01—Abstract
Summary
Summary of the 10-K filed May 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Take-Two Interactive Software, Inc. (TTWO) reported its fiscal year results ending March 31, 2025, demonstrating revenue growth driven by strong performance in recurrent consumer spending and key franchises like NBA 2K and Sid Meier's Civilization.
The company experienced a significant increase in net revenue, reaching $5,633.6 milliona, a 5.3% rise year-over-year. This growth was notably supported by mobile gaming, which now constitutes over half of the company's total net revenue, highlighting the success of titles such as Match Factory! and Toon Blast. Despite revenue growth, the company reported a substantial net loss of $4,478.9 million.
This loss was heavily impacted by significant goodwill impairment charges of $3,545.2 millionb, primarily related to a reporting unit whose performance has declined due to industry conditions and strategic shifts. The company continues to invest heavily in research and development to maintain its competitive edge and is strategically positioned for future growth with upcoming releases, including Grand Theft Auto VI slated for May 2026.
02—Key points
Key Highlights
- Net revenue increased by 5.3% to $5.63 billion for the fiscal year ended March 31, 2025, driven by recurrent consumer spending and strong performance in key franchises.
- Mobile gaming revenue grew, now representing 52.2% of total net revenue, underscoring the company's successful expansion in this segment.
- The company reported a significant net loss of $4.48 billion, largely due to $3.55 billion in goodwill impairment charges.
- Recurrent consumer spending (RCS) grew to $4.47 billion, accounting for 79.4% of net revenue, demonstrating continued player engagement and monetization.
- The company's strategy includes robust investment in R&D, with $1.01 billion allocated for the fiscal year, indicating a commitment to developing new titles and maintaining franchise strength.
- The highly anticipated Grand Theft Auto VI is scheduled for release on May 26, 2026, a key event expected to significantly impact future financial performance.
- Digital online distribution remains the dominant channel, accounting for 96.4% of net revenue, reflecting the industry's shift towards digital content delivery.
03—One dollar
Follow one dollar
For each $1.00 of revenue in FY2025, Take Two Interactive Software Inc lost $0.80.
- Revenue$5.63B100.0%
- Cost of revenue−$2.57B45.6%
- Gross profit$3.06B54.4%
- Operating costs−$7.45B132.3%
- Operating income−$4.39B77.9%
- Interest, other & tax−$87.8M1.6%
- Net income−$4.48B79.5%
04—Financials
Financial Highlights
Figures from 10-KFY2025filed May 20, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $5.63B$5.35B | +5.3% |
| Cost of Revenue | $2.57B$3.11B | −17.3% |
| Gross Profit | $3.06B$2.24B | +36.6% |
| Operating Expenses | $7.45B$5.83B | +27.8% |
| Operating Income | -$4.39B-$3.59B | −22.3% |
| Interest Expense | $156.90M$132.00M | +18.9% |
| Net Income | -$4.48B-$3.74B | −19.6% |
| EPS (Basic) | $-25.58$-22.01 | −16.2% |
| EPS (Diluted) | $-25.58$-22.01 | −16.2% |
| Shares Outstanding (Basic) | 175.10M170.10M | +2.9% |
05—Questions
Frequently Asked Questions
What was Take-Two Interactive's financial performance for the fiscal year ended March 31, 2025?
Take-Two Interactive reported a 5.3% increase in net revenue to $5.63 billion, driven by strong recurrent consumer spending and growth in mobile gaming. However, the company incurred a substantial net loss of $4.48 billion, primarily due to significant goodwill impairment charges of $3.55 billion.
What are the key drivers of Take-Two Interactive's revenue growth?
Revenue growth was primarily driven by recurrent consumer spending, which accounted for 79.4% of net revenue. Key franchises such as NBA 2K, Sid Meier's Civilization, and mobile titles like Match Factory! and Toon Blast were significant contributors to this growth.
Why did Take-Two Interactive report a significant net loss?
The substantial net loss was primarily attributed to goodwill impairment charges totaling $3.55 billion. These impairments were recognized due to a reduction in the forecasted performance of one of the company's reporting units, influenced by industry conditions and strategic adjustments.
What is the outlook for Grand Theft Auto VI and its impact on the company?
Grand Theft Auto VI is scheduled for release on May 26, 2026. While not directly impacting the reported fiscal year, its upcoming release is a major strategic focus for the company and is expected to be a significant driver of future revenue and profitability.
06—Continue