Core Insights - Sea Limited (SE) and Take-Two Interactive (TTWO) are benefiting from increased consumer spending on mobile games, with mobile game revenues reaching approximately $6.85 billion in May, reflecting a 5.4% month-over-month increase [2][3] - Video game revenues are projected to grow at a CAGR of 7.01% from 2025 to 2030, reaching $733.22 billion, with mobile game revenues expected to hit $163.98 billion by 2030, indicating significant growth opportunities for both companies [3] Sea Limited (SE) Analysis - SE's Garena Digital Entertainment revenues increased 8.2% year-over-year to $495.6 million in Q1 2025, with bookings soaring 51.4% year-over-year to $775.4 million, driven by the success of Free Fire [4] - Garena Free Fire was the second most downloaded mobile game globally in May 2025, with a growing user base in markets like India, Brazil, and Indonesia [4][5] - Quarterly active users rose 11.3% year-over-year to 661.8 million, while quarterly paying users increased 32.2% year-over-year to 64.6 million, resulting in a paying user ratio of 9.8% [5] - SE's gaming portfolio expansion includes the launch of Delta Force Mobile, which attracted over 10 million downloads, and the company aims for double-digit growth in user base and bookings for Garena in 2025 [6] Take-Two Interactive (TTWO) Analysis - In Q4 fiscal 2025, TTWO's NBA 2K25 exceeded forecasts with nearly 10 million units sold, a 7% increase compared to NBA 2K24 [7] - The Grand Theft Auto series continues to perform well, with GTA V selling over 215 million units, and Red Dead Redemption 2 showing a 23% year-over-year growth in net bookings [7] - However, TTWO's reliance on a few franchises poses challenges, as the anticipated Grand Theft Auto VI release has been delayed to May 26, 2026, impacting near-term revenue expectations [8] - TTWO's fiscal 2026 guidance for net bookings is $5.9-$6 billion, reflecting a modest 5% growth, with increasing cost pressures and flat recurrent consumer spending expected [9][10] Stock Performance and Valuation - Year-to-date, Sea Limited shares have surged 46.8%, outperforming Take-Two Interactive's 31.2% increase [11] - Both companies are currently considered overvalued, with Sea Limited trading at a forward Price/Sales ratio of 3.78X, lower than TTWO's 6.22X [14][17] - The Zacks Consensus Estimate for Sea Limited's 2025 earnings is $2.68 per share, indicating a 41.8% year-over-year increase, while TTWO's fiscal 2026 earnings estimate is $2.93 per share, reflecting a 42.93% year-over-year jump despite a 10.4% decline over the past 30 days [19][20] Business Model Comparison - Sea Limited benefits from a diversified business model, with growth in its e-commerce platform Shopee and fintech service Monee, while TTWO's performance is heavily reliant on its established franchises [21] - Sea Limited's strategic expansion into underserved markets like Brazil signals a pivot towards sustainable growth, contrasting with TTWO's challenges in maintaining consistent release schedules [21][22]

TAKE-TWO INTERACTIVE TAKE-TWO INTERACTIVE SOFTWARE, INC. 2 COMPANY OVERVIEW TAKE-TWO INTERACTIVE Leading multi-platform developer, publisher and marketer of interactive entertainment, the strongest growth segment of the entertainment industry | | Fit | 2 | 定 | | --- | --- | --- | --- | | CONSOLE | X | X | | | PC | X | × | | | MOBILE | X | X | X | (NASDAQ: TTWO) MAY 2025 CAUTIONARY NOTE: FORWARD-LOOKING STATEMENTS The statements contained herein, which are not historical facts, including statements relating ...

Core Insights - Take-Two Interactive (TTWO) is experiencing growth due to a strong product portfolio and innovative pipeline, with net bookings increasing 17% year-over-year to $1.58 billion in Q4 fiscal 2025, driven by a 14% rise in recurrent consumer spending, which constituted 77% of total net bookings [1][9] Group 1: Financial Performance - In fiscal 2026, net bookings are projected to be between $5.9 billion and $6 billion, reflecting confidence in the company's growth trajectory [2][9] - The Zacks Consensus Estimate for TTWO's 2026 revenues is $5.99 billion, indicating a 6.10% year-over-year growth, with earnings estimated at $3.27 per share, representing a 59.51% increase from the previous year [14] Group 2: Product Pipeline - Upcoming releases include major titles such as Mafia: The Old Country, Borderlands 4, NBA 2K26, WWE 2K26, CSR 3, Civilization VII for Switch, and the highly anticipated Grand Theft Auto VI, set for May 2026 [3] Group 3: Competitive Landscape - Take-Two faces significant competition from Electronic Arts (EA) and Microsoft, with EA reporting a net bookings increase of 8% year-over-year to $1.8 billion in its fiscal Q4 2025, and Microsoft leveraging its broader portfolio to maintain a competitive edge [4][5][6] Group 4: Stock Performance and Valuation - TTWO shares have appreciated 25.5% year-to-date, outperforming the Zacks Gaming industry's return of 1.8% [7] - The company appears overvalued with a forward price-to-sales ratio of 6.09, higher than the industry average of 3.22, and carries a Value Score of F [11]

