Take-Two Interactive Software, Inc. Reports Results for Fiscal Second Quarter 2027
NEW YORK--( BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the second quarter of its fiscal year 2027, ended September 30, 2026. For further information, please see the second quarter fiscal 2027 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: “The launch of Grand Theft Auto VI is ten days away and, with pre-orders continuing to reach unprecedented levels, we expect to deliver an historic year for our company. We are reiterating our outlook for Fiscal 2027 Net Bookings of $8 to $8.2 billion, and are confident in our ability to build on this incredible year as we release new hits, explore emerging business opportunities, expand our geographic footprint, and pursue accretive M&A – all of which will set us on a path to unlock greater earnings power and long-term shareholder value.”
Second Quarter Fiscal 2027 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 2027 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, 2026
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
acquisition
Other (a)
GAAP
Total net revenue
$
1,497.0
104.3
Cost of revenue
636.6
3.3
(3.4)
(141.3)
Gross profit
860.4
101.0
3.4
141.3
Operating expenses
977.9
(86.6)
(11.7)
(3.1)
(Loss) income from operations
(117.5
)
101.0
90.0
153.0
3.1
Interest and other, net
5.6
0.9
0.6
(9.4)
(Loss) income before income taxes
(111.9
)
101.9
90.0
153.0
3.7
(9.4)
Non-GAAP
EBITDA
92.2
101.9
90.0
2.4
(9.4)
(a) Other includes adjustments for (i) fair value adjustments related to certain equity investments and (ii) the revaluation of the Turkish Lira against the U.S. Dollar.
Outlook for Fiscal Year 2027
Take-Two is updating its outlook for the fiscal year and providing its initial outlook for its fiscal third quarter ending December 31, 2026:
Fiscal Year Ending March 31, 2027
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 Ending March 31, 2027
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
Other
GAAP
Total net revenue
$7,980 to $8,180
$20
Cost of revenue
$3,679 to $3,800
$(27)
$(113)
$(572)
Operating expenses
$4,078 to $4,098
$(349)
$(51)
$(3)
Interest and other, net
$29
Income before income taxes
$194 to $253
$47
$462
$623
$3
Net income
$109 to $142
Diluted net income per share
$0.57 to $0.75
Net cash provided by operating activities
over $1,000
Capital expenditures
approximately $290
Non-GAAP
EBITDA
$1,024 to $1,082
$47
$462
$3
Operational metric
Net Bookings
$8,000 to $8,200
(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.
Fiscal Third Quarter Ending December 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:
Three Months Ending December 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
Other
GAAP
Total net revenue
$3,270 to $3,420
$80
Cost of revenue
$1,649 to $1,732
$(13)
$(96)
$(141)
Operating expenses
$1,162 to $1,182
$(100)
$(12)
Interest and other, net
$13
$(1)
Income before income taxes
$446 to $493
$93
$196
$153
$1
Net income
$250 to $276
Diluted net income per share
$1.30 to $1.44
Non-GAAP
EBITDA
$651 to $698
$93
$196
Operational metric
Net Bookings
$3,350 to $3,500
(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.
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; 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, 2026:
Label
Product
Platforms
Release Date
Rockstar Games
Grand Theft Auto Online Kortz Center Heist Summer Update
PS4, PS5, Xbox One, Xbox Series X|S, PC
July 14, 2026
2K
NBA 2K27
PS5, Xbox Series X|S, Switch 2, PC
September 4, 2026
Take-Two's future lineup announced to-date includes:
Label
Product
Platforms
Release Date
Rockstar Games
Grand Theft Auto VI
PS5, Xbox Series X|S
November 19, 2026
Zynga
Top Goal
iOS, Android
TBA
Zynga
CSR 3
iOS, Android
TBA
2K
PGA TOUR 2K27
TBA
TBA
2K
WWE 2K27
TBA
TBA
2K
Project ETHOS
TBA
TBA
2K
BioShock next iteration
TBA
TBA
Ghost Story Games
Judas
PS5, Xbox Series X|S, PC
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 (833) 461-5787 (Meeting ID: 112-490-011). 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, 2026.
