Take-Two Interactive Software (TTWO) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net bookings were $1.22 billion, up 1% year-over-year and in line with guidance; GAAP net revenue rose 4% to $1.34 billion.

• Net loss widened to $262 million, impacted by reorganization and acquisition costs, and Turkish Lira devaluation.

• Major franchises like Grand Theft Auto, NBA 2K, and Red Dead Redemption continued to drive engagement and sales, with GTA V surpassing 200 million units sold and Red Dead Redemption 2 over 65 million.

• Key launches included TopSpin 2K25, NFL 2K Playmakers, Star Wars: Hunters, and Game of Thrones: Legends.

• Gearbox Entertainment was acquired, expanding the portfolio and growth opportunities for Borderlands.

Financial highlights

• Q1 GAAP net revenue was $1.34 billion, up 4% year-over-year; net bookings were $1.22 billion, up 1% year-over-year.

• Net loss for Q1 was $262 million ($1.52 per share), compared to $206 million ($1.22 per share) in Q1 FY24.

• EBITDA for Q1 was $24.9 million, down from $64.5 million in the prior year.

• Mobile revenue rose to $722.5 million (54% of total), with digital channels accounting for 97% of net revenue.

• Operating expenses increased 8% to $956 million, mainly due to higher marketing and reorganization costs.

Outlook and guidance

• FY25 net bookings outlook reiterated at $5.55–$5.65 billion, with sequential growth expected in FY26 and FY27.

• FY25 GAAP net revenue expected at $5.57–$5.67 billion; net loss projected at $757–$690 million.

• Q2 FY25 net bookings projected at $1.42–$1.47 billion; net revenue guidance is $1.29–$1.34 billion.

• Recurrent consumer spending expected to grow 3% for the year, with mobile up high single digits.

• Major releases expected include NBA 2K25, WWE 2K25, Civilization VII, and Grand Theft Auto VI.