Summary
Take-Two Interactive Software, Inc. (TTWO) reported its financial results for the quarter and six months ended September 30, 2025. The company experienced a significant increase in net revenue driven by strong performance in its console and PC game segments, particularly from franchises like NBA 2K, Borderlands, and Mafia, along with the new release of Color Block Jam. This growth, coupled with improved gross profit margins, led to a substantial reduction in net loss compared to the prior year period. Despite the revenue growth and reduced losses, the company continues to invest heavily in research and development and selling and marketing expenses to support its future product pipeline, including the highly anticipated Grand Theft Auto VI set for release in November 2026. The company's liquidity remains strong, with ample cash and cash equivalents and an undrawn revolving credit facility, positioning it to manage its ongoing operational needs and strategic investments.
Financial Highlights
53 data points| Revenue | $1.77B |
| Cost of Revenue | $793.30M |
| Gross Profit | $980.50M |
| Operating Expenses | $1.08B |
| Operating Income | -$98.00M |
| Interest Expense | $35.40M |
| Net Income | -$133.90M |
| EPS (Basic) | $-0.73 |
| EPS (Diluted) | $-0.73 |
| Shares Outstanding (Basic) | 184.60M |
Key Highlights
- 1Net revenue surged by 31.1% to $1.77 billion for the three months ended September 30, 2025, and by 21.8% to $3.28 billion for the six months ended September 30, 2025, driven by new game releases and strong performance from key franchises.
- 2Gross profit increased by 34.7% to $980.5 million for the three-month period and by 28.5% to $1.93 billion for the six-month period, with gross profit margin improving to 55.3% and 58.7%, respectively.
- 3Net loss significantly narrowed, decreasing to $133.9 million ($0.73 per share) for the three-month period and to $145.8 million ($0.80 per share) for the six-month period, a substantial improvement from the prior year's losses.
- 4Net Bookings, a key operating metric, increased by 32.9% to $1.96 billion for the three-month period and by 25.6% to $3.38 billion for the six-month period, indicating strong underlying sales momentum.
- 5Mobile revenue accounted for 46.3% of total net revenue in the third quarter, down from 54.7% in the prior year, while console revenue increased its share to 40.6%.
- 6Recurrent Consumer Spending (RCS) continues to be a significant revenue driver, representing 71.9% of net revenue for the quarter, although its share slightly decreased year-over-year.
- 7The company ended the period with a strong liquidity position, holding $1.96 billion in cash, cash equivalents, and restricted cash and cash equivalents, with $997.8 million available under its revolving credit facility.