Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

TTWO · Q4 2025 Earnings

Take-Two Interactive

Reported May 15, 2025

30-second summary

Net bookings of $1.58B grew 17% YoY, driven by a 110% surge in PC and double-digit recurrent consumer spending. Management's initial FY2026 net bookings guide of $5.9–6.0B (≈5% growth) frames the year as a stepping stone, with the press release explicitly stating that GTA VI in Fiscal 2027 will drive "record levels of Net Bookings that will establish a new baseline for our business." The GAAP loss of $21.08/share reflects a $3.55B goodwill impairment — a non-cash mark that rebases the carrying value tied to the Zynga acquisition.

Headline numbers

EPS

Q4 FY2025

$-21.08

Revenue

Q4 FY2025

$1.58B

+13.1% YoY

Gross margin

Q4 FY2025

50.7%

Operating margin

Q4 FY2025

-238.6%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY
Revenue	$1.58B	+13.1%
EPS	$-21.08	—
Gross margin	50.7%	—
Operating margin	-238.6%	—

Guidance

Prior quarter data unavailable — comparison not possible.

Segment performance

Q4 FY2025

Segment	Q4 FY2025	YoY
Mobile	$0.748B	+4.6%
Console	$0.591B	+4.0%
PC and other	$0.244B	+110.6%
Digital online	$1.526B	+14.3%
Game revenue	$1.474B	+16.9%
Advertising revenue	$0.109B	-21.6%

Platform metrics

Q4 FY2025

Segment	Q4 FY2025
Net Bookings	$1.58 billion
Net Bookings YoY Growth	17%
Recurrent Consumer Spending % of Net Bookings	77%
Recurrent Consumer Spending Growth	14%
FY2025 Net Bookings	$5.65 billion
FY2025 Recurrent Consumer Spending % of Net Bookings	80%
FY2026 Net Bookings Guidance	$5.9–6.0 billion

Profitability

Q4 FY2025

Segment	Q4 FY2025
EBITDA	$161 million

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
United States	$0.946B	+9.8%
International	$0.636B	+18.2%

Management tone

GTA VI moved from open-ended to a specific release date. The press release dates GTA VI for May 26, 2026 (Fiscal 2027) and Zelnick committed in writing to "record levels of Net Bookings that will establish a new baseline for our business" in FY2027. Anchoring the stock to a specific calendar date raises the cost of any future slippage.

The Zynga impairment closes one chapter and reframes the thesis. The $3.55B goodwill impairment in the quarter, combined with $176.3M of acquired intangible impairment, rebases the carrying value of the Zynga acquisition. With Match Factory and Toon Blast now established as scaled contributors and the hyper-casual portfolio in managed decline, the forward Zynga story is monetization breadth (RCS, advertising, DTC) rather than the original audience-scale thesis.

Recurring themes management leaned on this quarter:

GTA 6 pipeline as primary growth catalyst for FY26-27Mobile diversification driving recurrent spending growth (Match Factory, Toon Blast offsetting hyper-casual declines)Multi-lever monetization expansion (ads + DTC + in-app purchases) in mobileCost discipline and efficiency enabling margin expansion once pipeline shipsGen 9 console adoption supporting core franchise performance despite hardware cycle slowdownOwned IP strategy as competitive moat and margin advantage

Risks management surfaced:

Potential SAG-AFTRA labor strike impact on development timelines (mitigated by common ground on 24/25 proposals)GTA Online and NBA 2K RCS declines for full year despite Q1 outperformanceHyper-casual mobile portfolio decline offsetting growth from Match Factory and Toon BlastHardware cycle maturity and sticky prior-gen install base limiting Gen 9 software uptake near-termMacroeconomic downturn risk (though management dismissed as low probability)

What to watch into next quarter

GTA VI release window confirmation. Management has now dated GTA VI to May 26, 2026 in the press release. Watch for any commentary on production milestones or marketing cadence at the next call — slippage from the dated window would materially change the FY2026-to-FY2027 step-up math.

Mobile growth acceleration. Q4 mobile net revenue grew only 4.6% YoY. Watch whether Match Factory and Toon Blast can push segment growth above high-single-digits in Q1 FY2026, or whether hyper-casual decay is structurally capping the segment.

Advertising revenue inflection. Down 22% YoY in Q4 against a narrative that positions ads as a forward monetization lever. Watch whether this returns to growth in Q1 FY2026 — if not, the multi-lever monetization story loses credibility.

RCS mix shift. RCS was 77% of Q4 net bookings (FY2025: 80%). Watch the quarterly trajectory, because a declining RCS share signals weaker engagement on legacy live-services franchises (GTA Online, NBA 2K) ahead of the GTA VI launch.

Console attach rates into the GTA VI window. Q4 console net revenue grew only 4.0%. Watch console segment growth in Q1 FY2026 — Q4's print is barely above flat and will need to inflect ahead of the May 2026 GTA VI release.

Sources

Take-Two Interactive Q4 FY2025 earnings press release, SEC filing dated 2025-05-15: https://www.sec.gov/Archives/edgar/data/946581/000162828025025900/ttwo4q25earningsrelease.htm

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