Take-Two Interactive Software, Inc. Reports Results for Fourth Quarter and Fiscal Year 2026
NEW YORK--( BUSINESS WIRE)--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today reported results for the fourth quarter of its fiscal year 2026, ended March 31, 2026. For further information, please see the fourth quarter fiscal 2026 results slide deck posted to the Company’s investor relations website at take2games.com/ir.
CEO Comments
Strauss Zelnick, Chairman and CEO of Take-Two Interactive, stated: “Our Fiscal 2026 performance was exceptional and exceeded our initial expectations at every label. We believe Fiscal 2027 will establish new record levels of operating performance driven by the November 19 th launch of Grand Theft Auto VI, along with strong execution across our portfolio. We expect to sustain this higher level of scale, generate strong cash flows, and deliver long-term shareholder value as we release our robust development pipeline, continue to optimize our live services and capitalize on new business opportunities.”
Fourth Quarter Fiscal 2026 Financial and Operational Highlights
* Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.
Fourth Quarter Fiscal 2026 Financial Results
The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business:
Three Months Ended March 31, 2026
Financial Data
in millions
Statement of Operations
Change in deferred net revenue and related cost of revenue
Stock-based compensation
Amortization of acquired intangibles
Business reorganization
Business acquisition
Other (a)
GAAP
Total net revenue
$
1,679.8
(99.5
)
Cost of revenue
741.1
(5.3
)
(4.7
)
(185.4
)
Gross profit
938.7
(94.2
)
4.7
185.4
Operating expenses
927.8
(73.7
)
(15.1
)
0.9
(3.2
)
(Loss) income from operations
10.9
(94.2
)
78.4
200.5
(0.9
)
3.2
Interest and other, net
(23.6
)
1.2
(0.6
)
6.7
(Loss) income before income taxes
(12.7
)
(93.0
)
78.4
200.5
(0.9
)
2.6
6.7
Non-GAAP
EBITDA
243.7
(93.0
)
78.4
(0.9
)
0.9
6.7
(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments.
Fiscal Year 2026 Financial and Operational Highlights
* Net Bookings is our operational metric and defined as the net amount of products and services sold digitally or sold-in physically during the period, and includes licensing fees, merchandise, in-game advertising, strategy guides and publisher incentives.
** Recurrent consumer spending is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising.
Fiscal Year 2026 Financial Results
The following data is used internally by the Company’s management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial results in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Fiscal Year Ended March 31, 2026
Financial Data
in millions
Statement of Operations
Change in deferred net revenue and related cost of revenue
Stock-based compensation
Business reorganization
Amortization of acquired intangibles
Business acquisition
Other (a)
GAAP
Total net revenue
$
6,656.4
64.6
Cost of revenue
2,846.7
(3.4
)
27.9
(664.9
)
Gross profit
3,809.7
68.0
(27.9
)
664.9
Operating expenses
3,913.9
(333.2
)
4.4
(60.7
)
(14.7
)
(Loss) income from operations
(104.2
)
68.0
305.3
(4.4
)
725.6
14.7
Interest and other, net
(93.6
)
0.1
11.0
5.3
(Loss) income before income taxes
(197.8
)
68.1
305.3
(4.4
)
725.6
25.7
5.3
Non-GAAP
EBITDA
760.6
68.1
305.3
(4.4
)
18.9
5.3
(a) Other includes adjustments for (i) the revaluation of the Turkish Lira against the U.S. Dollar and (ii) fair value adjustments related to certain equity investments.
Outlook for Fiscal Year 2027
Take-Two is providing its initial outlook for the fiscal year ending March 31, 2027 and fiscal first quarter ending June 30, 2026:
Fiscal Year Ending March 31, 2027
The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Fiscal Year Ending March 31, 2027
Financial Data
$ in millions except for per share amounts
Outlook (b)
Change in deferred net revenue and related cost of revenue
Stock-based compensation
Amortization of acquired intangibles
Business acquisition & Other
GAAP
Total net revenue
$7,900 to $8,100
$100
Cost of revenue
$3,504 to $3,626
$(10)
$(77)
$(573)
Operating expenses
$4,180 to $4,200
$(350)
$(51)
Interest and other, net
$50
$(3)
Income before income taxes
$166 to $224
$110
$427
$624
$3
Net income
$105 to $141
Diluted net income per share
$0.55 to $0.75
Net cash provided by operating activities
over $1,000
Capital expenditures
approximately $200
Non-GAAP
EBITDA
$1,013 to $1,070
$110
$427
Operational metric
Net Bookings
$8,000 to $8,200
(b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.
