| Take-Two Interactive Software, Inc. Reports Results for Fiscal Third Quarter 2026 |
| February 3, 2026 at 4:05 PM EST |
| Company raises fiscal year 2026 outlook |
| Fiscal third quarter Net Bookings were $1.76 billion, above Company's guidance range |
| Net Bookings for fiscal year 2026 are now expected to range from $6.65 to $6.7 billion |
| NEW YORK--(BUSINESS WIRE)--Feb. 3, 2026-- Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the third quarter of |
| its fiscal year 2026, ended December 31, 2025. For further information, please see the third quarter fiscal 2026 results slide deck posted to the |
| Company’s investor relations website at take2games.com/ir. |
| CEO Comments |
| Strauss Zelnick, Chairman and CEO of Take-Two Interactive, stated: “Our outstanding third quarter results reflect outperformance from all of our |
| labels, and we are once again raising our Net Bookings outlook for Fiscal 2026. With ongoing momentum across many of our businesses, and the |
| highly anticipated launch of Grand Theft Auto VI on November 19th, we continue to project record levels of Net Bookings in Fiscal 2027, which we |
| believe will establish a new financial baseline for our business, set us on a path to enhanced profitability, and provide further balance sheet strength |
| and flexibility.” |
| Third Quarter Fiscal 2026 Financial and Operational Highlights |
| Total Net Bookings* grew 28% to $1.76 billion, compared to $1.37 billion during last year’s fiscal third quarter. |
| Net Bookings from recurrent consumer spending** grew 23% and accounted for 76% of total Net Bookings. |
| The largest contributors to Net Bookings were NBA® 2K26, Grand Theft Auto® Online and Grand Theft Auto V, |
| Toon Blast™, Match Factory!™, Empires & Puzzles™, Color Block Jam™, Red Dead Redemption® 2 and Red |
| Dead Online, Red Dead Redemption® and Undead Nightmare, Words With Friends™, WWE® 2K25, and Toy |
| Blast™. |
| GAAP net revenue was $1.70 billion, compared to $1.36 billion in last year’s fiscal third quarter. |
| Recurrent consumer spending** increased 20% and accounted for 77% of total GAAP net revenue. |
| The largest contributors to GAAP net revenue were NBA 2K26 and NBA 2K25, Grand Theft Auto Online and Grand |
| Theft Auto V, Toon Blast, Match Factory!, Empires & Puzzles, Color Block Jam, Red Dead Redemption and |
| Undead Nightmare, Red Dead Redemption 2 and Red Dead Online, Words With Friends, WWE 2K25, and |
| Borderlands® 4. |
| GAAP net loss was $92.9 million, or $0.50 per share, as compared to $125.2 million, or $0.71 per share, for the |
| comparable period last year. |
| * Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, |
| and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives. |
| ** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases |
| and in-game advertising |
| Third Quarter Fiscal 2026 Financial Results |
| The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial |
| results in order to facilitate comparison of its operating performance between periods and to better understand its core business: |
| Three Months Ended December 31, 2025 |
| Financial Data |
|
|
| Change in deferred |
| Amortization of |
| Statement of net revenue and Stock-based Business Business Other |
| | in millions | | | | acquired | | | | |
| | ----------- | --- | --- | --- | --------- | --- | --- | --- | |
| Operations related cost of compensation reorganization acquisition (a) |
| intangibles |
| revenue |
| | GAAP | | | | | | | | |
| | ----------------- | --------- | ------ | ------ | -------- | --- | --- | --- | |
| | Total net revenue | $1,699.0 | 58.0 | | | | | | |
| | Cost of revenue | 753.5 | (3.1) | (3.6) | (160.7) | | | | |
| | Gross profit | 945.5 | 61.1 | 3.6 | 160.7 | | | | |
| Operating |
| | | 984.2 | | (86.7) | (15.1) | (0.6) | (4.0) | | |
| | --- | ------ | --- | ------- | ------- | ------ | ------ | --- | |
| expenses |
| (Loss) income |
| | | (38.7) | 61.1 | 90.3 | 175.8 | 0.6 | 4.0 | | |
| | --- | ------- | ----- | ----- | ------ | ---- | ---- | --- | |
| from operations |
| Interest and other, |
| | | (17.1) | (1.6) | | | | 4.5 | 0.1 | |
| | --- | ------- | ------ | --- | --- | --- | ---- | ---- | |
| net |
| (Loss) income |
| | before income | (55.8) | 59.6 | 90.3 | 175.8 | 0.6 | 8.5 | 0.1 | |
| | ------------- | ------- | ----- | ----- | ------ | ---- | ---- | ---- | |
| taxes |
| | | | | | | | | | |
| | -------- | ------ | ----- | ----- | --- | ---- | ---- | ---- | |
| | Non-GAAP | | | | | | | | |
| | EBITDA | 174.8 | 59.6 | 90.3 | | 0.6 | 6.5 | 0.1 | |
| The above table utilizes a management tax rate of 18% |
| Share count used to calculate management reporting diluted net income per share is 186.5 million |
| (a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity |
| investments. |
| Outlook for Fiscal Year 2026 |
| Take-Two is raising its outlook for the fiscal year and providing its initial outlook for its fiscal fourth quarter ending March 31, 2026: |
| Fiscal Year Ending March 31, 2026 |