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,
2026
2025
2026
2025
Net revenue:
Game
$
1,376.0
$
1,640.9
$
2,798.8
$
3,023.4
Advertising
121.0
132.9
232.1
254.2
Total net revenue
1,497.0
1,773.8
3,030.9
3,277.6
Cost of revenue:
Product costs
184.0
229.3
371.8
439.7
Game intangibles
140.8
158.8
295.1
317.3
Software development costs and royalties
107.9
172.1
243.0
202.2
Licenses
131.9
154.4
231.4
225.3
Internal royalties
72.0
78.7
146.7
167.6
Total cost of revenue
636.6
793.3
1,288.0
1,352.1
Gross profit
860.4
980.5
1,742.9
1,925.5
Selling and marketing
444.9
536.7
814.6
945.9
Research and development
254.4
268.0
528.2
524.4
General and administrative
230.5
225.0
456.8
432.4
Depreciation and amortization
48.1
48.8
96.3
99.2
Total operating expenses
977.9
1,078.5
1,895.9
2,001.9
Loss from operations
(117.5
)
(98.0
)
(153.0
)
(76.4
)
Interest and other, net:
Interest income
19.3
20.7
42.1
37.2
Interest expense
(30.2
)
(37.4
)
(60.6
)
(76.3
)
Other income/(expense), net
16.5
(0.8
)
10.3
(13.8
)
Interest and other, net
5.6
(17.5
)
(8.2
)
(52.9
)
Loss before income taxes
(111.9
)
(115.5
)
(161.2
)
(129.3
)
(Benefit from) provision for income taxes
(57.9
)
18.4
(73.1
)
16.5
Net loss
$
(54.0
)
$
(133.9
)
$
(88.1
)
$
(145.8
)
Loss per share:
Basic and diluted loss per share
$
(0.29
)
$
(0.73
)
$
(0.47
)
$
(0.80
)
Weighted average shares outstanding
Basic
187.1
184.6
186.7
182.7
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
September 30, 2026
March 31, 2026
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
1,149.4
$
1,545.5
Short-term investments
524.2
443.8
Restricted cash and cash equivalents
15.0
13.2
Accounts receivable, net of allowances of $0.7 and $0.9 at September 30, 2026 and March 31, 2026, respectively
780.8
737.0
Software development costs and licenses
82.4
68.8
Inventory
34.1
7.3
Contract assets
—
89.7
Prepaid expenses and other
650.3
294.2
Total current assets
3,236.2
3,199.5
Fixed assets, net
526.2
445.4
Right-of-use assets
293.6
334.6
Software development costs and licenses, net of current portion
2,494.9
2,277.5
Goodwill
1,060.2
1,061.9
Other intangibles, net
1,344.3
1,653.2
Long-term restricted cash and cash equivalents
68.0
79.4
Other assets
347.3
331.7
Total assets
$
9,370.7
$
9,383.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
207.7
$
211.0
Accrued expenses and other current liabilities
1,053.1
1,117.8
Deferred revenue
1,017.1
1,159.9
Lease liabilities
66.9
70.1
Short-term debt, net
629.2
30.0
Total current liabilities
2,974.0
2,588.8
Long-term debt, net
1,890.6
2,488.0
Non-current deferred revenue
25.0
29.7
Non-current lease liabilities
324.7
370.2
Non-current software development royalties
72.1
84.5
Deferred tax liabilities, net
233.0
182.3
Other long-term liabilities
177.7
128.8
Total liabilities
$
5,697.1
$
5,872.3
Stockholders' equity:
Preferred stock, $0.01 par value, 5.0 shares authorized: no shares issued and outstanding at September 30, 2026 and March 31, 2026
—
—
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 210.9 and 209.1 shares issued and 187.2 and 185.4 outstanding at September 30, 2026 and March 31, 2026, respectively
2.1
2.1
Additional paid-in capital
12,214.8
11,953.7
Treasury stock, at cost; 23.7 and 23.7 common shares at September 30, 2026 and March 31, 2026, respectively
(1,020.6
)
(1,020.6
)
Accumulated deficit
(7,445.1
)
(7,357.0
