01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 millionb ($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.
02—Key points
Key Highlights
- Net revenue increased by 12.4% year-over-year to $1.50 billion, driven by strong performance in mobile and console gaming.
- Recurrent Consumer Spending (RCS) represented 83.5% of total net revenue, highlighting the company's successful pivot to ongoing engagement models.
- The 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.
- Cash and cash equivalents, including restricted cash, increased by $557 million to $2.12 billion, primarily due to financing activities, including a substantial equity issuance.
- Operating expenses decreased by 3.4% year-over-year, driven by a reduction in selling and marketing expenses and business reorganization costs.
- Research and Development expenses increased by 18.9% due to the acquisition of Gearbox Entertainment and timing of tax credits.
- The 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."
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Take Two Interactive Software Inc lost $0.01.
- Revenue$1.50B100.0%
- Cost of revenue−$558.8M37.2%
- Gross profit$945.0M62.8%
- Operating costs−$923.4M61.4%
- Operating income$21.6M1.4%
- Interest, other & tax−$33.5M2.2%
- Net income−$11.9M0.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed August 7, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.50B$1.34B | +12.4% |
| Cost of Revenue | $558.80M$567.10M | −1.5% |
| Gross Profit | $945.00M$771.10M | +22.6% |
| Operating Expenses | $923.40M$956.00M | −3.4% |
| Operating Income | $21.60M-$184.90M | +111.7% |
| Interest Expense | $36.50M$34.30M | +6.4% |
| Net Income | -$11.90M-$262.00M | +95.5% |
| EPS (Basic) | $-0.07$-1.52 | +95.4% |
| EPS (Diluted) | $-0.07$-1.52 | +95.4% |
| Shares Outstanding (Basic) | 180.80M172.30M | +4.9% |
05—Questions
Frequently Asked Questions
What drove the revenue growth in the second quarter of fiscal year 2025?
Revenue growth was primarily driven by strong performance in the mobile and console segments. Key contributors included the mobile game 'Color Block Jam,' the 'NBA 2K' franchise, and continued sales from the 'Grand Theft Auto' franchise. Recurrent Consumer Spending (RCS), which includes virtual currency, add-on content, and in-game purchases, was a significant factor, accounting for 83.5% of total net revenue.
What is the company's current financial health and liquidity position?
The company's financial health appears to be improving, with a significant reduction in net loss compared to the prior year. Liquidity has strengthened considerably, with cash and cash equivalents increasing to $2.12 billion. This increase was largely due to financing activities, including a notable equity issuance, and the company has ample availability under its revolving credit facility, indicating a solid liquidity position to fund operations and strategic initiatives.
What are the key upcoming game releases mentioned in the report?
The company has provided exciting updates on its upcoming titles. Most notably, 'Grand Theft Auto VI' is slated for release on May 26, 2026. Additionally, 2K plans to release 'Mafia: The Old Country,' 'NBA 2K26,' 'Borderlands 4,' and 'WWE 2K26' during the remainder of fiscal year 2026.
How has the company managed its operating expenses?
Take-Two Interactive has focused on managing its operating expenses, which decreased by 3.4% year-over-year. This reduction was achieved through lower selling and marketing expenses and reduced business reorganization costs. However, research and development expenses saw an increase, largely due to the acquisition of Gearbox Entertainment and the timing of certain tax credits.
06—Continue