TTWO · Q1 2026 Earnings

Bullish

Take-Two Interactive

Reported August 7, 2025

30-second summary

Take-Two delivered Q1 net bookings of $1.42B. Note a guidance discrepancy: the prior-quarter press release projected Q1 net bookings of $1.42–1.47B, while CFO Lainey Goldstein on this call cited "significantly above our guidance range of $1.25 to $1.3 billion." Against the prior PR figure, $1.42B is at the low end / in-line; against the figure cited verbally on the call, it is a sizable beat. The press release headline frames the result as "above Company's guidance range." Take-Two raised FY2026 net bookings to $6.05–6.15B — 8% growth over FY2025 at midpoint, per the CFO. NBA 2K recurrent spending grew 48% YoY, mobile grew low-teens (well ahead of the FY low-single-digit implied trajectory), and PC net revenue jumped 41.7%. The raise is anchored in two operating realities the company can defend: improved NBA 2K telemetry-driven monetization and mature mobile titles holding up better than modeled.

Headline numbers

EPS

Q1 FY2026

$-0.07

Revenue

Q1 FY2026

$1.50B

+12.4% YoY

Gross margin

Q1 FY2026

62.8%

Free cash flow

Q1 FY2026

$-0.07B

Operating margin

Q1 FY2026

1.4%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$1.50B	+12.4%	$1.58B	-5.0%
EPS	$-0.07	—	$-21.08	+99.7%
Gross margin	62.8%	—	50.7%	+1210bps
Operating margin	1.4%	—	-238.6%	+24000bps
Free cash flow	$-0.07B	—	—	—

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2026	$1.29 to $1.34 billion	$1.5038 billion	+$0.16 to $0.21 billion above guide	Beat
Net Bookings	Q1 FY2026	$1.42 to $1.47 billion	$1.4231 billion	+$0.0031 billion above guide	Beat
Non-GAAP EBITDA	Q1 FY2026	—	$225.5 million	—	Met
EPS (GAAP)	Q1 FY2026	—	-$0.07	better than expected loss level	Beat

New guidance

Metric	Period	Guide	YoY
Non-GAAP EBITDA	FY2026	$554 to $613 million	—
EPS (GAAP)	FY2026	-$2.40 to -$2.05	—
Revenue	Q2 FY2026	$1.65 to $1.70 billion	—
Net Bookings	Q2 FY2026	$1.70 to $1.75 billion	—
Non-GAAP EBITDA	Q2 FY2026	$117 to $140 million	—
EPS (GAAP)	Q2 FY2026	-$0.75 to -$0.60	—
Net cash provided by operating activities	FY2026	—	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2026	$5.57 to $5.67 billion	$6.10 to $6.20 billion	+$0.43 to $0.53 billion (raise of 8%)	Raised
Net Bookings	FY2026	$5.55 to $5.65 billion	$6.05 to $6.15 billion	+$0.50 to $0.60 billion (raise of 9%)	Raised

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Mobile	$0.802B	+10.9%
Console	$0.551B	+8.2%
PC and other	$0.152B	+41.7%
Digital online	$1.477B	+13.9%

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Net Bookings	$1,423.1M
Recurrent Consumer Spending %	83% of Net Bookings
Digital Online Mix	98% of net revenue
Mobile Platform Mix	53% of net revenue
Console Platform Mix	37% of net revenue
Net Bookings YoY Growth	17%

Profitability

Q1 FY2026

Segment	Q1 FY2026
Non-GAAP EBITDA	$225.5M
Non-GAAP EBITDA Margin	15.0%

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
United States	$0.9B	+9.7%
International	$0.603B	+16.5%

Management tone

Q3 FY2025 (audience scale thesis) → Q4 FY2025 (GTA VI dated, FY2026 framed as stepping stone) → Q1 FY2026 (stepping stone stepped on harder than guided).

The GTA VI release date held firm in the press release, and the FY2026 raise communicates that the bridge year is now expected to land at 8% YoY growth at midpoint. The qualitative language — "we have exceptional confidence in our multi-year outlook" and "the most ambitious pipeline in our company's history" — is calibrated, not euphoric: management raised the floor without claiming the GTA VI inflection curve has changed.

In Q&A, the mobile guidance disconnect is the most revealing exchange. Q1 mobile grew low-teens; FY guide implies low-single-digit growth. Carl's framing — moderation expected in mature titles "despite not declining yet" and historical hyper/hybrid casual life-cycle curves — preserves upside-surprise optionality without locking in any specific trajectory. Management is choosing to under-promise on the segment that just outperformed.

On macro, Strauss laid out an explicit forecast (1–2% GDP, 3% consumer spending, unemployment to 4.5%, 50bps of cuts) and argued the company's quality-over-volume positioning insulates it from selective-consumer dynamics. This is materially more specific than the boilerplate macro deflections common across the sector.