Fiscal First Quarter Ending June 30, 2026
The Company is also providing selected data, which is used internally by its management and Board of Directors to adjust the Company’s GAAP and Non-GAAP financial outlook in order to facilitate comparison of its operating performance between periods and to better understand its core business and future outlook:
Three Months Ending June 30, 2026
Financial Data
$ in millions except for per share amounts
Outlook (b)
Change in deferred net revenue and related cost of revenue
Stock-based compensation
Amortization of acquired intangibles
Business acquisition & Other
GAAP
Total net revenue
$1,450 to $1,500
$(130)
Cost of revenue
$578 to $594
$(15)
$(1)
$(154)
Operating expenses
$926 to $936
$(70)
$(15)
Interest and other, net
$13
$1
(Loss) income before income taxes
$(67) to $(43)
$(115)
$71
$169
$(1)
Net (loss) income
$(42) to $(27)
Net (loss) income per share
$(0.23) to $(0.15)
Non-GAAP
EBITDA
$155 to $179
$(115)
$71
Operational metric
Net Bookings
$1,320 to $1,370
(b) The individual components of the financial outlook may not foot to the totals, as the Company does not expect actual results for every component to be at the low end or high end of the outlook range simultaneously.
Key assumptions and dependencies underlying the Company’s outlook include: a continuation of the current economic backdrop; the timely delivery of the titles included in this financial outlook; continued growth in the installed base of PlayStation 5 and Xbox Series X|S; the ability to develop and publish products that capture market share for these current generation systems while also leveraging opportunities on PC, mobile and other platforms; factors affecting our performance on mobile, such as player acquisition costs; our ongoing focus on our live services portfolio and new game pipeline; and stable foreign exchange rates. See also “Cautionary Note Regarding Forward Looking Statements” below.
Product Releases
The following have been released since January 1, 2026:
Label
Product
Platforms
Release Date
2K
Sid Meier's Civilization VII for Apple Arcade
iOS
February 5, 2026
2K
PGA TOUR 2K25
Switch 2
February 6, 2026
2K
WWE 2K26
PS5, Xbox Series X|S, Switch 2, PC
March 13, 2026
Take-Two's future lineup announced to-date includes:
Label
Product
Platforms
Release Date
2K
NBA 2K27
TBA
September 2026
Rockstar Games
Grand Theft Auto VI
PS5, Xbox Series X|S
November 19, 2026
2K
PGA TOUR 2K27
TBA
TBA
2K
WWE 2K27
TBA
TBA
Zynga
CSR 3
iOS, Android
TBA
Zynga
Top Goal
iOS, Android
TBA
Ghost Story Games
Judas
PS5, Xbox Series X|S, PC
TBA
2K
Project ETHOS
TBA
TBA
2K
BioShock next iteration
TBA
TBA
Conference Call
Take-Two will host a conference call today at 4:30 p.m. Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (800) 715-9871 or (646) 307-1963 (conference ID: 9711440). A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.
Non-GAAP Financial Measure
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses a Non-GAAP measure of financial performance: EBITDA, which is defined as GAAP net income (loss) excluding interest income (expense), provision for (benefit from) income taxes, depreciation expense, and amortization and impairment of acquired intangibles.
The Company’s management believes it is important to consider EBITDA, in addition to net income, as it removes the effect of certain non-cash expenses, debt-related charges, and income taxes. Management believes that, when considered together with reported amounts, EBITDA is useful to investors and management in understanding the Company’s ongoing operations and in analysis of ongoing operating trends and provides useful additional information relating to the Company’s operations and financial condition.
This Non-GAAP financial measure is not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. This Non-GAAP financial measure may be different from similarly titled measures used by other companies. In the future, Take-Two may also consider whether other items should also be excluded in calculating this Non-GAAP financial measure used by the Company. Management believes that the presentation of this Non-GAAP financial measure provides investors with additional useful information to measure Take-Two's financial and operating performance. In particular, this measure facilitates comparison of our operating performance between periods and may help investors to understand better the operating results of Take-Two. Internally, management uses this Non-GAAP financial measure in assessing the Company's operating results and in planning and forecasting. A reconciliation of this Non-GAAP financial measure to the most comparable GAAP measure is contained in the financial tables to this press release.
Final Results
The financial results discussed herein are presented on a preliminary basis; final data will be included in Take-Two’s Annual Report on Form 10-K for the period ended March 31, 2026.
