Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2027

Fiscal second quarter Net Bookings were $1.60 billion Company updates fiscal year 2027 outlook and reiterates expectation for Net Bookings of $8.0 to $8.2 billionNEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the second quarter of its fiscal year 2027, ended September 30, 2026. For further information, please see the second quarter fiscal 2027 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: “The launch of Grand Theft Auto VI is ten days away and, with pre-orders continuing to reach unprecedented levels, we expect to deliver an historic year for our company. We are reiterating our outlook for Fiscal 2027 Net Bookings of $8 to $8.2 billion, and are confident in our ability to build on this incredible year as we release new hits, explore emerging business opportunities, expand our geographic footprint, and pursue accretive M&A – all of which will set us on a path to unlock greater earnings power and long-term shareholder value.” Second Quarter Fiscal 2027 Financial and Operational Highlights Total Net Bookings* decreased 18% to $1.60 billion compared to $1.96 billion during last year’s fiscal second quarter. Net Bookings from recurrent consumer spending** decreased 9% and accounted for 81% of total Net Bookings. The largest contributors to Net Bookings were NBA® 2K, the Grand Theft Auto® series, Toon Blast™, Match Factory!™, Empires & Puzzles™, the Borderlands® franchise, Words With Friends™, the Red Dead Redemption® series, Color Block Jam™, WWE® 2K, and Zynga Poker™. GAAP net revenue was $1.50 billion, compared to $1.77 billion in last year’s fiscal second quarter. Recurrent consumer spending** decreased 5% and accounted for 81% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, the Borderlands franchise, Words With Friends, Color Block Jam, WWE 2K, the Red Dead Redemption series, and Zynga Poker. GAAP net loss was $54.0 million, or $0.29 per share, as compared to $133.9 million, or $0.73 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. Second Quarter Fiscal 2027 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 September 30, 2026 Financial Data $ in millions Statement of Operations Change in deferred net revenue and related cost of revenue Stock-based compensation Amortization of acquired intangibles Business acquisition Other (a) GAAP Total net revenue $ 1,497.0 104.3 Cost of revenue 636.6 3.3 (3.4) (141.3) Gross profit 860.4 101.0 3.4 141.3 Operating expenses 977.9 (86.6) (11.7) (3.1) (Loss) income from operations (117.5 ) 101.0 90.0 153.0 3.1 Interest and other, net 5.6 0.9 0.6 (9.4) (Loss) income before income taxes (111.9 ) 101.9 90.0 153.0 3.7 (9.4) Non-GAAP EBITDA 92.2 101.9 90.0 2.4 (9.4) The above table utilizes a management tax rate of 18% Share count used to calculate management reporting diluted net income per share is 188.0 million (a) Other includes adjustments for (i) fair value adjustments related to certain equity investments and (ii) the revaluation of the Turkish Lira against the U.S. Dollar. Outlook for Fiscal Year 2027 Take-Two is updating its outlook for the fiscal year and providing its initial outlook for its fiscal third quarter ending December 31, 2026: Fiscal Year Ending March 31, 2027 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, 2027 Financial Data $ in millions except for per share amounts Outlook (b) Change in deferred net revenue and related cost of revenue Stock-based compensation Amortization of acquired intangibles Other GAAP Total net revenue $7,980 to $8,180 $20 Cost of revenue $3,679 to $3,800 $(27) $(113) $(572) Operating expenses $4,078 to $4,098 $(349) $(51) $(3) Interest and other, net $29 Income before income taxes $194 to $253 $47 $462 $623 $3 Net income $109 to $142 Diluted net income per share $0.57 to $0.75 Net cash provided by operating activities over $1,000 Capital expenditures approximately $290 Non-GAAP EBITDA $1,024 to $1,082 $47 $462 $3 Operational metric Net Bookings $8,000 to $8,200 Management reporting tax rate anticipated to be 18% Share count used to calculate GAAP and management reporting diluted net income per share is expected to be 189.5 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. Fiscal Third Quarter Ending December 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 December 31, 2026 Financial Data $ in millions except for per share amounts Outlook (b) Change in deferred net revenue and related cost of revenue Stock-based compensation Amortization of acquired intangibles Other GAAP Total net revenue $3,270 to $3,420 $80 Cost of revenue $1,649 to $1,732 $(13) $(96) $(141) Operating expenses $1,162 to $1,182 $(100) $(12) Interest and other, net $13 $(1) Income before income taxes $446 to $493 $93 $196 $153 $1 Net income $250 to $276 Diluted net income per share $1.30 to $1.44 Non-GAAP EBITDA $651 to $698 $93 $196 Operational metric Net Bookings $3,350 to $3,500 Management reporting tax rate anticipated to be 18% Share count used to calculate GAAP and management reporting diluted net income per share is expected to be 192.0 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; 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 July 1, 2026: Label Product Platforms Release Date Rockstar Games Grand Theft Auto Online Kortz Center Heist Summer Update PS4, PS5, Xbox One, Xbox Series X|S, PC July 14, 2026 2K NBA 2K27 PS5, Xbox Series X|S, Switch 2, PC September 4, 2026 Take-Two's future lineup announced to-date includes: Label Product Platforms Release Date Rockstar Games Grand Theft Auto VI PS5, Xbox Series X|S November 19, 2026 Zynga Top Goal iOS, Android TBA Zynga CSR 3 iOS, Android TBA 2K PGA TOUR 2K27 TBA TBA 2K WWE 2K27 TBA TBA 2K Project ETHOS TBA TBA 2K BioShock next iteration TBA TBA Ghost Story Games Judas PS5, Xbox Series X|S, PC TBA Conference CallRead the full story here

Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2027

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