Take-Two Interactive Software, Inc.

Strong start; results beat guidance - Q1 FY27 (ended Jun 30, 2026): net bookings ~$1.39B, slightly above guidance ($1.32B–$1.37B) and above a key driver expectation—better-than-expected NBA 2K and Grand Theft Auto performance. - Recurrent consumer spending: -1% YoY (better than expected decline of -3%), and still ~84% of net bookings. - GAAP net revenue: +$2% YoY to ~$1.5B. - Costs: cost of revenue +17% YoY to ~$651M, including a $43M impairment charge tied to an unannounced third-party title decision not to proceed; operating expenses flat YoY at ~$918M (management basis -1%, favorable vs forecast due to marketing timing).

Guidance / forecasts reiterated; GTA VI is the core “inflection” driver - FY27 net bookings outlook reiterated: $8.0B to $8.2B (~+20% YoY at midpoint). - Management highlights the confidence around the Nov 19, 2026 release of GTA VI as a key reason they’re holding the range. - FY27 cash flow: expecting operating cash flow > $1B and to be in a net cash position by year-end. - FY27 expectations updated on costs/capex: - Capex planned: ~$290M (up from prior forecast due to a planned real estate purchase). - GAAP net revenue: $7.9B–$8.1B; cost of revenue: $3.54B–$3.66B; total operating expenses: $4.15B–$4.17B. - Q2 FY27 guide: net bookings $1.62B–$1.67B (vs $1.96B prior-year Q2), with recurrent consumer spending ~-5% expected; GAAP net revenue $1.42B–$1.47B.

Franchise momentum: what’s going right (and why) - NBA 2K26: record year; 12M+ units sold (+9% vs NBA 2K25). During the quarter: - Engagement up meaningfully: recurrent spending +7%, avg daily active users +15%, MyCAREER DAUs +25%, avg games played/user +35%. - Live service execution remains a cornerstone; additional support across Borderlands 4, Civilization VII, WWE 2K26 also noted. - Grand Theft Auto series: GTA V >230M units; recurrent consumer spending +3%. GTA+ thriving; new tooling/content (e.g., Rockstar Mission Creator) plus strong GTA VI preorder start cited. - Mobile / Zynga: overall mobile -7% YoY in Q1, but results were described as in line and franchise performance remains healthy: - Toon Blast +8%, Words With Friends +8%, Top Eleven +15% YoY bookings growth; mobile DTC channel continues to drive margin enhancement.