Summary
Take-Two Interactive Software, Inc. (TTWO) reported its fiscal second quarter 2025 results, demonstrating significant year-over-year revenue growth driven by strong performance in mobile and console segments. Net revenue increased by 12.4% to $1.50 billion, with Recurrent Consumer Spending (RCS) continuing to be a primary revenue driver, accounting for 83.5% of total net revenue. This growth was primarily fueled by the success of "Color Block Jam" and the "NBA 2K" franchise, alongside contributions from the "Grand Theft Auto" series. The company has also made strategic moves to bolster its financial position, including an expanded revolving credit facility and a significant equity issuance to fund general corporate purposes, potentially including debt repayment and future acquisitions. While the company reported a net loss of $11.9 million ($0.07 per share), this represents a substantial improvement from the prior year's net loss of $262.0 million ($1.52 per share), reflecting improved operational efficiency and effective cost management. The company's cash position strengthened significantly due to financing activities, ending the quarter with $2.12 billion in cash, cash equivalents, and restricted cash.
Financial Highlights
53 data points| Revenue | $1.50B |
| Cost of Revenue | $558.80M |
| Gross Profit | $945.00M |
| Operating Expenses | $923.40M |
| Operating Income | $21.60M |
| Interest Expense | $36.50M |
| Net Income | -$11.90M |
| EPS (Basic) | $-0.07 |
| EPS (Diluted) | $-0.07 |
| Shares Outstanding (Basic) | 180.80M |
Key Highlights
- 1Net revenue increased by 12.4% year-over-year to $1.50 billion, driven by strong performance in mobile and console gaming.
- 2Recurrent Consumer Spending (RCS) represented 83.5% of total net revenue, highlighting the company's successful pivot to ongoing engagement models.
- 3The company reported a net loss of $11.9 million, a significant improvement from the $262.0 million net loss in the prior year's quarter.
- 4Cash and cash equivalents, including restricted cash, increased by $557 million to $2.12 billion, primarily due to financing activities, including a substantial equity issuance.
- 5Operating expenses decreased by 3.4% year-over-year, driven by a reduction in selling and marketing expenses and business reorganization costs.
- 6Research and Development expenses increased by 18.9% due to the acquisition of Gearbox Entertainment and timing of tax credits.
- 7The company announced plans for "Grand Theft Auto VI" to be released on May 26, 2026, and provided updates on other upcoming titles like "Mafia: The Old Country," "NBA 2K26," and "Borderlands 4."