Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2026

NEW YORK--( BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the second quarter of its fiscal year 2026, ended September 30, 2025. For further information, please see the second quarter fiscal 2026 results slide deck posted to the Company’s investor relations website at take2games.com/ir.

CEO Comments

Strauss Zelnick, Chairman and CEO of Take-Two Interactive, stated: “We achieved outstanding second quarter results by releasing new hit titles, driving innovation in live services, and maintaining our commitment to developing the highest quality products. With momentum across our business, particularly in mobile and NBA 2K, we are raising our Fiscal Year 2026 Net Bookings forecast for the second consecutive quarter. Rockstar Games will now release Grand Theft Auto VI on November 19, 2026, and we remain both excited and confident they will deliver an unrivalled blockbuster entertainment experience. With the most robust pipeline in our Company’s history, we expect to achieve record levels of Net Bookings in Fiscal 2027, which will establish a new baseline for our business and set us on a path of enhanced profitability.”

Second Quarter Fiscal 2026 Financial and Operational Highlights

* Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.

** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.

Second Quarter Fiscal 2026 Financial Results

The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business:

Three Months Ended September 30, 2025

Financial Data

in millions

Statement of Operations

Change in deferred net revenue and related cost of revenue

Stock-based compensation

Amortization of acquired intangibles

Business reorganization

Business acquisition

Other (a)

GAAP

Total net revenue

$1,773.8

186.7

Cost of revenue

793.3

16.2

(4.8)

(159.5)

Gross profit

980.5

170.5

4.8

159.5

Operating expenses

1,078.5

(91.1)

(15.1)

(0.1)

(3.6)

(Loss) income from operations

(98.0)

170.5

95.9

174.6

0.1

3.6

Interest and other, net

(17.5)

0.1

1.6

0.7

(Loss) income before income taxes

(115.5)

170.6

95.9

174.6

0.1

5.2

0.7

Non-GAAP

EBITDA

116.7

170.6

95.9

0.1

4.0

0.7

(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments.

Outlook for Fiscal Year 2026

Take-Two is raising its outlook for the fiscal year and providing its initial outlook for its fiscal third quarter ending December 31, 2025:

Fiscal Year Ending March 31, 2026

The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:

Fiscal Year Ended March 31, 2026

Financial Data

$ in millions except for per share amounts

Outlook (b)

Change in deferred net revenue and related cost of revenue

Stock-based compensation

Amortization of acquired intangibles

Business acquisition and other (c)

GAAP

Total net revenue

$6,380 to $6,480

$20

Cost of revenue

$2,663 to $2,685

$23

$(637)

Operating expenses

$3,984 to $4,004

$(356)

$(68)

Interest and other, net

$103

$(9)

(Loss) income before income taxes

$(370) to $(312)

$15

$333

$705

Net loss

$(414) to $(349)

Net loss per share

$(2.25) to $(1.90)

Net cash provided by operating activities

approximately $250

Capital expenditures

approximately $180

Non-GAAP

EBITDA

$579 to $637

$15

$333

Operational metric

Net Bookings

$6,400 to $6,500

(b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.

(c) Other includes adjustments for (i) business reorganization expenses, (ii) the revaluation of the Turkish Lira against the U.S. Dollar, and (iii) fair value adjustments related to certain equity investments.

Fiscal Third Quarter Ending December 31, 2025

Three Months Ending December 31, 2025

Financial Data

$ in millions except for per share amounts

Outlook (b)

Change in deferred net revenue and related cost of revenue

Stock-based compensation

Amortization of acquired intangibles

Business acquisition

GAAP

Total net revenue

$1,570 to $1,620

$(20)

Cost of revenue

$646 to $664

$(6)

$(159)

Operating expenses

$980 to $990

$(93)

$(17)

Interest and other, net

$24

$(1)

(Loss) income before income taxes

$(80) to $(58)

$(24)

$99

$176

Net (loss) income

$(90) to $(65)

Net (loss) income per share

$(0.49) to $(0.35)

Non-GAAP

EBITDA

$155 to $178

$(24)

$99

Operational metric

Net Bookings

$1,550 to $1,600

Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S, as well as engagement on Xbox One and PlayStation 4; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.

