TTWO Q3 2025 Earnings

Call Details

• Call Title: Take-Two Interactive Q3 2025 Earnings Call
• Date: February 6, 2025 at 9:30 PM UTC
• Management Team:
  • Nicole Shevins (Senior Vice President of Investor Relations and Corporate Communications)
  • Strauss Zelnick (Chairman and Chief Executive Officer)
  • Karl Slatoff (President)
  • Lainie Goldstein (Chief Financial Officer)

Call Summary

Financial Performance

• Net bookings for Q3 were $1.37B, which were within the company's guidance range of $1.35B to $1.4B.
• GAAP net revenue for the quarter was $1.36B and was flat year over year versus prior period.
• Recurrent consumer spending rose 9% year over year and accounted for 79% of net bookings in the quarter.
• Cost of revenue declined 13% to $600M, with management attributing the prior year decline to an impairment of acquired intangibles.
• Operating expenses increased 10% to $892M on a GAAP basis and increased 8% on a management basis.
• On a label basis for fiscal year guidance, net bookings are projected to be roughly 49% Zynga, 34% 2K, and 17% Rockstar Games.
• Non-GAAP-adjusted unrestricted operating cash flow is expected to be an outflow of $150M for the fiscal year, unchanged from prior guidance.

Guidance

• The company reiterated fiscal 2025 net bookings guidance of $5.55B to $5.65B, representing 5% growth over fiscal 2024.
• Recurrent consumer spending forecast was raised to 5% growth for fiscal 2025 and is expected to represent 78% of net bookings for the year.
• Mobile net bookings for the fiscal year are now expected to grow low single digits, down from previous low double-digit expectations.
• Grand Theft Auto Online is still expected to decline for the fiscal year.
• GAAP net revenue is expected to range from $5.57B to $5.67B for fiscal 2025.
• Cost of revenue is now expected to range from $2.41B to $2.44B for fiscal 2025.
• Total operating expenses are expected to range from $3.77B to $3.79B for fiscal 2025, and on a management basis operating expense growth is expected to be approximately 10% year over year.
• Fiscal Q4 net bookings are guided to $1.48B to $1.58B versus $1.35B in the prior-year quarter.