FY2025 GAAP Net Revenue was $5634 million, within the guidance of $5570 million to $5670 million[11] - FY2025 Net Bookings totaled $5648 million, also at the top of the guidance range of $5550 million to $5650 million[13] - The company projects FY2026 Net Bookings to range from $5900 million to $6000 million, representing approximately 5% growth over FY2025 at the midpoint[27] Recurrent Consumer Spending (RCS) - Q4 FY2025 Recurrent Consumer Spending (RCS) grew by 14% year-over-year, significantly exceeding guidance[8] - FY2025 Recurrent Consumer Spending (RCS) increased by 7% year-over-year, exceeding the company's outlook[13] - The company expects FY2026 Recurrent Consumer Spending (RCS) to be flat compared to FY2025[27] - The company projects Q1 FY2026 Recurrent Consumer Spending (RCS) to increase by approximately 7% year-over-year[32] Fiscal Year 2026 Guidance - The company anticipates GAAP Net Revenue between $5950 million and $6050 million for FY2026[23] - Operating expenses for FY2026 are projected to be between $3780 million and $3800 million[23] - The company expects a GAAP Net Loss between $499 million and $439 million for FY2026[23]

Core Insights - Take-Two Interactive reported fourth-quarter net bookings of $1.58 billion, a 17% increase year-over-year, surpassing the consensus estimate of $1.55 billion [1] - Adjusted earnings per share for the quarter were $1.08, slightly below the consensus estimate of $1.10 [1] Financial Performance - Net bookings from recurrent consumer spending rose 14% year-over-year, accounting for 77% of total net bookings in the quarter [2] - Total net bookings for the fiscal year reached $5.65 billion, a 6% increase year-over-year, with recurrent consumer spending up 7% for the full fiscal year, making up 70% of total net bookings [2] Management Commentary - CEO Strauss Zelnick highlighted the outstanding results for the 2025 Fiscal Year, noting meaningful contributions from each label [3] Future Guidance - Take-Two projects first-quarter net bookings to be between $1.25 billion and $1.30 billion [4] - Full fiscal-year net bookings are expected to range from $5.90 billion to $6.00 billion [4] - The company anticipates record levels of net bookings with the upcoming release of "Grand Theft Auto VI" in Fiscal 2027, which is expected to enhance profitability [5] Upcoming Releases - The game lineup for 2025 includes "Mafia: The Old Country," "Borderlands 4," and "WWE 2K Mobile," with future titles such as "NBA 2K26," "WWE 2K26," and "Grand Theft Auto VI," which has a new release date of May 26, 2026 [5] Stock Performance - Take-Two's stock decreased by 1.7% to $228.33 in after-hours trading, within a 52-week trading range of $135.24 to $238.00 [6]

[Company Overview & Executive Summary](index=1&type=section&id=Company%20Overview%20%26%20Executive%20Summary) This section provides contact information, CEO's strategic comments, and an overview of Take-Two Interactive Software, Inc. as a global interactive entertainment developer and publisher [Contact Information](index=1&type=section&id=Contact%20Information) This section provides contact details for Take-Two Interactive Software, Inc.'s investor relations and corporate communications departments - Investor Relations Contact: Nicole Shevins, Senior Vice President, Phone: (646) 536-3005, Email: Nicole.Shevins@take2games.com[2](index=2&type=chunk) - Corporate Press Contact: Alan Lewis, Vice President, Phone: (646) 536-2983, Email: Alan.Lewis@take2games.com[2](index=2&type=chunk) [CEO Comments](index=1&type=section&id=CEO%20Comments) CEO Strauss Zelnick highlights the company's outstanding performance in fiscal year 2025, projects net bookings of $5.9 billion to $6.0 billion for fiscal year 2026, and anticipates record net bookings post-Grand Theft Auto VI launch in fiscal year 2027, establishing a new profit baseline - The company achieved **outstanding performance in fiscal year 2025**, with significant contributions across all brands[3](index=3&type=chunk) - The fiscal year 2026 outlook indicates continued positive momentum, with net bookings guidance of **$5.9 billion to $6.0 billion**[3](index=3&type=chunk) - Record net bookings are anticipated in fiscal year 2027 following the launch of **Grand Theft Auto