Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2027

Fiscal first quarter Net Bookings were $1.39 billion, slightly above Company's guidance range

Company updates fiscal year 2027 outlook and reiterates expectation for Net Bookings of $8.0 to $8.2 billion

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the first quarter of its fiscal year 2027, ended June 30, 2026. For further information, please see the first quarter fiscal 2027 results slide deck posted to the Company’s investor relations website at take2games.com/ir .

CEO Comments

Strauss Zelnick, Chairman and CEO of Take-Two Interactive, stated: “Our excellent first quarter results reflect the power of our portfolio and disciplined execution across all of our labels. With these positive trends and excitement around the November 19(th) launch of Grand Theft Auto VI, we are reiterating our Fiscal 2027 Net Bookings outlook of $8.0 to $8.2 billion. Looking further ahead, we expect to sustain this new level of scale and generate strong cash flows, setting us on a path to deliver continued growth and long-term shareholder returns.”

First Quarter Fiscal 2027 Financial and Operational Highlights

* Total Net Bookings* decreased 3% to $1.39 billion compared to $1.42 billion during last year’s fiscal first quarter.

* Net Bookings from recurrent consumer spending** decreased 1% and accounted for 84% of total Net Bookings.

* The largest contributors to Net Bookings were NBA® 2K, the Grand Theft Auto® series, Toon Blast™, Match Factory!™, Empires & Puzzles™, the Red Dead Redemption® series, Words With Friends™, Color Block Jam™, WWE® 2K, Zynga Poker™, and Toy Blast™.

* GAAP net revenue was $1.53 billion, compared to $1.50 billion in last year’s fiscal first quarter.

* Recurrent consumer spending** increased 3% and accounted for 84% of total GAAP net revenue.

* The largest contributors to GAAP net revenue were NBA 2K, the Grand Theft Auto series, Toon Blast, Empires & Puzzles, Match Factory!, the Red Dead Redemption series, Words With Friends, Color Block Jam, WWE 2K, Zynga Poker, and Merge Dragons™.

* GAAP net loss was $34.1 million, or $0.18 per share, as compared to $11.9 million, or $0.07 per share, for the comparable period last year. Cost of revenue included a $43.4 million impairment charge related to the Company's decision not to proceed with further development of an unannounced title in its pipeline from a third-party developer.

* Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.

** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.

First Quarter Fiscal 2027 Financial Results

The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business:
Three Months Ended June 30,	2	0	2	6
Financial Data in millions Statement of Operations Change in deferred net revenue and related cost of revenue Stock-based compensation Amortization of acquired intangibles Business acquisition Other ((a)) GAAP Total net revenue	$1,533.9	(148.0)
Cost of revenue	651.4	(15.6)	(3.1)	(154.9)
Gross profit	882.5	(132.4)	3.1	154.9
Operating expenses	918.0	(82.9)	(13.5)	(2.4)
(Loss) income from operations	(35.5)	(132.4)	86.0	168.4	2.4
Interest and other, net	(13.8)	0.4	2.2	3.2
(Loss) income before income taxes	(49.3)	(132.0)	86.0	168.4	4.6	3.2
Non-GAAP EBITDA	167.0	(132.0)	86.0	2.9	3.2

The above table utilizes a management tax rate of 18%

* Share count used to calculate management reporting diluted net income per share is 187.8 million

((a)) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar, (ii) fair value adjustments related to certain equity investments, and (iii) a gain from the sale of marketable securities.