| The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and |
| Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business |
| and future outlook: |
| | | Fiscal Year Ending March 31, 2026 | | | | | | | |
| | ------------------------ | ---------------------------------- | ---------------------- | --- | ----------- | --------------- | -------- | --- | |
| | | | Financial Data | | | | | | |
| | | | Change in deferred net | | | | Business | | |
| | $ in millions except for | | | | Stock-based | Amortization of | | | |
| Outlook (b) revenue and related cost of acquisition and |
| | per share amounts | | | | compensation | acquired intangibles | | | |
| | ----------------- | ----------------- | ------- | --- | ------------ | -------------------- | --------- | --- | |
| | | | revenue | | | | other (c) | | |
| | GAAP | | | | | | | | |
| | Total net revenue | $6,550 to $6,600 | $100 | | | | | | |
|
|
| | Cost of revenue | $2,781 to $2,797 | $(5) | $31 | $(641) | | |
| | ----------------------- | ----------------- | ----- | ------- | ------- | ------ | |
| | Operating expenses | $3,959 to $3,969 | | $(333) | $(68) | $(8) | |
| | Interest and other, net | $97 | | | | $(14) | |
| (Loss) income before |
| | | $(287) to $(263) | $105 | $302 | $709 | $22 | |
| | --- | ----------------- | ----- | ----- | ----- | ---- | |
| income taxes |
| | Net loss | $(369) to $(338) | | | | | |
| | -------- | ----------------- | --- | --- | --- | --- | |
| $(2.00) to |
| | Net loss per share | | | | | | |
| | ------------------ | --- | --- | --- | --- | --- | |
| $(1.84) |
| | Net cash provided by | approximately | | | | | |
| | -------------------- | ------------- | --- | --- | --- | --- | |
| | | | | | | | |
| | operating activities | $450 | | | | | |
| approximately |
| | Capital expenditures | | | | | | |
| | -------------------- | --- | --- | --- | --- | --- | |
| $180 |
| | | | | | | | |
| | ------------------ | ----------------- | ----- | ----- | --- | --- | |
| | Non-GAAP | | | | | | |
| | EBITDA | $657 to $681 | $105 | $302 | | $8 | |
| | | | | | | | |
| | Operational metric | | | | | | |
| | Net Bookings | $6,650 to $6,700 | | | | | |
| Management reporting tax rate anticipated to be 18% |
| Share count used to calculate GAAP net loss per share is expected to be 183.9 million |
| Share count used to calculate management reporting diluted net income per share is expected to be 186.3 million |
| (b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to |
| be at the low end or high end of the outlook range simultaneously. |
| (c) Other includes adjustments for (i) business reorganization expenses, (ii) the revaluation of the Turkish Lira against the U.S. Dollar, and (iii) fair value |
| adjustments related to certain equity investments. |
| Fiscal Fourth Quarter Ending March 31, 2026 |
| The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and |
| Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business |
| and future outlook: |
| | | Three Months Ending March 31, 2026 | | | | | |
| | --- | ----------------------------------- | --------------- | --- | --- | --- | |
| | | | Financial Data | | | | |
| $ in millions except for Outlook (b) Change in deferred net revenue Stock-based Amortization of Business |
| | | | | | | | |
| | --- | --- | --- | --- | --- | --- | |
| per share amounts and related cost of revenue compensation acquired intangibles acquisition |
| | GAAP | | | | | | |
| | ---- | --- | --- | --- | --- | --- | |
|
|
| $1,573 to |
| | Total net revenue | | $(63) | | | | |
| | ----------------- | --- | ------ | --- | --- | --- | |
| $1,623 |
| $675 to |
| | Cost of revenue | | $(10) | $1 | $(161) | | |
| | --------------- | --- | ------ | --- | ------- | --- | |
| $692 |
| $973 to |
| | Operating expenses | | | $(79) | $(17) | | |
| | ------------------ | --- | --- | ------ | ------ | --- | |
| $983 |
| | Interest and other, net | $26 | | | | $(4) | |
| | ----------------------- | ---- | --- | --- | --- | ----- | |
| (Loss) income before $(101) to |
| | | | $(53) | $78 | $178 | $4 | |
| | --- | --- | ------ | ---- | ----- | --- | |
| income taxes $(78) |
| $(129) to |
| | Net (loss) income | | | | | | |
| | ----------------- | --- | --- | --- | --- | --- | |
| $(99) |
| Net (loss) income per $(0.70) to |
| | | | | | | | |
| | --- | --- | --- | --- | --- | --- | |
| share $(0.54) |
| | | | | | | | |
| | -------- | --- | --- | --- | --- | --- | |
| | Non-GAAP | | | | | | |
| $138 to |
| | EBITDA | | $(53) | $78 | | | |
| | ------ | --- | ------ | ---- | --- | --- | |
| $161 |
| | | | | | | | |
| | ------------------ | --- | --- | --- | --- | --- | |
| | Operational metric | | | | | | |
| $1,510 to |
| | Net Bookings | | | | | | |
| | ------------ | --- | --- | --- | --- | --- | |
| $1,560 |
| Management reporting tax rate anticipated to be 18% |
| Share count used to calculate GAAP net loss per share is expected to be 185.3 million |
| Share count used to calculate management reporting diluted net income per share is expected to be 187.6 million |
| (b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to |