VI**, establishing a new baseline for the business and achieving higher profitability[3](index=3&type=chunk) [About Take-Two Interactive Software](index=9&type=section&id=About%20Take-Two%20Interactive%20Software) Take-Two Interactive Software, Inc. is a leading global developer, publisher, and marketer of interactive entertainment, operating primarily through its Rockstar Games, 2K, and Zynga labels, distributing products across console, mobile, and PC platforms via multiple channels - Take-Two Interactive Software, Inc. is a **leading global developer, publisher, and marketer of interactive entertainment**[26](index=26&type=chunk) - The company primarily develops and publishes products through its **Rockstar Games, 2K, and Zynga labels**[26](index=26&type=chunk) - Products are for console game systems, mobile devices (smartphones and tablets), and PCs, delivered via physical retail, digital download, online platforms, and cloud streaming services[26](index=26&type=chunk) [Fourth Quarter Fiscal 2025 Financial and Operational Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20and%20Operational%20Highlights) This section details Take-Two's financial and operational performance for the fourth quarter of fiscal year 2025, including key metrics and GAAP to non-GAAP reconciliations [Key Financial and Operational Metrics - Q4 FY25](index=1&type=section&id=Key%20Financial%20and%20Operational%20Metrics%20-%20Q4%20FY25) Take-Two achieved strong growth in Q4 FY2025 with net bookings up 17% to $1.58 billion and GAAP net revenue up 13% to $1.58 billion, driven by recurring consumer spending, yet reported a GAAP net loss of $3.73 billion due to significant goodwill and acquisition-related intangible asset impairment charges | Metric | Q4 FY25 | Q4 FY24 | Y-o-Y Change | | :----- | :------ | :------ | :----------- | | Total Net Bookings | $1.58 billion | $1.35 billion | +17% | | Recurring Consumer Spending (% of Net Bookings) | 77% | N/A | +14% | | GAAP Net Revenue | $1.58 billion | $1.40 billion | +13% | | Recurring Consumer Spending (% of GAAP Net Revenue) | 76% | N/A | +9% | | GAAP Net Loss | $(3.73) billion | $(2.90) billion | -28.6% | | GAAP Net Loss Per Share | $(21.08) | $(17.02) | -23.8% | - Key contributors to net bookings included **NBA® 2K25**, **Grand Theft Auto® Online** and **Grand Theft Auto V**, **Civilization® VII**, **Toon Blast™**, the hyper-casual mobile game portfolio, **Match Factory!™**, **Empires & Puzzles™**, **Red Dead Redemption® 2** and **Red Dead Online**, and **WWE® 2K25**[4](index=4&type=chunk) - GAAP results included a **$3.55 billion goodwill impairment charge** and a **$176.3 million impairment charge** for acquisition-related intangible assets[8](index=8&type=chunk) [GAAP to Non-GAAP Reconciliation - Q4 FY25](index=3&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20-%20Q4%20FY25) This section provides reconciliation data for GAAP to non-GAAP financial performance in Q4 FY2025, aiding management and the board in understanding the company's core business and future outlook, with **EBITDA at $161.0 million** | in millions USD | GAAP (Q4 FY25) | Adjustments (Net) | Non-GAAP EBITDA (Q4 FY25) | | :---------- | :------------- | :---------------- | :------------------------ | | Total Net Revenue | $1,582.5 | (1.0) | N/A | | Cost of Revenue | $779.2 | (0.8) | N/A | | Gross Profit | $803.3 | (1.0) + 0.8 + 303.8 | N/A | | Operating Expenses | $4,580.2 | (78.8) + (17.1) + (55.3) + (3,574.9) | N/A | | Operating (Loss) Income | $(3,776.9) | (1.0) + 79.6 + 17.1 + 359.1 + 3,574.9 | N/A | | Interest and Other, Net | $(22.2) | 1.5 + 2.1 + 0.6 | N/A | | Fair Value Adjustment (Loss) Gain, Net | $(2.8) | 1.6 + 1.2 | N/A | | (Loss) Income Before Income Taxes | $(3,801.9) | 0.5 + 79.6 + 17.1 + 359.1 + 3,578.5 + 1.8 | N/A | | **EBITDA** | N/A | N/A | **$161.0** | - Adjustments include changes in deferred net revenue and related cost of revenue, stock-based compensation, business reorganization, amortization and impairment of acquisition-related intangible assets, business acquisition impacts, and other items (revaluation of Turkish Lira to USD and fair value adjustments for certain equity investments)[6](index=6&type=chunk) [Fiscal Year 2025 Financial and Operational