Core Viewpoint - Shares of Take-Two Interactive experienced a decline of 6.26% in after-hours trading following the announcement of the postponement of Grand Theft Auto VI's launch to November 19, 2026 [1] Company Summary - Take-Two Interactive is a videogame publisher known for its popular titles, including the Grand Theft Auto series [1] - The delay in the launch of Grand Theft Auto VI has raised concerns among investors, leading to a significant drop in the company's stock price [1] Industry Summary - The postponement of major game releases can impact investor sentiment and stock performance within the videogame industry [1] - Anticipation for high-profile titles like Grand Theft Auto VI is crucial for maintaining investor confidence and market stability [1]

Take-Two Interactive (TTWO) reported $1.96 billion in revenue for the quarter ended September 2025, representing a year-over-year increase of 32.9%. EPS of $1.46 for the same period compares to $0.66 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.74 billion, representing a surprise of +12.93%. The company delivered an EPS surprise of +60.44%, with the consensus EPS estimate being $0.91.While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...

Take-Two Interactive (TTWO) came out with quarterly earnings of $1.46 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.66 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +60.44%. A quarter ago, it was expected that this publisher of "Grand Theft Auto" and other video games would post earnings of $0.27 per share when it actually produced earnings of $0.61, delivering a surprise ...

Core Viewpoint - Take-Two Interactive has announced a new launch date for "Grand Theft Auto VI" on November 19, 2024, marking the second delay for the highly anticipated game, which was initially set for release this year and then moved from May 26, 2023 [1][2][4] Company Summary - Shares of Take-Two Interactive fell by 7% in extended trading following the announcement of the delay [1][6] - The company has raised its forecast for annual bookings to between $6.40 billion and $6.50 billion, up from a previous estimate of $6.05 billion to $6.15 billion, driven by strong spending on mobile and premium titles [10] Industry Summary - "GTA VI" is expected to be a significant catalyst for the video game industry, potentially spurring console and hardware upgrades, especially as gamers are becoming more selective with their titles [3] - Analysts predict that "GTA VI" could generate billions in sales within the first few weeks of its launch, leveraging the success of its predecessor, "Grand Theft Auto V," which was one of the most profitable video games ever [6][7]

