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TakeTwo's Q4 Loss Widens Year Over Year, Revenues Increase
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TakeTwo Interactive Software (TTWO - Free Report) incurred fourth-quarter fiscal 2025 GAAP net loss of $21.08 per share, wider than a loss of $17.02 reported in the year-ago quarter.
The Zacks Consensus Estimate for earnings was pegged at $1.08 per share.
GAAP net revenues increased 13.1% year over year to $1.58 billion. The Zacks Consensus Estimate for revenues was pegged at $1.55 billion.
Revenues from the United States increased 9.8% year over year to $946.1 million and accounted for 59.8% of GAAP net revenues. The rest came from international, revenues of which increased 18.3% year over year to $636.4 million.
Game revenues (93.1% of total revenues) rose 16.9% year over year to $1.47 billion. Advertising revenues (6.9% of total revenues) plunged 21.7% year over year to $108.7 million.
Bookings improved 17.3% year over year to $1.58 billion. Bookings from the United States increased 17.4% year over year to $961.1 million and accounted for 60.8% of GAAP bookings. The rest came from international, bookings from which increased 17.1% year over year to $620.4 million.
Take-Two Interactive Software, Inc. Price, Consensus and EPS Surprise
Recurrent consumer spending rose 14% for the period and accounted for 77% of Net Bookings.
In terms of distribution channels, Digital online revenues grew 14.3% year over year to $1.53 billion and accounted for 96.4% of GAAP net revenues. Physical retail and other revenues slumped 11.4% year over year to $56.9 million and accounted for 3.6% of GAAP net revenues.
Digital online bookings improved 18.4% year over year to $1.53 billion and accounted for 96.7% of bookings. Physical retail and other bookings declined 7.7% from the year-ago quarter to $52.8 million and contributed 3.3% of bookings.
In terms of platform, revenues from mobile, console, and PC and other accounted for 47.2%, 37.4% and 15.4% of GAAP net revenues, respectively. Mobile revenues increased 4.6% year over year to $747.4 million. Console revenues inched up 4% year over year to $591.2 million. PC and other revenues increased 110.7% year over year to $243.6 million.
Bookings from mobile, console, and PC and other accounted for 46.2%, 38% and 15.8% of bookings, respectively. Mobile bookings increased 3.1% year over year to $730.1 million. PC and other bookings increased 120.8% year over year to $249.7 million. Console revenues increased 14.1% year over year to $601.7 million.
Gaming Metric Details
During the quarter, NBA 2K25 posted near-record performance and exceeded the company’s forecast. To date, the title has sold nearly 10 million units, a 7% increase compared to NBA 2K24 during the same timeframe.
2K and HB Studios successfully launched PGA TOUR 2K25 and are generating significant recurrent consumer spending growth compared to the prior iteration. 2K’s release of WWE 2K25 was also successful. Consumer appetite for the franchise grew, with recurrent consumer spending up 20% during the quarter. During the period, 2K also released Sid Meier's Civilization VII.
The Grand Theft Auto series exceeded the company’s expectations, and to date, GTA V has sold in more than 215 million units. Red Dead Redemption 2 also outperformed, with Net Bookings growing 23% year over year.
Zynga delivered another quarter of solid results. Net Bookings of Match Factory grew meaningfully over the last quarter and the title is generating profits. Net Bookings for Toon Blast grew 7% over last year, primarily due to the introduction of the Cannon Fest event. The title achieved its largest quarter of Net Bookings since Zynga acquired Peak in 2020.
Rollic’s newest hit, Color Block Jam, is scaling rapidly and is currently a top-10 downloaded game and among the top-grossing titles in the U.S. Apple App Store. There was stabilization seen in Empires & Puzzles.
Operating Details of TTWO
TakeTwo’s GAAP gross profit surged 71.2% year over year to $803.3 million. Gross margin expanded to 50.8% on a year-over-year basis from 33.5% in the year-ago quarter.
Operating expenses rose 43.9% year over year to $4.58 billion.
Selling expenses decreased 10.4% year over year to $402.1 million. General and administrative expenses rose 31.5% year over year to $230.2 million. Research & development expenses rose 21.3% year over year to $297.8 million.
Operating loss was $3.78 billion compared with the year-ago quarter’s operating loss of $2.71 billion.
Balance Sheet
As of March 31, 2025, TakeTwo had $1.47 billion in cash, cash equivalents and short-term investments compared with $1.21 billion as of Dec. 31, 2024.
