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Take-Two Interactive Software TTWO posted a second-quarter fiscal 2026 GAAP net loss of 73 cents per share, narrower than a loss of $2.08 reported in the year-ago quarter. The Zacks Consensus Estimate for earnings was pegged at 91 cents per share.
GAAP net revenues increased 31.1% year over year to $1.77 billion. The Zacks Consensus Estimate for revenues was pegged at $1.77 billion.
Revenues from the United States increased 27.2% year over year to $1.04 billion and accounted for 58% of GAAP net revenues. The rest came from international revenues, which increased 37.0% year over year to $737.7 million.
Game revenues (92.5% of total revenues) rose 33.0% year over year to $1.64 billion. Advertising revenues (7.5% of total revenues) increased 11.5% year over year to $132.9 million.
Net Bookings improved 32.9% year over year to $1.96 billion. Bookings from the United States increased 30.0% year over year to $1.19 billion and accounted for 60.6% of Net Bookings. The rest came from international bookings, which rose 37.8% year over year to $771.9 million.
Take-Two Interactive Software, Inc. price-consensus-eps-surprise-chart | Take-Two Interactive Software, Inc. Quote
Recurrent consumer spending rose 20% for the period and accounted for 73% of Net Bookings.
In terms of distribution channels, Digital online revenues grew 30.2% year over year to $1.69 billion and accounted for 95.4% of GAAP net revenues. Physical retail and other revenues increased 52.0% year over year to $80.7 million and accounted for 4.6% of GAAP net revenues. Digital online bookings improved 32.0% year over year to $1.87 billion and accounted for 95.4% of bookings. Physical retail and other bookings increased 54.7% from the year-ago quarter to $89.3 million and contributed 4.6% of bookings.
In terms of platform, revenues from mobile, console, and PC and other accounted for 46.3%, 40.6% and 13.1% of GAAP net revenues, respectively. Mobile revenues increased 11.0% year over year to $821.6 million. Console revenues jumped 46.6% year over year to $720.0 million. PC and other revenues increased 90.6% year over year to $232.2 million.
Bookings from mobile, console and PC and other accounted for 41.7%, 46.3% and 12% of bookings, respectively. Mobile bookings increased 13.2% year over year to $818.1 million. Console bookings grew 45.9% year over year to $907.9 million. PC and other bookings increased 81.0% year over year to $234.5 million.
The largest contributors to Net Bookings were NBA 2K26 and NBA 2K25, Borderlands 4, Toon Blast, Grand Theft Auto Online and Grand Theft Auto V, Match Factory!, Color Block Jam, Mafia: The Old Country, Empires & Puzzles, Words With Friends, Red Dead Redemption 2 and Red Dead Online, and Toy Blast.
NBA 2K26, released on Sept. 5, 2025, has performed strongly in the quarter. Borderlands 4, launched on Sept. 12, 2025, contributed significantly to the quarter's performance. A Switch 2 version is planned for a future release. Mafia: The Old Country, released on Aug. 8, 2025, added to the quarter's strong game releases.
Grand Theft Auto V has now sold more than 215 million units worldwide to date. Grand Theft Auto Online continues to show strong engagement and is driving recurrent consumer spending.
Zynga's mobile portfolio continued to deliver strong results. Toon Blast, Match Factory!, Color Block Jam, Empires & Puzzles and Words With Friends, all contributed meaningfully to Net Bookings.
Take-Two's GAAP gross profit rose 34.7% year over year to $980.5 million. Gross margin expanded to 55.3% on a year-over-year basis from 53.8% in the year-ago quarter.
Operating expenses rose 5.2% year over year to $1.08 billion.
Selling expenses increased 16.3% year over year to $536.6 million. General and administrative expenses declined 11.1% year over year to $225 million. Research & development expenses rose 8.6% year over year to $268 million. Business reorganization expenses decreased significantly to $0.1 million from $16.8 million in the year-ago quarter.
Operating loss was $98 million compared with the year-ago quarter's operating loss of $297.2 million, representing a significant improvement.
As of Sept. 30, 2025, Take-Two had $1.87 billion in cash and cash equivalents compared with $2.03 billion as of June 30, 2025. The company also had short-term investments of $246.4 million. The company had total debt of $3.07 billion as of Sept. 30, 2025 (consisting of $549.3 million in short-term debt and $2.52 billion in long-term debt).
For the six months ended Sept. 30, 2025, net cash provided by operating activities was $83.7 million compared to net cash used in operating activities of $319.4 million in the prior-year period. Capital expenditures were $57.0 million for the six-month period.
For the third quarter of fiscal 2026, Take-Two expects GAAP net revenues between $1.57 billion and $1.62 billion. Operating expenses are expected to be between $980 million and $990 million. It expects a loss per share between 49 cents and 35 cents.
Net Bookings are expected to be in the range of $1.55-$1.6 billion.
For fiscal 2026, Take-Two has raised its expectations and now expects GAAP net revenues between $6.38 billion and $6.48 billion, up from $6.1-$6.2 billion previously expected. The company expects net bookings in the range of $6.4-$6.5 billion, up from the prior range of $6.05-$6.15 billion.
Total operating expenses are expected in the range of $3.98-$4 billion. It expects a loss per share between $2.25 and $1.9.
For fiscal 2026, net cash provided by operating activities is expected to be approximately $250 million. Capital expenditures are expected to be approximately $180 million.
Rockstar Games announced that Grand Theft Auto VI will now launch on Nov. 19, 2026 (previously announced for May 2026). The company expects to achieve record levels of net bookings in fiscal 2027. The company's upcoming release slate includes WWE 2K Mobile for Netflix (Fall 2025), WWE 2K26 (Q4 Fiscal 2026), Grand Theft Auto VI (Nov. 19, 2026), Borderlands 4 for Switch 2, CSR 3, Top Goal and Judas from Ghost Story Games, among others.
Currently, TTWO carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks that investors can consider in the broader Zacks Consumer Discretionary sector are Amer Sports AS, GDEV Inc. GDEV and PLBY Group PLBY.
Amer Sports currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Amer Sports is set to report third-quarter 2025 results on Nov. 18.
GDEV Inc. currently sports a Zacks Rank #1. GDEV Inc. is expected to report third-quarter 2025 results on Nov. 13.
PLBY Group carries a Zacks Rank #2. PLBY Group is set to report its third-quarter 2025 results on Nov. 12.
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This article originally published on Zacks Investment Research (zacks.com).
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