10-QPeriod: Q1 FY2027

TAKE TWO INTERACTIVE SOFTWARE INC Quarterly Report for Q1 Ended Jun 30, 2026

Filed August 7, 2026For Securities:TTWO

Summary

Take-Two Interactive Software, Inc. (TTWO) reported its financial results for the fiscal quarter ended June 30, 2026. The company experienced a net loss of $34.1 million, a significant increase from the $11.9 million net loss in the same period last year. This decline was accompanied by a decrease in gross profit margin from 62.9% to 57.5%. Revenue saw a modest increase of 2.0% to $1,533.9 million, driven by growth in console game revenue, particularly from the NBA 2K franchise and the Borderlands franchise, which helped offset a decline in mobile revenue from titles like Color Block Jam and Grand Theft Auto series revenue. Recurrent consumer spending (RCS) remains a strong contributor, accounting for 84.1% of net revenue. Operationally, selling and marketing expenses decreased, but research and development and general and administrative expenses increased. The company's balance sheet shows a decrease in total assets and total liabilities compared to the prior quarter. Debt levels have reduced significantly due to repayments, and the company maintains a strong liquidity position with substantial cash and cash equivalents, complemented by an available credit facility. Investors will be closely watching the upcoming release of Grand Theft Auto VI on November 19, 2026, which is expected to be a major revenue driver.

Key Highlights

  • 1Net loss widened to $34.1 million from $11.9 million in the prior year period.
  • 2Total net revenue increased by 2.0% to $1,533.9 million, driven by console game strength, while mobile revenue declined.
  • 3Gross profit margin decreased to 57.5% from 62.9% year-over-year.
  • 4Recurrent consumer spending (RCS) continues to be the primary revenue driver, making up 84.1% of total net revenue.
  • 5Significant debt repayments were made, reducing total liabilities and improving the company's debt profile.
  • 6Cash and cash equivalents remained strong at $1,364.9 million, with substantial availability under the credit facility.
  • 7The highly anticipated Grand Theft Auto VI is scheduled for release on November 19, 2026.

Frequently Asked Questions

The primary driver for the increased net loss was a combination of lower gross profit margin and increased operating expenses, particularly in research and development and general and administrative categories. Despite a modest increase in net revenue, the cost of revenue increased as a percentage of revenue, leading to lower gross profit.

The release of Grand Theft Auto VI on November 19, 2026, is anticipated to be a significant revenue driver for Take-Two Interactive. The company has provided preliminary details and commenced pre-orders, indicating strong market anticipation for this high-profile title, which is expected to bolster financial performance in future periods.

Take-Two Interactive maintains a strong liquidity position with $1,364.9 million in cash and cash equivalents and an available credit facility of $997.5 million. The company has recently made significant debt repayments, reducing its overall debt burden. This demonstrates a proactive approach to debt management and ensures sufficient resources for ongoing operations and future investments.

Revenue is segmented by platform (Mobile, Console, PC) and by content type (Recurrent Consumer Spending - RCS, Full Game and Other). Mobile revenue declined, while console revenue saw significant growth, largely driven by NBA 2K and the Borderlands franchise. RCS continues to be the dominant revenue stream, highlighting the importance of ongoing engagement through in-game purchases and services.