The company had a debt of $2.51 billion as of March 31, 2025.
Guidance
For the first quarter of fiscal 2026, TakeTwo expects GAAP net revenues between $1.35 billion and $1.40 billion.
Operating expenses are expected to be between $908 million and $918 million.
It expects a loss per share between 78 cents and 65 cents. Per management, the reporting tax rate is anticipated to be 18%.
Net Bookings are expected to be in the range of $1.25-$1.30 billion. The company’s release slate for the guided quarter includes Civilization VII.
The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, Color Block Jam, Match Factory, Empires & Puzzles, Words With Friends, the Red Dead Redemption series, and Zynga Poker.
The company projects recurrent consumer spending to increase approximately 7%, which assumes strong double-digit growth for NBA 2K, flat results for mobile, and a modest decline for Grand Theft Auto Online.
For fiscal 2026, the company expects GAAP net revenues between $5.95 billion and $6.05 billion. The company expects net bookings in the range of $5.9-$6 billion.
Total operating expenses are expected in the range of $3.78-$3.80 billion. It expects a loss per share between $2.79 and $2.45.
For fiscal 2026, net cash provided by operating activities is expected to be roughly $130 million. Capital expenditures are expected to be approximately $140 million.
LRN shares have gained 47.7% in year to date. The Zacks Consensus Estimate for LRN’s full-year fiscal 2025 earnings is pegged at $7.09 per share, which has remained unchaged over the past seven days, suggesting growth of 51.17% from the year-ago quarter’s reported figure.
NPSNY shares have gained 33.4% in year to date. The Zacks Consensus Estimate for NPSNY’s full-year fiscal 2026 earnings has remained changed at $4.88 over the past 30 days, suggesting year-over-year growth of 123.85%.
GME shares have lost 9.1% in year to date. The Zacks Consensus Estimate for GME’s full-year fiscal 2026 earnings is pegged at 47 cents per share, implying a rise of 42.42% from the year-ago quarter’s levels.
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TakeTwo's Q4 Loss Widens Year Over Year, Revenues Increase
TakeTwo Interactive Software (TTWO - Free Report) incurred fourth-quarter fiscal 2025 GAAP net loss of $21.08 per share, wider than a loss of $17.02 reported in the year-ago quarter.
The Zacks Consensus Estimate for earnings was pegged at $1.08 per share.
GAAP net revenues increased 13.1% year over year to $1.58 billion. The Zacks Consensus Estimate for revenues was pegged at $1.55 billion.
Revenues from the United States increased 9.8% year over year to $946.1 million and accounted for 59.8% of GAAP net revenues. The rest came from international, revenues of which increased 18.3% year over year to $636.4 million.
Game revenues (93.1% of total revenues) rose 16.9% year over year to $1.47 billion. Advertising revenues (6.9% of total revenues) plunged 21.7% year over year to $108.7 million.
Bookings improved 17.3% year over year to $1.58 billion. Bookings from the United States increased 17.4% year over year to $961.1 million and accounted for 60.8% of GAAP bookings. The rest came from international, bookings from which increased 17.1% year over year to $620.4 million.
Take-Two Interactive Software, Inc. Price, Consensus and EPS Surprise
Take-Two Interactive Software, Inc. price-consensus-eps-surprise-chart | Take-Two Interactive Software, Inc. Quote
Quarter Details
Recurrent consumer spending rose 14% for the period and accounted for 77% of Net Bookings.
In terms of distribution channels, Digital online revenues grew 14.3% year over year to $1.53 billion and accounted for 96.4% of GAAP net revenues. Physical retail and other revenues slumped 11.4% year over year to $56.9 million and accounted for 3.6% of GAAP net revenues.
Digital online bookings improved 18.4% year over year to $1.53 billion and accounted for 96.7% of bookings. Physical retail and other bookings declined 7.7% from the year-ago quarter to $52.8 million and contributed 3.3% of bookings.
In terms of platform, revenues from mobile, console, and PC and other accounted for 47.2%, 37.4% and 15.4% of GAAP net revenues, respectively. Mobile revenues increased 4.6% year over year to $747.4 million. Console revenues inched up 4% year over year to $591.2 million. PC and other revenues increased 110.7% year over year to $243.6 million.
Bookings from mobile, console, and PC and other accounted for 46.2%, 38% and 15.8% of bookings, respectively. Mobile bookings increased 3.1% year over year to $730.1 million. PC and other bookings increased 120.8% year over year to $249.7 million. Console revenues increased 14.1% year over year to $601.7 million.
