Take-Two Interactive Software (TTWO) investor relations material

Executive summary

• Q1 FY2027 net bookings were $1.39 billion, slightly above guidance but down 3% year-over-year, with strong contributions from NBA 2K and Grand Theft Auto series.

• GAAP net revenue for Q1 FY2027 was $1.534 billion, up 2% year-over-year.

• GAAP net loss widened to $34.1 million ($0.18 per share), mainly due to a $43.4 million impairment charge for a canceled third-party title.

• Recurrent consumer spending accounted for 84% of net bookings and net revenue, with NBA 2K and GTA series growth offsetting mobile declines.

• Mobile business, led by Zynga, performed in line with expectations, with Toon Blast and Words with Friends both up 8% year-over-year.

Financial highlights

• Gross profit was $882.5 million, down from $945.0 million year-over-year; gross margin declined to 57.5%.

• Operating expenses were flat at $918 million; EBITDA for Q1 2027 was $167.0 million, down from $225.5 million year-over-year.

• Net cash used in operating activities was $168.8 million, compared to $44.7 million in the prior year.

• Digital revenue accounted for 98% of total net revenue in Q1 FY2027.

• No shares repurchased during the quarter; 10 million shares remain available under the repurchase program.

Outlook and guidance

• FY2027 net bookings expected at $8.0–$8.2 billion, representing ~20% growth over FY2026.

• GAAP net revenue guidance for FY2027 is $7.9–$8.1 billion; net income projected at $104–$143 million, diluted EPS $0.55–$0.75.

• Q2 FY2027 net bookings projected at $1.62–$1.67 billion; net loss expected between $157 million and $140 million.

• Operating cash flow for FY2027 expected to exceed $1 billion; capital expenditures projected at $290 million.

• Grand Theft Auto VI scheduled for release on November 19, 2026, expected to drive significant revenue.