Net Bookings Declined Slightly on Lower Catalog Revenue
Net Bookings decreased 2.6% to $1,385.9 million, driven by lower revenues from the Grand Theft Auto series and Color Block Jam, partially offset by strength in NBA 2K.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Take-Two Interactive's fiscal 2027 first quarter saw modest revenue growth overshadowed by a sharp decline in profitability, as a prior-year cost benefit reversed and investment in the upcoming Grand Theft Auto VI launch intensified. NBA 2K was the standout performer, driving top-line gains that were partially offset by weakness in mobile titles like Color Block Jam. Gross margin contracted to 57.5%, and operating cash flow turned deeply negative, though lower interest expenses from debt repayments provided some relief. Management confirmed GTA VI remains on track for November 2026, but near-term costs and the reliance on key franchises add tension to the outlook.
Revenue
$1.53B
+2.00% YoY
EPS (Diluted)
-$0.18
-157.14% YoY
Gross Margin
57.5%
-5.3 pts YoY
Operating Income
-$35.5M
-264.35% YoY
Source: SEC XBRL
Take Two Interactive Software (TTWO) reported Q1 FY2027 revenue of $1.53B, up 2.0% year over year. Operating margin was -2.3%, against 1.4% a year earlier. Operating cash flow was negative $168.8M. TTWO's fiscal Q1 FY2027 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2027 | 0.36 | 0.34 | Beat +7.1% |
| Mar 2026 | 0.80 | 0.57 | Beat +39.3% |
| Dec 2025 | 1.24 | 0.85 | Beat +45.8% |
| Sep 2025 | 1.47 | 0.95 | Beat +55.4% |
Compiled by AI from 10-Q Item 2 of this filing
Net Bookings decreased 2.6% to $1,385.9 million, driven by lower revenues from the Grand Theft Auto series and Color Block Jam, partially offset by strength in NBA 2K.
Source: 10-Q Item 2 MD&A
Gross margin fell from 62.9% to 57.5%, primarily due to the reversal of expense related to forfeiture of awards in the prior year period that did not repeat.
Source: 10-Q Item 2 MD&A
Selling and marketing expenses decreased 9.7% to $369.7 million, reflecting lower marketing outlays for mobile titles such as Color Block Jam and Match Factory!, as well as the Sid Meier’s Civilization and Borderlands franchises.
Source: 10-Q Item 2 MD&A
Interest and other, net improved to an expense of $13.8 million from $35.4 million, driven by lower interest expense after repaying the 2025 and 2026 Notes, higher interest income, and decreased foreign currency losses.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
A significant portion of revenue is derived from a few major titles, notably NBA 2K and Grand Theft Auto; underperformance or delays in these franchises could materially impact financial results.
Source: 10-Q Item 2 MD&A
The top five customers accounted for 82.3% of net revenue in Q1 FY2027, and three customers represented over 55% of gross accounts receivable, exposing the company to potential credit and contract renewal risks.
Source: 10-Q Item 2 MD&A
Substantial mobile game revenue relies on Apple App Store and Google Play Store, leaving the business vulnerable to changes in platform fees, terms, or policies.
Source: 10-Q Item 2 MD&A
Operating cash flow was –$168.8 million during the quarter, and cash equivalents declined 32.6% year-over-year, raising concerns if cash outflows persist without new hit releases.
Source: 10-Q Cash Flow Statement (XBRL)
With $9.06 billion in total assets and significant goodwill, any underperformance of key titles or franchises could trigger impairment charges, further pressuring an already loss-making period.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.53 $B | 1.50 $B | +2.00% |
Cost of Revenue $M | 651.40 $M | 558.80 $M | +16.57% |
Gross Profit $M | 882.50 $M | 945.00 $M | -6.61% |
Operating Income $M | -35.50 $M | 21.60 $M | -264.35% |
Net Income $M | -34.10 $M | -11.90 $M | -186.55% |
EPS (Basic) $ | -0.18 $ | -0.07 $ | -157.14% |
EPS (Diluted) $ | -0.18 $ | -0.07 $ | -157.14% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Take-Two Interactive (TTWO) delivered a strong FY2026, with revenue surging 18.2% to $6.66B and operating losses narrowing dramatically to -$104.2M, while operating cash flow turned sharply positive at $624.3M, signaling meaningful operational improvement ahead of major upcoming releases.
TTWO's Q3 FY2026 results show significant revenue growth of 24.9% YoY, but the company remains unprofitable with a net loss of $92.9M.
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