Highlights](index=3&type=section&id=Fiscal%20Year%202025%20Financial%20and%20Operational%20Highlights) This section presents Take-Two's full fiscal year 2025 financial and operational performance, including key metrics and GAAP to non-GAAP reconciliations [Key Financial and Operational Metrics - FY25](index=3&type=section&id=Key%20Financial%20and%20Operational%20Metrics%20-%20FY25) In fiscal year 2025, Take-Two's total net bookings grew 6% to $5.65 billion and GAAP net revenue grew 5% to $5.63 billion, with recurring consumer spending contributing significantly, yet the company reported a GAAP net loss of $4.48 billion and $25.58 per share due to substantial goodwill and acquisition-related intangible asset impairment charges | Metric | FY25 | FY24 | Y-o-Y Change | | :----- | :------ | :------ | :----------- | | Total Net Bookings | $5.65 billion | $5.33 billion | +6% | | Recurring Consumer Spending (% of Net Bookings) | 80% | N/A | +7% | | GAAP Net Revenue | $5.63 billion | $5.35 billion | +5% | | Recurring Consumer Spending (% of GAAP Net Revenue) | 79% | N/A | +5% | | GAAP Net Loss | $(4.48) billion | $(3.74) billion | -19.8% | | GAAP Net Loss Per Share | $(25.58) | $(22.01) | -16.2% | - Key contributors to net bookings included **NBA 2K25** and **NBA 2K24**, **Grand Theft Auto Online** and **Grand Theft Auto V**, **Toon Blast**, the hyper-casual mobile game portfolio, **Match Factory!**, **Empires & Puzzles**, **Red Dead Redemption 2** and **Red Dead Online**, **Words With Friends**, and **Toy Blast**[9](index=9&type=chunk) - GAAP results included a **$3.55 billion goodwill impairment charge** and a **$176.3 million impairment charge** for acquisition-related intangible assets[13](index=13&type=chunk) [GAAP to Non-GAAP Reconciliation - FY25](index=5&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20-%20FY25) This section provides reconciliation data for GAAP to non-GAAP financial performance in fiscal year 2025, aiding management and the board in understanding the company's core business and future outlook, with **EBITDA at $199.1 million** | in millions USD | GAAP (FY25) | Adjustments (Net) | Non-GAAP EBITDA (FY25) | | :---------- | :------------ | :---------------- | :----------------------- | | Total Net Revenue | $5,633.6 | 14.4 | N/A | | Cost of Revenue | $2,571.4 | (9.4) | N/A | | Gross Profit | $3,062.2 | 12.9 + 9.4 + 814.3 | N/A | | Operating Expenses | $7,453.3 | (314.5) + (106.5) + (108.3) + (3,638.6) | N/A | | Operating (Loss) Income | $(4,391.1) | 12.9 + 323.9 + 106.5 + 922.6 + 3,638.6 | N/A | | Interest and Other, Net | $(93.3) | 3.5 + 8.4 + 12.1 | N/A | | Fair Value Adjustment (Loss) Gain, Net | $(6.9) | 3.3 + 3.6 | N/A | | (Loss) Income Before Income Taxes | $(4,491.3) | 16.4 + 323.9 + 106.5 + 922.6 + 3,650.4 + 15.6 | N/A | | **EBITDA** | N/A | N/A | **$199.1** | - Adjustments include changes in deferred net revenue and related cost of revenue, stock-based compensation, business reorganization impacts, amortization and impairment of acquisition-related intangible assets, business acquisition impacts, and other items (revaluation of Turkish Lira to USD and fair value adjustments for certain equity investments)[12](index=12&type=chunk) [Outlook for Fiscal Year 2026](index=6&type=section&id=Outlook%20for%20Fiscal%20Year%202026) This section outlines Take-Two's financial and operational projections for fiscal year 2026 and the first quarter, along with key underlying assumptions [Fiscal Year Ending March 31, 2026 Outlook](index=6&type=section&id=Fiscal%20Year%20Ending%20March%2031%2C%202026%20Outlook) Take-Two provides its initial outlook for fiscal year 2026, projecting net bookings between $5.9 billion and $6.0 billion and a GAAP net loss between $499 million and $439 million | Metric | FY26 Outlook (Range) | | :----- | :------------------- | | Total Net Revenue | $5,950 to $6,050 million | | Net Loss | $(499) to $(439) million | | Net Loss Per Share | $(2.79) to $(2.45) | | Net Cash Provided by Operating Activities | approx. $130 million | | Capital Expenditures | approx. $140 million | | Non-GAAP EBITDA | $508 to $562 million | | Operating Metric: Net Bookings | $5,900 to $6,000 million | - Management reported an anticipated tax rate of **18%**[15](index=15&type=chunk) - Expected share count for GAAP