Outlook for Fiscal Year 2027

Take-Two is updating its outlook for the fiscal year and providing its initial outlook for its fiscal second quarter ending September 30, 2026:

Fiscal Year Ending March 31, 2027

The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook: Fiscal Year Ending March 31, 2027 Financial Data $ in millions except for per share amounts Outlook ((b)) Change in deferred net revenue and related cost of revenue Stock-based compensation Amortization of acquired intangibles Other GAAP Total net revenue $7,900 to $8,100 $100 Cost of revenue $3,538 to $3,658 $(10) $(83) $(567) Operating expenses $4,150 to $4,170 $(349) $(51) Interest and other, net $53 $(8) Income before income taxes $159 to $219 $110 $432 $618 $8 Net income $104 to $143 Diluted net income per share $0.55 to $0.75 Net cash provided by operating activities over $1,000 Capital expenditures approximately $290 Non-GAAP EBITDA $993 to $1,053 $110 $432 Operational metric Net Bookings $8,000 to $8,200

Management reporting tax rate anticipated to be 18%

* Share count used to calculate GAAP and management reporting diluted net income per share is expected to be 189.4 million

((b) )The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.

Fiscal Second Quarter Ending September 30, 2026

The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook: Three Months Ending September 30, 2026 Financial Data $ in millions except for per share amounts Outlook ((b)) Change in deferred net revenue and related cost of revenue Stock-based compensation Amortization of acquired intangibles Other GAAP Total net revenue $1,420 to $1,470 $200 Cost of revenue $622 to $638 $10 $(4) $(136) Operating expenses $1,009 to $1,019 $(86) $(13) Interest and other, net $13 $(1) (Loss) income before income taxes $(224) to $(200) $190 $90 $149 $1 Net (loss) income $(157) to $(140) Net (loss) income per share $(0.84) to $(0.75) Non-GAAP EBITDA $(20) to $4 $190 $90 Operational metric Net Bookings $1,620 to $1,670

Management reporting tax rate anticipated to be 18%

* Share count used to calculate GAAP net loss per share is expected to be 187.1 million

* Share count used to calculate management reporting diluted net income per share is expected to be 188.5 million

Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.

Product Releases

The following have been released since April 1, 2026: Label Product Platforms Release Date Rockstar Games Grand Theft Auto Online Kortz Center Heist Summer Update PS4, PS5, Xbox One, Xbox Series X|S, PC July 14, 2026

Take-Two's future lineup announced to-date includes: Label Product Platforms Release Date 2K NBA 2K27 PS5, Xbox Series X|S, Switch 2, PC September 4, 2026 Rockstar Games Grand Theft Auto VI PS5, Xbox Series X|S November 19, 2026 2K PGA TOUR 2K27 TBA TBA 2K WWE 2K27 TBA TBA Zynga Top Goal iOS, Android TBA Zynga CSR 3 iOS, Android TBA Ghost Story Games Judas PS5, Xbox Series X|S, PC TBA 2K Project ETHOS TBA TBA 2K BioShock next iteration TBA TBA

Conference Call

Take-Two will host a conference call today at 8:00 a.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (833) 461-5787 (Meeting ID: 773792521). A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

Non-GAAP Financial Measure

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles.

The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition.

This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial tables to this press release.

Final Results

The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Quarterly Report on Form 10-Q for the period ended June 30, 2026.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, and Zynga. Our strategy is to create hit entertainment experiences, delivered on every platform relevant to our audience through a variety of sound business models. Our pillars – creativity, innovation, and efficiency – guide us as we strive to create the highest quality, most captivating experiences for our consumers. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com .

All trademarks and copyrights contained herein are the property of their respective holders.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software, Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns) outlook, are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties, including risks relating to the timely release and significant market acceptance of our games; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; and the ability to maintain acceptable pricing levels on our games.

Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com . All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. TAKE-TWO INTERACTIVE SOFTWARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in millions, except per share amounts) Three Months Ended June 30, 2026 2025 Net revenue: Game $ 1,422.8 $ 1,382.5 Advertising 111.1 121.3 Total net revenue 1,533.9 1,503.8 Cost of revenue: Product costs 187.8 210.4 Game intangibles 154.3 158.5 Software development costs and royalties 135.1 30.1 Licenses 99.5 70.9 Internal royalties 74.7 88.9 Total cost of revenue 651.4 558.8 Gross profit 882.5 945.0 Selling and marketing 369.7 409.2 Research and development 273.8 256.4 General and administrative 226.3 207.4 Depreciation and amortization 48.2 50.4 Total operating expenses 918.0 923.4 (Loss) income from operations (35.5 ) 21.6 Interest and other, net: Interest income 22.8 16.5 Interest expense (30.4 ) (38.9 ) Other income/(expense), net (6.2 ) (13.0 ) Interest and other, net (13.8 ) (35.4 ) Loss before income taxes (49.3 ) (13.8 ) Benefit from income taxes (15.2 ) (1.9 ) Net loss $ (34.1 ) $ (11.9 ) Loss per share: Basic and diluted loss per share $ (0.18 ) $ (0.07 ) Weighted average shares outstanding Basic 186.2 180.8

TAKE-TWO INTERACTIVE SOFTWARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, except per share amounts) June 30,	2026
March 31,	2026
(Unaudited) ASSETS Current assets:
Cash and cash equivalents	$1,364.9	$1,545.5
Short-term investments	461.7	443.8
Restricted cash and cash equivalents	14.0	13.2
Accounts receivable, net of allowances of	$0.8
and	$0.9
at June 30,	2026
and	606.9	737.0
March 31, 2026, respectively Software development costs and licenses	36.0	68.8
Contract assets	69.7	89.7
Prepaid expenses and other	403.9	301.5
Total current assets	2,957.1	3,199.5
Fixed assets, net	429.6	445.4
Right-of-use assets	321.9	334.6
Software development costs and licenses, net of current portion	2,395.0	2,277.5
Goodwill	1,060.9	1,061.9
Other intangibles, net	1,493.6	1,653.2
Long-term restricted cash and cash equivalents	67.2	79.4
Other assets	338.9	331.7
Total assets	$9,064.2	$9,383.2
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:
Accounts payable	$179.5	$211.0
Accrued expenses and other current liabilities	914.3	1,117.8
Deferred revenue	988.4	1,159.9
Lease liabilities	71.5	70.1
Short-term debt, net	629.9	30.0
Total current liabilities	2,783.6	2,588.8
Long-term debt, net	1,889.8	2,488.0
Non-current deferred revenue	26.1	29.7
Non-current lease liabilities	353.5	370.2
Non-current software development royalties	71.1	84.5
Deferred tax liabilities, net	197.9	182.3
Other long-term liabilities	133.8	128.8
Total liabilities	$5,455.8	$5,872.3
Stockholders' equity:
Preferred stock,	$0.01
par value,	5.0
shares authorized:
no shares issued and	—	—
outstanding at June 30,	2026
and March 31,	2026
Common stock,	$0.01
par value,	300.0
and	300.0
shares authorized;	210.7
and	2.1	2.1	209.1
shares issued and	187.0
and	185.4
outstanding at June 30,	2026
and March 31, 2026, respectively Additional paid-in capital	12,095.8	11,953.7
Treasury stock, at cost;	23.7
and	23.7
common shares at June 30,	2026
and	(1,020.6)	(1,020.6)
March 31, 2026, respectively Accumulated deficit	(7,391.1)	(7,357.0)
Accumulated other comprehensive loss	(77.8)	(67.3)
Total stockholders' equity	$3,608.4	$3,510.9
Total liabilities and stockholders' equity	$9,064.2	$9,383.2