| be at the low end or high end of the outlook range simultaneously. |
| Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of |
| the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S, as well as engagement on |
| Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these current generation systems while also |
| leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing |
| focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking |
| Statements” below. |
| Product Releases |
| The following have been released since October 1, 2025: |
| | Label | Product | | Platforms | Release Date | | |
| | ----- | ------------------------- | --- | ------------ | ----------------- | --- | |
| | 2K | WWE 2K Mobile for Netflix | | iOS, Android | November 19, 2025 | | |
| Rockstar GamesRed Dead Redemption and Undead Nightmare PS5, Xbox Series X|S, Switch 2 December 2, 2025 |
| Rockstar GamesRed Dead Redemption and Undead Nightmare for NetflixiOS, Android December 2, 2025 |
|
|
| PS5, PS4, Xbox Series X|S, Xbox |
| Rockstar GamesGrand Theft Auto Online: A Safehouse in the Hills December 10, 2025 |
| One, PC |
| Take-Two's future lineup announced to-date includes: |
| Label Product Platforms Release Date |
| 2K Sid Meier's Civilization VII for Apple ArcadeiOS February 5, 2026 |
| 2K PGA TOUR 2K25 Switch 2 February 6, 2026 |
| 2K WWE 2K26 PS5, Xbox Series X|S, Switch 2, PCMarch 13, 2026 |
| Rockstar Games Grand Theft Auto VI PS5, Xbox Series X|S November 19, 2026 |
| Zynga CSR 3 iOS, Android TBA |
| Zynga Top Goal iOS, Android TBA |
| Ghost Story GamesJudas PS5, Xbox Series X|S, PC TBA |
| 2K Project ETHOS TBA TBA |
| 2K BioShock next iteration TBA TBA |
| Conference Call |
| Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by |
| dialing (800) 715-9871 or (646) 307-1963 (conference ID: 9711440). A live listen-only webcast of the call will be available by visiting |
| http://ir.take2games.com and a replay will be available following the call at the same location. |
| Non-GAAP Financial Measure |
| In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP |
| measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit |
| from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles. |
| The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash |
| expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to |
| investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful |
| additional information relating to the Company’s operations and financial condition. |
| This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP |
| financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other |
| items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of |
| this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In |
| particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the |
| operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in |
| planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial |
| tables to this press release. |
| Final Results |
| The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Quarterly Report on Form 10-Q |
| for the period ended December 31, 2025. |
| About Take-Two Interactive Software |
| Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for |
| consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, and Zynga. Our strategy is to create hit |
| entertainment experiences, delivered on every platform relevant to our audience through a variety of sound business models. Our pillars – creativity, |
| innovation, and efficiency – guide us as we strive to create the highest quality, most captivating experiences for our consumers. The Company’s |
| common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at |
| http://www.take2games.com. |
| All trademarks and copyrights contained herein are the property of their respective holders. |
|
|
| Cautionary Note Regarding 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 securities laws and may be identified by |
| words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of |
| similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward- |
| looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, |
| which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary |
| materially from these forward-looking statements based on a variety of risks and uncertainties, including risks relating to the timely release and |
| significant market acceptance of our games; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; |
| the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of |
| inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on |
| our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox |
| Series X|S; factors affecting our mobile business, such as player acquisition costs; and the ability to maintain acceptable pricing levels on our games. |
| Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in |
| the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, |
| which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the |