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop and publish products principally through Rockstar Games, 2K, and Zynga. Our strategy is to create hit entertainment experiences, delivered on every platform relevant to our audience through a variety of sound business models. Our pillars - creativity, innovation, and efficiency - guide us as we strive to create the highest quality, most captivating experiences for our consumers. The Company’s common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at http://www.take2games.com.
All trademarks and copyrights contained herein are the property of their respective holders.
Cautionary Note Regarding Forward-Looking Statements
The statements contained herein, which are not historical facts, including statements relating to Take-Two Interactive Software, Inc.'s ("Take-Two," the "Company," "we," "us," or similar pronouns) outlook, are considered forward-looking statements under federal securities laws and may be identified by words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are not limited to, statements regarding the outlook for our future business and financial performance. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them, which are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Actual outcomes and results may vary materially from these forward-looking statements based on a variety of risks and uncertainties, including risks relating to the timely release and significant market acceptance of our games; the risks of conducting business internationally, including as a result of unforeseen geopolitical events; the impact of changes in interest rates by the Federal Reserve and other central banks, including on our short-term investment portfolio; the impact of inflation; volatility in foreign currency exchange rates; our dependence on key management and product development personnel; our dependence on our NBA 2K and Grand Theft Auto products and our ability to develop other hit titles; our ability to leverage opportunities on PlayStation®5 and Xbox Series X|S; factors affecting our mobile business, such as player acquisition costs; and the ability to maintain acceptable pricing levels on our games.
Other important factors and information are contained in the Company's most recent Annual Report on Form 10-K, including the risks summarized in the section entitled "Risk Factors," the Company’s most recent Quarterly Report on Form 10-Q, and the Company's other periodic filings with the SEC, which can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except per share amounts)
Three Months Ended March 31,
Fiscal Year Ended March 31,
2026
2025
2026
2025
Net revenue:
Game
$
1,568.4
$
1,473.8
$
6,162.1
$
5,167.5
Advertising
111.4
108.7
494.3
466.1
Total net revenue
1,679.8
1,582.5
6,656.4
5,633.6
Cost of revenue:
Product costs
203.2
205.1
863.8
821.1
Game intangibles
184.8
303.0
662.2
811.0
Licenses
119.9
124.7
463.5
365.8
Software development costs and royalties
150.8
(9.7
)
439.8
168.1
Internal royalties
82.4
156.1
417.4
405.4
Total cost of revenue
741.1
779.2
2,846.7
2,571.4
Gross profit
938.7
803.3
3,809.7
3,062.2
Selling and marketing
392.2
402.1
1,770.8
1,683.7
Research and development
262.5
297.8
1,074.6
1,005.2
General and administrative
223.8
230.2
874.4
883.3
Depreciation and amortization
50.2
87.8
198.5
229.4
Goodwill impairment
—
3,545.2
—
3,545.2
Business reorganization
(0.9
)
17.1
(4.4
)
106.5
Total operating expenses
927.8
4,580.2
3,913.9
7,453.3
Income (loss) from operations
10.9
(3,776.9
)
(104.2
)
(4,391.1
)
Interest and other, net
(23.6
)
(25.0
)
(93.6
)
(100.2
)
Loss before income taxes
(12.7
)
(3,801.9
)
(197.8
)
(4,491.3
)
Provision for (benefit from) income taxes
46.8
(75.7
)
100.4
(12.4
)
Net loss
$
(59.5
)
$
(3,726.2
)
$
(298.2
)
$
(4,478.9
)
Loss per share:
Basic and diluted loss per share
$
(0.32
)
$
(21.08
)
$
(1.62
)
$
(25.58
)
Weighted average shares outstanding
Basic
185.3
176.8
183.9
175.1
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
March 31, 2026
