Take-Two Interactive Software (TTWO) investor relations material

Executive summary

• Net bookings for Q3 FY2026 reached $1.76 billion, up 28% year-over-year and exceeding guidance, driven by NBA 2K, Grand Theft Auto, and mobile titles like Toon Blast and Empires & Puzzles.

• Recurrent consumer spending rose 23% year-over-year, accounting for 76–77% of net bookings, with NBA 2K, GTA Online, and mobile all exceeding expectations.

• Net loss for the quarter was $92.9 million ($0.50 per share), an improvement from $125.2 million in the prior year.

• Digital channels represented 97% of net revenue and bookings; mobile accounted for 51% of net revenue.

• Anticipation for Grand Theft Auto VI is high, with release set for November 19, 2026, and major marketing to begin in summer.

Financial highlights

• GAAP net revenue for Q3 FY2026 was $1.70 billion, up 25% year-over-year and above guidance.

• Gross profit for the quarter was $945.5 million, with a gross margin of 55.6%.

• Operating expenses increased 10% to $984 million; loss from operations was $38.7 million, improved from $132.1 million loss in prior year.

• Net cash from operating activities for the nine months ended December 31, 2025, was $388.9 million.

• EBITDA (non-GAAP) for Q3 2026 was $174.8 million, up from $88.8 million in Q3 2025.

Outlook and guidance

• Fiscal 2026 net bookings outlook raised to $6.65–$6.7 billion, representing 18% growth at midpoint.

• Fiscal 2026 GAAP net revenue expected at $6.55–$6.6 billion; net loss forecasted at $369–$338 million.

• Recurrent consumer spending forecast to grow 17% and represent 78% of net bookings, with NBA 2K up 37%, mobile up 13%, and GTA Online slightly increasing.

• Q4 FY2026 net revenue guidance is $1.57–$1.62 billion, with net bookings of $1.51–$1.56 billion and RCS growth of 7%.

• Launch of Grand Theft Auto VI in November 2026 expected to drive record net bookings in FY2027.