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…
Earnings analysis · 10-Q
TTWO earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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%,…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.18
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.