Take-Two Interactive — Fiscal Second Quarter 2027 Earnings Summary

Financial Performance:

• Total Net Bookings decreased 18% year-over-year to $1.60 billion for the quarter ended September 30, 2026, compared to $1.96 billion in the prior year period.
• GAAP net revenue decreased to $1.50 billion from $1.77 billion in the prior year quarter.
• Recurrent consumer spending accounted for 81% of both total Net Bookings and GAAP net revenue, decreasing 9% and 5% respectively compared to the prior year.
• GAAP net loss was $54.0 million ($0.29 per share), an improvement from a net loss of $133.9 million ($0.73 per share) in the prior year quarter.
• GAAP operating loss was $117.5 million, compared to an operating loss of $98.0 million in the prior year quarter.
• Non-GAAP EBITDA for the quarter was $92.2 million.
• Net cash provided by operating activities for the six months ended September 30, 2026, was $173.5 million used (compared to $83.7 million provided in the prior year period).
• Cash and cash equivalents were $1.15 billion at September 30, 2026, down from $1.55 billion at March 31, 2026.
• Total debt (short-term and long-term) was $2.52 billion at September 30, 2026, compared to $2.52 billion at March 31, 2026.
• Deferred revenue decreased to $1.04 billion (current and non-current combined) from $1.19 billion at the start of the fiscal year.

Guidance and Future Outlook:

• The Company reiterated its full fiscal year 2027 Net Bookings outlook of $8.0 to $8.2 billion.
• Full fiscal year 2027 GAAP net revenue is projected between $7.98 billion and $8.18 billion.
• Full fiscal year 2027 GAAP net income is projected between $109 million and $142 million ($0.57 to $0.75 per share).
• Full fiscal year 2027 Non-GAAP EBITDA is projected between $1.024 billion and $1.082 billion.
• Full fiscal year 2027 net cash provided by operating activities is projected to be over $1.0 billion.
• Full fiscal year 2027 capital expenditures are projected to be approximately $290 million.
• Initial guidance for the fiscal third quarter ending December 31, 2026, includes Net Bookings of $3.35 billion to $3.50 billion.
• Fiscal third quarter 2027 GAAP net revenue is projected between $3.27 billion and $3.42 billion.
• Fiscal third quarter 2027 GAAP net income is projected between $250 million and $276 million ($1.30 to $1.44 per share).
• Fiscal third quarter 2027 Non-GAAP EBITDA is projected between $651 million and $698 million.
• Key outlook assumptions include the timely delivery of titles, continued growth in the installed base of PlayStation 5 and Xbox Series X|S, and stable foreign exchange rates.

Business Segments and Product Lines:

• The largest contributors to Net Bookings were NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, the Borderlands franchise, Words With Friends, the Red Dead Redemption series, Color Block Jam, WWE 2K, and Zynga Poker.
• The largest contributors to GAAP net revenue were NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, the Borderlands franchise, Words With Friends, Color Block Jam, WWE 2K, the Red Dead Redemption series, and Zynga Poker.
• Grand Theft Auto VI is scheduled for release on November 19, 2026, on PS5 and Xbox Series X|S.
• NBA 2K27 was released on September 4, 2026, on PS5, Xbox Series X|S, Switch 2, and PC.
• Grand Theft Auto Online Kortz Center Heist Summer Update was released on July 14, 2026.
• Upcoming titles include Top Goal and CSR 3 (Zynga), PGA TOUR 2K27, WWE 2K27, Project ETHOS, BioShock next iteration (2K), and Judas (Ghost Story Games).
• Mobile revenue accounted for 49% of net revenue and 45% of Net Bookings for the quarter.
• Console revenue accounted for 41% of net revenue and 46% of Net Bookings for the quarter.
• Digital online distribution accounted for 97% of net revenue and 98% of Net Bookings for the quarter.

Market and Competitive Landscape:

• The Company relies on key products including NBA 2K and Grand Theft Auto, with a strategy to develop other hit titles.
• The Company aims to capture market share on current generation systems (PlayStation 5 and Xbox Series X|S) while leveraging opportunities on PC, mobile, and other platforms.
• Mobile business performance is influenced by player acquisition costs.
• The Company operates globally with 59% of net revenue and 60% of Net Bookings coming from the United States for the quarter.

Risks and Challenges:

• Risks include the timely release and significant market acceptance of games.
• International business risks include unforeseen geopolitical events and volatility in foreign currency exchange rates.
• Dependence on key management and product development personnel.
• Dependence on NBA 2K and Grand Theft Auto products and the ability to develop other hit titles.
• Factors affecting mobile performance, such as player acquisition costs.
• Inflation and changes in interest rates impacting the short-term investment portfolio.
• The ability to maintain acceptable pricing levels on games.

Management Commentary and Tone:

• Strauss Zelnick, Chairman and CEO, stated the company expects to deliver an historic year with pre-orders for Grand Theft Auto VI reaching unprecedented levels.
• Management expressed confidence in building on the current year by releasing new hits, exploring emerging business opportunities, expanding geographic footprint, and pursuing accretive M&A.
• The tone indicates a focus on unlocking greater earnings power and long-term shareholder value.

Other Key Points:

• The Company will host a conference call on November 9, 2026, at 4:30 p.m. Eastern Time.
• Financial results presented are preliminary; final data will be included in the Form 10-Q for the period ended September 30, 2026.
• Management uses a tax rate of 18% for internal reporting and outlook calculations.
• Share count used for diluted net income per share calculations is expected to be 189.5 million for the full fiscal year 2027 and 192.0 million for the fiscal third quarter.
• The Company reported no business acquisitions in the six months ended September 30, 2026, compared to $2.0 million in the prior year period.
• Stock-based compensation for the quarter was $86.6 million (included in operating expenses).
• Amortization of acquired intangibles for the quarter was $141.3 million (included in cost of revenue).