Gaming Metric Details
During the quarter, NBA 2K25 posted near-record performance and exceeded the company’s forecast. To date, the title has sold nearly 10 million units, a 7% increase compared to NBA 2K24 during the same timeframe.
2K and HB Studios successfully launched PGA TOUR 2K25 and are generating significant recurrent consumer spending growth compared to the prior iteration. 2K’s release of WWE 2K25 was also successful. Consumer appetite for the franchise grew, with recurrent consumer spending up 20% during the quarter. During the period, 2K also released Sid Meier's Civilization VII.
The Grand Theft Auto series exceeded the company’s expectations, and to date, GTA V has sold in more than 215 million units. Red Dead Redemption 2 also outperformed, with Net Bookings growing 23% year over year.
Zynga delivered another quarter of solid results. Net Bookings of Match Factory grew meaningfully over the last quarter and the title is generating profits. Net Bookings for Toon Blast grew 7% over last year, primarily due to the introduction of the Cannon Fest event. The title achieved its largest quarter of Net Bookings since Zynga acquired Peak in 2020.
Rollic’s newest hit, Color Block Jam, is scaling rapidly and is currently a top-10 downloaded game and among the top-grossing titles in the U.S. Apple App Store. There was stabilization seen in Empires & Puzzles.
Operating Details of TTWO
TakeTwo’s GAAP gross profit surged 71.2% year over year to $803.3 million. Gross margin expanded to 50.8% on a year-over-year basis from 33.5% in the year-ago quarter.
Operating expenses rose 43.9% year over year to $4.58 billion.
Selling expenses decreased 10.4% year over year to $402.1 million. General and administrative expenses rose 31.5% year over year to $230.2 million. Research & development expenses rose 21.3% year over year to $297.8 million.
Operating loss was $3.78 billion compared with the year-ago quarter’s operating loss of $2.71 billion.
Balance Sheet
As of March 31, 2025, TakeTwo had $1.47 billion in cash, cash equivalents and short-term investments compared with $1.21 billion as of Dec. 31, 2024.
The company had a debt of $2.51 billion as of March 31, 2025.
Guidance
For the first quarter of fiscal 2026, TakeTwo expects GAAP net revenues between $1.35 billion and $1.40 billion.
Operating expenses are expected to be between $908 million and $918 million.
It expects a loss per share between 78 cents and 65 cents. Per management, the reporting tax rate is anticipated to be 18%.
Net Bookings are expected to be in the range of $1.25-$1.30 billion. The company’s release slate for the guided quarter includes Civilization VII.
The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, Color Block Jam, Match Factory, Empires & Puzzles, Words With Friends, the Red Dead Redemption series, and Zynga Poker.
The company projects recurrent consumer spending to increase approximately 7%, which assumes strong double-digit growth for NBA 2K, flat results for mobile, and a modest decline for Grand Theft Auto Online.
For fiscal 2026, the company expects GAAP net revenues between $5.95 billion and $6.05 billion. The company expects net bookings in the range of $5.9-$6 billion.
Total operating expenses are expected in the range of $3.78-$3.80 billion. It expects a loss per share between $2.79 and $2.45.
For fiscal 2026, net cash provided by operating activities is expected to be roughly $130 million. Capital expenditures are expected to be approximately $140 million.
TTWO’s Zacks Rank and Stocks to Consider
Currently, TTWO carries a Zacks Rank #3 (Hold).
Stride (LRN - Free Report) , Naspers (NPSNY - Free Report) and GameStop (GME - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Consumer Discretionary sector. LRN, NPSNY and GME sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
LRN shares have gained 47.7% in year to date. The Zacks Consensus Estimate for LRN’s full-year fiscal 2025 earnings is pegged at $7.09 per share, which has remained unchaged over the past seven days, suggesting growth of 51.17% from the year-ago quarter’s reported figure.
NPSNY shares have gained 33.4% in year to date. The Zacks Consensus Estimate for NPSNY’s full-year fiscal 2026 earnings has remained changed at $4.88 over the past 30 days, suggesting year-over-year growth of 123.85%.
GME shares have lost 9.1% in year to date. The Zacks Consensus Estimate for GME’s full-year fiscal 2026 earnings is pegged at 47 cents per share, implying a rise of 42.42% from the year-ago quarter’s levels.