Take-Two Interactive Software, Inc.

What they do

Take-Two develops and publishes video games for console, PC, and mobile, delivering through physical retail, digital download, online platforms, and cloud streaming. Its portfolio spans genres including action, adventure, sports, and casual games, with internally owned intellectual property and selectively licensed brands such as NBA 2K and WWE 2K. The company operates worldwide with internal studios across 14 countries and a headcount of 12,909 full-time employees as of March 31, 2026.

Revenue drivers

• Grand Theft Auto series — A key contributor to net revenue and bookings; the series is highlighted as a major revenue driver across recent quarterly results.
• NBA 2K — A major sports franchise contributing to net revenue and bookings, with recurrent consumer spending from virtual currency and add-on content.
• Zynga mobile games — Mobile titles such as Toon Blast, Match Factory!, Empires & Puzzles, Words With Friends, Zynga Poker, and Toy Blast are consistently cited as top contributors to net revenue and bookings.
• Other franchises — Includes Red Dead Redemption series, WWE 2K, Merge Dragons, and Color Block Jam, which also appear in top revenue contributor lists.

Recent performance

In the first fiscal quarter of 2027, ending June 30, 2026, Take-Two reported GAAP net revenue of $1.53 billion, up from $1.50 billion in the prior year's quarter. GAAP net loss was $34.1 million, or $0.18 per share, compared to a loss of $11.9 million in the same period last year, including a $43.4 million impairment charge for an unannounced title. Net bookings decreased 3% to $1.39 billion from $1.42 billion, and recurrent consumer spending accounted for 84% of total net bookings. For fiscal year 2026, the company reported revenue of $6.66 billion, a net loss of $298.2 million, and operating cash flow of $624.3 million.

Strategy

Take-Two's strategy is to create hit entertainment experiences across all major platforms, focusing on creativity, innovation, and efficiency. The company emphasizes internally developed intellectual property and selective licensing of renowned sports brands. It invests in player relationship tools, customer data platforms, and direct-to-consumer commerce to drive engagement and recurring spending. Leadership reiterates expectations for sustained high revenue scale and strong cash flow generation, setting a path for continued growth and shareholder returns.

Risks

• Dependence on key franchises — The company is heavily reliant on the success of Grand Theft Auto and NBA 2K, and the upcoming Grand Theft Auto VI is pivotal for future performance.
• Product release timing — Delays or disruptions in the release of new titles could harm financial results, as timing is critical in the industry.
• Competitive and technology changes — The industry is highly competitive, and the company must adapt to evolving software technologies, including the risks of incorporating artificial intelligence.
• Mobile business costs — Player acquisition costs and changing free-to-play dynamics could affect the mobile segment, which is a significant revenue contributor.

Outlook

For fiscal year 2027, management reiterates expected net bookings of $8.0 to $8.2 billion, despite a slight beat in the first quarter. The company anticipates a 'new level of scale' and expects to sustain strong cash flows. It cites excitement around the November 19, 2026 launch of Grand Theft Auto VI as a key driver.