| date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future |
| events or otherwise. |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
| (in millions, except per share amounts) |
| | | | | | | | |
| | --- | --- | --- | --- | --- | --- | |
| Three Months Ended December 31, Nine Months Ended December 31, |
| | | 2025 | 2024 | 2025 | 2024 | | |
| | ------------ | ---------- | ------------- | ------------ | ------------- | --- | |
| | Net revenue: | | | | | | |
| | Game | $ 1,570.3 | $ 1,243.1 | $ 4,593.7 | $ 3,693.7 | | |
| | Advertising | 128.7 | 116.7 | 382.9 | 357.4 | | |
| Total net revenue 1,699.0 1,359.8 4,976.6 4,051.1 |
| | Cost of revenue: | | | | | | |
| | ---------------- | -------- | ----------- | ---------- | ----------- | --- | |
| | Product costs | 220.9 | 200.2 | 660.6 | 616.0 | | |
| Game intangibles 160.1 171.1 477.4 508.0 |
| | Licenses | 118.3 | 88.8 | 343.6 | 241.1 | | |
| | -------- | -------- | ---------- | ---------- | ----------- | --- | |
| Internal royalties 167.4 103.1 335.0 249.3 |
| Software development costs and royalties 86.8 36.7 289.0 177.8 |
| Total cost of revenue 753.5 599.9 2,105.6 1,792.2 |
| Gross profit 945.5 759.9 2,871.0 2,258.9 |
| Selling and marketing 433.2 388.9 1,378.6 1,281.6 |
|
|
| Research and development 282.7 240.9 812.1 707.4 |
| General and administrative 218.6 189.6 650.6 653.1 |
| Depreciation and amortization 49.1 49.5 148.3 141.6 |
| Business reorganization 0.6 23.1 (3.5 ) 89.4 |
| Total operating expenses 984.2 892.0 2,986.1 2,873.1 |
| Loss from operations (38.7 ) (132.1 ) (115.1 ) (614.2 ) |
| Interest and other, net (17.1 ) (20.8 ) (70.0 ) (75.2 ) |
| Loss before income taxes (55.8 ) (152.9 ) (185.1 ) (689.4 ) |
| Provision for (benefit from) for income taxes 37.1 (27.7 ) 53.6 63.3 |
| | Net loss | $ (92.9 | ) $ (125.2 | ) $ (238.7 | ) $ (752.7 | ) | | | |
| | --------------- | -------- | ------------ | ----------- | ------------ | --- | --- | --- | |
| | | | | | | | | | |
| | Loss per share: | | | | | | | | |
| Basic and diluted loss per share $ (0.50 ) $ (0.71 ) $ (1.30 ) $ (4.31 ) |
| | Weighted average shares outstanding | | | | | | | | |
| | ----------------------------------- | -------- | ----------- | ---------- | ----------- | --- | --- | --- | |
| | Basic | 185.0 | 176.0 | 183.4 | 174.5 | | | | |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (in millions, except per share amounts) |
|
|
| | | | | | | December 31, | March 31, | | |
| | ------------------------------------ | --- | --- | --- | --- | ------------ | ------------ | --- | |
| | | | | | | | | | |
| | | | | | | 2025 | 2025 | | |
| | | | | | | (Unaudited) | | | |
| | ASSETS | | | | | | | | |
| | Current assets: | | | | | | | | |
| | Cash and cash equivalents | | | | | $ 2,160.0 | $ 1,456.1 | | |
| | Short-term investments | | | | | 199.0 | 9.4 | | |
| | Restricted cash and cash equivalents | | | | | 13.2 | 14.9 | | |
|
|
| Accounts receivable, net of allowances of $1.9 and $1.6 at December 31, 2025 and March 31, 2025, respectively 824.1 771.1 |
| | Software development costs and licenses | 50.2 | 80.8 | | |
| | --------------------------------------- | ---------- | ------------ | --- | |
| | Contract assets | 87.3 | 80.8 | | |
| | Prepaid expenses and other | 344.8 | 402.8 | | |
| | Total current assets | 3,678.6 | 2,815.9 | | |
| | Fixed assets, net | 453.5 | 443.8 | | |
| | Right-of-use assets | 333.7 | 326.1 | | |
| Software development costs and licenses, net of current portion 2,244.7 1,892.6 |
| | Goodwill | 1,065.7 | 1,057.3 | | |
| | ---------------------- | ---------- | ------------ | --- | |
| | Other intangibles, net | 1,845.8 | 2,336.0 | | |
| Long-term restricted cash and cash equivalents 78.6 88.2 |
| | Other assets | 309.9 | 220.8 | | |
| | ------------------------------------ | ----------- | ------------ | --- | |
| | Total assets | $ 10,010.5 | $ 9,180.7 | | |
| | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
| | Current liabilities: | | | | |
| | Accounts payable | $ 191.3 | $ 194.7 | | |
| Accrued expenses and other current liabilities 1,100.2 1,127.6 |
| | Deferred revenue | 1,292.7 | 1,083.5 | | |
| | ----------------------------- | ---------- | ------------ | --- | |
| | Lease liabilities | 69.3 | 61.5 | | |
| | Short-term debt, net | 582.2 | 1,148.5 | | |
| | Total current liabilities | 3,235.7 | 3,615.8 | | |
| | Long-term debt, net | 2,487.0 | 2,512.6 | | |
| | Non-current deferred revenue | 20.1 | 25.4 | | |
| | Non-current lease liabilities | 372.8 | 383.3 | | |
| Non-current software development royalties 83.4 93.6 |
| | Deferred tax liabilities, net | 190.8 | 259.6 | | |
| | ----------------------------- | -------- | ---------- | --- | |
| | Other long-term liabilities | 125.1 | 152.7 | | |
|
|
| | Total liabilities | $ | 6,514.9 $ 7,043.0 | | |
| | --------------------- | --- | -------------------- | --- | |
| | Stockholders' equity: | | | | |
| Preferred stock, $0.01 par value, 5.0 shares authorized; no shares issued and outstanding at December 31, 2025 |
| | | | — — | | |