)
Accumulated other comprehensive loss
(77.6
)
(67.3
)
Total stockholders' equity
$
3,673.6
$
3,510.9
Total liabilities and stockholders' equity
$
9,370.7
$
9,383.2
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Six Months Ended September 30,
2026
2025
Operating activities:
Net loss
$
(88.1
)
$
(145.8
)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Amortization and impairment of software development costs and licenses
190.8
191.7
Stock-based compensation
176.0
136.6
Noncash lease expense
28.4
26.3
Amortization and impairment of intangibles
321.3
349.5
Depreciation
80.5
82.9
Interest expense
60.6
76.3
Other, net
(8.7
)
21.5
Changes in assets and liabilities:
Accounts receivable
(44.0
)
(393.1
)
Software development costs and licenses
(372.4
)
(345.0
)
Inventory
(26.7
)
(7.4
)
Prepaid expenses, other current and other non-current assets
(205.8
)
(5.7
)
Deferred revenue
(147.3
)
156.2
Accounts payable, accrued expenses and other liabilities
(138.1
)
(60.3
)
Net cash (used in) provided by operating activities
(173.5
)
83.7
Investing activities:
Change in bank-time deposits
(80.4
)
(237.0
)
Purchases of fixed assets
(163.3
)
(57.0
)
Purchases of long-term investments
(8.0
)
(6.6
)
Business acquisitions
—
(2.0
)
Asset acquisitions
(19.4
)
(11.4
)
Proceeds from sale of marketable securities
11.2
—
Net cash used in investing activities
(259.9
)
(314.0
)
Financing activities:
Tax payment related to net share settlements on restricted stock awards
(1.9
)
(1.6
)
Issuance of common stock
32.3
1,219.6
Repayment of debt
—
(600.0
)
Net cash provided by financing activities
30.4
618.0
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents
(2.7
)
14.1
Net change in cash, cash equivalents, and restricted cash and cash equivalents
(405.7
)
401.8
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1)
1,638.1
1,559.2
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1)
$
1,232.4
$
1,961.0
(1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flows 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 Content, Platform Mix, Distribution Channel, and Geographic Region
(in millions)
Three Months Ended
September 30, 2026
Three Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by content
Recurrent consumer spending
$
1,210.2
81
%
$
1,275.9
72
%
Full game and other
286.8
19
%
497.9
28
%
Total Net revenue
$
1,497.0
100
%
$
1,773.8
100
%
Net Bookings by content
Recurrent consumer spending
$
1,302.1
81
%
$
1,428.3
73
%
Full game and other
299.2
19
%
532.2
27
%
Total Net Bookings
$
1,601.3
100
%
$
1,960.5
100
%
Three Months Ended
September 30, 2026
Three Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
731.1
49
%
$
821.6
46
%
Console
615.4
41
%
720.0
41
%
PC and other
150.5
10
%
232.2
13
%
Total Net revenue
$
1,497.0
100
%
$
1,773.8
100
%
Net Bookings by platform
Mobile
$
707.6
45
%
$
818.1
42
%
Console
742.6
46
%
907.9
46
%
PC and other
151.1
9
%
234.5
12
%
Total Net Bookings
$
1,601.3
100
%
$
1,960.5
100
%
Three Months Ended
September 30, 2026
Three Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by distribution channel
Digital online
$
1,458.8
97
%
$
1,693.1
95
%
Physical retail and other
38.2
3
%
80.7
5
%
Total Net revenue
$
1,497.0
100
%
$
1,773.8
100
%
Net Bookings by distribution channel
Digital online
$
1,562.9
98
%
$
1,871.2
95
%
Physical retail and other
38.4
2
%
89.3
5
%
Total Net Bookings
