874054AD1 Filings — Take-Two Interactive Software, Inc. - FilingSpy
874054AD1
Take-Two Interactive Software, Inc.
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A video-game publisher behind the studios Rockstar Games, 2K, and Zynga, making titles for console, PC, and mobile. Rockstar is known for long-lived blockbusters like Grand Theft Auto and Red Dead Redemption, 2K covers sports, shooters, and strategy with franchises such as NBA 2K, Borderlands, and Civilization, and Zynga brings free-to-play mobile hits including Toon Blast and Words With Friends.
Gross margin fell 5.3 points to 57.5% as a prior-year award forfeiture reversal did not recur, widening the net loss to $34.1 million.
The cost of doing business rose faster than . Revenue increased 2% to $1.53 billion, but fell to 57.5% from 62.8% a year ago, pushing the net loss to $34.1 million from $11.9 million. The company is spending on development ahead of a fiscal 2027 slate anchored by .
Key takeaways
fell 5.3 points to 57.5%, primarily because the prior-year quarter included a one-time reversal of expense from forfeited stock awards that lowered cost of .
rose 2% to $1,533.9 million, driven by an $89.0 million increase from , which offset declines in and Grand Theft Auto.
Console rose 16.3% to $640.5 million on and , while mobile revenue fell 4.9% to $762.3 million as sales declined.
Section summaries
Management's Discussion and Analysis
Revenue rose 2% to $1.53B but gross margin fell to 57.5% from 62.9%, driving a wider net loss of $34.1M.
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Total net increased 2% to $1,533.9M, driven by $89.0M higher revenue, partially offset by declines in and .
Selling and marketing expenses dropped 9.7% to $369.7 million, reflecting lower promotion for , , and certain franchise titles.
was a use of $168.8 million, driven by investments in software development and licenses ahead of the upcoming release slate.
confirmed a November 19, 2026 release date for , and plans to release NBA 2K27, PGA 2K27, and WWE 2K27 later in fiscal 2027.
What changed
The prior quarter's watch item on stability resolved: the 62.8% margin in Q1 FY2026 was indeed a one-time benefit from an award forfeiture reversal, and the margin normalized to 57.5% this quarter.
's contribution declined from the $76.0 million launch quarter, confirming the pattern of mobile title maturation flagged in earlier filings.
Operating expenses fell to $917.4 million from $923.4 million a year ago, as the cost reduction program ended and marketing normalized, establishing a pre-GTA VI baseline below the $984.2 million seen in Q3 FY2026.
The release date was refined to November 19, 2026, from the previously stated May 26, 2026, pushing the launch deeper into fiscal 2027.
What to watch
Whether the $917.4 million quarterly operating expense level holds as the baseline, or rises again as marketing for begins to ramp ahead of the November 2026 launch.
Mobile trajectory now that has declined from its launch peak, to see if and Toon Blast can sustain the .
trajectory through the rest of fiscal 2027 as capitalized software rises with the development cycle for the upcoming release slate.
Any disclosure on pre-order activity or marketing spend as the November 19, 2026 release date approaches.
declined to 57.5% from 62.9%, primarily due to a prior-year reversal of expense from forfeited awards; cost of rose 16.6% to $651.4M.
Mobile fell 4.9% to $762.3M, mainly from lower sales, while console revenue surged 16.3% to $640.5M on and 4.
Selling and marketing expenses dropped 9.7% to $369.7M on lower marketing for , , and certain franchise titles.
Net loss widened to $34.1M from $11.9M, and was a use of $168.8M due to investments in software development and licenses.
plans to release VI on November 19, 2026; will release NBA 2K27, PGA 2K27, and WWE 2K27 later in fiscal 2027.
Quantitative and Qualitative Disclosures About Market Risk
Interest rate risk is deemed immaterial; foreign exchange risk is managed via forwards, with a 10% USD move estimated to shift revenue by 4%.
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Interest rate risk stems from short-term investments and variable-rate debt, but no borrowings were outstanding under the as of June 30, 2026.
The company determined its $461.7M short-term investment portfolio and $1,364.9M cash equivalents had no material interest rate risk exposure.
Foreign currency translation swung to a $10.5M loss in Q1 FY2027 from an $82.9M gain a year earlier, driven by USD strengthening against the British Pound.
The company uses short-dated to hedge non-functional currency balances, , and , recording a $5.8M gain in the quarter.
A sensitivity analysis shows a hypothetical 10% increase in the USD against all currencies would reduce by 4%, though a substantial portion is expected to be offset by local-currency costs.
There have been no material changes to the Risk Factors disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.
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There have been no material changes to the Risk Factors disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 31, 2026.