| | --- | --- | -------- | --- | |
| and March 31, 2025 |
| Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 208.8 and 200.8 shares issued and 185.1 and |
| | | | 2.1 2.0 | | |
| | --- | --- | ------------ | --- | |
| 177.1 outstanding at December 31, 2025 and March 31, 2025, respectively |
| | Additional paid-in capital | | 11,847.7 10,312.0 | | |
| | -------------------------- | --- | ---------------------- | --- | |
| Treasury stock, at cost; 23.7 and 23.7 common shares at December 31, 2025 and March 31, 2025, respectively (1,020.6 ) (1,020.6 ) |
| | Accumulated deficit | | (7,297.5 ) (7,058.8 | ) | |
| | ------------------------------------ | --- | ---------------------- | --- | |
| | Accumulated other comprehensive loss | | (36.1 ) (96.9 | ) | |
| | Total stockholders' equity | $ | 3,495.6 $ 2,137.7 | | |
| Total liabilities and stockholders' equity $ 10,010.5 $ 9,180.7 |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
| (in millions) |
| | | | | | |
| | --------------------- | ------------------------------- | ------------ | --- | |
| | | Nine Months Ended December 31, | | | |
| | | 2025 | 2024 | | |
| | Operating activities: | | | | |
| | Net loss | $ (238.7 | ) $ (752.7 | ) | |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
| Amortization and impairment of software development costs and licenses 282.9 181.2 |
| | Stock-based compensation | 226.9 | 244.4 | | |
| | ------------------------ | -------- | ----------- | --- | |
| | Noncash lease expense | 42.3 | 45.1 | | |
| Amortization and impairment of intangibles 525.3 563.4 |
| | Depreciation | 124.1 | 114.2 | | |
| | ---------------- | -------- | ----------- | --- | |
| | Interest expense | 114.2 | 123.9 | | |
|
|
| | Other, net | 25.8 | 25.2 | | |
| | ---------- | ------- | ---------- | --- | |
| Changes in assets and liabilities, net of effect from purchases of businesses: |
| | Accounts receivable | (51.8 | ) 2.9 | | |
| | ------------------- | -------- | --------- | --- | |
| Software development costs and licenses (518.5 ) (568.9 ) |
| Prepaid expenses and other current and other non-current assets (65.9 ) 30.1 |
| | Deferred revenue | 201.0 | 25.3 | | |
| | ---------------- | -------- | ---------- | --- | |
| Accounts payable, accrued expenses and other liabilities (278.7 ) (358.3 ) |
| Net cash provided by (used in) operating activities 388.9 (324.2 ) |
| | Investing activities: | | | | |
| | ---------------------------------- | --------- | ------------ | --- | |
| | Change in bank time deposits | (189.7 | ) 18.7 | | |
| | Purchases of fixed assets | (126.0 | ) (115.3 | ) | |
| | Divestitures | — | 36.0 | | |
| | Purchases of long-term investments | (21.2 | ) (21.4 | ) | |
| | Business acquisitions | (2.0 | ) 9.4 | | |
| | Asset acquisitions | (19.9 | ) (16.1 | ) | |
| Net cash used in investing activities (358.8 ) (88.7 ) |
| | Financing activities: | | | | |
| | --------------------- | --- | --- | --- | |
| Tax payment related to net share settlements on restricted stock awards (2.4 ) — |
| | Issuance of common stock | 1,247.0 | 55.0 | | |
| | ------------------------ | ---------- | ---------- | --- | |
| Payment for settlement of convertible notes — (8.3 ) |
| | Proceeds from issuance of debt | — | 598.9 | | |
| | ------------------------------ | --------- | ----------- | --- | |
| | Cost of debt | — | (5.4 | ) | |
| | Repayment of debt | (600.0 | ) — | | |
| Payment of contingent earn-out consideration — (12.0 ) |
| Net cash provided by financing activities 644.6 628.2 |
| Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash |
| | | 17.9 | (8.4 | ) | |
| | --- | ------- | ---------- | --- | |
| equivalents |
|
|
| Net change in cash, cash equivalents, and restricted cash and cash equivalents 692.6 206.9 |
| Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1) 1,559.2 1,102.0 |
| Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1) $ 2,251.8 $ 1,308.9 |
|
|
| (1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flow includes |
| amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our |
| Condensed Consolidated Balance Sheet. |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
| Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix |
| | (in millions) | | | | |
| | ----------------------------------- | ------------------- | ------------------ | ----------- | |
| | | | | | |
| | | Three Months Ended | Three Months Ended | | |
| | | | | | |
| | | December 31, 2025 | December 31, 2024 | | |
| | | Amount % of total | Amount | % of total | |
| | Net revenue by geographic region | | | | |
| | United States | $ 1,012.2 60 | % $825.7 | 61 % | |
| | International | 686.8 40 | % 534.1 | 39 % | |
| | Total Net revenue | $ 1,699.0 100 | % $1,359.8 | 100 % | |
| | | | | | |
| | Net Bookings by geographic region | | | | |
| | United States | $ 1,047.0 60 | % $841.8 | 61 % | |
| | International | 710.1 40 | % 531.6 | 39 % | |
| | Total Net Bookings | $ 1,757.1 100 | % $1,373.4 | 100 % | |
| | | | | | |
| | | Three Months Ended | Three Months Ended | | |
| | | | | | |