Financial Performance - Net Bookings for the three months ended September 30, 2025, were $1,474.9 million, a decrease of 32.9% compared to $1,960.5 million in the prior year[127] - For the six months ended September 30, 2025, Net Bookings increased to $3,383.6 million, up 25.6% from $2,693.1 million in the prior year[127] - Total net revenue for the three months ended September 30, 2025, was $1,773.8 million, a 31.1% increase from $1,353.1 million in the prior year period[130] - For the six months ended September 30, 2025, total net revenue increased by $586.3 million, or 21.8%, to $3,277.6 million compared to $2,691.3 million in the prior year period[155] - Net loss for the three months ended September 30, 2025 was $133.9 million, a decrease from a net loss of $365.5 million in the prior year period, resulting in a basic and diluted loss per share of $0.73 compared to $2.08[153] - For the six months ended September 30, 2025, the net loss was $145.8 million, a significant improvement from a net loss of $627.5 million in the prior year period[179] - Basic and diluted loss per share for the same period was $0.80, compared to $3.61 in the prior year[179] Revenue Sources - Sales of Grand Theft Auto products generated 12.0% of net revenue for the six months ended September 30, 2025[115] - The latest installment of the Borderlands franchise, Borderlands 4, was released in September 2025, contributing to higher Net Bookings[127] - The NBA 2K franchise was a significant driver of Net Bookings growth for both the three and six months ended September 30, 2025[127] - Digital online channels accounted for 96.7% of net revenue for the six months ended September 30, 2025[121] - Console revenue comprised 38.8% of net revenue for the six months ended September 30, 2025[120] - Net revenue from mobile increased by $81.4 million, accounting for 46.3% of total net revenue, compared to 54.7% in the prior year[131] - Net revenue from console games increased by $228.9 million, accounting for 40.6% of total net revenue, compared to 36.3% in the prior year[131] - Net revenue from mobile games increased by $160.6 million, accounting for 49.5% of total net revenue for the six months ended September 30, 2025, down from 54.3% in the prior year period[156] - Net revenue from digital online channels increased by $574.2 million, accounting for 96.7% of total net revenue for the six months ended September 30, 2025, compared to 96.4% in the prior year period[158] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $1,078.5 million, which is 60.9% of net revenue, compared to 74.5% in the prior year[136] - Total operating expenses for the six months ended September 30, 2025 were $2,001.9 million, representing 61.1% of net revenue, a decrease from 73.6% in the prior year period[161] - Selling and marketing expenses increased by $75.3 million, primarily due to higher marketing expenses for the Borderlands franchise and Color Block Jam[137] - Selling and marketing expenses increased by $52.7 million, or 5.9%, for the six months ended September 30, 2025, driven by higher performance-based compensation and marketing expenses for new titles[162] - Research and development expenses increased by $62.9 million, or 13.5%, for the six months ended September 30, 2025, primarily due to higher personnel expenses from the acquisition of Gearbox[163] Tax and Interest - The provision for income taxes was $18.4 million for the three months ended September 30, 2025, down from $41.2 million in the prior year[143] - The provision for income taxes for the six months ended September 30, 2025 was $16.5 million, a decrease from $91.0 million in the prior year period[168] - The effective tax rate for the six months ended September 30, 2025 was (12.8)%, compared to (17.0)% in the prior year period, primarily driven by changes in valuation allowances and geographic mix of earnings[169] - Interest and other net expenses decreased to $17.5 million from $27.1 million in the prior year, driven by lower interest expenses and foreign currency gains[142] Cash and Investments - As of September 30, 2025, cash and cash equivalents totaled $1,961.0 million, an increase from $1,559.2 million at March 31, 2025, primarily due to net cash provided by financing activities[193] - Net cash provided by operating activities for the six months ended September 30, 2025, was $83.7 million, compared to a net cash used of $319.4 million in the prior year[193] - Capital expenditures for the six months ended September 30, 2025, were $57.0 million, with anticipated capital expenditures for fiscal year 2026 expected to be approximately $180.0 million[195] - The company had $246.4 million in short-term investments as of September 30, 2025, primarily consisting of bank time deposits[183] - The company entered into an arrangement to sell designated pools of high credit quality accounts receivable for up to $215.0 million[181] - The company expects to rely on cash and cash equivalents, short-term investments, and funds from operating activities to satisfy working capital needs[180] - As of September 30, 2025, the company had $3,050.0 million of Senior Notes outstanding[184] Foreign Currency Impact - For the three months ended September 30, 2025, the foreign currency translation adjustment resulted in a loss of $38.0 million, compared to a gain of $71.6 million for the same period in 2024[205] - The company recognized a foreign currency exchange transaction gain of $1.9 million for the three months ended September 30, 2025, compared to a loss of $3.4 million in 2024[205] - As of September 30, 2025, the company had $425.9 million of forward contracts outstanding to sell foreign currencies in exchange for U.S. dollars[207] - For the six months ended September 30, 2025, the company recorded a loss of $13.0 million related to foreign currency forward contracts, compared to a gain of $0.2 million in 2024[207] - A hypothetical 10% increase in the value of the U.S. dollar against all currencies would decrease revenues by 4.2%, while a 10% decrease would increase revenues by 4.2%[208] - The company uses foreign currency forward contracts to mitigate foreign currency exchange rate risk, which are accounted for as derivatives[206] - The fair value of outstanding forward contracts is estimated based on prevailing exchange rates and is reported as either assets or liabilities on the balance sheet[206] - The company believes that the counterparties to its foreign currency forward contracts are creditworthy, minimizing the risk of counterparty nonperformance[208] Customer Concentration - The five largest customers accounted for 81.5% of net revenue during the six months ended September 30, 2025[189]