March 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
1,545.5
$
1,456.1
Short-term investments
443.8
9.4
Restricted cash and cash equivalents
13.2
14.9
Accounts receivable, net of allowances of $0.9 and $1.6 at March 31, 2026 and 2025, respectively
737.0
771.1
Software development costs and licenses
68.8
80.8
Contract assets
89.7
80.8
Prepaid expenses and other
301.5
402.8
Total current assets
3,199.5
2,815.9
Fixed assets, net
445.4
443.8
Right-of-use assets
334.6
326.1
Software development costs and licenses, net of current portion
2,277.5
1,892.6
Goodwill
1,061.9
1,057.3
Other intangibles, net
1,653.2
2,336.0
Long-term restricted cash and cash equivalents
79.4
88.2
Other assets
331.7
220.8
Total assets
$
9,383.2
$
9,180.7
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
211.0
$
194.7
Accrued expenses and other current liabilities
1,117.8
1,127.6
Deferred revenue
1,159.9
1,083.5
Lease liabilities
70.1
61.5
Short-term debt, net
30.0
1,148.5
Total current liabilities
2,588.8
3,615.8
Long-term debt, net
2,488.0
2,512.6
Non-current deferred revenue
29.7
25.4
Non-current lease liabilities
370.2
383.3
Non-current software development royalties
84.5
93.6
Deferred tax liabilities, net
182.3
259.6
Other long-term liabilities
128.8
152.7
Total liabilities
$
5,872.3
$
7,043.0
Stockholders' equity:
Preferred stock, $0.01 par value, 5.0 shares authorized: no shares issued and outstanding at March 31, 2026 and 2025
—
—
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 209.1 and 200.8 shares issued and 185.4 and 177.1 outstanding at March 31, 2026 and 2025, respectively
2.1
2.0
Additional paid-in capital
11,953.7
10,312.0
Treasury stock, at cost; 23.7 and 23.7 common shares at March 31, 2026 and 2025, respectively
(1,020.6
)
(1,020.6
)
Accumulated deficit
(7,357.0
)
(7,058.8
)
Accumulated other comprehensive loss
(67.3
)
(96.9
)
Total stockholders' equity
$
3,510.9
$
2,137.7
Total liabilities and stockholders' equity
$
9,383.2
$
9,180.7
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Fiscal Year Ended March 31,
2026
2025
Operating activities:
Net loss
$
(298.2
)
$
(4,478.9
)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Amortization and impairment of software development costs and licenses
412.8
333.8
Stock-based compensation
305.3
324.0
Noncash lease expense
56.2
59.5
Amortization and impairment of intangibles
725.7
922.6
Depreciation
166.4
153.9
Goodwill impairment
—
3,545.2
Interest expense
151.4
167.3
Deferred income taxes
78.0
139.5
Fair value adjustments
12.5
6.9
Other, net
21.4
24.8
Changes in assets and liabilities, net of effect from purchases of businesses:
Accounts receivable
35.0
(105.0
)
Software development costs and licenses
(688.9
)
(691.6
)
Prepaid expenses, other current and other non-current assets
(66.5
)
11.9
Deferred revenue
78.5
6.8
Accounts payable, accrued expenses and other liabilities
(365.3
)
(465.9
)
Net cash provided by (used in) operating activities
624.3
(45.2
)
Investing activities:
Change in bank time deposits
(434.4
)
12.6
Purchases of fixed assets
(162.8
)
(169.4
)
Divestitures
—
32.7
Purchases of long-term investments
(22.0
)
(21.1
)
Business acquisitions
(2.6
)
6.5
Asset acquisitions
(27.4
)
(20.3
)
Other
—
7.5
Net cash used in investing activities
(649.2
)
(151.5
)
Financing activities:
Tax payment related to net share settlements on restricted stock awards
(2.9
)
—
Issuance of common stock
1,247.5
77.3
Payment for settlement of convertible notes
—
(8.3
)
Proceeds from issuance of debt
—
598.9
Cost of debt
—
(5.4
)
Repayment of debt
(1,150.0
)
—
Payment of contingent earn-out consideration
—
(12.0
)
Net cash provided by financing activities
94.6
650.5
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents
9.2
3.4
Net change in cash, cash equivalents, and restricted cash and cash equivalents
78.9
457.2
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1)
1,559.2
1,102.0
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1)
$
1,638.1
$
1,559.2
(1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Consolidated Balance Sheet.
