Summary
Take-Two Interactive Software, Inc. (TTWO) reported its fiscal first-quarter 2025 results, facing a net loss of $262.0 million, a wider deficit compared to the $206.0 million loss in the prior year's comparable quarter. This widening loss was primarily driven by increased operating expenses, particularly related to business reorganization charges and selling and marketing costs, alongside a significant increase in the provision for income taxes. Despite the loss, total net revenue saw a modest increase of 4.2% to $1.338 billion, largely fueled by strong performance in mobile gaming, particularly from titles like "Match Factory!" and "Toon Blast," and a modest uptick in console revenue driven by "Red Dead Redemption" and new releases like "TopSpin 2K25." The company also announced the completion of its acquisition of The Gearbox Entertainment Company for approximately $440.7 million, aiming to bolster its creative talent and intellectual property portfolio. While revenue growth is positive, investors should monitor the impact of ongoing restructuring efforts and the substantial goodwill associated with acquisitions. The company reiterated its plan to release "Grand Theft Auto VI" in Fall 2025, which remains a key catalyst for future growth, though the wider net loss and increased expenses warrant close attention.
Financial Highlights
53 data points| Revenue | $1.34B |
| Cost of Revenue | $567.10M |
| Gross Profit | $771.10M |
| Operating Expenses | $956.00M |
| Operating Income | -$184.90M |
| Interest Expense | $34.30M |
| Net Income | -$262.00M |
| EPS (Basic) | $-1.52 |
| EPS (Diluted) | $-1.52 |
| Shares Outstanding (Basic) | 172.30M |
Key Highlights
- 1Net loss widened to $262.0 million in Q1 FY2025, up from $206.0 million in Q1 FY2024, primarily due to increased operating expenses and taxes.
- 2Total net revenue increased by 4.2% to $1.338 billion, driven by mobile gaming revenue (54% of total) and console games.
- 3Completed the acquisition of The Gearbox Entertainment Company for approximately $440.7 million, adding significant goodwill and intangible assets.
- 4Operating expenses increased by 8.2% to $956.0 million, with notable increases in selling and marketing and significant business reorganization charges.
- 5Gross profit margin improved to 57.6% from 52.9% year-over-year, benefiting from lower development royalties and amortization.
- 6The company maintained a strong liquidity position with $1.47 billion in cash and cash equivalents and restricted cash and cash equivalents.
- 7Reiterated the planned release of "Grand Theft Auto VI" in Fall 2025.