Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2027
Take-Two Interactive Software, Inc. (NASDAQ: TTWO) released its financial results for the first quarter of fiscal year 2027, ended June 30, 2026. The company reported net bookings of $1.39 billion, slightly above its guidance range, and updated its fiscal year 2027 outlook, reiterating an expectation for net bookings of $8.0 to $8.2 billion.
CEO Strauss Zelnick expressed optimism about the company's performance, citing the strength of its portfolio and disciplined execution across all labels. He highlighted the excitement surrounding the November 19th launch of Grand Theft Auto VI and the company's ability to sustain scale and generate strong cash flows.
Financial Highlights
- Total net bookings decreased 3% to $1.39 billion compared to the previous year's fiscal first quarter.
- Net bookings from recurrent consumer spending decreased 1% and accounted for 84% of total net bookings.
- The largest contributors to net bookings were NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker, and Toy Blast.
- GAAP net revenue was $1.53 billion, a 2% increase from the previous year's fiscal first quarter.
- Recurrent consumer spending increased 3% and accounted for 84% of total GAAP net revenue.
- The largest contributors to GAAP net revenue were NBA 2K, the Grand Theft Auto series, Toon Blast, Empires & Puzzles, Match Factory!, Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker, and Merge Dragons.
- GAAP net loss was $34.1 million, or $0.18 per share, compared to a net loss of $11.9 million, or $0.07 per share, in the previous year's fiscal first quarter.
Operational Metrics
- Net bookings is the company's operational metric, defined as the net amount of products and services sold digitally or sold-in physically during the period, including 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.
Outlook for Fiscal Year 2027
Take-Two updated its outlook for the fiscal year, providing an initial outlook for the fiscal second quarter ending September 30, 2026. The company expects total net revenue of $7.900 to $8.100 billion, with EBITDA of $993 to $1,053 million.
Key Assumptions and Dependencies
The company's outlook is based on several key assumptions and dependencies, including the continuation of the current economic backdrop, the timely delivery of titles, continued growth in the installed base of PlayStation 5 and Xbox Series X|S, the ability to develop and publish products that capture market share for these systems, factors affecting mobile performance, and stable foreign exchange rates.
Product Releases and Future Lineup
Since April 1, 2026, the following products have been released:
- Grand Theft Auto Online Kortz Center Heist Summer Update (PS4, PS5, Xbox One, Xbox Series X|S, PC)
- NBA 2K27 (PS5, Xbox Series X|S, Switch 2, PC)
The company's future lineup includes:
- Grand Theft Auto VI (PS5, Xbox Series X|S, November 19, 2026)
- PGA TOUR 2K27 (TBA)
- WWE 2K27 (TBA)
- Top Goal (iOS, Android, TBA)
- CSR 3 (iOS, Android, TBA)
- Judas (PS5, Xbox Series X|S, PC, TBA)
- Project ETHOS (TBA)
- BioShock next iteration (TBA)
Non-GAAP Financial Measure
Take-Two uses EBITDA as a non-GAAP financial measure, 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.
Management believes EBITDA provides a more comprehensive understanding of the company's ongoing operations and facilitates comparison of its financial performance between periods. However, it is not intended to be considered in isolation from GAAP results.
Conclusion
Take-Two Interactive Software, Inc. demonstrated strong financial performance in the first quarter of fiscal year 2027, with net bookings slightly above guidance. The company's optimistic outlook for the fiscal year and its commitment to creating hit entertainment experiences position it for continued growth and long-term success.
