TAKE TWO INTERACTIVE SOFTWARE INC (TTWO): Results of Operations and Financial Condition
TAKE TWO INTERACTIVE SOFTWARE INC (TTWO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE CONTACT: (Investor Relations) (Corporate Press) Nicole Shevins Alan Lewis Senior Vice President Head of Global Corporate Communications Investor Relations & Corporate Communications Take-Two Interactive Software, Inc. Take-Two Interactive Softwa
How this was made
The 30-second read
Why it matters
The filing updates the forward bookings framework (FY2027 net bookings $8.0 to $8.2B; Q2 net bookings $1.62 to $1.67B) and provides profitability context (GAAP net loss $34.1M in Q1) that can drive near-term positioning around the upcoming November 19 GTA VI launch.
Market read
Fresh guidance ranges and quarterly operating metrics are directly tradable for TTWO, especially around bookings expectations into the GTA VI launch window.
What to watch
Traders may overweight the reiterated bookings range and underweight the composition shift signals: recurrent consumer spending growth vs total net bookings decline, plus deferred revenue and cost-of-revenue movements.
Fiscal first quarter Net Bookings were $1.39 billion, slightly above Company's guidance range; Company updates fiscal year 2027 outlook and reiterates expectation for Net Bookings of $8.0 to $8.2 billion
GAAP net revenue increased to $1.53 billion and first-quarter Net Bookings were slightly above the Company's guidance range, but Total Net Bookings decreased 3% and GAAP net loss widened to $34.1 million from $11.9 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Net Bookingsother | $1.39 billion | – | decreased 3% |
| Net Bookings from recurrent consumer spendingother | 84% of total Net Bookings | – | decreased 1% |
| Total net revenueGAAP | $1.53 billion | – | – |
| Recurrent consumer spendingGAAP | 84% of total GAAP net revenue | – | increased 3% |
| Cost of revenueGAAP | $1,533.9 million | – | – |
| Gross profitGAAP | $882.5 million | – | – |
| Operating expensesGAAP | $918.0 million | – | – |
| Loss from operationsGAAP | $(35.5) million | – | – |
| Interest and other, netGAAP | $(13.8) million | – | – |
| Loss before income taxesGAAP | $(49.3) million | – | – |
| Net lossGAAP | $34.1 million | – | – |
| Net loss per shareGAAP | $0.18 per share | – | – |
| EBITDAnon-GAAP | $167.0 million | – | – |
Fiscal Year Ending March 31, 2027 outlook
- Revenue$7,900 to $8,100
- Operating expenses$4,150 to $4,170
- Tax rate18%
- NoteCost of revenue: $3,538 to $3,658
- NoteInterest and other, net: $53
- NoteIncome before income taxes: $159 to $219
- NoteNet income: $104 to $143
- NoteDiluted net income per share: $0.55 to $0.75
- NoteNet cash provided by operating activities: over $1,000
- NoteCapital expenditures: approximately $290
- NoteNon-GAAP EBITDA: $993 to $1,053
- NoteNet Bookings: $8,000 to $8,200
- NoteShare count used to calculate GAAP and management reporting diluted net income per share: 189.4 million
- NoteFiscal Second Quarter Ending September 30, 2026 total net revenue: $1,420 to $1,470
- NoteFiscal Second Quarter Ending September 30, 2026 cost of revenue: $622 to $638
- NoteFiscal Second Quarter Ending September 30, 2026 operating expenses: $1,009 to $1,019
- NoteFiscal Second Quarter Ending September 30, 2026 interest and other, net: $13
- NoteFiscal Second Quarter Ending September 30, 2026 loss before income taxes: $(224) to $(200)
- NoteFiscal Second Quarter Ending September 30, 2026 net loss: $(157) to $(140)
- NoteFiscal Second Quarter Ending September 30, 2026 net loss per share: $(0.84) to $(0.75)
- NoteFiscal Second Quarter Ending September 30, 2026 Non-GAAP EBITDA: $(20) to $4
- NoteFiscal Second Quarter Ending September 30, 2026 Net Bookings: $1,620 to $1,670
- NoteFiscal Second Quarter Ending September 30, 2026 management reporting tax rate anticipated: 18%
- NoteFiscal Second Quarter Ending September 30, 2026 share count used to calculate GAAP net loss per share: 187.1 million
- NoteFiscal Second Quarter Ending September 30, 2026 share count used to calculate management reporting diluted net income per share: 188.5 million
What drove it
- The largest contributors to Net Bookings were NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, the Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker, and Toy Blast.
- The largest contributors to GAAP net revenue were NBA 2K, the Grand Theft Auto series, Toon Blast, Empires & Puzzles, Match Factory!, the Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker, and Merge Dragons.
- Grand Theft Auto VI is scheduled for release on November 19, 2026 for PS5 and Xbox Series X|S.
- NBA 2K27 is scheduled for release on September 4, 2026 for PS5, Xbox Series X|S, Switch 2, and PC.
Concerns
- Total Net Bookings decreased 3% to $1.39 billion compared to $1.42 billion during last year's fiscal first quarter.
- Net Bookings from recurrent consumer spending decreased 1%.
- GAAP net loss was $34.1 million, compared to $11.9 million for the comparable period last year.
- Cost of revenue included a $43.4 million impairment charge related to the decision not to proceed with further development of an unannounced title in the pipeline from a third-party developer.
- The fiscal second-quarter outlook calls for net loss of $(157) to $(140) and Non-GAAP EBITDA of $(20) to $4.