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix
(in millions)
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Amount
% of total
Amount
% of total
Net revenue by geographic region
United States
$
991.7
59
%
$
946.1
60
%
International
688.1
41
%
636.4
40
%
Total Net revenue
$
1,679.8
100
%
$
1,582.5
100
%
Net Bookings by geographic region
United States
$
932.7
59
%
$
961.1
61
%
International
647.6
41
%
620.4
39
%
Total Net Bookings
$
1,580.3
100
%
$
1,581.5
100
%
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Amount
% of total
Amount
% of total
Net revenue by distribution channel
Digital online
$
1,635.5
97
%
$
1,525.6
96
%
Physical retail and other
44.3
3
%
56.9
4
%
Total Net revenue
$
1,679.8
100
%
$
1,582.5
100
%
Net Bookings by distribution channel
Digital online
$
1,540.3
97
%
$
1,528.7
97
%
Physical retail and other
40.0
3
%
52.8
3
%
Total Net Bookings
$
1,580.3
100
%
$
1,581.5
100
%
Three Months Ended
March 31, 2026
Three Months Ended
March 31, 2025
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
843.9
50
%
$
747.7
48
%
Console
674.6
40
%
591.2
37
%
PC and other
161.3
10
%
243.6
15
%
Total Net revenue
$
1,679.8
100
%
$
1,582.5
100
%
Net Bookings by platform
Mobile
$
829.1
52
%
$
730.1
46
%
Console
602.1
38
%
601.7
38
%
PC and other
149.1
10
%
249.7
16
%
Total Net Bookings
$
1,580.3
100
%
$
1,581.5
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
Net Revenue and Net Bookings by Geographic Region, Distribution Channel, and Platform Mix
(in millions)
Fiscal Year Ended
March 31, 2026
Fiscal Year Ended
March 31, 2025
Amount
% of total
Amount
% of total
Net revenue by geographic region
United States
$
3,940.4
59
%
$
3,406.8
60
%
International
2,716.0
41
%
2,226.8
40
%
Total Net revenue
$
6,656.4
100
%
$
5,633.6
100
%
Net Bookings by geographic region
United States
$
4,004.9
60
%
$
3,445.8
61
%
International
2,716.1
40
%
2,202.2
39
%
Total Net Bookings
$
6,721.0
100
%
$
5,648.0
100
%
Fiscal Year Ended
March 31, 2026
Fiscal Year Ended
March 31, 2025
Amount
% of total
Amount
% of total
Net revenue by distribution channel
Digital online
$
6,459.7
97
%
$
5,431.8
96
%
Physical retail and other
196.7
3
%
201.8
4
%
Total Net revenue
$
6,656.4
100
%
$
5,633.6
100
%
Net Bookings by distribution channel
Digital online
$
6,528.3
97
%
$
5,457.2
97
%
Physical retail and other
192.7
3
%
190.8
3
%
Total Net Bookings
$
6,721.0
100
%
$
5,648.0
100
%
Fiscal Year Ended
March 31, 2026
Fiscal Year Ended
March 31, 2025
Amount
% of total
Amount
% of total
Net revenue by platform
Mobile
$
3,333.0
50
%
$
2,942.0
52
%
PC and other
2,597.3
39
%
2,099.1
37
%
Console
726.1
11
%
592.5
11
%
Total Net revenue
$
6,656.4
100
%
$
5,633.6
100
%
Net Bookings by platform
Mobile
$
3,300.9
49
%
$
2,872.0
51
%
PC and other
2,687.0
40
%
2,167.4
38
%
Console
733.1
11
%
608.6
11
%
Total Net Bookings
$
6,721.0
100.0
%
$
5,648.0
100
%
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Three Months Ended March 31, 2026
Net revenue
Cost of revenue- Product costs
Cost of revenue- Game intangibles
Cost of revenue- Licenses
Cost of revenue- Software development costs and royalties
Cost of revenue- Internal royalties
Selling and marketing
As reported
$
1,679.8
$
203.2
$
184.8
$
119.9
$
150.8
$
82.4
$
392.2
Net effect from deferred revenue and related cost of revenue
(99.5
)
(1.2
)
(0.7
)
(3.4
)
Stock-based compensation
(4.7
)
(21.5
)
Amortization of acquired intangibles
(0.6
)
(184.8
)
Three Months Ended March 31, 2026
Research and development
General and administrative
Depreciation and amortization
Business reorganization
Interest and other, net
As reported
$
262.5
$
223.8
$
50.2
(0.9
)
$
(23.6
)
Net effect from deferred revenue and related cost of revenue
1.2
Stock-based compensation
(17.1
)
(35.1
)
Amortization of acquired intangibles
(7.2
)
(7.9
)
Acquisition related expenses
(0.4
)
(2.8
)
(0.6
)
Impact of business reorganization
0.9
Other
6.7
Three Months Ended March 31, 2025
Net revenue
Cost of revenue - Product costs
Cost of revenue -Game intangibles