Core Insights - TakeTwo Interactive Software (TTWO) reported a GAAP net loss of $21.08 per share for the fourth quarter of fiscal 2025, which is wider than the loss of $17.02 in the same quarter last year. The Zacks Consensus Estimate for earnings was $1.08 per share [1] - GAAP net revenues increased by 13.1% year over year to $1.58 billion, surpassing the Zacks Consensus Estimate of $1.55 billion [1] Revenue Breakdown - Revenues from the United States rose by 9.8% year over year to $946.1 million, accounting for 59.8% of total GAAP net revenues. International revenues increased by 18.3% year over year to $636.4 million [2] - Game revenues, which represent 93.1% of total revenues, grew by 16.9% year over year to $1.47 billion, while advertising revenues, making up 6.9% of total revenues, fell by 21.7% year over year to $108.7 million [2] Bookings Performance - Total bookings improved by 17.3% year over year to $1.58 billion, with U.S. bookings increasing by 17.4% to $961.1 million, representing 60.8% of total bookings. International bookings rose by 17.1% to $620.4 million [3] - Recurrent consumer spending increased by 14% for the period, accounting for 77% of net bookings [4] Distribution Channels - Digital online revenues grew by 14.3% year over year to $1.53 billion, making up 96.4% of GAAP net revenues. Conversely, physical retail and other revenues declined by 11.4% to $56.9 million, representing 3.6% of total revenues [4] Platform Revenue Insights - Revenues from mobile, console, and PC/other accounted for 47.2%, 37.4%, and 15.4% of GAAP net revenues, respectively. Mobile revenues increased by 4.6% to $747.4 million, console revenues rose by 4% to $591.2 million, and PC/other revenues surged by 110.7% to $243.6 million [6] Gaming Performance Highlights - NBA 2K25 achieved near-record performance, selling nearly 10 million units, a 7% increase compared to NBA 2K24 [8] - The Grand Theft Auto series exceeded expectations, with GTA V selling over 215 million units, and Red Dead Redemption 2 showing a 23% year-over-year growth in net bookings [10] Operating Details - GAAP gross profit surged by 71.2% year over year to $803.3 million, with gross margin expanding to 50.8% from 33.5% in the previous year [13] - Operating expenses rose by 43.9% year over year to $4.58 billion, with a notable operating loss of $3.78 billion compared to a loss of $2.71 billion in the prior year [14] Financial Position - As of March 31, 2025, TakeTwo had $1.47 billion in cash and short-term investments, up from $1.21 billion as of December 31, 2024. The company had a total debt of $2.51 billion [15] Future Guidance - For the first quarter of fiscal 2026, TakeTwo expects GAAP net revenues between $1.35 billion and $1.40 billion, with anticipated operating expenses between $908 million and $918 million. The expected loss per share is projected to be between 78 cents and 65 cents [16] - For fiscal 2026, the company forecasts GAAP net revenues between $5.95 billion and $6.05 billion, with net bookings expected in the range of $5.9 billion to $6 billion [18]

TAKE-TWO INTERACTIVE TAKE-TWO INTERACTIVE SOFTWARE, INC. (NASDAQ: TTWO) FOURTH QUARTER AND FISCAL 2025 RESULTS & GUIDANCE SUMMARY CAUTIONARY NOTE: FORWARD LOOKING STATEMENTS The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software. Inc.'s ("Take-Two," the "Company, " "we." "us." or similar pronouns) outlook, are considered forward-looking statements under federal secur ties laws and may be identified by words such as "anticipates," "beli ...

TakeTwo Interactive Software (TTWO) is scheduled to release fourth-quarter fiscal 2025 results on May 15.For the fourth quarter of fiscal 2025, TakeTwo expects GAAP net revenues between $1.52 billion and $1.62 billion. It anticipates a GAAP net loss per share of 20 cents to earnings per share of 13 cents.The Zacks Consensus Estimate for TTWO’s fiscal fourth-quarter revenues is pegged at $1.55 billion, indicating growth of 14.73% on a year-over-year basis.The consensus mark for earnings is currently pegged a ...