net loss per share calculation is **179.1 million shares**[16](index=16&type=chunk) [First Quarter Ending June 30, 2025 Outlook](index=7&type=section&id=First%20Quarter%20Ending%20June%2030%2C%202025%20Outlook) The company projects Q1 FY2026 net bookings between $1.25 billion and $1.30 billion and a GAAP net loss between $139 million and $115 million | Metric | Q1 FY26 Outlook (Range) | | :----- | :---------------------- | | Total Net Revenue | $1,350 to $1,400 million | | Net Loss | $(139) to $(115) million | | Net Loss Per Share | $(0.78) to $(0.65) | | Non-GAAP EBITDA | $114 to $136 million | | Operating Metric: Net Bookings | $1,250 to $1,300 million | - Management reported an anticipated tax rate of **18%**[19](index=19&type=chunk) - Expected share count for GAAP net loss per share calculation is **178.1 million shares**[19](index=19&type=chunk) [Key Assumptions and Dependencies](index=7&type=section&id=Key%20Assumptions%20and%20Dependencies) Key assumptions for the company's outlook include the continuation of the current economic environment, timely delivery of game products, sustained growth in PlayStation 5 and Xbox Series X|S install bases, and the ability to gain market share on PC, mobile, and other platforms - Continuation of the current economic backdrop[17](index=17&type=chunk) - Timely delivery of game products included in the financial outlook[17](index=17&type=chunk) - Continued growth in the install base of **PlayStation 5** and **Xbox Series X|S**, and engagement on **Xbox One** and **PlayStation 4**[17](index=17&type=chunk) - Ability to capitalize on opportunities across PC, mobile, and other platforms by developing and releasing products that gain market share[17](index=17&type=chunk) - Factors impacting mobile business performance, such as player acquisition costs[17](index=17&type=chunk) - Continued focus on the live services portfolio and new game pipeline[17](index=17&type=chunk) - Stable foreign exchange rates[17](index=17&type=chunk) [Product Releases](index=7&type=section&id=Product%20Releases) This section details Take-Two's recent and upcoming product releases across various brands and platforms [Recent Product Releases](index=7&type=section&id=Recent%20Product%20Releases) Since January 1, 2025, Take-Two has released several titles, including **Civilization VII**, **PGA TOUR 2K25**, **Color Block Jam**, and **WWE 2K25** | Brand | Product | Platform | Release Date | | :---- | :------ | :-------- | :----------- | | 2K | Sid Meier's Civilization VII | PS5, PS4, Xbox Series X S, Xbox One, PC, Switch | February 11, 2025 | | 2K | PGA TOUR 2K25 | PS5, Xbox Series X S, PC | February 28, 2025 | | Zynga | Color Block Jam | iOS, Android | March 3, 2025 | | 2K | WWE 2K25 | PS5, PS4, Xbox Series X S, Xbox One, PC | March 14, 2025 | | 2K | Civilization VII VR | Meta Quest 3 and 3S | April 11, 2025 | [Future Product Lineup](index=9&type=section&id=Future%20Product%20Lineup) Take-Two has announced its future product lineup, including **Civilization VII** (Switch 2 version), **Mafia: The Old Country**, **Borderlands 4**, and the highly anticipated **Grand Theft Auto VI** | Brand | Product | Platform | Release Date | | :---- | :------ | :-------- | :----------- | | 2K | Civilization VII | Switch 2 | June 5, 2025 | | 2K | Mafia: The Old Country | PS5, Xbox Series X S, PC | August 8, 2025 | | 2K | Borderlands 4 | PS5, Xbox Series X S, PC | September 12, 2025 | | Rockstar Games | Grand Theft Auto VI | PS5, Xbox Series X S | May 26, 2026 | | 2K | NBA 2K26 | TBD | FY26 | | 2K | WWE 2K26 | TBD | FY26 | | Zynga | CSR 3 | iOS, Android | TBD | | Ghost Story Games | Judas | PS5, Xbox Series X S, PC | TBD | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and provides the rationale for Take-Two's use of non-GAAP financial measures, specifically EBITDA [Definition and Rationale of EBITDA](index=9&type=section&id=Definition%20and%20Rationale%20of%20EBITDA) Take-Two utilizes EBITDA as a non-GAAP financial measure to provide investors and management with a clearer understanding of ongoing operations and trends by excluding certain non-cash expenses, debt-related charges, and income taxes, and no longer reports adjusted unrestricted operating cash flow - EBITDA is defined as GAAP net income (loss) excluding interest income (expense), provision (benefit) for income taxes, depreciation expense, and amortization and impairment of acquisition-related intangible assets[22](index=22&type=chunk) - Management considers EBITDA important as it removes the impact of certain non-cash expenses, debt-related charges, and income taxes, aiding investors and management in understanding the company's ongoing operations and analyzing operating trends[23](index=23&type=chunk)[24](index=24&type=chunk) - The company no longer reports adjusted unrestricted operating cash flow as certain previously restricted cash is no longer required to be restricted[22](index=22&type=chunk) [Consolidated Financial Statements (GAAP)](index=12&type=section&id=Consolidated%20Financial%20Statements%20%28GAAP%29) This section presents Take-Two's consolidated GAAP financial statements, including statements of operations, balance sheets, and cash flows [Consolidated Statements of Operations](index=12&type=section&id=Consolidated%20Statements%20of%20Operations) This section provides consolidated statements of operations for the three and twelve months ended March 31, 2025, and 2024, detailing the company's GAAP performance in revenue, costs, gross profit, and net loss | Metric (in millions USD) | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :------------------- | :------ | :------ | :----- | :----- | | Total Net Revenue | $1,582.5 | $1,399.4 | $5,633.6 | $5,349.6 | | Cost of Revenue | $779.2 | $930.3 | $2,571.4 | $3,107.8 | | Gross Profit | $803.3 | $469.1 | $3,062.2 | $2,241.8 | | Total Operating Expenses | $4,580.2 | $3,182.2 | $7,453.3 | $5,832.4 | | Operating Loss | $(3,776.9) | $(2,713.1) | $(4,391.1) | $(3,590.6) | | Net Loss | $(3,726.2) | $(2,903.0) | $(4,478.9) | $(3,744.2) | | Basic and Diluted Loss Per Share | $(21.08) | $(17.02) | $(25.58) | $(22.01) | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) This section presents consolidated balance sheets as of March 31, 2025, and 2024, showing the company's assets, liabilities, and stockholders' equity, with goodwill significantly reduced due to impairment charges | Metric (in millions USD) | March 31, 2025 | March 31, 2024 | | :------------------- | :------------- | :------------- | | Total Current Assets | $2,815.9 | $2,259.7 | | Goodwill | $1,057.3 | $4,426.4 | | Other Intangible Assets, Net | $2,336.0 | $3,060.6 | | Total Assets | $9,180.7 | $12,216.9 | | Total Current Liabilities | $3,615.8 | $2,406.4 | | Long-Term Debt, Net | $2,512.6 | $3,058.3 | | Total Liabilities | $7,043.0 | $6,549.0 | | Total Stockholders' Equity | $2,137.7 | $5,667.9 | - Goodwill significantly decreased from **$4.4264 billion to $1.0573 billion**, reflecting impairment charges[35](index=35&type=chunk) [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section provides consolidated statements of cash flows for the twelve months ended March 31, 2025, and 2024, detailing cash flows from operating, investing, and financing activities, showing a shift from negative to positive financing cash flow in FY2025 | Metric (in millions USD) | FY25 | FY24 | | :------------------- | :----- | :----- | | Net Cash Used in Operating Activities | $(45.2) | $(16.1) | | Net Cash Used in Investing Activities | $(151.5) | $(28.2) | | Net Cash Provided by (Used in) Financing Activities | $650.5 | $(91.4) | | Net Change in Cash, Cash Equivalents, and Restricted Cash | $457.2 | $(132.6) | | Cash, Cash Equivalents, and Restricted Cash, End of Period | $1,559.2 | $1,102.0 | - Cash flow from financing activities shifted from a net outflow in FY2024 to a **net inflow in FY2025**, primarily due to proceeds from debt issuance[37](index=37&type=chunk) [Supplemental Financial Data](index=16&type=section&id=Supplemental%20Financial%20Data) This section provides additional financial data, including net revenue and net bookings segmented by geography, distribution channel, and platform, along with detailed GAAP to non-GAAP adjustments [Net Revenue and Net Bookings by Segment - Q4 FY25](index=16&type=section&id=Net%20Revenue%20and%20Net%20Bookings%20by%20Segment%20-%20Q4%20FY25) This section provides Q4 FY2025 net revenue and net bookings data segmented by geographic region, distribution channel, and platform, indicating