| | | December 31, 2025 | December 31, 2024 | | |
| | | Amount % of total | Amount | % of total | |
| | Net revenue by distribution channel | | | | |
| | Digital online | $ 1,654.5 97 | % $1,310.7 | 96 % | |
|
|
| | Physical retail and other | 44.5 3 | % 49.1 | 4 % | |
| | ------------------------------------ | ------------------- | ------------------ | ----------- | |
| | Total Net revenue | $ 1,699.0 100 | % $1,359.8 | 100 % | |
| | | | | | |
| | Net Bookings by distribution channel | | | | |
| | Digital online | $ 1,711.7 97 | % $1,324.0 | 96 % | |
| | Physical retail and other | 45.4 3 | % 49.4 | 4 % | |
| | Total Net Bookings | $ 1,757.1 100 | % $1,373.4 | 100 % | |
| | | | | | |
| | | Three Months Ended | Three Months Ended | | |
| | | | | | |
| | | December 31, 2025 | December 31, 2024 | | |
| | | Amount % of total | Amount | % of total | |
| | Net revenue by platform | | | | |
| | Mobile | $ 865.8 51 | % $731.6 | 54 % | |
| | Console | 652.1 38 | % 507.9 | 37 % | |
| | PC and other | 181.1 11 | % 120.3 | 9 % | |
| | Total Net revenue | $ 1,699.0 100 | % $1,359.8 | 100 % | |
| | | | | | |
| | Net Bookings by platform | | | | |
| | Mobile | $ 860.9 49 | % $709.5 | 52 % | |
| | Console | 702.6 40 | % 538.0 | 39 % | |
| | PC and other | 193.6 11 | % 125.9 | 9 % | |
| | Total Net Bookings | $ 1,757.1 100 | % $1,373.4 | 100 % | |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
| Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix |
| (in millions) |
| | | | | | |
| | --- | ----- | --- | --- | |
|
|
| | | Nine Months Ended | Nine Months Ended | | |
| | ------------------------------------ | ------------------- | ----------------- | ----------- | |
| | | | | | |
| | | December 31, 2025 | December 31, 2024 | | |
| | | Amount % of total | Amount | % of total | |
| | Net revenue by geographic region | | | | |
| | United States | $2,948.7 59 | % $2,460.7 | 61 % | |
| | International | 2,027.9 41 | % 1,590.4 | 39 % | |
| | Total Net revenue | $4,976.6 100 | % $4,051.1 | 100 % | |
| | | | | | |
| | Net Bookings by geographic region | | | | |
| | United States | $3,072.2 60 | % $2,484.7 | 61 % | |
| | International | 2,068.5 40 | % 1,581.8 | 39 % | |
| | Total Net Bookings | $5,140.7 100 | % $4,066.5 | 100 % | |
| | | | | | |
| | | Nine Months Ended | Nine Months Ended | | |
| | | | | | |
| | | December 31, 2025 | December 31, 2024 | | |
| | | Amount % of total | Amount | % of total | |
| | Net revenue by distribution channel | | | | |
| | Digital online | $4,824.2 97 | % $3,906.2 | 96 % | |
| | Physical retail and other | 152.4 3 | % 144.9 | 4 % | |
| | Total Net revenue | $4,976.6 100 | % $4,051.1 | 100 % | |
| | | | | | |
| | Net Bookings by distribution channel | | | | |
| | Digital online | $4,988.0 97 | % $3,928.5 | 97 % | |
| | Physical retail and other | 152.7 3 | % 138.0 | 3 % | |
| | Total Net Bookings | $5,140.7 100 | % $4,066.5 | 100 % | |
| | | | | | |
| | | Nine Months Ended | Nine Months Ended | | |
| | | | | | |
| | | December 31, 2025 | December 31, 2024 | | |
|
|
| | | | Amount | % of total | Amount | % of total | | | | |
| | ------------------------ | --- | ---------- | ----------- | ------------ | ----------- | --- | --- | --- | |
| | Net revenue by platform | | | | | | | | | |
| | Mobile | | $2,489.1 | 50 | % $2,194.3 | 54 | % | | | |
| | PC and other | | 1,922.7 | 39 | % 1,507.9 | 37 | % | | | |
| | Console | | 564.8 | 11 | % 348.9 | 9 | % | | | |
| | Total Net revenue | | $4,976.6 | 100 | % $4,051.1 | 100 | % | | | |
| | | | | | | | | | | |
| | Net Bookings by platform | | | | | | | | | |
| | Mobile | | $2,471.8 | 48 | % $2,141.9 | 52 | % | | | |
| | PC and other | | 2,084.9 | 41 | % 1,565.7 | 39 | % | | | |
| | Console | | 584.0 | 11 | % 358.9 | 9 | % | | | |
| | Total Net Bookings | | $5,140.7 | 100.0 | % $4,066.5 | 100 | % | | | |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
| ADDITIONAL DATA |
| (in millions) |
| | | | | | | | | | | |
| | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Cost of revenue - |
| Three Months Ended Cost of revenue - Cost of revenue - Cost of revenue Cost of revenue - |
| | | Net revenue | | | | | | Software development | | |
| | --- | ----------- | --- | --- | --- | --- | --- | --------------------- | --- | |
| December 31, 2025 Product costs Game intangibles - Licenses Internal royalties |
| costs and royalties |
| As reported $ 1,699.0 $ 220.9 $ 160.1 $ 118.3 $ 167.4 $ 86.8 |
| Net effect from deferred |
| | revenue and related cost | 58.0 | 1.5 | | | | | (4.6 | ) | |
| | ------------------------- | ---- | -------- | ---- | --- | --- | --- | ------- | --- | |
| of revenue |
| Stock-based |
| | | | | | | | | (3.6 | ) | |
| | --- | --- | --- | --- | --- | --- | --- | ------- | --- | |
| compensation |
| Amortization of acquired |
| | | | (0.6 | ) (160.1 | ) | | | | | |
| | --- | --- | ------- | ----------- | ---- | --- | --- | --- | --- | |
| intangibles |
| | | | | | | | | | | |
| | --- | --- | --- | --- | --- | --- | --- | --- | --- | |
| Depreciation |
| Three Months Ended Selling and Research and General and Business |