Product Releases

The following have been released since July 1, 2025:

Label

Product

Platforms

Release Date

WWE 2K25

Switch 2

July 22, 2025

Mafia: The Old Country

PS5, Xbox Series X|S, PC

August 8, 2025

NBA 2K26

PS5, PS4, Xbox Series X|S, Xbox One, PC, Switch 2, Switch

September 5, 2025

Borderlands 4

PS5, Xbox Series X|S, PC

September 12, 2025

Take-Two's future lineup announced to-date includes:

Label

Product

Platforms

Release Date

WWE 2K Mobile for Netflix

iOS, Android

Fall 2025

WWE 2K26

TBA

Q4 Fiscal 2026

Rockstar Games

Grand Theft Auto VI

PS5, Xbox Series X|S

November 19, 2026

Borderlands 4

Switch 2

TBA

Zynga

CSR 3

iOS, Android

TBA

Zynga

Top Goal

iOS, Android

TBA

Ghost Story Games

Judas

PS5, Xbox Series X|S, PC

TBA

Project ETHOS

TBA

BioShock next iteration

TBA

Conference Call

Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (800) 715-9871 or (646) 307-1963 (conference ID: 9711440). A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

Non-GAAP Financial Measure

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles.

The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition.

This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial tables to this press release.

Final Results

The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Quarterly Report on Form 10-Q for the period ended September 30, 2025.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, and Zynga. Our strategy is to create hit entertainment experiences, delivered on every platform relevant to our audience through a variety of sound business models. Our pillars - creativity, innovation, and efficiency - guide us as we strive to create the highest quality, most captivating experiences for our consumers. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com.

All trademarks and copyrights contained herein are the property of their respective holders.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software, Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns) outlook, are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties, including risks relating to the timely release and significant market acceptance of our games; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; and the ability to maintain acceptable pricing levels on our games.

Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

TAKE-TWO INTERACTIVE SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions, except per share amounts)

Three Months Ended September 30,

Six Months Ended September 30,

2025

2024

2025

2024

Net revenue:

Game

1,640.9

1,233.9

3,023.4

2,450.6

Advertising

132.9

119.2

254.2

240.7

Total net revenue

1,773.8

1,353.1

3,277.6

2,691.3

Cost of revenue:

Product costs

229.3

212.5

439.7

415.8

Game intangibles

158.8

173.4

317.3

336.9

Licenses

154.4

97.2

225.3

152.3

Software development costs and royalties

172.1

64.9

202.2

141.1

Internal royalties

78.7

77.2

167.6

146.2

Total cost of revenue

793.3

625.2

1,352.1

1,192.3

Gross profit

980.5

727.9

1,925.5

1,499.0

Selling and marketing

536.6

461.3

945.4

892.7

Research and development

268.0

246.7

529.4

466.5

General and administrative

225.0

253.0

432.0

463.5

Depreciation and amortization

48.8

47.3

99.2

92.1

Business reorganization

0.1

16.8

(4.1

)

66.3

Total operating expenses

1,078.5

1,025.1

2,001.9

1,981.1

Loss from operations

(98.0

)

(297.2

)

(76.4

)

(482.1

)

Interest and other, net

(17.5

)

(27.1

)

(52.9

)

(54.4

)

Loss before income taxes

(115.5

)

(324.3

)

(129.3

)

(536.5

)

Provision for income taxes

18.4

41.2

16.5

91.0

Net loss

(133.9

)

(365.5

)

(145.8

)

(627.5

)

Loss per share:

Basic and diluted loss per share

(0.73

)

(2.08

)

(0.80

)

(3.61

)

Weighted average shares outstanding

Basic

184.6

175.4

182.7

173.8

TAKE-TWO INTERACTIVE SOFTWARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

September 30, 2025

March 31, 2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

1,869.1

1,456.1

Short-term investments

246.4

9.4

Restricted cash and cash equivalents

14.2

14.9

Accounts receivable, net of allowances of $1.8 and $1.6 at September 30, 2025 and March 31, 2025, respectively