$
1,601.3
100
%
$
1,960.5
100
%
Three Months Ended
September 30, 2026
Three Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by geographic region
United States
$
888.9
59
%
$
1,036.1
58
%
International
608.1
41
%
737.7
42
%
Total Net revenue
$
1,497.0
100
%
$
1,773.8
100
%
Net Bookings by geographic region
United States
$
968.2
60
%
$
1,188.6
61
%
International
633.1
40
%
771.9
39
%
Total Net Bookings
$
1,601.3
100
%
$
1,960.5
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue and Net Bookings by Content, Platform Mix, Distribution Channel, and Geographic Region
(in millions)
Six Months Ended
September 30, 2026
Six Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by content
Recurrent consumer spending
$
2,500.0
82
%
$
2,532.0
77
%
Full game and other
530.9
18
%
745.6
23
%
Total Net revenue
$
3,030.9
100
%
$
3,277.6
100
%
Net Bookings by content
Recurrent consumer spending
$
2,471.5
83
%
$
2,611.8
77
%
Full game and other
515.7
17
%
771.8
23
%
Total Net Bookings
$
2,987.2
100
%
$
3,383.6
100
%
Six Months Ended
September 30, 2026
Six Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
1,493.4
50
%
$
1,623.3
50
%
Console
1,255.9
41
%
1,270.6
38
%
PC and other
281.6
9
%
383.7
12
%
Total Net revenue
$
3,030.9
100
%
$
3,277.6
100
%
Net Bookings by platform
Mobile
$
1,447.1
49
%
$
1,610.9
47
%
Console
1,267.8
42
%
1,382.3
41
%
PC and other
272.3
9
%
390.4
12
%
Total Net Bookings
$
2,987.2
100
%
$
3,383.6
100
%
Six Months Ended
September 30, 2026
Six Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by distribution channel
Digital online
$
2,966.1
98
%
$
3,169.7
97
%
Physical retail and other
64.8
2
%
107.9
3
%
Total Net revenue
$
3,030.9
100
%
$
3,277.6
100
%
Net Bookings by distribution channel
Digital online
$
2,931.5
98
%
$
3,276.3
97
%
Physical retail and other
55.7
2
%
107.3
3
%
Total Net Bookings
$
2,987.2
100
%
$
3,383.6
100
%
Six Months Ended
September 30, 2026
Six Months Ended
September 30, 2025
Amount
% of total
Amount
% of total
Net revenue by geographic region
United States
$
1,808.9
60
%
$
1,936.5
59
%
International
1,222.0
40
%
1,341.1
41
%
Total Net revenue
$
3,030.9
100
%
$
3,277.6
100
%
Net Bookings by geographic region
United States
$
1,773.6
59
%
$
2,025.2
60
%
International
1,213.6
41
%
1,358.4
40
%
Total Net Bookings
$
2,987.2
100
%
$
3,383.6
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Three Months Ended September 30, 2026
Net revenue
Cost of revenue-
Product costs
Cost of revenue-
Game
intangibles
Cost of revenue-
Software development
costs and royalties
Cost of revenue-
Licenses
Cost of revenue-
Internal
royalties
As reported
$
1,497.0
$
184.0
$
140.8
$
107.9
$
131.9
$
72.0
Net effect from deferred revenue and related cost of revenue
104.3
(0.2
)
2.8
0.7
Stock-based compensation
(3.4
)
Amortization of acquired intangibles
(0.5
)
(140.8
)
Three Months Ended September 30, 2026
Selling and
marketing
Research and
development
General and
administrative
Depreciation and
amortization
Interest and
other, net
As reported
$
444.9
$
254.4
$
230.5
$
48.1
$
5.6
Net effect from deferred revenue and related cost of revenue
0.9
Stock-based compensation
(23.1
)
(22.5
)
(41.0
)
Amortization of acquired intangibles
(3.8
)
(7.9
)
Acquisition related expenses
(0.5
)
(2.6
)
0.6
Other
(9.4
)
Three Months Ended September 30, 2025
Net revenue
Cost of revenue -
Product costs