| | | | | | and | | | Interest and other, net | | |
| | --- | --- | --- | --- | ---- | --- | --- | ------------------------ | --- | |
| December 31, 2025 marketing development administrative reorganization |
| amortization |
|
|
| As reported $ 433.2 $ 282.7 $ 218.6 $ 49.1 0.6 $ (17.1 ) |
| Net effect from deferred |
| | revenue and related cost | | | | | | (1.6 | ) | |
| | ------------------------- | --- | --- | --- | --- | --- | ------- | --- | |
| of revenue |
| Stock-based |
| | | (24.2 ) | (25.6 | ) (36.9 | ) | | | | |
| | --- | ----------- | ----- | ---------- | ---- | --- | --- | --- | |
| compensation |
| Amortization of acquired |
| | | | (7.2 | ) | (7.9 | ) | | | |
| | --- | --- | ------- | ---- | ------- | ---- | --- | --- | |
| intangibles |
| Acquisition related |
| | | | (0.3 | ) (3.7 | ) | | 4.5 | | |
| | --- | --- | ------- | --------- | ---- | --- | ------ | --- | |
| expenses |
| Impact of business |
| | | | | | | (0.6 | ) | | |
| | --- | --- | --- | --- | --- | ------- | ---- | --- | |
| reorganization |
| | Other | | | | | | 0.1 | | |
| | ----- | --- | --- | --- | --- | --- | ------ | --- | |
| Cost of revenue - |
| Three Months Ended Cost of revenue - Cost of revenue Cost of revenue Cost of revenue - |
| | | Net revenue | | | | | Software development | | |
| | --- | ----------- | --- | --- | --- | --- | --------------------- | --- | |
| December 31, 2024 Product costs -Game intangibles - Licenses Internal royalties |
| costs and royalties |
| As reported $ 1,359.8 $ 200.2 $ 171.1 $ 88.8 $ 103.1 $ 36.7 |
| Net effect from deferred |
| revenue and related cost 13.7 2.7 0.1 (1.6 ) |
| of revenue |
| Stock-based |
| | | | | | | | (2.6 | ) | |
| | --- | --- | --- | --- | --- | --- | ------- | --- | |
| compensation |
| Amortization and |
| | impairment of acquired | | (0.8 | ) (171.1 | ) | | | | |
| | ---------------------- | --- | ------- | ----------- | ---- | --- | --- | --- | |
| intangibles |
| | | | | | | | | | |
| | --- | --- | --- | --- | --- | --- | --- | --- | |
| Depreciation |
| Three Months Ended Selling and Research and General and Business |
| | | | | | and | | Interest and other, net | | |
| | --- | --- | --- | --- | ---- | --- | ------------------------ | --- | |
| December 31, 2024 marketing development administrative reorganization |
| amortization |
| As reported $ 388.9 $ 240.9 $ 189.6 $ 49.5 $ 23.1 $ (20.8 ) |
| Net effect from deferred |
| | revenue and related cost | | | | | | 2.8 | | |
| | ------------------------- | --- | --- | --- | --- | --- | ------ | --- | |
| of revenue |
| Stock-based |
| | | (22.4 ) | (26.1 | ) (31.8 | ) | | | | |
| | --- | ----------- | ----- | ---------- | ---- | --- | --- | --- | |
| compensation |
| Amortization and |
| | impairment of acquired | (1.0 ) | (7.2 | ) | (9.2 | ) | | | |
| | ---------------------- | ---------- | ---- | ---- | ------- | ---- | --- | --- | |
| intangibles |
| Acquisition related |
| | | (0.2 ) | (0.8 | ) 7.8 | | | 2.9 | | |
| | --- | ---------- | ---- | -------- | ---- | --- | ------ | --- | |
| expenses |
|
|
| Impact of business |
| | | | | | | (23.1 | ) | | |
| | --- | --- | --- | --- | --- | -------- | ---- | --- | |
| reorganization |
| | Other | | | | | | 3.4 | | |
| | ----- | --- | --- | --- | --- | --- | ------ | --- | |
|
|
| TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES |
| ADDITIONAL DATA |
| | (in millions) | | | | | | | | |
| | ------------- | --- | --- | --- | --- | --- | --- | --- | |
| Cost of revenue - |
| Nine Months Ended Cost of revenue - Cost of revenue - Cost of revenue Cost of revenue - |
| | | Net revenue | | | | | Software development | | |
| | --- | ----------- | --- | --- | --- | --- | --------------------- | --- | |
| December 31, 2025 Product costs Game intangibles - Licenses Internal royalties |
| costs and royalties |
| As reported $ 4,976.6 $ 660.6 $ 477.4 $ 343.6 $ 335.0 $ 289.0 |
| Net effect from deferred |
| revenue and related cost 164.1 (0.6 ) 0.6 1.9 |
| of revenue |
| Stock-based |
| | | | | | | | 32.6 | | |
| | --- | --- | --- | --- | --- | --- | ------- | --- | |
| compensation |
| Amortization of acquired |
| | | | (2.1 | ) (477.4 | ) | | | | |
| | --- | --- | ------- | ----------- | ---- | --- | --- | --- | |
| intangibles |
| | | | | | | | | | |
| | --- | --- | --- | --- | --- | --- | --- | --- | |
| Depreciation |
| Nine Months Ended Selling and Research and General and Business |
| | | | | | and | | Interest and other, net | | |
| | --- | --- | --- | --- | ---- | --- | ------------------------ | --- | |
| December 31, 2025 marketing development administrative reorganization |
| amortization |
| As reported $ 1,378.6 $ 812.1 $ 650.6 $ 148.3 $ (3.5 ) $ (70.0 ) |
| Net effect from deferred |
| | revenue and related cost | | | | | | (1.1 | ) | |
| | ------------------------- | --- | --- | --- | --- | --- | ------- | --- | |
| of revenue |
| Stock-based |
| | | (73.8 ) | (71.8 | ) (113.9 | ) | | | | |
| | --- | ----------- | ----- | ----------- | ---- | --- | --- | --- | |