digital online channels and mobile platforms remain primary contributors | Segment | Q4 FY25 Net Revenue (in millions USD) | Share | Q4 FY24 Net Revenue (in millions USD) | Share | Q4 FY25 Net Bookings (in millions USD) | Share | Q4 FY24 Net Bookings (in millions USD) | Share | | :------ | :------------------ | :--------- | :------------------ | :--------- | :------------------- | :--------- | :------------------- | :--------- | | **Geographic Region** | | | | | | | | | | United States | $946.1 | 60% | $861.4 | 62% | $961.1 | 61% | $818.8 | 61% | | International | $636.4 | 40% | $538.0 | 38% | $620.4 | 39% | $530.0 | 39% | | **Distribution Channel** | | | | | | | | | | Digital Online | $1,525.6 | 96% | $1,335.2 | 95% | $1,528.7 | 97% | $1,291.6 | 96% | | Physical Retail and Other | $56.9 | 4% | $64.2 | 5% | $52.8 | 3% | $57.2 | 4% | | **Platform** | | | | | | | | | | Mobile | $747.7 | 48% | $715.1 | 51% | $730.1 | 46% | $708.3 | 53% | | Console | $591.2 | 37% | $568.7 | 41% | $601.7 | 38% | $527.4 | 39% | | PC and Other | $243.6 | 15% | $115.6 | 8% | $249.7 | 16% | $113.1 | 8% | - Digital online channels accounted for **96-97% of net revenue and net bookings** in Q4 FY2025, demonstrating a strong digital distribution model[38](index=38&type=chunk) - Mobile platforms remained the largest contributor to net revenue and net bookings, though their percentage contribution slightly decreased year-over-year, while **PC and Other platforms saw significant growth**[38](index=38&type=chunk) [Net Revenue and Net Bookings by Segment - FY25](index=18&type=section&id=Net%20Revenue%20and%20Net%20Bookings%20by%20Segment%20-%20FY25) This section provides FY2025 net revenue and net bookings data segmented by geographic region, distribution channel, and platform, indicating digital online channels and mobile platforms dominated full-year performance | Segment | FY25 Net Revenue (in millions USD) | Share | FY24 Net Revenue (in millions USD) | Share | FY25 Net Bookings (in millions USD) | Share | FY24 Net Bookings (in millions USD) | Share | | :------ | :----------------- | :--------- | :----------------- | :--------- | :---------------- | :--------- | :---------------- | :--------- | | **Geographic Region** | | | | | | | | | | United States | $3,406.8 | 60% | $3,279.2 | 61% | $3,445.8 | 61% | $3,247.4 | 61% | | International | $2,226.8 | 40% | $2,070.4 | 39% | $2,202.2 | 39% | $2,085.6 | 39% | | **Distribution Channel** | | | | | | | | | | Digital Online | $5,431.8 | 96% | $5,112.2 | 96% | $5,457.2 | 97% | $5,097.3 | 96% | | Physical Retail and Other | $201.8 | 4% | $237.4 | 4% | $190.8 | 3% | $235.7 | 4% | | **Platform** | | | | | | | | | | Mobile | $2,942.0 | 52% | $2,748.0 | 51% | $2,872.0 | 51% | $2,757.7 | 52% | | Console | $2,099.1 | 37% | $2,167.3 | 41% | $2,167.4 | 38% | $2,149.8 | 40% | | PC and Other | $592.5 | 11% | $434.3 | 8% | $608.6 | 11% | $425.5 | 8% | - Digital online sales consistently comprised **96-97% of total net revenue and net bookings** in FY2025, indicating a robust digital distribution model[39](index=39&type=chunk) - Mobile platforms remained the largest revenue and bookings driver, with **PC and Other platforms showing significant year-over-year growth** in percentage contribution[39](index=39&type=chunk) [Detailed GAAP to Non-GAAP Adjustments](index=19&type=section&id=Detailed%20GAAP%20to%20Non-GAAP%20Adjustments) This section provides detailed adjustment data for GAAP to non-GAAP financial performance for Q4 and full fiscal year 2025, covering items such as deferred revenue, stock-based compensation, and intangible asset amortization and impairment - Detailed adjustments for Q4 and full fiscal year 2025 include the net impact of deferred net revenue and related cost of revenue, stock-based compensation, amortization and impairment of acquisition-related intangible assets, acquisition-related expenses, business reorganization impacts, and other adjustments across various income statement items[40](index=40&type=chunk)[41](index=41&type=chunk) - Significant adjustments such as **amortization and impairment of acquisition-related intangible assets** and **goodwill impairment** are consistently used to reconcile GAAP data[40](index=40&type=chunk)[41](index=41&type=chunk) [Summary GAAP to