Cost of revenue -
Game
intangibles
Cost of revenue-
Software development
costs and royalties
Cost of revenue-
Licenses
Cost of revenue-
Internal royalties
As reported
$
1,773.8
$
229.3
$
158.8
$
172.1
$
154.4
$
78.7
Net effect from deferred revenue and related cost of revenue
186.7
1.5
14.3
0.4
Stock-based compensation
(4.8
)
Amortization and impairment 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
Interest and
other, net
As reported
$
536.7
$
268.0
$
225.0
$
48.8
$
(17.5
)
Net effect from deferred revenue and related cost of revenue
0.1
Stock-based compensation
(25.2
)
(25.1
)
(40.8
)
Amortization and impairment 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
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Six Months Ended September 30, 2026
Net revenue
Cost of revenue -
Product costs
Cost of revenue -
Game intangibles
Cost of revenue-
Software development
costs and royalties
Cost of revenue-
Licenses
Cost of revenue-
Internal
royalties
As reported
$
3,030.9
$
371.8
$
295.1
$
243.0
$
231.4
$
146.7
Net effect from deferred revenue and related cost of revenue
(43.7
)
(3.1
)
(9.4
)
0.1
Stock-based compensation
(6.5
)
Amortization of acquired intangibles
(1.1
)
(295.1
)
Six Months Ended September 30, 2026
Selling and
marketing
Research and
development
General and
administrative
Depreciation and
amortization
Interest and
other, net
As reported
$
814.6
$
528.2
$
456.8
$
96.3
$
(8.2
)
Net effect from deferred revenue and related cost of revenue
1.3
Stock-based compensation
(46.9
)
(41.9
)
(80.7
)
Amortization of acquired intangibles
(9.4
)
(15.8
)
Acquisition related expenses
(1.0
)
(4.5
)
2.8
Other
(6.3
)
Six Months Ended September 30, 2025
Net revenue
Cost of revenue -
Product costs
Cost of revenue -
Game intangibles
Cost of revenue-
Software development
costs and royalties
Cost of revenue -
Licenses
Cost of revenue -
Internal
royalties
As reported
$
3,277.6
$
439.7
$
317.3
$
202.2
$
225.3
$
167.6
Net effect from deferred revenue and related cost of revenue
106.1
(2.0
)
6.5
0.6
Stock-based compensation
36.2
Amortization and impairment 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
Interest and
other, net
As reported
$
945.9
$
524.4
$
432.4
$
99.2
$
(52.9
)
Net effect from deferred revenue and related cost of revenue
0.5
Stock-based compensation
(49.6
)
(46.2
)
(77.0
)
Amortization and impairment of acquired intangibles
(14.3
)
(16.3
)
Acquisition related expenses
(0.6
)
(6.9
)
2.3
Impact of business reorganization
(0.5
)
5.0
(0.4
)
Other
3.3
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,
2026
2025
2026
2025
Net loss
$
(54.0
)
$
(133.9
)
$
(88.1
)
$
(145.8
)
(Benefit from) provision for income taxes
(57.9
)
18.4
(73.1
)
16.5
Interest income
(19.3
)
(20.7
)
(42.1
)
(37.2
)
Interest expense
30.2
37.4
60.6
76.3
Depreciation and amortization
48.1
48.8
96.3
99.2
Amortization of acquired intangibles
145.1
166.7
305.6
333.2
EBITDA
$
92.2
$
116.7
$
259.2
$
342.2
Outlook
Fiscal Year Ending March 31, 2027
Net income
$109 to $142
Provision for income taxes
$86 to $111
Interest expense, net
$41
Depreciation
$165
Amortization of acquired intangibles
$623
EBITDA
$1,024 to $1,082
Outlook
Three Months Ending December 31, 2026
Net income
$250 to $276
Provision for income taxes
$196 to $217
Interest expense, net
$11
Depreciation
$42
Amortization of acquired intangibles
$152
EBITDA
$651 to $698