TTWO Q1 2026 Earnings

Call Details

• Call Title: Take-Two Interactive Q1 2026 Earnings Call
• Date: August 7, 2025 at 8:30 PM UTC
• Management Team:
  • Strauss Zelnick (Chairman and Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)
  • Nicole Shevins (Senior Vice President of Investor Relations and Corporate Communications)

Call Summary

Financial Performance

• Net bookings for the first quarter were $1.42 billion, which exceeded the company's guidance range of $1.25 to $1.3 billion.
• GAAP net revenue increased 12% year-over-year to $1.5 billion for the quarter.
• Cost of revenue declined 1% year-over-year to $559 million for the quarter.
• GAAP operating expenses decreased 3% year-over-year to $923 million for the quarter.
• On a management basis, operating expenses rose 3% year-over-year for the quarter, above the company's forecasted 2% growth.
• Recurrent consumer spending (RCS) grew 17% year-over-year for the quarter and accounted for 83% of net bookings.
• NBA 2K recurring consumer spending grew 48% year-over-year and NBA 2K units sold exceeded 11.5 million to date.
• Grand Theft Auto V lifetime sales exceeded 215 million units to date and GTA Online new player accounts grew over 50% year-over-year.

Guidance

• Fiscal 2026 net bookings outlook was raised to a range of $6.05 to $6.15 billion, which the company stated represents approximately 8% growth over fiscal 2025 at the midpoint.
• The company now expects recurrent consumer spending to grow approximately 4% for fiscal 2026, revised up from a prior forecast of flat.
• The company expects GAAP net revenue for fiscal 2026 to range from $6.1 to $6.2 billion.
• The company expects cost of revenue for fiscal 2026 to range from $2.55 to $2.57 billion.
• Total operating expenses for fiscal 2026 are expected to range from $3.84 to $3.86 billion.
• The company projects operating cash flow of approximately $130 million and capital expenditures of approximately $140 million for fiscal 2026.
• Second quarter guidance projects net bookings of $1.7 to $1.75 billion versus $1.47 billion in the year-ago quarter and recurring consumer spending to increase by approximately 1%.