1,165.4

771.1

Software development costs and licenses

79.6

80.8

Contract assets

84.5

80.8

Prepaid expenses and other

355.7

402.8

Total current assets

3,814.9

2,815.9

Fixed assets, net

424.1

443.8

Right-of-use assets

334.2

326.1

Software development costs and licenses, net of current portion

2,101.8

1,892.6

Goodwill

1,064.1

1,057.3

Other intangibles, net

2,014.8

2,336.0

Long-term restricted cash and cash equivalents

77.7

88.2

Other assets

248.7

220.8

Total assets

10,080.3

9,180.7

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

213.5

194.7

Accrued expenses and other current liabilities

1,227.0

1,127.6

Deferred revenue

1,250.5

1,083.5

Lease liabilities

66.5

61.5

Short-term debt, net

549.3

1,148.5

Total current liabilities

3,306.8

3,615.8

Long-term debt, net

2,517.3

2,512.6

Non-current deferred revenue

17.6

25.4

Non-current lease liabilities

378.6

383.3

Non-current software development royalties

82.3

93.6

Deferred tax liabilities, net

222.7

259.6

Other long-term liabilities

123.1

152.7

Total liabilities

6,648.4

7,043.0

Stockholders' equity:

Preferred stock, $0.01 par value, 5.0 shares authorized; no shares issued and outstanding at September 30, 2025 and March 31, 2025

—

Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 208.4 and 200.8 shares issued and 184.7 and 177.1 outstanding at September 30, 2025 and March 31, 2025, respectively

2.1

2.0

Additional paid-in capital

11,707.0

10,312.0

Treasury stock, at cost; 23.7 and 23.7 common shares at September 30, 2025 and March 31, 2025, respectively

(1,020.6

)

(1,020.6

)

Accumulated deficit

(7,204.6

)

(7,058.8

)

Accumulated other comprehensive loss

(52.0

)

(96.9

)

Total stockholders' equity

3,431.9

2,137.7

Total liabilities and stockholders' equity

10,080.3

9,180.7

TAKE-TWO INTERACTIVE SOFTWARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in millions)

Six Months Ended September 30,

2025

2024

Operating activities:

Net loss

(145.8

)

(627.5

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Amortization and impairment of software development costs and licenses

191.7

139.6

Stock-based compensation

136.6

161.5

Noncash lease expense

26.3

31.3

Amortization and impairment of intangibles

349.5

374.1

Depreciation

82.9

74.0

Interest expense

76.3

80.4

Fair value adjustments

11.0

4.3

Other, net

10.5

5.9

Changes in assets and liabilities, net of effect from purchases of businesses:

Accounts receivable

(393.1

)

(169.6

)

Software development costs and licenses

(345.0

)

(362.8

)

Prepaid expenses and other current and other non-current assets

(13.1

)

22.1

Deferred revenue

156.2

(4.6

)

Accounts payable, accrued expenses and other liabilities

(60.3

)

(48.1

)

Net cash provided by (used in) operating activities

83.7

(319.4

)

Investing activities:

Change in bank time deposits

(237.0

)

18.5

Purchases of fixed assets

(57.0

)

(71.9

)

Purchases of long-term investments

(6.6

)

(14.7

)

Asset acquisitions

(11.4

)

(9.3

)

Business acquisitions

(2.0

)

9.4

Net cash used in investing activities

(314.0

)

(68.0

)

Financing activities:

Tax payment related to net share settlements on restricted stock awards

(1.6

)

—

Issuance of common stock

1,219.6

23.8

Payment for settlement of convertible notes

—

(8.3

)

Proceeds from issuance of debt

—

598.9

Cost of debt

—

(5.4

)

Repayment of debt

(600.0

)

—

Payment of contingent earn-out consideration

—

(12.0

)

Net cash provided by financing activities

618.0

597.0

Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents

14.1

8.0

Net change in cash, cash equivalents, and restricted cash and cash equivalents

401.8

217.6

Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1)

1,559.2

1,102.0

Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1)

1,961.0

1,319.6

(1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Condensed Consolidated Balance Sheet.

