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 management reiterating confidence in the multiyear growth trajectory and sequential increases anticipated in FY2026 and FY2027.

• GAAP net revenue for Q1 FY2025 was $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 continued to perform well, with GTA V surpassing 200 million units sold and NBA 2K24 nearing 11 million units.

• The acquisition of Gearbox Entertainment was completed, expanding the portfolio and growth opportunities, especially for the Borderlands series.

Financial highlights

• GAAP net revenue for Q1: $1.34 billion, up 4% year-over-year; net loss: $262 million; GAAP EPS: $(1.52).

• Net bookings for Q1: $1.22 billion, up 1% year-over-year; 83% of bookings were digital.

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

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

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

Outlook and guidance

• Full-year net bookings outlook reiterated at $5.55–$5.65 billion, representing 5% growth over fiscal 2024.

• FY2025 GAAP net revenue guidance: $5.57–$5.67 billion; net loss: $(757)–$(690) million; EPS: $(4.33)–$(3.95).

• Q2 FY2025 net bookings projected at $1.42–$1.47 billion, with net revenue guidance of $1.29–$1.34 billion and net loss of $400–$373 million.

• Recurrent consumer spending forecast to grow 3% for the year, with mobile up high single digits and flat results for NBA 2K and a decline for GTA Online.

• Management anticipates sequential net bookings growth in FY2026 and FY2027, supported by new releases.