What to watch
- The November 19, 2026 launch of Grand Theft Auto VI.
- Delivery of the titles included in the financial outlook.
- Net Bookings within the fiscal year outlook of $8,000 to $8,200.
- Continued growth in the installed base of PlayStation 5 and Xbox Series X|S.
- Factors affecting mobile performance, such as player acquisition costs.
- Ongoing focus on the live services portfolio and new game pipeline.
Balance sheet and cash flow
- Fiscal Year Ending March 31, 2027 Net cash provided by operating activities: over $1,000
- Fiscal Year Ending March 31, 2027 Capital expenditures: approximately $290
Analysis
Take-Two reported fiscal first-quarter 2027 GAAP net revenue of $1.53 billion, compared with $1.50 billion in the comparable prior-year period. Total Net Bookings decreased 3% to $1.39 billion from $1.42 billion, although the Company said the result was slightly above its guidance range. Recurrent consumer spending represented 84% of both Total Net Bookings and GAAP net revenue, with Net Bookings from recurrent consumer spending decreasing 1% and GAAP recurrent consumer spending increasing 3%.
The period remained loss-making on a GAAP basis. GAAP net loss was $34.1 million, or $0.18 per share, compared with $11.9 million, or $0.07 per share, in the comparable period last year. The release identifies a $43.4 million impairment charge in cost of revenue tied to the decision to stop further development of an unannounced title from a third-party developer. The reconciliation table reported gross profit of $882.5 million, operating expenses of $918.0 million, loss from operations of $(35.5) million, and Non-GAAP EBITDA of $167.0 million.
The revenue and bookings contribution list was broad across NBA 2K, Grand Theft Auto, mobile titles, Red Dead Redemption, WWE 2K, and social and puzzle franchises. Management's stated outlook dependencies include the timely delivery of titles, current-generation console installed-base growth, mobile player acquisition costs, live services execution, the new game pipeline, and stable foreign exchange rates. The release does not provide reportable segment revenue or margins.
For fiscal 2027, the Company reiterated Net Bookings of $8,000 to $8,200 and guided total net revenue to $7,900 to $8,100. The outlook calls for net income of $104 to $143, diluted net income per share of $0.55 to $0.75, Non-GAAP EBITDA of $993 to $1,053, and net cash provided by operating activities of over $1,000. Capital expenditures are expected to be approximately $290.
The near-term guide is materially different from the full-year outlook. For the fiscal second quarter ending September 30, 2026, Take-Two expects Total Net Bookings of $1,620 to $1,670 and total net revenue of $1,420 to $1,470, while forecasting net loss of $(157) to $(140), net loss per share of $(0.84) to $(0.75), and Non-GAAP EBITDA of $(20) to $4. The announced lineup places NBA 2K27 on September 4, 2026 and Grand Theft Auto VI on November 19, 2026, making title delivery and the timing of these releases central to the fiscal-year outlook.
Management, verbatim
Our excellent first quarter results reflect the power of our portfolio and disciplined execution across all of our labels. With these positive trends and excitement around the November 19 th launch of Grand Theft Auto VI , we are reiterating our Fiscal 2027 Net Bookings outlook of $8.0 to $8.2 billion. Looking further ahead, we expect to sustain this new level of scale and generate strong cash flows, setting us on a path to deliver continued growth and long-term shareholder returns.
Strauss Zelnick, Chairman and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported first-quarter metrics
- Reported segment revenue, segment profitability, and segment growth rates
- GAAP gross margin and non-GAAP gross margin
- Actual first-quarter operating cash flow
- Actual first-quarter free cash flow
- Cash balance
- Debt balance
- Capital returns, including share repurchases and dividends
- Previous-release outlook needed to compare actual results with prior guidance
- Actual non-GAAP net income and non-GAAP diluted net income per share
- Prior-year comparisons for cost of revenue, gross profit, operating expenses, loss from operations, interest and other, net, loss before income taxes, and EBITDA
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Take-Two’s SEC 8-K (Item 2.02) with an earnings release covering fiscal first quarter 2027 results and updated outlook for fiscal 2027 and fiscal second quarter.
Ticker impact
Take-Two reported fiscal Q1 2027 results and updated FY2027 outlook, reiterating net bookings guidance of $8.0 to $8.2 billion.
Moderately positive bias, with traders likely focusing on whether recurrent spending strength and the GTA VI launch narrative support the reiterated FY net bookings range.
The filing provides fresh, decision-relevant numbers: Q1 net bookings and GAAP net loss, plus explicit FY2027 and Q2 net bookings ranges. Reiterated guidance tied to the upcoming GTA VI launch can support sentiment, though GAAP loss and an impairment charge temper the reaction.
Market effects
Reinforces demand durability in major publisher franchises and recurrent consumer spending, a read-across for video game monetization expectations.
Primarily US-listed large-cap gaming sentiment; limited direct regional spillover beyond discretionary tech/gaming risk appetite.
GTA VI launch expectations can influence global gaming sentiment and risk appetite for large publishers and platform-adjacent names.
Counterpoint
Despite reiterated net bookings, the GAAP net loss and the impairment charge highlight pipeline execution risk that could resurface in later quarters.
Key entities
- companyTake-Two Interactive Software, Inc.
Reported fiscal Q1 2027 results, reiterated FY2027 net bookings outlook, and provided Q2 outlook in an SEC 8-K.
- productGrand Theft Auto VI
Company cites launch excitement around November 19 as a key driver behind reiterating FY2027 net bookings guidance.