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix

(in millions)

Three Months Ended

September 30, 2025

Three Months Ended

September 30, 2024

Amount

% of total

Amount

% of total

Net revenue by geographic region

United States

1,036.1

814.5

International

737.7

538.6

Total Net revenue

1,773.8

100

1,353.1

100

Net Bookings by geographic region

United States

1,188.6

914.4

International

771.9

560.5

Total Net Bookings

1,960.5

100

1,474.9

100

Three Months Ended

September 30, 2025

Three Months Ended

September 30, 2024

Amount

% of total

Amount

% of total

Net revenue by distribution channel

Digital online

1,693.1

1,300.0

Physical retail and other

80.7

53.1

Total Net revenue

1,773.8

100

1,353.1

100

Net Bookings by distribution channel

Digital online

1,871.2

1,417.2

Physical retail and other

89.3

57.7

Total Net Bookings

1,960.5

100

1,474.9

100

Three Months Ended

September 30, 2025

Three Months Ended

September 30, 2024

Amount

% of total

Amount

% of total

Net revenue by platform

Mobile

821.6

740.2

Console

720.0

491.1

PC and other

232.2

121.8

Total Net revenue

1,773.8

100

1,353.1

100

Net Bookings by platform

Mobile

818.1

723.0

Console

907.9

622.3

PC and other

234.5

129.6

Total Net Bookings

1,960.5

100

1,474.9

100

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix

(in millions)

Six Months Ended

September 30, 2025

Six Months Ended

September 30, 2024

Amount

% of total

Amount

% of total

Net revenue by geographic region

United States

1,936.5

1,635.0

International

1,341.1

1,056.3

Total Net revenue

3,277.6

100

2,691.3

100

Net Bookings by geographic region

United States

2,025.2

1,642.9

International

1,358.4

1,050.2

Total Net Bookings

3,383.6

100

2,693.1

100

Six Months Ended

September 30, 2025

Six Months Ended

September 30, 2024

Amount

% of total

Amount

% of total

Net revenue by distribution channel

Digital online

3,169.7

2,595.5

Physical retail and other

107.9

95.8

Total Net revenue

3,277.6

100

2,691.3

100

Net Bookings by distribution channel

Digital online

3,276.3

2,604.5

Physical retail and other

107.3

88.6

Total Net Bookings

3,383.6

100

2,693.1

100

Six Months Ended

September 30, 2025

Six Months Ended

September 30, 2024

Amount

% of total

Amount

% of total

Net revenue by platform

Mobile

1,623.3

1,462.7

Console

1,270.6

1,000.0

PC and other

383.7

228.6

Total Net revenue

3,277.6

100

2,691.3

100

Net Bookings by platform

Mobile

1,610.9

1,432.4

Console

1,382.3

1,027.7

PC and other

390.4

233.0

Total Net Bookings

3,383.6

100.0

2,693.1

100

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

ADDITIONAL DATA

(in millions)

Three Months Ended September 30, 2025

Net revenue

Cost of revenue- Product costs

Cost of revenue- Game intangibles

Cost of revenue- Licenses

Cost of revenue- Software development costs and royalties

Cost of revenue- Internal royalties

As reported

1,773.8

229.3

158.8

154.4

172.1

78.7

Net effect from deferred revenue and related cost of revenue

186.7

1.5

0.4

14.3

Stock-based compensation

(4.8

)

Amortization of acquired intangibles

(0.7

)

(158.8

)

Three Months Ended September 30, 2025

Selling and marketing

Research and development

General and administrative

Depreciation and amortization

Business reorganization

Interest and other, net

As reported

536.6

268.0

225.0

48.8

0.1

(17.5

)

Net effect from deferred revenue and related cost of revenue

0.1

Stock-based compensation

(25.2

)

(25.1

)

(40.8

)

Amortization of acquired intangibles

(7.2

)

(7.9

)

Acquisition related expenses

(0.3

)

(3.3

)

1.6

Impact of business reorganization

(0.1

)

Other

0.7

Three Months Ended September 30, 2024

Net revenue

Cost of revenue - Product costs

Cost of revenue -Game intangibles

Cost of revenue- Licenses

Cost of revenue- Software development costs and royalties

Cost of revenue- Internal royalties

As reported

1,353.1

212.5

173.4

97.2

64.9

77.2

Net effect from deferred revenue and related cost of revenue

121.9

0.8

0.9

9.8

Stock-based compensation

(3.1

)

