TAKE TWO INTERACTIVE SOFTWARE INC SEC 10-Q Report

Take-Two Interactive Software Inc., a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe, has released its Form 10-Q report for the third quarter. The report highlights significant improvements in both financial and operational performance, driven by strong sales from key franchises and strategic operational initiatives.

Financial Highlights

Total Net Revenue: $1,503.8 million, increased by 12.4% compared to the prior year period, driven by strong performance from the NBA 2K franchise and the release of Color Block Jam.

Gross Profit: $945.0 million, representing 62.9% of total net revenue, an improvement from 57.6% in the prior year period, primarily due to lower amortization of intangible assets and the reversal of expense related to the forfeiture of awards.

Income (loss) from operations: $21.6 million, a significant improvement from a loss of $184.9 million in the prior year period, reflecting effective cost management and increased revenue.

Net Loss: $(11.9) million, a substantial reduction from a net loss of $(262.0) million in the prior year period, aided by increased revenue and improved operating efficiency.

Basic and diluted loss per share: $(0.07), compared to $(1.52) in the prior year period, reflecting the reduced net loss and improved financial performance.

Business Highlights

Revenue Segments: The company reported a significant increase in net bookings, primarily driven by the NBA 2K franchise and the release of Color Block Jam. Recurrent consumer spending, which includes virtual currency, add-on content, in-game purchases, and in-game advertising, accounted for 83.5% of net revenue, showing a strong engagement with ongoing consumer activities.

Geographical Performance: The United States remains the largest market, contributing $900.4 million to net revenue, while international markets generated $603.4 million. This indicates a balanced growth across both domestic and international markets.

Sales Units: Grand Theft Auto V has sold over 215 million units worldwide, and Red Dead Redemption 2 has surpassed 75 million units, highlighting the enduring popularity and strong sales performance of these titles.

New Product Launches: The company announced the upcoming release of Grand Theft Auto VI, scheduled for May 26, 2026. This highly anticipated title is expected to drive significant future revenue.

Future Outlook: The company plans to release several new titles in fiscal year 2026, including Mafia: The Old Country, NBA 2K26, Borderlands 4, and WWE 2K26, which are expected to enhance and diversify its game portfolio.

Operational Strategy: The company continues to focus on developing high-quality titles with long market longevity, leveraging its strong franchises like Grand Theft Auto and NBA 2K to create sequels and additional content opportunities.

Digital Distribution: Digital online channels accounted for 98.2% of total net revenue, underscoring the company's strategic focus on digital distribution and recurrent consumer spending as primary revenue drivers.

SEC Filing: TAKE TWO INTERACTIVE SOFTWARE INC [ TTWO ] - 10-Q - Aug. 07, 2025