Financial Data and Key Metrics Changes - The company reported net bookings of $1.96 billion for the second quarter, significantly exceeding expectations and marking the best second quarter in the company's history [7][18] - GAAP net revenue increased by 31% to $1.77 billion, while the cost of revenue rose by 27% to $793 million [19] - Operating expenses increased by 5% to $1.1 billion, with management basis operating expenses rising by 13% year over year [19][23] - Recurrent consumer spending grew by 20%, accounting for 73% of net bookings, with expectations for recurrent consumer spending to grow approximately 11% for the full fiscal year [19][21] Business Line Data and Key Metrics Changes - The mobile business outperformed expectations, with Toon Blast growing 26% year over year and Match Factory achieving record net bookings with a 20% increase [8][9] - NBA 2K26 sold over 5 million units, representing a double-digit increase over NBA 2K25, with average selling prices reaching an all-time high [11] - Borderlands 4 received high critical praise but faced challenges with optimization and performance on PC, impacting initial sales [12][51] Market Data and Key Metrics Changes - The company expects net bookings for fiscal 2026 to range from $6.4 billion to $6.5 billion, reflecting a 14% growth over fiscal 2025 [20] - The breakdown of net bookings is projected to be approximately 46% from Zynga, 39% from 2K, and 15% from Rockstar Games [21] Company Strategy and Development Direction - The company aims to expand core franchises and release groundbreaking new titles, with a strong pipeline including Grand Theft Auto VI and other major franchises [17][25] - The focus on mobile direct-to-consumer business is expected to enhance net bookings and margins through new payment mechanisms and technologies [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong performance and a commitment to delivering high-quality entertainment experiences [15][25] - The company acknowledged the challenges faced with the delay of Grand Theft Auto VI but emphasized the importance of delivering a polished product [8][44] Other Important Information - The company has raised its full fiscal year guidance for net bookings and GAAP net revenue, reflecting strong performance in key titles [20][22] - The mobile gaming sector is experiencing pockets of growth, with the company attributing its success to quality and consumer engagement [82] Q&A Session Summary Question: Insights on RCS performance and GTA content updates - Management noted that the strong RCS performance is due to quality game development and engagement strategies, and there will be no change in support for GTA Online despite the release delay [30][31] Question: Impact of being a standalone publisher - Management acknowledged the competitive position as a standalone publisher but emphasized the importance of maintaining creative performance and economic success [36][37] Question: Mobile margins and alternate payment mechanisms - Management confirmed that the direct-to-consumer initiative has improved margins and that the rollout of alternate payment mechanisms is widespread across the mobile portfolio [41][42] Question: NBA audience expansion - Management indicated that returning players and international engagement are key to driving growth in the NBA franchise, with significant room for improvement in player retention [48][49] Question: M&A opportunities in mobile gaming - Management expressed a selective approach to M&A, focusing on strategic alignment and cultural fit, while highlighting the success of past acquisitions [55][57] Question: AI implementation in game development - Management clarified that while AI is not a replacement for creativity, it is being used to improve efficiency in non-creative areas of game development [60][61] Question: Update on BioShock franchise - Management confirmed that Rod Ferguson has been brought on to lead the BioShock franchise, with expectations for the next installment to exceed consumer expectations [64][66] Question: Ad revenue performance - Management noted that ad revenue growth is driven by strong performance across the mobile business, particularly from Rollic titles [68]