Non-GAAP Reconciliation](index=21&type=section&id=Summary%20GAAP%20to%20Non-GAAP%20Reconciliation) This section provides a summary reconciliation of GAAP to non-GAAP performance for Q4 and full fiscal year 2025, and the fiscal year 2026 outlook, focusing on EBITDA calculation | Metric (in millions USD) | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :------------------- | :------ | :------ | :----- | :----- | | Net Loss (GAAP) | $(3,726.2) | $(2,903.0) | $(4,478.9) | $(3,744.2) | | Provision (Benefit) for Income Taxes | $(75.7) | $158.4 | $(12.4) | $41.4 | | Interest Expense | $18.9 | $20.3 | $68.7 | $78.3 | | Depreciation and Amortization | $87.8 | $42.9 | $229.4 | $171.2 | | Amortization and Impairment of Acquisition-Related Intangible Assets | $311.0 | $485.1 | $847.0 | $1,383.2 | | Goodwill Impairment | $3,545.2 | $2,176.7 | $3,545.2 | $2,342.1 | | **EBITDA** | **$161.0** | **$(19.6)** | **$199.1** | **$272.0** | | Metric (in millions USD) | FY26 Outlook | Q1 FY26 Outlook | | :------------------- | :----------- | :-------------- | | Net Loss (GAAP) | $(499) to $(439) | $(139) to $(115) | | Provision for Income Taxes | $51 to $45 | $14 to $12 | | Interest Expense | $90 | $21 | | Depreciation | $166 | $43 | | Amortization of Acquisition-Related Intangible Assets | $700 | $175 | | **EBITDA** | **$508 to $562** | **$114 to $136** | - Q4 FY2025 EBITDA was **$161.0 million**, a significant improvement from **negative $19.6 million** in Q4 FY2024, primarily due to the exclusion of substantial goodwill impairment charges[42](index=42&type=chunk) - FY2025 EBITDA was **$199.1 million**, lower than **$272.0 million** in FY2024, despite the exclusion of large impairment charges in both years[42](index=42&type=chunk) [Legal and Disclosures](index=9&type=section&id=Legal%20and%20Disclosures) This section includes disclaimers regarding preliminary financial results and cautionary notes concerning forward-looking statements [Final Results Disclaimer](index=9&type=section&id=Final%20Results%20Disclaimer) This section states that the financial results discussed are preliminary, with final data to be included in the company's 10-K annual report for the fiscal year ended March 31, 2025 - The financial results discussed herein are preliminary; final data will be included in Take-Two's **10-K annual report** for the fiscal year ended March 31, 2025[25](index=25&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=11&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section warns investors that statements in the report not based on historical facts are forward-looking, subject to inherent uncertainties and risks, and actual results may differ materially, with no obligation for the company to update such statements - Statements in the report not based on historical facts are considered forward-looking statements under federal securities laws, identifiable by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” or similar meanings[29](index=29&type=chunk) - These forward-looking statements are based on management’s current beliefs and assumptions made with information currently available to them, subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and actual results may differ materially from these statements[29](index=29&type=chunk) - Risks include timely release and market acceptance of games, international business risks (geopolitical events), impact of changes in interest rates and inflation, foreign currency exchange rate fluctuations, reliance on key management and product development personnel, dependence on **NBA 2K** and **Grand Theft Auto** products and ability to develop other hit titles, ability to capitalize on **PlayStation®5** and **Xbox Series X|S** opportunities, factors affecting mobile business (e.g., player acquisition costs), and ability to maintain acceptable pricing levels for games[29](index=29&type=chunk) - Other important factors and information are contained in the company’s most recent **Annual Report on Form 10-K** (including the “Risk Factors” section), its most recent **Quarterly Report on Form 10-Q**, and the company’s other periodic filings with the SEC[30](index=30&type=chunk) - The company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise[30](index=30&type=chunk)