Cost of revenue- Licenses
Cost of revenue- Software development costs and royalties
Cost of revenue- Internal royalties
Selling and marketing
As reported
$
1,582.5
$
205.1
$
303.0
$
124.7
$
(9.7
)
$
156.1
$
402.1
Net effect from deferred revenue and related cost of revenue
(1.0
)
(1.2
)
(1.3
)
2.5
Stock-based compensation
(0.8
)
(24.3
)
Amortization and impairment of acquired intangibles
(0.8
)
(303.0
)
Three Months Ended March 31, 2025
Research and development
General and administrative
Depreciation and amortization
Business reorganization
Goodwill impairment
Interest and other, net
As reported
$
297.8
$
230.2
$
87.8
$
17.1
$
3,545.2
$
(25.0
)
Net effect from deferred revenue and related cost of revenue
1.5
Stock-based compensation
(23.5
)
(31.0
)
Amortization and impairment of acquired intangibles
(7.2
)
(48.1
)
Acquisition related expenses
(2.4
)
(27.3
)
(3,545.2
)
3.7
Impact of business reorganization
(17.1
)
Other
1.8
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
ADDITIONAL DATA
(in millions)
Fiscal Year Ended March 31, 2026
Net revenue
Cost of revenue - Product costs
Cost of revenue - Game intangibles
Cost of revenue- Licenses
Cost of revenue- Software development costs and royalties
Cost of revenue- Internal royalties
Selling and marketing
As reported
$
6,656.4
$
863.8
$
662.2
$
463.5
$
439.8
$
417.4
$
1,770.8
Net effect from deferred revenue and related cost of revenue
64.6
(1.8
)
(0.1
)
(1.5
)
Stock-based compensation
27.9
(95.3
)
Amortization of acquired intangibles
(2.7
)
(662.2
)
Fiscal Year Ended March 31, 2026
Research and development
General and administrative
Depreciation and amortization
Business reorganization
Interest and other, net
As reported
$
1,074.6
$
874.4
$
198.5
$
(4.4
)
$
(93.6
)
Net effect from deferred revenue and related cost of revenue
0.1
Stock-based compensation
(88.9
)
(149.0
)
Amortization of acquired intangibles
(28.7
)
(32.0
)
Acquisition related expenses
(1.4
)
(13.3
)
11.0
Impact of business reorganization
4.4
Other
5.3
Fiscal Year Ended March 31, 2025
Net revenue
Cost of revenue - Product costs
Cost of revenue - Game intangibles
Cost of revenue - Licenses
Cost of revenue- Software development costs and royalties
Cost of revenue - Internal royalties
Selling and marketing
As reported
$
5,633.6
$
821.1
$
811.0
$
365.8
$
168.1
$
405.4
$
1,683.7
Net effect from deferred revenue and related cost of revenue
14.4
(0.9
)
0.4
2.0
Stock-based compensation
(9.4
)
(92.4
)
Amortization and impairment of acquired intangibles
(3.2
)
(811.0
)
(4.1
)
Acquisition related expenses
(0.3
)
Fiscal Year Ended March 31, 2025
Research and development
General and administrative
Depreciation and amortization
Business reorganization
Goodwill impairment
Interest and other, net
As reported
$
1,005.2
$
883.3
$
229.4
$
106.5
$
3,545.2
$
(100.2
)
Net effect from deferred revenue and related cost of revenue
3.5
Stock-based compensation
(99.0
)
(123.2
)
Amortization and impairment of acquired intangibles
(28.7
)
(75.5
)
Acquisition related expenses
(3.9
)
(89.2
)
(3,545.2
)
11.7
Impact of business reorganization
(106.5
)
Other
15.7
TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURE
(in millions)
Three Months Ended March 31,
Fiscal Year Ended March 31,
2026
2025
2026
2025
Net loss
$
(59.5
)
$
(3,726.2
)
$
(298.2
)
$
(4,478.9
)
Provision for (benefit from) income taxes
46.8
(75.7
)
100.4
(12.4
)
Interest expense
13.6
18.9
66.3
68.7
Depreciation and amortization
50.2
87.8
198.5
229.4
Amortization of acquired intangibles
192.6
311.0
693.6
847.0
Goodwill impairment
—
3,545.2
—
3,545.2
EBITDA
$
243.7
$
161.0
$
760.6
$
199.1
Outlook
Fiscal Year Ending March 31, 2027
Net income
$105 to $141
Provision for income taxes
$62 to $83
Interest expense
$41
Depreciation
$181
Amortization of acquired intangibles
$624
EBITDA
$1,013 to $1,070
Outlook
Three Months Ended June 30, 2026
Net loss
$(42) to $(27)
Benefit from income taxes
$(25) to $(16)
Interest expense
$10
Depreciation
$43
Amortization of acquired intangibles
$169
EBITDA
$155 to $179