Take-Two Interactive Software (TTWO) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net bookings reached $1.373 billion, within guidance, driven by NBA 2K's strong performance, offsetting mobile moderation.

• GAAP net revenue for Q3 was $1.36 billion, with a net loss of $125.2 million ($0.71 per share), both better than guidance.

• Recurrent consumer spending accounted for 80% of quarterly revenue, up 9% year-over-year, led by NBA 2K's 30%+ growth.

• Major upcoming releases include Grand Theft Auto VI (Fall 2025), Civilization VII (Feb 2025), Mafia: The Old Country (Summer 2025), and Borderlands 4 (2025), expected to drive record net bookings in fiscal 2026 and 2027.

• Gearbox Entertainment was acquired for $435 million, and Private Division was sold, reflecting portfolio realignment.

Financial highlights

• Net bookings for Q3 FY2025 were $1.373 billion, up 2.7% year-over-year; GAAP net revenue was $1.36 billion.

• Net loss for the quarter was $125.2 million; EPS was $(0.71).

• Gross margin improved to 55.9% for the quarter; operating expenses increased 10% to $892 million.

• Digital revenue comprised 80% of total Q3 net revenue; digital online channels represented 96% of Q3 net bookings.

• Mobile revenue increased to $731.6 million, representing 53.8% of total quarterly revenue.

Outlook and guidance

• FY2025 net bookings outlook reiterated at $5.55–$5.65 billion, representing 5% growth year-over-year.

• FY2025 GAAP net revenue guidance: $5.57–$5.67 billion; net loss: $(788)–$(729) million; EBITDA: $263–$317 million.

• Q4 FY2025 net bookings expected at $1.48–$1.58 billion; net revenue $1.52–$1.62 billion; operating expenses $900–$920 million.

• Major title launches in 2025 expected to drive sequential and record net bookings in FY2026 and FY2027.

• Management basis operating expenses expected to decline 2% year-over-year in Q4 due to normalized marketing and cost reduction.