Financial Data and Key Metrics Changes - The company reported net bookings of $1.96 billion for the second quarter, significantly exceeding expectations and marking the best second quarter in the company's history [7][18] - GAAP net revenue increased by 31% to $1.77 billion, while the cost of revenue rose by 27% to $793 million [19] - Operating expenses increased by 5% to $1.1 billion, with management basis operating expenses rising by 13% year over year [19][23] - Recurrent consumer spending rose by 20%, accounting for 73% of net bookings, with expectations for recurrent consumer spending growth now projected at approximately 11% for the fiscal year [19][21] Business Line Data and Key Metrics Changes - The mobile business outperformed expectations, with Toon Blast growing 26% year over year and Match Factory achieving a 20% increase [8][9] - NBA 2K26 sold over 5 million units, representing a double-digit increase over NBA 2K25, with average selling prices reaching an all-time high [11] - The Grand Theft Auto Online community remains highly engaged, with GTA Plus membership growing over 20% year over year [14] Market Data and Key Metrics Changes - The company expects net bookings for fiscal 2026 to range from $6.4 billion to $6.5 billion, reflecting a 14% growth over fiscal 2025 [20] - The breakdown of net bookings is projected to be approximately 46% from Zynga, 39% from 2K, and 15% from Rockstar Games [22] Company Strategy and Development Direction - The company aims to expand core franchises and release groundbreaking new titles, with a strong pipeline including Grand Theft Auto VI and other major titles [17][25] - The focus on mobile direct-to-consumer business is expected to enhance net bookings and margins through new payment mechanisms [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong performance and a commitment to delivering high-quality entertainment experiences [15][25] - The company is confident in its ability to sustain momentum and achieve record levels of net bookings in fiscal 2027 [15][20] Other Important Information - The release date for Grand Theft Auto VI has been pushed to November 19, 2026, to ensure a high level of polish [8] - The company has seen a notable increase in ad revenue across its mobile business, particularly from Rollic [68] Q&A Session Summary Question: Insights on RCS performance and GTA content updates - Management noted that there are no expected changes in support for GTA Online despite the release date shift for GTA VI, emphasizing ongoing strong performance [30] Question: Impact of being a standalone publisher - Management acknowledged the competitive position but emphasized a focus on creativity and performance as key to future success [36] Question: Mobile margins and alternate payment mechanisms - Management confirmed that the rollout of direct-to-consumer initiatives has improved margins and net bookings, with expectations for continued growth [41] Question: NBA audience expansion - Management indicated that returning players and international engagement are key to driving recurrent consumer spending in NBA titles [49] Question: Importance of launch period for Borderlands - Management acknowledged a softer launch for Borderlands 4 but expressed confidence in long-term unit sales and economic results [51] Question: Confidence in sustaining mobile outperformance - Management attributed Zynga's success to strong leadership and execution, with a focus on strategic acquisitions and disciplined growth [54] Question: AI implementation in game development - Management discussed the positive role of AI in enhancing efficiency but emphasized that creativity remains the core of game development [60] Question: Update on BioShock franchise - Management expressed excitement about the new leadership for the BioShock franchise and confidence in delivering a product that exceeds consumer expectations [65]