TAKE-TWO INTERACTIVE SOFTWARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in millions) Three Months Ended June 30, 2026 2025 Operating activities: Net loss $ (34.1 ) $ (11.9 ) Adjustments to reconcile net loss to net cash used in operating activities: Amortization and impairment of software development costs and licenses 107.5 46.1 Stock-based compensation 86.0 40.7 Noncash lease expense 14.5 13.1 Amortization and impairment of intangibles 168.5 174.8 Depreciation 40.1 42.1 Interest expense 30.4 38.9 Other, net 6.7 16.9 Changes in assets and liabilities: Accounts receivable 130.0 114.8 Software development costs and licenses (173.0 ) (164.6 ) Prepaid expenses, other current and other non-current assets (104.6 ) (43.5 ) Deferred revenue (174.9 ) (72.3 ) Accounts payable, accrued expenses and other liabilities (265.9 ) (239.8 ) Net cash used in operating activities (168.8 ) (44.7 ) Investing activities: Change in bank-time deposits (17.9 ) (0.7 ) Purchases of fixed assets (25.0 ) (25.1 ) Purchases of long-term investments (4.9 ) (6.6 ) Asset acquisitions (15.8 ) (4.4 ) Proceeds from sale of marketable securities 11.2 — Net cash used in investing activities (52.4 ) (36.8 ) Financing activities: Tax payment related to net share settlements on restricted stock awards (1.3 ) (1.3 ) Issuance of common stock 31.8 1,219.6 Repayment of debt — (600.0 ) Net cash provided by financing activities 30.5 618.3 Effects of foreign currency exchange rates on cash, cash equivalents, and (1.3 ) 20.2 restricted cash and cash equivalents Net change in cash, cash equivalents, and restricted cash and cash equivalents (192.0 ) 557.0 Cash, cash equivalents, and restricted cash and cash equivalents, beginning of 1,638.1 1,559.2 year ((1)) Cash, cash equivalents, and restricted cash and cash equivalents, end of $ 1,446.1 $ 2,116.2 period ((1)) ((1)) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Condensed Consolidated Balance Sheet.

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES Net Revenue and Net Bookings by Content, Platform Mix, Distribution Channel, and Geographic Region (in millions) Three Months Ended June 30,	2	0	2	6
Three Months Ended June 30,	2	0	2	5
Amount % of total Amount % of total Net revenue by content Recurrent consumer spending	$1,289.8	84%	$1,256.1	84%
Full game and other	244.1	16%	247.7	16%
Total Net revenue	$1,533.9	100%	$1,503.8	100%
Net Bookings by content Recurrent consumer spending	$1,169.4	84%	$1,183.5	83%
Full game and other	216.5	16%	239.6	17%
Total Net Bookings	$1,385.9	100%	$1,423.1	100%
Three Months Ended June 30,	2	0	2	6
Three Months Ended June 30,	2	0	2	5
Amount % of total Amount % of total Net revenue by platform Mobile	$762.3	50%	$801.7	53%
Console	640.5	42%	550.6	37%
PC and other	131.1	8%	151.5	10%
Total Net revenue	$1,533.9	100%	$1,503.8	100%
Net Bookings by platform Mobile	$739.5	53%	$792.8	56%
Console	525.2	38%	474.4	33%
PC and other	121.2	9%	155.9	11%
Total Net Bookings	$1,385.9	100%	$1,423.1	100%
Three Months Ended June 30,	2	0	2	6
Three Months Ended June 30,	2	0	2	5
Amount % of total Amount % of total Net revenue by distribution channel Digital online	$1,507.3	98%	$1,476.6	98%
Physical retail and other	26.6	2%	27.2	2%
Total Net revenue	$1,533.9	100%	$1,503.8	100%
Net Bookings by distribution channel Digital online	$1,368.6	99%	$1,405.1	99%
Physical retail and other	17.3	1%	18.0	1%
Total Net Bookings	$1,385.9	100%	$1,423.1	100%
Three Months Ended June 30,	2	0	2	6
Three Months Ended June 30,	2	0	2	5
Amount % of total Amount % of total Net revenue by geographic region United States	$920.0	60%	$900.4	60%
International	613.9	40%	603.4	40%
Total Net revenue	$1,533.9	100%	$1,503.8	100%
Net Bookings by geographic region United States	$805.4	58%	$836.6	59%
International	580.5	42%	586.5	41%
Total Net Bookings	$1,385.9	100%	$1,423.1	100%