Amortization and impairment of acquired intangibles

(0.7

)

(173.4

)

Three Months Ended September 30, 2024

Selling and marketing

Research and development

General and administrative

Depreciation and amortization

Business reorganization

Interest and other, net

As reported

461.3

246.7

253.0

47.3

16.8

(27.1

)

Net effect from deferred revenue and related cost of revenue

(1.5

)

Stock-based compensation

(24.5

)

(26.2

)

(32.4

)

Amortization and impairment of acquired intangibles

(1.5

)

(7.2

)

(9.2

)

Acquisition related expenses

(0.1

)

(0.7

)

(52.9

)

2.6

Impact of business reorganization

(16.8

)

Other

6.0

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

ADDITIONAL DATA

(in millions)

Six Months Ended September 30, 2025

Net revenue

Cost of revenue - Product costs

Cost of revenue - Game intangibles

Cost of revenue- Licenses

Cost of revenue- Software development costs and royalties

Cost of revenue- Internal royalties

As reported

3,277.6

439.7

317.3

225.3

202.2

167.6

Net effect from deferred revenue and related cost of revenue

106.1

(2.0

)

0.6

6.5

Stock-based compensation

36.2

Amortization of acquired intangibles

(1.5

)

(317.3

)

Six Months Ended September 30, 2025

Selling and marketing

Research and development

General and administrative

Depreciation and amortization

Business reorganization

Interest and other, net

As reported

945.4

529.4

432.0

99.2

(4.1

)

(52.9

)

Net effect from deferred revenue and related cost of revenue

0.5

Stock-based compensation

(49.6

)

(46.2

)

(77.0

)

Amortization of acquired intangibles

(14.3

)

(16.3

)

Impact of business reorganization

4.1

Acquisition related expenses

(0.6

)

(6.9

)

2.3

Other

3.3

Six Months Ended September 30, 2024

Net revenue

Cost of revenue - Product costs

Cost of revenue - Game intangibles

Cost of revenue - Licenses

Cost of revenue- Software development costs and royalties

Cost of revenue - Internal royalties

As reported

2,691.3

415.8

336.9

152.3

141.1

146.2

Net effect from deferred revenue and related cost of revenue

1.8

(2.4

)

1.6

1.2

Stock-based compensation

(6.0

)

Amortization and impairment of acquired intangibles

(1.6

)

(336.9

)

Acquisition related expenses

Six Months Ended September 30, 2024

Selling and marketing

Research and development

General and administrative

Depreciation and amortization

Business reorganization

Interest and other, net

As reported

892.7

466.5

463.5

92.1

66.3

(54.4

)

Net effect from deferred revenue and related cost of revenue

Stock-based compensation

(45.7

)

(49.4

)

(60.4

)

Amortization and impairment of acquired intangibles

(3.1

)

(14.3

)

(18.2

)

Impact of business reorganization

(66.3

)

Acquisition related expenses

(0.1

)

(0.7

)

(69.6

)

5.2

Other

10.4

TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP MEASURE

(in millions)

Three Months Ended September 30,

Six Months Ended September 30,

2025

2024

2025

2024

Net loss

(133.9

)

(365.5

)

(145.8

)

(627.5

)

Provision for income taxes

18.4

41.2

16.5

91.0

Interest expense

16.7

18.7

39.0

37.9

Depreciation and amortization

48.8

47.3

99.2

92.1

Amortization of acquired intangibles

166.7

182.8

333.2

356.0

EBITDA

116.7

(75.5

)

342.1

(50.5

)

Outlook

Fiscal Year Ended March 31, 2026

Net loss

$(414) to $(349)

Provision for income taxes

$44 to $37

Interest expense

$75

Depreciation

$169

Amortization of acquired intangibles

$705

EBITDA

$579 to $637

Outlook

Three Months Ended December 31, 2025

Net loss

$(90) to $(65)

Provision for income taxes

$9 to $7

Interest expense

$18

Depreciation

$42

Amortization of acquired intangibles

$176

EBITDA

$155 to $178