Take-Two Interactive Software FY2026 Q1 Earnings Release

TAKE -TWO INTERACTIVE
SOFTWARE, INC.
(NASDAQ: TTWO)
FIRST 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 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 FY2026 RESULTS SUMMARY:
GAAP
FINANCIAL SUMMARY ($ in millions, except EPS)
Q 1
ACTUAL GUID ANCE
GAAP Net Revenue $ 1 , 5 0 4 $ 1 , 3 5 0 T O $ 1 , 4 0 0
Operating Expenses $923 $ 9 0 8 T O $ 9 1 8
GAAP Net Loss $(12) $(139) TO $(115)
GAAP EPS $ ( 0 . 0 7 ) $ ( 0 . 7 8 ) T O $ ( 0 . 6 5 )
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Q1 FY2026 RESULTS SUMMARY:
SELECT MANAGEMENT AND OPERATING RESULTS
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• Our Q1 Net Bookings were significantly above our guidance range
o We delivered better -than -expected performance from several
mobile titles, including Toon Blast, Match Factory, NBA All -Star
and Color Block Jam , as well as NBA 2K and the Grand Theft Auto
series
o During the quarter, we released Civilization VII for Meta Quest VR
and Nintendo Switch 2
• RCS rose 17% for the period, which was significantly above our guidance:
o NBA 2K grew 48%;
o Mobile increased low -teens; and
o GTA Online grew low single -digits
o These businesses all exceeded our expectations
• While total marketing expenses were within our forecast range for the
quarter, Zynga made incremental user acquisition investments to support
its robust performance, which was offset by 2K shifting some marketing
out of Q1 into later this fiscal year
SELECT FINANCIAL DATA ($ in millions)
Q1
ACTUAL GUID ANCE
Net Bookings $1,423 $1,250 TO $1,300
Recurrent Consumer Spending Growth
(RCS)
+17% +7% 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
$191 76% of
Total $1,218
$1,423
$1,187 $1,405
Q1 FY25 Q1 FY26 Recurrent Consumer Spending Physical & Other Digital
83% of
Total
83% of
Total $18
$31
GAAP Net Revenue
Net Bookings (Operational Metric)
$ in Millions $405
$684
$400
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$1,338
$1,504
$1,295 $1,477
Q1 FY25 Q1 FY26 Recurrent Consumer Spending Physical & Other Digital
82% of
Total
84% of
Total $43
$27
$ 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
$6,100 – $6,200
$6,050 – $6,150

CASH FLOW
-$16
-$45
$130 $142
$169
$140
FY24 FY25 FY26E
Net Cash From Operating Activities Capital Expenditures
Net Cash From Operating Activities
$ in Millions
6
-$191
-$45
$35 $25
3 Months FY25 3 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 $6,100 TO $6,200 PRIOR: $5,950 TO $6,050
Operating Expenses $3,840 TO $3,860 PRIOR: $3,780 TO $3,800
GAAP Net Loss $(442) TO $(377) PRIOR: $(499) TO $(439)
GAAP EPS $(2.40) TO $(2.05) PRIOR: $(2.79) TO $(2.45)

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 $6.05 to $6.15 billion, which represents 8%
growth at the midpoint
• The increase predominately reflects our strong first quarter performance, and to a lesser
degree, updates to our forecast, including FX
• We now expect RCS to grow 4%, revised upward from our prior expectation of flat, assuming:
o NBA 2K growth of mid -teens;
o Mobile growth of low single -digits; and
o A decline for Grand Theft Auto Online
• We have great confidence in our long -term pipeline and expect to achieve record levels of Net
Bookings in Fiscal 2027 that we believe will establish a higher baseline for our business, and set us
on a path of enhanced profitability
FY 2026
CURRENT GUIDANCE
($ IN MILLIONS)
FY 2026
PRIOR GUIDANCE
($ IN MILLIONS)
Net Bookings $6,050 TO $6,150 PRIOR: $5,900 -$6,000
Recurrent Consumer Spending Growth
(RCS)
+4% YOY PRIOR: FLAT
Operating Cash Flow APPROXIMATELY $130 NO CHANGE

Q2 FY2026 GUIDANCE:
GAAP
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Q2 FISCAL 2026 GUIDANCE ($ in millions, except EPS)
Q2 FY26 GUIDANCE
GAAP Net Revenue $1,650 TO $1,700
Operating Expenses $1,020 TO $1,030
GAAP Net Loss $(136) TO $(110)
GAAP EPS $(0.75) TO $(0.60)

Q2 FY2026 GUIDANCE:
SELECT FINANCIAL DATA
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Q2 FISCAL 2026 GUIDANCE ($ in millions, except EPS)
• We expect to deliver Net Bookings of $1.7 billion to $1.75 billion
• Our release slate for the quarter is very strong and includes Mafia: The Old
Country, NBA 2K26, and Borderlands 4
• We project RCS to increase by approximately 1%, which assumes:
o Low single -digit growth for NBA 2K;
o Slight growth for Mobile; and
o A decline for Grand Theft Auto Online
Q2 FY2026 GUIDANCE
($ IN MILLIONS)
Net Bookings $1,700 TO $1,750
Recurrent Consumer Spending Growth
(RCS)
+1% YOY

FY26 -FY28 PIPELINE DETAILS
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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 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
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TAKE -TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON -GAAP
MEASURE
(in millions)

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