TTWO earnings analysis
What we found in TTWO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Take-Two's first-quarter net revenue rose 2.0% year over year to $1,533.9 million, led by NBA 2K-driven console growth, but net bookings fell 2.6% to $1,385.9 million. Gross margin contracted to 57.5% from 62.9%, operating margin turned negative at 2.3%, and diluted loss per share was $0.18 versus a $0.07 loss a year earlier. Cash generation weakened materially, with operating cash outflow of $168.8 million, although the November 19, 2026 GTA VI launch and $1,446.1 million of cash and restricted cash provide meaningful support.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew 2.0% year over year
- Net revenue increased 2.0% year over year to $1,533.9 million from $1,503.8 million. Console revenue rose $89.9 million, primarily from NBA 2K and Borderlands 4.
- Console and recurring spending expanded
- Console revenue increased to $640.5 million, or 41.8% of total revenue, from $550.6 million and 36.6% a year earlier. Recurrent consumer spending also rose $33.7 million to $1,289.8 million.
- Marketing costs declined 9.7%
- Selling and marketing expense declined $39.5 million, or 9.7%, to $369.7 million, primarily reflecting lower marketing spending for Color Block Jam, Match Factory!, Civilization and Borderlands.
- Lower interest burden
- Interest and other expense improved to $13.8 million from $35.4 million year over year, driven by lower interest expense after debt repayments and higher interest income. Senior Notes outstanding totaled $2,500.0 million at June 30, 2026.
- GTA VI launch remains key catalyst
- Management expects Grand Theft Auto VI to launch on November 19, 2026; pre-orders commenced in June 2026. GTA products generated 12.8% of net revenue in the quarter, providing a significant upcoming release catalyst.
- Liquidity remains substantial
- Liquidity included $1,446.1 million of cash, cash equivalents and restricted cash, $461.7 million of short-term investments, and approximately $997.5 million of unused credit capacity at June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Margin compression and operating loss
- Gross margin fell to 57.5% from 62.9% year over year, while operating margin declined to negative 2.3% from positive 1.4%. The company attributed the gross-margin comparison primarily to an expense reversal related to forfeited awards in the prior-year period.
- Bookings and mobile weakness
- Net bookings declined $37.2 million, or 2.6%, to $1,385.9 million, primarily due to lower bookings from Grand Theft Auto and Color Block Jam. Mobile revenue also declined $39.4 million to $762.3 million.
- Cash burn ahead of major launch
- Operating cash flow was negative $168.8 million versus negative $44.7 million in the prior-year quarter, primarily due to investments in software development and licenses. Capital expenditures were $25.0 million in the quarter, and fiscal 2027 capex is expected to be approximately $290.0 million.
- High customer concentration
- Customer concentration remains material: the five largest customers represented 82.3% of quarterly net revenue, while five customers represented 69.5% of gross accounts receivable at June 30, 2026.
- Debt and near-term maturity
- The company had $2,500.0 million of Senior Notes and $29.4 million of convertible notes outstanding at June 30, 2026. The convertible notes mature on December 15, 2026 unless earlier converted, redeemed or repurchased.
- No formal risk-factor changes
- The filing states there were no material changes to the risk factors in the March 31, 2026 Form 10-K. However, management identifies dependence on major titles and notes GTA products represented 12.8% of quarterly net revenue.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.18
- Gross margin
- 57.5%
- Operating margin
- -2.3%
- Segment
- Mobile: $762.3 million, down $39.4 million year over year; 49.7% of revenue versus 53.3%.
- Segment
- Console: $640.5 million, up $89.9 million year over year; 41.8% of revenue versus 36.6%.
- Segment
- PC and other: $131.1 million, down $20.4 million year over year; 8.5% of revenue versus 10.1%.
- Segment
- Recurrent consumer spending: $1,289.8 million, up $33.7 million year over year; 84.1% of revenue versus 83.5%.
What they said about what is next.
No explicit numeric revenue or EPS guidance was provided in the 10-Q. Management anticipates fiscal 2027 capital expenditures of approximately $290.0 million and states that Grand Theft Auto VI will be released on November 19, 2026.
The filing reads worse than the one before it.
What came before.
- 10-K · May 21, 2026
- Take-Two Interactive reported Q4 fiscal 2026 results with net revenue of $1.68 billion, surpassing estimates of $1.55 billion, while delivering an EPS of $0.80 compared to projections of -$0.37, indicating strong…
- 10-K · May 20, 2025
- Take-Two emphasizes a player-first strategy built on owned IP, live services, and cross-platform exposure through Rockstar, 2K, and Zynga. The filing highlights large, longstanding franchises (GTA series: >445M sold-in…
- 10-Q · February 7, 2025
- Take-Two reported relatively flat quarterly revenue of $1,359.8M (vs $1,366.3M a year ago) with a meaningful gross margin improvement to 55.9% (gross profit $759.9M vs $678.1M). However, net loss widened to $(125.2)M…
- 10-Q · August 9, 2024
- Take-Two reported quarterly revenue of $1,338.2 million, up $53.5 million (+4.2%) versus the prior-year quarter, with gross profit rising to $771.1 million and gross margin expanding to 57.6%. However, net loss widened…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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