Take-Two Interactive Software FY2027 Q1 Earnings Release

TAKE -TWO INTERACTIVE
SOFTWARE, INC.
(NASDAQ: TTWO)
FIRST QUARTER FISCAL 2027 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 word s such as “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “plans,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” or words of similar meaning an d i nclude, 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 o ur 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 a re 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 m aintain 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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Q1 FY2027 RESULTS SUMMARY:
GAAP
FINANCIAL SUMMARY ($ in millions, except EPS)
Q 1
ACTUAL GUID ANCE
GAAP Net Revenue $ 1 , 5 3 4 $ 1 , 4 5 0 T O $ 1 , 5 0 0
Operating Expenses $918 $ 9 2 6 T O $ 9 3 6
GAAP Net Loss $(34) $(42) TO $(27)
GAAP EPS $ ( 0 . 1 8 ) $ ( 0 . 2 3 ) T O $ ( 0 . 1 5 )
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Q1 FY2027 RESULTS SUMMARY:
SELECT MANAGEMENT AND OPERATING RESULTS
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• Our Q1 Net Bookings were slightly above our guidance range
o This primarily reflected better -than -expected performance from
NBA 2K and the Grand Theft Auto series
• RCS declined 1% for the period, which was favorable to our guidance of a
3% decline:
o NBA 2K grew 7%;
o The GTA series grew 3%; and
o Mobile declined 7%
• Cost of revenue included a $43 million impairment charge related to the
decision not to proceed with an unannounced title from a third -party
developer
SELECT FINANCIAL DATA ($ in millions)
Q1
ACTUAL GUID ANCE
Net Bookings $1,386 $1,320 TO $1,370
Recurrent Consumer Spending Growth
(RCS)
-1% -3% YoY

NET REVENUE
AND NET BOOKINGS
$5,648
$6,721
$8,000 – $8,200
$5,457
$6,528
FY25 FY26 FY27E Recurrent Consumer Spending Physical & Other Digital
80% of
Total
78% of
Total $191
$193 64% of
Total
$1,423 $1,386
$1,405
$1,369
Q1 FY26 Q1 FY27 Recurrent Consumer Spending Physical & Other Digital
83% of
Total
84% of
Total $17 $18
GAAP Net Revenue
Net Bookings (Operational Metric)
$ in Millions $405
$684
$400
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$1,504 $1,534
$1,477
$1,507
Q1 FY26 Q1 FY27 Recurrent Consumer Spending Physical & Other Digital
84% of
Total
84% of
Total $27 $27
$ in Millions
$5,634
$6,656
$7,900 – $8,100
$5,432
$6,460
FY25 FY26 FY27E Recurrent Consumer Spending Physical & Other Digital
79% of
Total
78% of
Total $202
$197

CASH FLOW
6
-$45
$624
$1,000
$169 $163
$290
FY25 FY26 FY27E
Net Cash From Operating Activities Capital Expenditures
Net Cash From Operating Activities
$ in Millions
-$45
-$169
$25 $25
3 Months FY26 3 Months FY27
Net Cash From Operating Activities Capital Expenditures

FY 2027 GUIDANCE:
GAAP
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FISCAL YEAR 2027 GUIDANCE ($ in millions, except EPS)
FY 2027 REVISED GUIDANCE PRIOR GUIDANCE
GAAP Net Revenue $7,900 TO $8,100 NO CHANGE
Operating Expenses $4,150 TO $4,170 $4,180 TO $4,200
GAAP Net Income $104 TO $143 $105 TO $141
GAAP EPS $0.55 TO $0.75 NO CHANGE

FY 2027 GUIDANCE:
SELECT FINANCIAL DATA
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FISCAL YEAR 2027 GUIDANCE ($ in millions, except EPS)
• We are reiterating our Net Bookings outlook range of $8 to $8.2 billion dollars, which represents
approximately 20% growth over Fiscal 2026 at the midpoint
• Reflects ongoing positive trends in our business and excitement around the November 19 th
release of Grand Theft Auto VI
• We continue to expect RCS to be flat YoY, assuming:
o NBA 2K is up high single -digits;
o The Grand Theft Auto series is up; and
o Mobile is down, due to last year’s success of Color Block Jam , and our assumption that
trends will moderate for several of Zynga’s mature mobile titles
• Our teams have carefully curated new opportunities that we believe will sustain this new level of
scale for the foreseeable future, including live -service enhancements, franchise extensions, the
launch of new IP, and international expansion, and we continue to evaluate accretive M&A
FY 2027
CURRENT GUIDANCE
($ IN MILLIONS)
FY 2027
PRIOR GUIDANCE
($ IN MILLIONS)
Net Bookings $8,000 TO $8,200 NO CHANGE
Recurrent Consumer Spending Growth
(RCS)
FLAT YOY NO CHANGE
Operating Cash Flow OVER $1 BILLION NO CHANGE

Q2 FY2027 GUIDANCE:
GAAP
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Q2 FISCAL 2027 GUIDANCE ($ in millions, except EPS)
Q2 FY27 GUIDANCE
GAAP Net Revenue $1,420 TO $1,470
Operating Expenses $1,009 TO $1,019
GAAP Net Loss $(157) TO $(140)
GAAP EPS $(0.84) TO $(0.75)

Q2 FY2027 GUIDANCE:
SELECT FINANCIAL DATA
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Q2 FISCAL 2027 GUIDANCE ($ in millions, except EPS)
• We expect to deliver Net Bookings of $1.62 billion to $1.67 billion
• Our release slate for the quarter includes NBA 2K27 , as well as new content
updates for various titles
• We project RCS to decrease by approximately 5%, which assumes:
o Growth for NBA 2K and the Grand Theft Auto series; and
o A decline for mobile
Q2 FY2027 GUIDANCE
($ IN MILLIONS)
Net Bookings $1,620 TO $1,670
Recurrent Consumer Spending Growth
(RCS)
-5% YOY

FY27 -FY29 PIPELINE DETAILS
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* FY27 -29 release estimates provided as of May 21, 2026.
** Several changes have been made from the prior count provided in May 2025: 1) New title categories are provided on Slide 27 ; 2) in the interest of precision, we are now only counting mobile games in our pipeline that have been specifically scheduled for worldwide launch within the three -year window; and 3) small platform extensions are no longer included in the coun t.
These titles are a snapshot of our current development pipeline. It is likely that some of these titles will not be develope d through completion, that launch timing may change, and that we will also be adding new titles to our slate.

PIPELINE DEFINITIONS
Any title released on a mobile platform. In the interest of precision, we are now only counting mobile games in our pipeline tha t have been
specifically scheduled for worldwide launch within the three -year window. Excludes hyper -casual games.
MOBILE
All sports titles.
SPORTS
New core IP releases.
CORE NEW IP
Sequels/prequels, complete remakes, and major platform extensions.
CORE EXISTING IP

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 vis ion for (benefit
from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles. The Company is no longer r epo rting 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 p resentation 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 und ers 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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TAKE -TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON -GAAP
MEASURE
(in millions)

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

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