Core Insights - Take-Two Interactive Software (TTWO) reported a first-quarter fiscal 2026 GAAP net loss of $0.07 per share, an improvement from a loss of $1.52 in the same quarter last year, while the Zacks Consensus Estimate was $0.27 per share [1] - GAAP net revenues increased by 12.4% year over year to $1.5 billion, surpassing the Zacks Consensus Estimate of $1.3 billion [1] Revenue Breakdown - Revenues from the United States rose by 9.7% year over year to $900.4 million, accounting for 59.9% of total GAAP net revenues, while international revenues increased by 16.6% to $603.4 million [2] - Game revenues, which represent 91.9% of total revenues, grew by 13.6% year over year to $1.38 billion, whereas advertising revenues fell by 0.16% to $121.3 million [2] Bookings Performance - Total bookings improved by 16.8% year over year to $1.42 billion, with U.S. bookings increasing by 14.8% to $836.6 million, representing 58.8% of total bookings [3] - International bookings rose by 19.8% year over year to $586.5 million [3] Consumer Spending and Distribution - Recurrent consumer spending increased by 14% for the period, making up 83% of net bookings [4] - Digital online revenues grew by 14% year over year to $1.48 billion, constituting 98.2% of GAAP net revenues, while physical retail revenues declined by 36.3% to $27.2 million [5] Platform Revenue Insights - Revenues from mobile, console, and PC accounted for 53.3%, 36.6%, and 10.1% of GAAP net revenues, respectively [6] - Mobile revenues increased by 11% to $801.7 million, console revenues rose by 8.2% to $550.6 million, and PC revenues surged by 41.9% to $151.5 million [6] Gaming Highlights - NBA 2K25 exceeded expectations, selling over 11.5 million units worldwide, with daily active users increasing by 30% and recurrent consumer spending rising by 48% [8] - The Grand Theft Auto series maintained strong momentum, with Grand Theft Auto V selling over 215 million units globally [11] Financial Performance - GAAP gross profit surged by 22.6% year over year to $945 million, with gross margin expanding to 62.8% [15] - Operating income was reported at $21.6 million, a significant improvement from an operating loss of $184.9 million in the previous year [16] Balance Sheet and Guidance - As of June 30, 2025, the company had $2.03 billion in cash and cash equivalents, up from $1.46 billion in March 2025, with total debt at $3.07 billion [17] - For Q2 fiscal 2026, TTWO expects GAAP net revenues between $1.65 billion and $1.70 billion, with net bookings projected in the range of $1.70 billion to $1.75 billion [18]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Group 1 - Take-Two Interactive Software's stock rose over 5% following strong earnings guidance, indicating a recovery in the mobile gaming industry after years of decline [1] - The company's Q1 net bookings reached $1.42 billion, a 16% increase year-over-year, significantly exceeding the previous forecast of $1.25 billion to $1.3 billion [1] - Q1 net loss narrowed from $262 million in the same period last year to $11.9 million, with adjusted EBITDA profit at $225.5 million [1] Group 2 - Take-Two raised its full-year bookings forecast from $5.9 billion-$6 billion to $6.05 billion-$6.15 billion, driven by anticipated strong demand for new games like "Mafia" and "Borderlands" [1] - The company confirmed the release of "Grand Theft Auto VI" on May 26 next year, expecting to generate billions in revenue shortly after launch [1] - The mobile gaming market is showing signs of recovery, aided by the increasing application of live-service features in games, which stimulates ongoing player spending [2]

Core Viewpoint - Take-Two's stock rose over 4.2% in after-hours trading, driven by strong first-quarter booking growth and improved financial performance [1] Financial Performance - First-quarter bookings increased by 17% year-over-year to $1.42 billion, surpassing the expected $1.31 billion [1] - Net loss significantly narrowed from $262 million in the same period last year to $11.9 million [1] - Adjusted EBITDA profit was reported at $225.5 million [1] Future Outlook - The company raised its full-year bookings forecast from $5.9 billion to a range of $6.05 billion to $6.15 billion, citing strong demand for upcoming titles such as "Mafia" and "Borderlands" [1] - Confirmation of the release date for "Grand Theft Auto VI" on May 26 next year, with expectations to generate billions in revenue shortly after launch [1]

