Take-Two Interactive Software FY2026 Q3 Earnings Release

TA K E-TWO INTERACTIVE
SOFTWARE, INC.
(NASDAQ: TTWO)
THIRD QUARTER FISCAL 2026 RESULTS
& GUIDANCE SUMMARY

CAUTIONARY NOTE:
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 an d 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 tha t 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 imp act 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 e xchange 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 t o 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 ris ks 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.
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Q3 FY2026 RESULTS SUMMARY:
GAAP
FINANCIAL SUMMARY ($ in millions, except EPS)
Q3
ACTUAL GUIDANCE
GAAP Net Revenue $1,699 $1,570 TO $1,620
Operating Expenses $984 $980 TO $990
GAAP Net Loss $(93) $(90) TO $(65)
GAAP EPS $(0.50)$(0.49) TO $(0.35)
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Q3 FY2026 RESULTS SUMMARY:
SELECT MANAGEMENT AND OPERATING RESULTS
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•Our Q3 Net Bookings were significantly above our guidance range
oReflected better -than- expected performance from NBA 2K, the
Grand Theft Auto series, and several mobile titles, including Toon
Blast, Empires and Puzzles , and To p E l e v e n
o During the quarter, we launched WWE 2K Mobile for Netflix and Red
Dead Redemption and Undead Nightmare for several new platforms
• RCS rose 23% for the period, which strongly outperformed our guidance:
o NBA 2K grew 30%;
o Grand Theft Auto Online rose 27%; and
o Mobile increased 19%
SELECT FINANCIAL DATA ($ in millions)
Q3
ACTUAL GUIDANCE
Net Bookings $1,757 $1,550 TO $1,600
Recurrent Consumer Spending Growth
(RCS)
+23% +8% YoY

NET REVENUE
AND NET BOOKINGS
$5,333$5,648
$5,097 $5,457
FY24
FY25 FY26E Recurrent Consumer Spending Physical & Other Digital
78% of
Total 80% of
Total
$236 $19178% of
Total
$1,373 $1,757
$1,324 $1,712
Q3 FY25
Q3 FY26 Recurrent Consumer Spending Physical & Other Digital
79% of
Total 76% of
Total $45
$49
GAAP Net Revenue
Net Bookings (Operational Metric)
$ in Millions $405
$684
$400
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$1,360$1,699
$1,311 $1,655
Q3 FY25
Q3 FY26 Recurrent Consumer Spending Physical & Other Digital
80% of
Total 77% of
Total
$49 $45
$ in Millions
$5,350
$5,634
$5,112 $5,432
FY24
FY25 FY26E Recurrent Consumer Spending Physical & Other Digital
79% of
Total 79% of
Total
$237
$202$6,550
– $6,600
$6,650 – $6,700

CASH FLOW
6
-$16
-$45 $450
$142 $169
$180 FY24
FY25 FY26E
Net Cash From Operating Activities Capital Expenditures
Net Cash From Operating Activities
$ in Millions
6
-$324 $389
$115 $126
9 Months FY25
9 Months FY26
Net Cash From Operating Activities Capital Expenditures

FY 2026 GUIDANCE:
GAAP
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FISCAL YEAR 2026 GUIDANCE ($ in millions, except EPS)
FY 2026 REVISED GUIDANCE PRIOR GUIDANCE
GAAP Net Revenue $6,550 TO $6,600PRIOR: $6,380 TO $6,480
Operating Expenses $3,959 TO $3,969PRIOR: $3,984 TO $4,004
GAAP Net Loss $(369) TO $(338)PRIOR: $(414) TO $(349)
GAAP EPS $(2.00) TO $(1.84)PRIOR: $(2.25) TO $(1.90)