Q&A highlights

Eric Handler · MKM Partners

Asked about NBA 2K's exceptional 48% RCS growth year-over-year and whether specific modes or features were driving the acceleration

Carl explained that growth was driven by both primary RCS-generating modes (My Career and My Team) rather than any single feature. Management credited improved in-game telemetry reading, better understanding of consumer spending preferences, and strong overall title execution. Emphasized significant engagement growth across the board and remaining upside potential.

11.5 million units sold YTD for NBA 2K 2548% RCS growth in Q1DAU and My Career DAU each up 30%Improvement driven by data analytics and development execution, not single feature

Chris Shull · UBS Financial

Asked why mobile guidance implies deceleration from Q1's strong low-teens growth and what drivers support that forecast assumption

Management acknowledged Q1 mobile momentum was strong but guided for low single-digit growth for full year due to: (1) moderation expected in mature titles that have achieved outstanding multi-year results despite not declining yet, (2) life cycle assumptions for hyper and hybrid casual titles based on historical curves. Acknowledged upside surprise potential if momentum continues.

Q1 mobile grew low teensFY guidance implies low single-digit growthManagement expects moderation in mature titles like Toonblast and Match FactoryForecasting based on historical hyper/hybrid casual life cycles

Mike Higge · Benchmark Company

Asked about macro concerns given weak July jobs report and whether economic slowdown could impact gaming business, given its mixed historical defensiveness

Strauss provided detailed macro outlook: expecting 1-2% GDP growth, 3% consumer spending growth, unemployment rising to 4.5%, 50bps rate cuts year-end. Characterized outlook as soft landing. Noted that consumers won't cut entertainment spending but will become more selective, favoring quality. Emphasized company's 18-year strategy focused on quality over volume positioning them well for selective consumer environment.

Expected GDP growth: 1-2% in near term, positive growth ongoingExpected consumer spending growth: 3%Unemployment forecast: rising to 4.5%50 basis points of rate cuts expected by year-end

Andrew Morrock · Raymond James

Asked about $70 pricing decision for Borderlands 4 and broader thoughts on industry's pricing power, given some peers moved to $80

Strauss explained philosophy: consumer perception = (value delivered) vs (price paid), goal is to vastly exceed expectations. Noted variable pricing is industry norm with frontline releases at premium then discounting over time. Stated rubric is delivering more value than charged for, not following competitor pricing.

Borderlands 4 priced at $70Philosophy: value delivered must exceed price chargedVariable pricing standard in industryPricing optimization occurs over time through discounting

Answers to last quarter's watch list

GTA VI release window confirmation. The May 26, 2026 date was not walked back in the press release; the FY2026 raise implicitly endorses it (any slippage would create FY2027 guide risk).

Continue monitoring

Mobile growth acceleration. Mobile net revenue grew +10.9% YoY in Q1, with Toon Blast +22% and Match Factory +33%. Management still guides FY mobile to low-single-digits, which the UBS exchange flagged as conservative.

Resolved positively

Advertising revenue inflection. Advertising net revenue was $121.3M in Q1 FY26 vs $121.5M in Q1 FY25 — essentially flat YoY and up sequentially. Carl attributed the stabilization to the shift from hypercasual to hybrid casual, with expectations to grow from here. Status: Resolved (stabilized, not yet inflecting).

RCS mix shift. RCS accounted for 83% of Q1 net bookings, with NBA 2K RCS +48% YoY as the standout driver.

Resolved positively

Console attach rates into the GTA VI window. Console net revenue grew +8.2% YoY. Trajectory moving in the right direction ahead of May 2026.

Resolved positively

What to watch into next quarter

Q2 FY2026 net bookings vs. the $1.70–1.75B guide. Q2 includes NBA 2K 26, Mafia: The Old Country, and Borderlands 4 launches; a print at or above the high end would set up a second FY raise heading into the GTA VI window.

Mobile growth in Q2 vs the FY low-single-digit implied trajectory. Management explicitly framed the FY mobile guide as conservative. A second consecutive double-digit mobile quarter would force a guide refresh and shift the FY composition.

RCS share of bookings. Q1 came in at 83% of net bookings. Whether NBA 2K's monetization lift sustains, or pulls forward into a tougher Q2 compare, is the test.

Any GTA VI marketing or production cadence disclosure. Eight months from the dated May 26, 2026 release, the absence of marketing milestones at Q2 would be notable; their presence would tighten conviction in the FY2027 baseline reset.

Advertising revenue trajectory. Q1 stabilized at $121.3M (flat YoY); whether the hybrid-casual pivot Carl described actually produces growth in Q2 is the next test.

Sources

Take-Two Interactive Q1 FY2026 earnings press release, SEC filing dated 2025-08-07: https://www.sec.gov/Archives/edgar/data/946581/000162828025038919/ttwo1q26earningsrelease.htm
Take-Two Interactive Q1 FY2026 earnings conference call transcript, 2025-08-07 (prepared remarks and Q&A): https://ir.take2games.com

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