TTWO · 10-Q · 2026Q2

TAKE TWO INTERACTIVE SOFTWARE INC

Filed 2026-08-07 · Technology · View original filing on EDGAR

Ranked Events

• Guidance / OutlookImportance 75 · Surprise 60
  Rockstar Games plans to release Grand Theft Auto VI on November 19, 2026, during fiscal year 2027, with pre-orders beginning in June 2026. Take-Two has also announced fiscal-year 2027 releases of NBA 2K27, PGA 2K27,…
• Operating Cash Flow TrendsImportance 69 · Surprise 64
  Net cash used in operating activities increased to $168.8 million for the three months ended June 30, 2026 from $44.7 million in the prior-year period. The operating cash outflow was primarily caused by investments in…
• Capital ExpendituresImportance 68 · Surprise 42
  Take-Two anticipates approximately $290.0 million of capital expenditures in fiscal year 2027. Capital expenditures were $25.0 million during the three months ended June 30, 2026. The quarter's investing cash outflow…
• Liquidity and Debt PositionImportance 66 · Surprise 40
  Cash, cash equivalents and restricted cash decreased $192.0 million to $1,446.1 million at June 30, 2026 from $1,638.1 million at March 31, 2026. The company held $461.7 million of short-term investments and $2,500.0…
• Trade Policy and TariffsImportance 58 · Surprise 42
  Take-Two is monitoring global tariff policies for their potential effects on consumer demand, inflation, product pricing, third-party hardware platforms, receivables credit quality, and foreign-currency exchange rates.…
• Gross Margin DriversImportance 57 · Surprise 64
  Gross profit decreased $62.5 million, or 6.6%, to $882.5 million despite the $30.1 million increase in revenue. Gross margin declined to 57.5% from 62.9%, a 5.4-percentage-point decrease. Cost of revenue increased…
• Customer DynamicsImportance 54 · Surprise 14
  Major retailers, digital storefronts, platform partners, and distributors account for most trade receivables and sales. The five largest customers represented 82.3% of net revenue in the three months ended June 30,…
• Revenue Concentration RiskImportance 54 · Surprise 14
  The five largest customers generated 82.3% of net revenue in the three months ended June 30, 2026, down from 83.5% in the prior-year period. Four customers individually represented 27.6%, 21.1%, 15.0%, and 12.4% of…
• Income Tax Rate ChangesImportance 51 · Surprise 64
  The income-tax benefit increased to $15.2 million for the three months ended June 30, 2026 from $1.9 million in the prior-year period. The effective tax rate rose to 30.8% from 13.8%, compared with the 21% statutory…
• Net Income and ProfitabilityImportance 51 · Surprise 64
  Take-Two reported a net loss of $34.1 million for the three months ended June 30, 2026, compared with a $11.9 million loss in the prior-year period. The operating result shifted to a $35.5 million loss from $21.6…
• Market Demand TrendsImportance 49 · Surprise 32
  Net Bookings decreased 2.6% year over year to $1,385.9 million, primarily because of lower bookings from the Grand Theft Auto series and Color Block Jam, partly offset by higher NBA 2K bookings. Net revenue increased…
• Interest Rate EnvironmentImportance 46 · Surprise 56
  Management expects changes in Federal Reserve and other central-bank interest rates to affect the company, including its short-term investment portfolio. Interest income increased to $22.8 million from $16.5 million…
• Tax Law ChangesImportance 44 · Surprise 60
  The One Big Beautiful Bill Act, signed into law on July 4, 2025, changes U.S. international tax provisions, research-expense deductions, bonus depreciation, and tax credits. Take-Two incorporated estimated OBBB effects…
• Product Launch and TransitionImportance 44 · Surprise 60
  Rockstar Games will release Grand Theft Auto VI on November 19, 2026, with pre-orders beginning in June 2026. During the remainder of fiscal 2027, 2K plans to release NBA 2K27, PGA 2K27, and WWE 2K27. Grand Theft Auto…
• Digital Channel and Delivery GrowthImportance 42 · Surprise 14
  Digital online channels generated $1,507.3 million, or 98.3% of net revenue, compared with 98.2% in the prior-year period. The company delivers games through direct digital downloads, virtual currency, add-on content,…
• OECD Global Minimum TaxImportance 37 · Surprise 42
  Take-Two is evaluating the OECD Pillar Two global minimum tax framework, which generally imposes a 15% minimum tax on reported profits in relevant jurisdictions. The company states that Pillar Two was not material to…
• Geographic Market CommentaryImportance 37 · Surprise 6
  Operations serve consumers globally through development studios and publishing activities spanning Europe, Asia, Australia, Canada, and Latin America. Revenue earned outside the United States represented 40.0% of net…
• Revenue Performance and MixImportance 31 · Surprise 32
  Net revenue increased $30.1 million, or 2.0%, to $1,533.9 million for the three months ended June 30, 2026. NBA 2K revenue increased $89.0 million, while Color Block Jam and Grand Theft Auto revenue declined $32.8…
• Competition and Pricing PressureImportance 22 · Surprise 6
  Take-Two characterizes interactive entertainment as extremely competitive and notes increased industry consolidation. Larger, better-capitalized competitors may be better able to withstand prolonged economic downturns…
• Operating Expense TrendsImportance 18 · Surprise 14
  Total operating expenses decreased $5.4 million, or 0.6%, to $918.0 million, but increased to 59.8% of revenue from 61.5%? Actually decreased as percentage from 61.5% to 59.8%. Selling and marketing expense declined…

Revenue by Product (in millions)

Revenue by Geography (in millions)