Core Insights - Take-Two Interactive reported revenue of $1.42 billion for the quarter ended June 2025, reflecting a 16.8% increase year-over-year and a surprise of +10.71% over the Zacks Consensus Estimate of $1.29 billion [1] - The company's EPS was $0.61, significantly higher than the $0.05 reported in the same quarter last year, resulting in an EPS surprise of +125.93% compared to the consensus estimate of $0.27 [1] Financial Performance Metrics - Total net bookings reached $1.42 billion, exceeding the 14-analyst average estimate of $1.29 billion [4] - Mobile net bookings were $801.7 million, surpassing the average estimate of $709.16 million from 11 analysts [4] - Physical retail and other net bookings were $18 million, below the average estimate of $50.06 million from seven analysts [4] - Digital online net bookings totaled $1.41 billion, exceeding the average estimate of $1.2 billion from seven analysts [4] - Console net bookings were $474.4 million, slightly above the average estimate of $456.56 million from two analysts [4] - PC and other net bookings reached $155.9 million, compared to the average estimate of $127.97 million from two analysts [4] - Advertising net revenue was $121.3 million, exceeding the four-analyst average estimate of $107.95 million, with a year-over-year change of -0.2% [4] - Game net revenue was $1.38 billion, compared to the $1.28 billion average estimate from three analysts, representing a year-over-year increase of +13.6% [4] Stock Performance - Take-Two's shares have returned -6.2% over the past month, while the Zacks S&P 500 composite has increased by +1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported first quarter net bookings of $1,420,000,000, significantly above the guidance range of $1,250,000,000 to $1,300,000,000 [22] - GAAP net revenue increased by 12% to $1,500,000,000, while cost of revenue declined by 1% to $559,000,000 [22] - Recurrent consumer spending grew by 17%, accounting for 83% of net bookings, which was above the guidance of 7% growth [22] Business Line Data and Key Metrics Changes - The mobile business outperformed expectations, with titles like TuneBlast growing by 22% year over year and Match Factory achieving a 33% increase [9][10] - NBA 2K25 sold over 11,500,000 units, with engagement metrics such as daily active users increasing by 30% [12] - The Grand Theft Auto series continued to perform well, with Grand Theft Auto V selling over 215 million units worldwide [12] Market Data and Key Metrics Changes - The company expects net bookings for fiscal year 2026 to range from $6,050,000,000 to $6,150,000, reflecting an 8% growth at midpoint compared to fiscal year 2025 [23] - The breakdown of net bookings is projected to be approximately 45% from Zynga, 39% from 2K, and 16% from Rockstar Games [25] Company Strategy and Development Direction - The company is focused on organic growth while also considering selective inorganic opportunities that are strategically sound [42] - There is a strong emphasis on delivering high-quality titles, with a robust pipeline expected to enhance profitability [57][28] - The company is committed to supporting Nintendo with additional titles and expanding its offerings across various platforms [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, raising the net bookings outlook due to strong first-quarter performance [8] - There are concerns about potential economic slowdowns affecting consumer spending, but the company believes its focus on quality will help maintain engagement [55][56] - The management is confident in the upcoming release slate, which includes titles like The Old Country and NBA 2K26, to drive future growth [20][26] Other Important Information - The company announced a multi-year global partnership expansion with the NBA, NBA PA, and WNBA PA, indicating strong relationships in the sports gaming sector [13] - The company is exploring opportunities for open distribution in light of recent court rulings regarding alternative app stores [67] Q&A Session Summary Question: Insights on NBA 2K's performance - Management noted that NBA 2K's performance is driven by improved engagement across key modes, with significant year-over-year growth [30][32] Question: Advertising revenue trends - Management indicated a shift in advertising strategy from hyper casual to hybrid casual, which has led to a stabilization in advertising revenue [36] Question: Mobile growth expectations - Management acknowledged strong mobile performance in Q1 but anticipates moderation due to the maturity of some titles [38][39] Question: Capital allocation strategy - The company plans to focus on organic growth, selective inorganic opportunities, and returning capital to shareholders through buybacks [40][42] Question: Pricing strategy for Borderlands 4 - Management explained that pricing decisions are based on delivering value to consumers, with a focus on quality over simply following industry trends [46][48] Question: Economic outlook and its impact - Management expressed a cautious but optimistic view on the macroeconomic environment, suggesting a potential soft landing with modest growth [52][56] Question: Addressable player base versus quality - Management emphasized the importance of quality in game releases while ensuring availability across multiple platforms [61][62] Question: Court rulings on app stores - Management sees opportunities for open distribution and plans to continue cooperating with app stores while focusing on fair treatment [67][70]