Financial Data and Key Metrics Changes - The company reported net bookings of $1.96 billion for Q2 2026, significantly exceeding expectations and marking the best second quarter in the company's history [5][17] - GAAP net revenue increased by 31% to $1.77 billion, while cost of revenue rose by 27% to $793 million [18] - Operating expenses increased by 5% to $1.1 billion, with management basis operating expenses rising by 13% year over year [18] - The company raised its net bookings outlook for fiscal 2026 to a range of $6.4 billion to $6.5 billion, reflecting a 14% growth over fiscal 2025 at the midpoint [19][20] Business Line Data and Key Metrics Changes - The mobile business outperformed expectations, with Toon Blast growing 26% year over year and Match Factory achieving record net bookings with a 20% increase [6][8] - NBA 2K26 sold over 5 million units, representing a double-digit increase over NBA 2K25, with recurrent consumer spending growth of 45% [10][17] - The Grand Theft Auto Online community remains highly engaged, with GTA Plus membership growing over 20% year over year [12][28] Market Data and Key Metrics Changes - The company expects recurrent consumer spending to grow approximately 11%, driven by NBA 2K and higher expectations for several mobile titles [20] - The net bookings breakdown is projected to be approximately 46% from Zynga, 39% from 2K, and 15% from Rockstar Games [20] Company Strategy and Development Direction - The company aims to expand core franchises and release groundbreaking new titles, with a strong pipeline including Grand Theft Auto VI and other major releases [16][24] - The focus on mobile direct-to-consumer business is expected to enhance net bookings and margins through new payment mechanisms [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting to achieve record levels of net bookings in fiscal 2027 [13][24] - The company acknowledges modest industry tailwinds contributing to recurrent consumer spending growth [28][70] Other Important Information - The release date for Grand Theft Auto VI has been pushed to November 19, 2026, to ensure a high-quality product [6][16] - The company is focused on maintaining engagement in existing franchises while preparing for future releases [28][63] Q&A Session Summary Question: Common denominators in strong RCS performance - Management noted that the creative teams are delivering high-quality experiences, which correlates positively with performance [28] Question: Impact of being the last standalone publisher - Management expressed confidence in their position and emphasized the importance of maintaining creativity and performance [30][31] Question: Alternate payment mechanisms and margin uplift - Management confirmed that the direct-to-consumer initiative has been successful and is expected to improve margins [34][35] Question: Drivers behind the new GTA timeline - The decision to delay was based on the desire to deliver a polished experience that meets consumer expectations [38] Question: Incremental audiences for NBA - Management indicated that returning players and international engagement are key to driving recurring consumer spending [42] Question: Importance of launch period for Borderlands - Management acknowledged that the launch was softer than expected but remains optimistic about long-term sales [45] Question: Sustaining Zynga's outperformance - Management attributed Zynga's success to strong leadership and execution, with a focus on fewer titles and higher quality [48][49] Question: AI implementation in non-creative parts - Management clarified that AI is being used to improve efficiency but does not replace the need for creativity in game development [51][53] Question: Update on BioShock franchise - Management expressed excitement about the new leadership for the BioShock franchise and the positive trajectory of its development [57][58]

Company Performance - Take-Two Interactive Software (TTWO) reported adjusted earnings of $1.46 per share on net bookings of $1.96 billion for the fiscal second quarter, significantly exceeding analyst expectations of $0.94 per share and $1.73 billion in net bookings [2][3] - Year-over-year, Take-Two's adjusted earnings increased by 121%, while net bookings rose by 33% [3] - The company's strong performance was attributed to successful titles like "NBA 2K6" and mobile games such as "Toon Blast" and "Match Factory" [3] Game Release Delay - Take-Two announced a six-month delay for the release of "Grand Theft Auto 6," moving the launch date from May 26 to November 19, to allow the development team more time to enhance the game's quality [2][3][6] - The CEO emphasized the importance of delivering a polished product to meet player expectations [6] Future Guidance - For the current quarter, Take-Two anticipates adjusted earnings of $0.80 per share on net bookings of $1.58 billion, compared to Wall Street's expectations of $0.76 per share and $1.49 billion in net bookings [4] - The company raised its full fiscal year net bookings target to a range of $6.4 billion to $6.5 billion, up from analyst expectations of $6.18 billion, indicating a projected growth of 14% over fiscal 2025 [5] - Take-Two also guided for adjusted earnings of $3.17 per share for the full year, surpassing the consensus estimate of $2.90 [5] Stock Market Reaction - Following the earnings report and game delay announcement, TTWO stock fell over 7% in after-hours trading, closing at $233.75, after a 0.9% decline during the regular session [6]

Core Viewpoint - The delay of Grand Theft Auto 6 has significantly impacted the company's stock performance, leading to a nearly 11% drop in shares [3]. Group 1: Game Release Impact - Grand Theft Auto 6 has been delayed from May 26, 2025, to November 2026, marking the second delay for this highly anticipated game [1]. - The delay does not affect the current fiscal year, but future guidance for the next fiscal year may be adjusted due to this change [2]. Group 2: Market Reaction - The stock has reacted negatively to the news of the delay, with shares down nearly 11% [3]. - Despite the delay, the game is expected to be a major seller upon release, reflecting high anticipation from consumers [2].