Core Insights - Take-Two Interactive Software reported strong Q1 FY2026 results, with Net Bookings of $1.42 billion, exceeding both company guidance and analyst expectations [1][2] - Non-GAAP earnings per share reached $0.61, significantly higher than the estimated $0.29, while GAAP net loss narrowed to $11.9 million from $262 million year-over-year [1][7] - The company raised its full-year Net Bookings guidance to $6.05–$6.15 billion, reflecting optimism for upcoming game launches, particularly Grand Theft Auto VI [1][14] Financial Performance - Net Bookings increased by 17% year-over-year, driven by strong recurring consumer spending, which accounted for 83% of total Net Bookings [2][5] - GAAP revenue rose by 11.9% compared to the same quarter last year, supported by established franchises like NBA 2K25 and Grand Theft Auto V [6] - Operating expenses remained high at $923.4 million, with R&D spending at $261.4 million, contributing to a GAAP net loss of $11.9 million [7] Business Overview - Take-Two develops and publishes interactive entertainment across various platforms, with notable franchises including Grand Theft Auto, NBA 2K, and Red Dead Redemption [3] - The company focuses on expanding its multi-platform reach and enhancing player engagement through investments in talent and technology [4] Strategic Focus - Key strategies include driving recurring spending within games, maintaining cost control, and innovating on new platforms like virtual reality [4][12] - The company is preparing for significant launches, including Mafia: The Old Country and NBA 2K26, alongside the anticipated Grand Theft Auto VI [10] Market Trends - Mobile gaming remains a critical area, with the Zynga division releasing profitable titles and leveraging direct-to-consumer sales [11] - Take-Two is exploring new trends such as virtual reality and global expansion, particularly in Asian markets [13] Future Guidance - For Q2 FY2026, Net Bookings are projected between $1.70 and $1.75 billion, with GAAP revenue expected at $1.65–$1.70 billion [14] - The company anticipates a full-year GAAP net loss of $442 to $377 million, despite raising its adjusted EBITDA guidance [14][15]

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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 001-34003 TAKE-TWO INTERACTIVE SOFTWARE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 51-0350842 (St ...

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]