Financial Data and Key Metrics Changes - The company reported net bookings of $1,420,000,000 for Q1 2026, significantly exceeding guidance of $1,250,000,000 to $1,300,000,000 [21] - GAAP net revenue increased by 12% to $1,500,000,000, while cost of revenue declined by 1% to $559,000,000 [21] - Recurrent consumer spending grew by 17%, accounting for 83% of net bookings, surpassing the guidance of 7% growth [21] Business Line Data and Key Metrics Changes - The mobile business outperformed expectations, with titles like TuneBlast growing by 22% year over year and Match Factory achieving a 33% increase [7][8] - NBA 2K25 sold over 11,500,000 units, with engagement metrics such as daily active users increasing by 30% [11] - Grand Theft Auto V sold over 215 million units, with new player accounts for GTA Online growing over 50% year over year [11] Market Data and Key Metrics Changes - The company expects net bookings for fiscal 2026 to range from $6,050,000,000 to $6,150,000, reflecting an 8% growth at midpoint [22] - The breakdown of net bookings is projected to be approximately 45% from Zynga, 39% from 2K, and 16% from Rockstar Games [23] Company Strategy and Development Direction - The company is focused on delivering high-quality entertainment experiences and has a robust pipeline of upcoming releases, including The Old Country, NBA 2K26, and Borderlands 4 [13][19] - The strategy emphasizes organic growth while selectively pursuing inorganic opportunities that are strategically sound [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the year ahead, raising the net bookings outlook due to strong first-quarter performance [6] - The company anticipates a modest economic growth environment, with a focus on quality to attract consumers even in challenging macroeconomic conditions [56] Other Important Information - The company announced a multi-year global partnership expansion with the NBA, NBA PA, and WNBA PA, enhancing its sports titles' engagement [12] - The company is committed to supporting Nintendo with additional titles launching throughout the year [12] Q&A Session Summary Question: Insights on NBA 2K's performance - Management highlighted that NBA 2K has sold over 11,500,000 units, with significant engagement growth driven by improved in-game telemetry and consumer preferences [29][30] Question: Advertising revenue trends - Management noted a shift in advertising strategy from hyper-casual to hybrid casual, leading to flat year-over-year advertising revenue [35][36] Question: Mobile growth expectations - Management acknowledged strong Q1 mobile performance but anticipated moderation due to the maturity of some titles [38] Question: Capital allocation strategy - Management outlined three capital allocation priorities: supporting organic growth, selectively pursuing inorganic opportunities, and returning capital to shareholders [41][42] Question: Pricing strategy for Borderlands 4 - Management explained their pricing strategy focuses on delivering value that exceeds consumer expectations, with variable pricing being a long-standing industry practice [46][48] Question: Economic outlook and its impact - Management expressed a cautious but optimistic view on economic growth, emphasizing that quality will drive consumer spending even in tougher times [50][56] Question: Addressable player base versus quality - Management stated that they aim to be present on all platforms where consumers are, without sacrificing quality for a broader player base [60][61]

Financial Performance - For the three months ended June 30, 2025, Net Bookings increased to $1,423.1 million, representing a 16.8% increase from $1,218.1 million in the prior year period, primarily driven by the NBA 2K franchise and Color Block Jam[120]. - Total net revenue for the three months ended June 30, 2025, was $1,503.8 million, representing a 12.4% increase from $1,338.2 million in the prior year period[122]. - Gross profit increased to $945.0 million, with a gross profit margin of 62.9%, up from 57.6% in the prior year[126]. - Net revenue from mobile games rose by $79.2 million, accounting for 53.3% of total net revenue, compared to 54.0% in the prior year[123]. - Recurrent consumer spending (RCS) increased by $158.4 million, making up 83.5% of net revenue, compared to 82.0% in the prior year[124]. - Digital online revenue grew by $181.1 million, representing 98.2% of total net revenue, up from 96.8% in the prior year[125]. - Total operating expenses decreased to $923.4 million, representing 61.5% of net revenue, down from 71.3% in the prior year[128]. - For the three months ended June 30, 2025, the net loss was $11.9 million, a significant improvement from a net loss of $262.0 million in the prior year period[144]. - Basic and diluted loss per share for the same period was $0.07, compared to $1.52 in the prior year[144]. Revenue Sources - Sales of Grand Theft Auto products generated 14.7% of net revenue for the three months ended June 30, 2025[108]. - Console revenue comprised 36.6% of net revenue for the three months ended June 30, 2025[113]. - Net revenue from digital online channels accounted for 98.2% of net revenue for the three months ended June 30, 2025[114]. - For the three months ended June 30, 2025, 40.1% of net revenue was earned outside the U.S., compared to 38.7% in the prior year[162]. - The five largest customers accounted for 83.5% of net revenue during the three months ended June 30, 2025[154]. Future Releases - Rockstar Games