FY 2026 GUIDANCE:
SELECT FINANCIAL DATA
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FISCAL YEAR 2026 GUIDANCE ($ in millions, except EPS)
• We are raising our Net bookings outlook range to $6.65 to $6.7 billion (18% growth at midpoint)
•Reflects Q3 outperformance and higher expectations for several of our key titles in Q4
• We now expect RCS to grow 17%, assuming:
oNBA 2K grows 37%;
o Mobile grows 13%; and
o Grand Theft Auto Online increases slightly
• With ongoing momentum in our business, coupled with the launch of Grand Theft Auto VI on
November 19
th, we continue to project record levels of Net Bookings in Fiscal 2027, which we
believe will establish a higher financial baseline, set us on a path to enhanced profitability, and
provide further balance sheet strength and flexibility
FY 2026
CURRENT GUIDANCE
($ IN MILLIONS)
FY 2026
PRIOR GUIDANCE
($ IN MILLIONS)
Net Bookings $6,650 TO $6,700 PRIOR: $6,400 TO $6,500
Recurrent Consumer Spending Growth
(RCS)
+17% YOY PRIOR: +11% YOY
Operating Cash Flow APPROXIMATELY $450 APPROXIMATELY $250

Q4 FY2026 GUIDANCE:
GAAP
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Q4 FISCAL 2026 GUIDANCE ($ in millions, except EPS)
Q4 FY26 GUIDANCE
GAAP Net Revenue $1,573 TO $1,623
Operating Expenses $973 TO $983
GAAP Net Loss $(129) TO $(99)
GAAP EPS $(0.70) TO $(0.54)

Q4 FY2026 GUIDANCE:
SELECT FINANCIAL DATA
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Q4 FISCAL 2026 GUIDANCE ($ in millions, except EPS)
• We expect to deliver Net Bookings of $1.51 billion to $1.56 billion
• We project RCS to increase by approximately 7%, which assumes:
oA high -20% increase for NBA 2K;
o Mid single -digit growth for Mobile; and
o A modest decline for Grand Theft Auto Online
Q4 FY2026 GUIDANCE
($ IN MILLIONS)
Net Bookings $1,510 TO $1,560
Recurrent Consumer Spending Growth
(RCS)
+7% YOY

FY26-FY28 PIPELINE DETAILS
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* FY26 -28 release estimates provided as of May 15, 2025.
** Mobile count only includes titles in our plans for worldwide launch and excludes hyper -casual games.
These titles are a snapshot of our current development pipeline. It is likely that some of these titles will not be developed t hrough completion, that launch timing may change, and that we will also be adding new titles to our slate.
Independent titles have been removed following our sale of Private Division.

PIPELINE DEFINITIONS
Titles that have the deepest gameplay and the most hours of content. Examples include our key sports franchises (like PGA 2K and NBA 2K )
as well as Grand Theft Auto and Red Dead Redemption (to name a few).
IMMERSIVE CORE
Any title released on a mobile platform. Our title counts only include titles that are currently scheduled for worldwide laun
ch and exclude
hyper -casual games.
MOBILE
This includes ports and remastered titles. Sequels would not fall into this category.
NEW ITERATIONS OF PRIOR RELEASES

NON-GAAP FINANCIAL MEASURE
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In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Compa ny uses a Non -GAAP
measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), pro vision for (benefit
from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles. The Company is no longer r eporting Adjusted
Unrestricted Operating Cash Flow, as certain cash that was previously restricted is no longer required to be restricted.
The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of cer tain non-cash
expenses, debt -related charges, and income taxes. Management believes that, when considered together with reported amounts, EBIT DA is useful
to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and pr ovides 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 re sults. This Non-GAAP
financial measure may be different from similarly titled measures used by other companies. In the future, Take -Two may also cons ider 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 operat ing performance.
In particular, this measure facilitates comparison of our operating performance between periods and may help investors to unders tand 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 i n the financial
tables to this press release.

RECONCILIATION OF GAAP TO NON-GAAP MEASURE
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TA K E -TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON- GAAP
MEASURE
(in millions)

RECONCILIATION OF GAAP TO NON-GAAP MEASURE
15
TA K E -TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON- GAAP
MEASURE
(in millions)

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