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

Executive summary

• Q1 FY2025 net bookings reached $1.22 billion, up 1% year-over-year and in line with guidance, with net revenue at $1.34 billion, up 4% year-over-year, driven by mobile and digital channels.

• 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 remained top contributors, with GTA V surpassing 200 million units sold and NBA 2K24 nearing 11 million units.

• The acquisition of Gearbox Entertainment and launches of TopSpin 2K25, Star Wars: Hunters, and Game of Thrones: Legends expanded the portfolio.

• A cost reduction program was implemented, incurring $49.5 million in reorganization expenses.

Financial highlights

• 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) last year.

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

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

• Digital channels accounted for 97% of net revenue and net bookings; mobile contributed 58% of net revenue.

Outlook and guidance

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

• FY25 net revenue guidance is $5.57–$5.67 billion; net loss projected at $757–$690 million; EBITDA outlook is $365–$420 million.

• Q2 FY25 net revenue guidance is $1.29–$1.34 billion, with net bookings of $1.42–$1.47 billion and net loss of $400–$373 million.

• Operating expenses for the year expected at $3.7–$3.72 billion, down from $5.83 billion last year.

• Ongoing cost reduction program to be largely completed by December 31, 2024.