plans to release Grand Theft Auto VI on May 26, 2026, during fiscal year 2027[105]. - The 2K label plans to release several titles, including Mafia: The Old Country, NBA 2K26, Borderlands 4, and WWE 2K26 during the remainder of fiscal year 2026[109]. Cash and Investments - As of June 30, 2025, cash and cash equivalents totaled $2,116.2 million, up from $1,559.2 million at March 31, 2025, primarily due to net cash provided by financing activities[159]. - Net cash used in operating activities for the three months ended June 30, 2025, was $44.7 million, an improvement from $191.0 million in the prior year[159]. - Capital expenditures during the three months ended June 30, 2025, were $25.1 million, with anticipated capital expenditures for fiscal year 2026 projected at approximately $140.0 million[161]. - As of June 30, 2025, the company had $10.1 million in short-term investments, primarily consisting of bank time deposits[148]. Foreign Currency Impact - Changes in foreign currency exchange rates positively impacted net revenue by $1.8 million and gross profit by $10.9 million[127]. - For the three months ended June 30, 2025, the foreign currency translation adjustment was a gain of $82.9 million, compared to a loss of $5.4 million for the same period in 2024[170]. - The company recognized a foreign currency exchange transaction loss of $8.5 million for the three months ended June 30, 2025, compared to a loss of $2.8 million in 2024[170]. - As of June 30, 2025, the company had $276.7 million of forward contracts outstanding to sell foreign currencies in exchange for U.S. dollars[174]. - For the three months ended June 30, 2025, the company recorded a loss of $12.4 million related to foreign currency forward contracts, compared to a gain of $3.5 million in 2024[174]. - A hypothetical 10% increase in the value of the U.S. dollar against all currencies would decrease revenues by 4.0%, while a 10% decrease would increase revenues by 4.0%[175]. - The fair value of outstanding forward contracts is estimated based on prevailing exchange rates and is included in accrued expenses or prepaid expenses depending on the position[174]. - The company uses foreign currency forward contracts to mitigate foreign currency exchange rate risk associated with non-functional currency denominated cash balances and intercompany funding loans[171]. - The hedging programs are designed to reduce, but not entirely eliminate, the effect of currency exchange rate movements[175]. - The risk of counterparty nonperformance related to foreign currency forward contracts is considered not material[175]. Operational Challenges - The economic environment and retailer performance may impact consumer demand and pricing pressure on products[110]. - Player acquisition costs for mobile titles are recorded within Selling and marketing expenses, affecting operating results over time[116]. - Research and development expenses increased by $41.6 million, primarily due to the acquisition of Gearbox and related personnel costs[130]. - Interest and other expenses increased to $35.4 million, compared to $27.3 million in the prior year, mainly due to higher foreign currency losses[134]. - The benefit from income taxes was $1.9 million for the three months ended June 30, 2025, compared to a provision of $49.8 million in the prior year[135].

Q1 FY2026 Results - GAAP Net Revenue reached $1504 million, exceeding the guidance range of $1350 million to $1400 million[6] - Net Bookings were $1423 million, significantly above the guidance range of $1250 million to $1300 million[8] - Recurrent Consumer Spending (RCS) grew by 17%, surpassing the guidance of 7% year-over-year[8] - GAAP Net Loss was $(12) million, better than the guided loss of $(139) million to $(115) million[6] FY2026 Guidance - GAAP Net Revenue is projected to be $6100 million to $6200 million, revised up from the prior guidance of $5950 million to $6050 million[19] - Net Bookings are expected to be $6050 million to $6150 million, an increase from the previous guidance of $5900 million to $6000 million, representing 8% growth at the midpoint[21] - Recurrent Consumer Spending (RCS) growth is now expected to be 4% year-over-year, revised upward from the prior expectation of flat growth[21, 23] - GAAP Net Loss is projected to be $(442) million to $(377) million, an improvement from the prior guidance of $(499) million to $(439) million[19] Q2 FY2026 Guidance - GAAP Net Revenue is projected to be $1650 million to $1700 million[24] - Net Bookings are expected to be $1700 million to $1750 million[26] - Recurrent Consumer Spending (RCS) is projected to increase by approximately 1% year-over-year[26, 27]

FOR IMMEDIATE RELEASE CONTACT: (Investor Relations) (Corporate Press) Nicole Shevins Alan Lewis Senior Vice President Vice President Investor Relations & Corporate Communications Take-Two Interactive Software, Inc. Take-Two Interactive Software, Inc. (646) 536-3005 (646) 536-2983 Nicole.Shevins@take2games.com Alan.Lewis@take2games.com Corporate Communications & Public Affairs Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2026 Company raises fiscal year 2026 outlook Fiscal firs ...