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES ADDITIONAL DATA (in millions) Three Months Ended June 30,	2026
Net revenue Cost of revenue- Product costs Cost of revenue- Game intangibles Cost of revenue- Software development costs and royalties Cost of revenue- Licenses Cost of revenue- Internal royalties As reported	$1,533.9	$187.8	$154.3	$135.1	$99.5	$74.7
Net effect from deferred revenue and related cost of revenue	(148.0)	(2.9)	(12.1)	(0.6)
Stock-based compensation	(3.1)
Amortization of acquired intangibles	(0.6)	(154.3)
Three Months Ended June 30,	2026
Selling and marketing Research and development General and administrative Depreciation and amortization Interest and other, net As reported	$369.7	$273.8	$226.3	$48.2
$(13.8) Net effect from deferred revenue and related cost of revenue	0.4
Stock-based compensation	(23.8)	(19.4)	(39.7)
Amortization of acquired intangibles	(5.6)	(7.9)
Acquisition related expenses	(0.5)	(1.9)	2.2
Other	3.2
Three Months Ended June 30,	2025
Net revenue Cost of revenue	-
Product costs Cost of revenue -Game intangibles Cost of revenue- Software development costs and royalties Cost of revenue- Licenses Cost of revenue- Internal royalties As reported	$1,503.8	$210.4	$158.5	$30.1	$70.9	$88.9
Net effect from deferred revenue and related cost of revenue	(80.7)	(3.6)	(7.9)	0.2
Stock-based compensation	41.0
Amortization and impairment of acquired intangibles	(0.8)	(158.5)
Three Months Ended June 30,	2025
Selling and marketing Research and development General and administrative Depreciation and amortization Interest and other, net As reported	$409.2	$256.4	$207.4	$50.4
$(35.4) Net effect from deferred revenue and related cost of revenue	0.4
Stock-based compensation	(24.4)	(21.1)	(36.2)
Amortization and impairment of acquired intangibles	(7.2)	(8.3)
Acquisition related expenses	(0.3)	(3.6)	5.5
Impact of business reorganization	(0.4)	5.0	(0.4)
Other	(2.1)

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURE (in millions) Three Months Ended June 30,	2026	2025
Net loss $(34.1) $(11.9) Benefit from income taxes	(15.2)	(1.9)
Interest income	(22.8)	(16.5)
Interest expense	30.4	38.9
Depreciation and amortization	48.2	50.4
Amortization of acquired intangibles	160.5	166.5
EBITDA	$167.0	$225.5

Outlook Fiscal Year Ending March 31, 2027 Net income $104 to $143 Provision for income taxes $55 to $76 Interest expense, net $41 Depreciation $175 Amortization of acquired intangibles $618 EBITDA $993 to $1,053

Outlook Three Months Ending September 30, 2026 Net loss $(157) to $(140) Benefit from income taxes $(67) to $(60) Interest expense, net $11 Depreciation $44 Amortization of acquired intangibles $149 EBITDA $(20) to $4

View source version on businesswire.com: https://www.businesswire.com/news/home/20260806868549/en/

(Investor Relations)

Nicole Shevins

Senior Vice President

Investor Relations & Corporate Communications

Take-Two Interactive Software, Inc.

(646) 536-3005

Nicole.Shevins@take2games.com (mailto:Nicole.Shevins@take2games.com)

(Corporate Press)

Alan Lewis

Head of Global Corporate Communications

Take-Two Interactive Software, Inc.

(646) 536-2983

Alan.Lewis@take2games.com (mailto:Alan.Lewis@take2games.com)

Article ID: nBw65b0XXa Archive began May 2026 · Available for up to 365 days after publication

Take-Two Interactive Software, Inc. Reports Results for Fiscal First Quarter 2027