01—Abstract
Summary
Summary of the 10-Q filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Take-Two Interactive Software, Inc. (TTWO) reported its third-quarter fiscal year 2026 results on February 4, 2026.
The company demonstrated robust revenue growth, with total net revenue increasing by 24.9% to $1.7 billiona for the three months ended December 31, 2025, compared to the prior year. This growth was driven by strong performance across key franchises including NBA 2K, Grand Theft Auto, and newer titles like Color Block Jam. Recurrent consumer spending (RCS) continues to be a significant revenue driver, accounting for 76.8% of net revenue for the quarter.
Financially, the company has improved its net loss position year-over-year, reporting a net loss of $92.9 millionb for the quarter, an improvement from $125.2 million in the prior year. This improvement, coupled with a 27.9% increase in Net Bookings to $1.8 billion for the quarter, indicates positive momentum.
The company also ended the period with a stronger balance sheet, boasting $2.3 billionc in cash, cash equivalents, and restricted cash, up from $1.6 billion at the start of the fiscal year, reflecting successful financing activities including an equity issuance. Looking ahead, the highly anticipated release of Grand Theft Auto VI in November 2026 is a key event to monitor for future growth.
02—Key points
Key Highlights
- Total net revenue increased by 24.9% year-over-year to $1.7 billion for the three months ended December 31, 2025.
- Net Bookings saw a significant increase of 27.9% to $1.8 billion for the three months ended December 31, 2025.
- Recurrent Consumer Spending (RCS) remains a strong contributor, making up 76.8% of net revenue for the quarter.
- Net loss improved to $92.9 million from $125.2 million in the same period last year.
- Cash, cash equivalents, and restricted cash increased to $2.3 billion as of December 31, 2025.
- The company is actively preparing for the release of Grand Theft Auto VI, scheduled for November 19, 2026.
- Mobile revenue showed strong growth, up $134.2 million, while console revenue increased by $144.2 million for the quarter.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2026, Take Two Interactive Software Inc lost $0.05.
- Revenue$1.70B100.0%
- Cost of revenue−$753.5M44.3%
- Gross profit$945.5M55.7%
- Operating costs−$984.2M57.9%
- Operating income−$38.7M2.3%
- Interest, other & tax−$54.2M3.2%
- Net income−$92.9M5.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed February 4, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.70B$1.36B | +24.9% |
| Cost of Revenue | $753.50M$599.90M | +25.6% |
| Gross Profit | $945.50M$759.90M | +24.4% |
| Operating Expenses | $984.20M$892.00M | +10.3% |
| Operating Income | -$38.70M-$132.10M | +70.7% |
| Interest Expense | $35.70M$41.00M | −12.9% |
| Net Income | -$92.90M-$125.20M | +25.8% |
| EPS (Basic) | $-0.50$-0.71 | +29.6% |
| EPS (Diluted) | $-0.50$-0.71 | +29.6% |
| Shares Outstanding (Basic) | 185.00M176.00M | +5.1% |
05—Questions
Frequently Asked Questions
What drove the significant increase in net revenue for the quarter?
The increase in net revenue was primarily driven by strong performance from key franchises like NBA 2K, Grand Theft Auto, and Red Dead Redemption, alongside successful new releases such as Color Block Jam and sustained contributions from titles like Toon Blast!. The growth was also fueled by a substantial rise in Recurrent Consumer Spending (RCS).
How has the company's profitability evolved?
The company has improved its profitability, reporting a reduced net loss of $92.9 million for the three months ended December 31, 2025, compared to a net loss of $125.2 million in the prior year period. This improvement reflects revenue growth and operational efficiencies.
What is the company's cash position and how is it being managed?
Take-Two Interactive ended the quarter with a healthy cash, cash equivalents, and restricted cash balance of $2.3 billion, an increase from the prior fiscal year-end. This strengthening is attributed to financing activities, including an equity issuance, and positive operating cash flow, partially offset by investments in assets and debt repayment.
What are the key upcoming events or releases investors should watch?
The most significant upcoming event is the planned release of Grand Theft Auto VI on November 19, 2026. This title is expected to be a major driver of future revenue and profitability. Investors should also monitor the continued performance of their mobile and live service offerings.
06—Continue