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Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2025

1. Take-Two reports a 17% rise in fourth quarter Net Bookings. 2. Net Bookings per guidance of $5.9 to $6.0 billion in fiscal 2026. 3. GAAP net loss increased to $4.48 billion due to goodwill impairment. 4. Grand Theft Auto VI expected in fiscal 2027, boosting future profitability. 5. Recurrent consumer spending significantly contributed to Net Bookings growth.

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FAQ

Why Bullish?

Take-Two shows strong revenue growth and future expectations, despite recent losses. Historically, major game releases have positively influenced stock performance.

How important is it?

The article discusses significant financial outcomes and future expectations that could drive investor interest.

Why Long Term?

Anticipated long-term profitability from upcoming major titles implies a sustained positive trend. Similar patterns occurred before GTA releases.

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ATVIEA
NEW YORK--(BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the fourth quarter and fiscal year 2025, ended March 31, 2025. For further information, please see the fourth quarter and fiscal 2025 results slide deck posted to the Company’s investor relations website at take2games.com/ir. CEO Comments “We achieved outstanding results in our 2025 Fiscal Year, with each of our labels contributing meaningfully to our performance. Our Fiscal 2026 outlook reflects continuing positive momentum, with Net Bookings guidance of $5.9 to $6.0 billion. As we bring our exciting lineup to market, including Grand Theft Auto VI in Fiscal 2027, we expect to achieve record levels of Net Bookings that will establish a new baseline for our business and set us on a path of enhanced profitability.” Fourth Quarter Fiscal 2025 Financial and Operational Highlights Total Net Bookings* grew 17% to $1.58 billion, as compared to $1.35 billion during last year’s fiscal fourth quarter. Net Bookings from recurrent consumer spending** increased 14% and accounted for 77% of total Net Bookings. The largest contributors to Net Bookings were NBA® 2K25, Grand Theft Auto® Online and Grand Theft Auto V, Civilization® VII, Toon Blast™, our hyper-casual mobile portfolio, Match Factory!™, Empires & Puzzles™, Red Dead Redemption® 2 and Red Dead Online, and WWE® 2K25. GAAP net revenue increased 13% to $1.58 billion, as compared to $1.40 billion in last year’s fiscal fourth quarter. Recurrent consumer spending** increased 9% and accounted for 76% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K25 and NBA 2K24, Grand Theft Auto Online and Grand Theft Auto V, Civilization VII, Toon Blast, our hyper-casual mobile portfolio, Match Factory!, Empires & Puzzles, Red Dead Redemption 2 and Red Dead Online, and WWE 2K25. GAAP net loss was $3.73 billion, or $21.08 per share, as compared to $2.90 billion, or $17.02 per share, for the comparable period last year. Our GAAP results include impairment charges of (i) $3.55 billion related to goodwill and (ii) $176.3 million for acquisition-related intangible assets. Fourth Quarter Fiscal Year 2025 Financial Results The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook: The above table utilizes a management tax rate of 18% Fully diluted share count in order to calculate management diluted net income per share 179.0 million (a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments. Fiscal Year 2025 Financial and Operational Highlights Total Net Bookings* grew 6% to $5.65 billion, as compared to $5.33 billion during last fiscal year. Net Bookings from recurrent consumer spending** increased 7% and accounted for 80% of total Net Bookings. The largest contributors to Net Bookings were NBA 2K25 and NBA 2K24, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, our hyper-casual mobile portfolio, Match Factory!, Empires & Puzzles, Red Dead Redemption 2 and Red Dead Online, Words With Friends, and Toy Blast. GAAP net revenue increased 5% to $5.63 billion, as compared to $5.35 billion during last fiscal year. Recurrent consumer spending** increased 5% and accounted for 79% of total GAAP net revenue. The largest contributors to GAAP net revenue were NBA 2K24 and NBA 2K25, Grand Theft Auto Online and Grand Theft Auto V, Toon Blast, our hyper-casual mobile portfolio, Match Factory!, Empires & Puzzles, Red Dead Redemption 2 and Red Dead Online, Civilization VII, and Words With Friends. GAAP net loss was $4.48 billion, or $25.58 per share, as compared to $3.74 billion, or $22.01 per share, for the comparable period last year. Our GAAP results include impairment charges of (i) $3.55 billion related to goodwill and (ii) $176.3 million for acquisition-related intangible assets. * Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives. ** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising. Fiscal Year 2025 Financial Results The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook: The above table utilizes a management tax rate of 18% Fully diluted share count in order to calculate management diluted net income per share 177.4 million (a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments. Outlook for Fiscal 2026 Take-Two is providing its initial outlook for the fiscal year ending March 31, 2026 and fiscal first quarter ending June 30, 2025. Fiscal Year Ending March 31, 2026 The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook: Management reporting tax rate anticipated to be 18% Share count used to calculate GAAP net loss per share is expected to be 179.1 million Share count used to calculate management reporting diluted net income per share is expected to be 181.5 million (b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously. (c) Other includes adjustments for deferred financing costs associated with our debt. (d) The Company is no longer reporting Adjusted Unrestricted Operating Cash Flow, as certain cash that was previously restricted is no longer required to be restricted. First Quarter Ending June 30, 2025 The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook: Management reporting tax rate is anticipated to be 18% Share count used to calculate GAAP net loss per share is expected to be 178.1 million Share count used to calculate management reporting diluted net income per share is expected to be 180.4 million (b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously. (c) Other includes adjustments for deferred financing costs associated with our debt. Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S, as well as engagement on Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below. Product Releases The following have been released since January 1, 2025: Take-Two's future lineup announced to-date includes: Conference Call Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (800) 715-9871 or (646) 307-1963 (conference ID: 1162777). A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location. Non-GAAP Financial Measure In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles. The Company is no longer reporting Adjusted Unrestricted Operating Cash Flow, as certain cash that was previously restricted is no longer required to be restricted. The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition. This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial tables to this press release. Final Results The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Annual Report on Form 10-K for the period ended March 31, 2025. About Take-Two Interactive Software Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, and Zynga. Our products are designed for console gaming systems, mobile, including smartphones and tablets, and PC. We deliver our products through physical retail, digital download, online platforms, and cloud streaming services. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com. All trademarks and copyrights contained herein are the property of their respective holders. Cautionary Note Regarding Forward-Looking Statements The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software, Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns) outlook, are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties including risks relating to the timely release and significant market acceptance of our games; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; and the ability to maintain acceptable pricing levels on our games. Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

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