Here's our initial take on Take-Two Interactive's (TTWO 0.50%) financial report.
Key Metrics
| Metric | Q4 2024 | Q4 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Revenue | $1.40 billion | $1.58 billion | +13% | Beat |
| Earnings per share | ($17.02) | ($21.08) | N/A | Missed |
| Net Bookings | $1.35 billion | $1.58 billion | +17% | n/a |
| EBITDA | ($19.6 million) | $161 million | N/A | n/a |
EBITDA = earnings before interest, taxes, depreciation, and amortization.
Treading Water in Fiscal 2026
Take-Two Interactive finished out fiscal 2025 on a strong note, with double-digit revenue and net bookings growth. Around three-quarters of net bookings came from recurrent consumer spending. Grand Theft Auto V and Grand Theft Auto Online continued to be major contributors to net bookings in the fourth quarter.
Take-Two took a large hit to earnings due to impairment charges related to previous acquisitions. The company wrote off $3.55 billion related to goodwill and another $176 million worth of acquisition-related intangible assets, driving earnings per share deep into negative territory.
Due to the delay of Grand Theft Auto VI to May 2026, that upcoming blockbuster has been pushed into fiscal 2027. For fiscal 2026, now devoid of a GTA-related boost, the company expects to generate revenue between $5.95 billion and $6.05 billion, along with net bookings between $5.9 billion and $6.0 billion. For comparison, net bookings in fiscal 2025 came in at $5.65 billion. Take-Two also expects to report a sizable net loss between $439 million and $499 million for fiscal 2026.
NASDAQ: TTWO
Key Data Points
Immediate Market Reaction
Shares of Take-Two were down about 2.5% in after-hours trading soon after the fourth-quarter report was released. Ever since the company delayed GTA VI, a weak outlook for fiscal 2026 has been expected, and the big earnings miss was due to charges that don't necessarily reflect the company's operating performance.
What to Watch
Fiscal 2027 will almost certainly be Take-Two's biggest year ever, thanks to a new iteration of the Grand Theft Auto franchise. The company does have some significant releases planned for fiscal 2026, including Borderlands 4 and multiple new sports games. However, nothing on the release schedule will come close to the sales GTA VI is expected to generate.
Take-Two will be largely treading water in fiscal 2026 as it works toward releasing the first new GTA game in over a decade.
