Take-Two Interactive Software (TTWO) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net bookings reached $1.475 billion, at the top end of guidance, driven by Grand Theft Auto, Borderlands, and NBA 2K25, with strong mobile growth from titles like Match Factory and Toon Blast.

• GAAP net revenue for Q2 was $1.35 billion, up 4% year-over-year, with net loss narrowing to $365.5 million ($2.08 per share) from $543.6 million ($3.20 per share) year-over-year.

• Recurrent consumer spending grew 6% year-over-year, representing 81% of net bookings, with mobile and NBA 2K as key drivers.

• Operating results exceeded plans due to a shift in timing of marketing expenses and cost reduction initiatives.

• Gearbox acquisition completed, expanding IP and development capabilities; cost reduction program and Private Division sale implemented.

Financial highlights

• Q2 net bookings: $1.475 billion (+2% YoY), at the top of $1.42–$1.47 billion guidance; GAAP net revenue: $1.35 billion (+4% YoY).

• Q2 GAAP net loss: $365.5 million (EPS $(2.08)), improved from $543.6 million (EPS $(3.20)) prior year.

• Gross margin improved to 53.8% from 32.0% YoY; operating margin at (22.0)%.

• Net cash from operating activities for six months: $(319.4) million; adjusted unrestricted operating cash flow: $(414) million.

• Digital online channels accounted for 96% of Q2 net bookings; mobile platforms contributed 49%.

Outlook and guidance

• FY2025 net bookings guidance reiterated at $5.55–$5.65 billion, representing 5% growth over FY2024; GAAP net revenue expected at $5.57–$5.67 billion.

• FY2025 GAAP net loss projected at $839–$775 million; EPS: $(4.80) to $(4.43).

• FY2025 EBITDA forecast: $282–$336 million; adjusted unrestricted operating cash flow: $(150) million.

• Q3 FY2025 net bookings guidance: $1.35–$1.4 billion; GAAP net revenue: $1.36–$1.41 billion; net loss: $202–$177 million.

• Major upcoming releases include Grand Theft Auto VI (fall 2025), Civilization VII, Borderlands 4, and Mafia: The Old Country.