Take-Two Interactive Software FY2025 Earnings Release

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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.