| compensation |
| Amortization of acquired |
| | | | (21.5 | ) | (24.2 | ) | | | |
| | --- | --- | -------- | ---- | -------- | ---- | --- | --- | |
| intangibles |
| Impact of business |
| | | | | | | 3.5 | | | |
| | --- | --- | --- | --- | --- | ------ | ---- | --- | |
| reorganization |
| Acquisition related |
| | | | (1.0 | ) (10.6 | ) | | 11.5 | | |
| | --- | --- | ------- | ---------- | ---- | --- | ------- | --- | |
| expenses |
| | Other | | | | | | (1.4 | ) | |
| | ----- | --- | --- | --- | --- | --- | ------- | --- | |
| | | | | | | | | | |
|
|
| Cost of revenue - |
| Nine Months Ended Cost of revenue - Cost of revenue - Cost of revenue Cost of revenue - |
| | | Net revenue | | | | | Software development | | |
| | --- | ----------- | --- | --- | --- | --- | --------------------- | --- | |
| December 31, 2024 Product costs Game intangibles - Licenses Internal royalties |
| costs and royalties |
| As reported $ 4,051.1 $ 616.0 $ 508.0 $ 241.1 $ 249.3 $ 177.8 |
| Net effect from deferred |
| revenue and related cost 15.5 0.3 1.7 (0.5 ) |
| of revenue |
| Stock-based |
| | | | | | | | (8.6 | ) | |
| | --- | --- | --- | --- | --- | --- | ------- | --- | |
| compensation |
| Amortization and |
| | impairment of acquired | | (2.4 | ) (508.0 | ) | | | | |
| | ---------------------- | --- | ------- | ----------- | ---- | --- | --- | --- | |
| intangibles |
| | | | | | | | | | |
| | --- | --- | --- | --- | --- | --- | --- | --- | |
| Depreciation |
| Nine Months Ended Selling and Research and General and Business |
| | | | | | and | | Interest and other, net | | |
| | --- | --- | --- | --- | ---- | --- | ------------------------ | --- | |
| December 31, 2024 marketing development administrative reorganization |
| amortization |
| As reported $ 1,281.6 $ 707.4 $ 653.1 $ 141.6 $ 89.4 $ (75.2 ) |
| Net effect from deferred |
| | revenue and related cost | | | | | | 2.0 | | |
| | ------------------------- | --- | --- | --- | --- | --- | ------ | --- | |
| of revenue |
| Stock-based |
| | | (68.1 ) | (75.5 | ) (92.2 | ) | | | | |
| | --- | ----------- | ----- | ---------- | ---- | --- | --- | --- | |
| compensation |
| Amortization and |
| impairment of acquired (4.1 ) (21.5 ) (27.4 ) |
| intangibles |
| Impact of business |
| | | | | | | (89.4 | ) | | |
| | --- | --- | --- | --- | --- | -------- | ---- | --- | |
| reorganization |
| Acquisition related |
| | | (0.3 ) | (1.5 | ) (61.9 | ) | | 8.2 | | |
| | --- | ---------- | ---- | ---------- | ---- | --- | ------ | --- | |
| expenses |
| | Other | | | | | | 13.8 | | |
| | ----- | --- | --- | --- | --- | --- | ------- | --- | |
|
|
| | TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES | | | | | | | | |
| | ---------------------------------------------------- | --- | --- | --- | --- | --- | --- | --- | |
| RECONCILIATION OF GAAP TO NON-GAAP MEASURE |
| | (in millions) | | | | | | | | |
| | ------------- | --- | --- | --- | --- | --- | --- | --- | |
| Three Months Ended December 31, Nine Months Ended December 31, |
| | | | 2025 | 2024 | 2025 | 2024 | | | |
| | -------- | --- | -------- | ------------ | ----------- | ------------ | --- | --- | |
| | Net loss | | $ (92.9 | ) $ (125.2 | ) $ (238.7 | ) $ (752.7 | ) | | |
|
|
| Provision for (benefit from) for income taxes 37.1 (27.7 ) 53.6 63.3 |
| | Interest expense | 13.6 | 12.2 | 52.7 | 50.0 | | |
| | ---------------- | ------- | ---------- | --------- | ---------- | --- | |
| Depreciation and amortization 49.1 49.5 148.3 141.6 |
| Amortization of acquired intangibles 167.9 180.0 501.0 536.0 |
| | EBITDA | $ 174.8 | $ 88.8 | $ 516.9 | $ 38.2 | | |
| | -------------------------------------- | -------- | ---------- | ---------- | ---------- | --- | |
| | Outlook | | | | | | |
| | Fiscal Year Ending March 31, 2026 | | | | | | |
| | Net loss $(369) to $(338) | | | | | | |
| | Provision for income taxes $82 to $75 | | | | | | |
| | Interest expense $70 | | | | | | |
| | Depreciation $166 | | | | | | |
| Amortization of acquired intangibles $708 |
| | EBITDA $657 to $681 | | | | | | |
| | -------------------------------------- | --- | --- | --- | --- | --- | |
| | Outlook | | | | | | |
| | Three Months Ended March 31, 2026 | | | | | | |
| | Net loss $(129) to $(99) | | | | | | |
| | Provision for income taxes $28 to $21 | | | | | | |
| | Interest expense $20 | | | | | | |
| | Depreciation $41 | | | | | | |
| Amortization of acquired intangibles $178 |
| | EBITDA $138 to $161 | | | | | | |
| | -------------------- | --- | --- | --- | --- | --- | |
|
|
| View source version on businesswire.com: https://www.businesswire.com/news/home/20260203145448/en/ |
| (Investor Relations) |
| Nicole Shevins |
| Senior Vice President |
| Investor Relations & Corporate Communications |
| Take-Two Interactive Software, Inc. |
| (646) 536-3005 |
| Nicole.Shevins@take2games.com |
| (Corporate Press) |
| Alan Lewis |
|
|
| Head of Global Corporate Communications |
| Take-Two Interactive Software, Inc. |
| (646) 536-2983 |
| Alan.Lewis@take2games.com |
| Source: Take-Two Interactive |
