Key Highlights

  • Net bookings were USD 1.6 billion, below guidance of USD 1.62 billion to 1.67 billion.
  • GAAP net Revenue decreased 16% to USD 1.5 billion.
  • Recurrent consumer spending decreased 9% and was 81% of net bookings.
  • Fiscal 2027 net bookings outlook of USD 8 billion to USD 8.2 billion was reiterated.

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) reported second quarter fiscal 2027 net bookings of USD 1.6 billion, which management described as slightly below its guidance range of USD 1.62 billion to USD 1.67 billion. Reported EPS was negative USD 0.29 and revenue was USD 1.50 billion, compared with estimates of EPS of USD 0.97 and revenue of USD 1.64 billion.

GAAP net revenue decreased 16% to USD 1.5 billion. Cost of revenue decreased 20% to USD 637 million, and operating expenses decreased 9% to USD 978 million.

Net Bookings and Spending

Recurrent consumer spending decreased 9% compared with a guided decline of 5%, driven by NBA 2K, and accounted for 81% of net bookings. Compared with the prior year, NBA 2K and Mobile each decreased, while the Grand Theft Auto series increased.

NBA 2K27 launched with the second highest net bookings performance in the history of the series, which management said was below its forecast for the period, and has sold over 4 million units so far. Management cited a slate of post launch content in the second half of the fiscal year. Grand Theft Auto V has sold nearly 235 million units worldwide, and the Borderlands Franchise has surpassed 100 million units sold.

Titles and Content Updates

Grand Theft Auto VI is scheduled to arrive on November 19. Management said an extended look at the game premiered on Netflix and drew 31 million consumers in its first four days.

Words With Friends net bookings grew 6%, supported by a collaboration with Wheel of Fortune. NBA 2K All-Star, the mobile title with Tencent in China, surpassed 11 million registered users. WWE SuperCard has been downloaded nearly 40 million times since launch. In October, 2K and Gearbox released Risk of Rain 2: Hallowed Concepts, NBA 2K Mobile Season 9 launched on October 20, and NBA 2K27 Arcade Edition debuted the prior week. WWE 2K26 added Ringside Pass Season 6 and a Street Fighter Elite Pack on October 28, the first collaboration with Capcom.

Firaxis announced content for Sid Meier's Civilization VII for 2027, including a free update and a premium expansion. PGA TOUR 2K27 and WWE 2K27 are slated to launch later in the fiscal year.

Fiscal 2027 Outlook

Management reiterated its fiscal 2027 outlook for net bookings of USD 8 billion to USD 8.2 billion. It said the outlook includes the launches of new mobile and previously announced sports titles and growth in recurrent consumer spending for NBA 2K27 during the second half of the fiscal year, tied to the largest slate of post launch content in franchise history. The company noted it has approximately 13,000 employees worldwide. Management also said Marketing for Grand Theft Auto VI is underway across the globe, including the reveal of the official soundtrack.

Guidance Comparison and Release Date

Take-Two reported net bookings of USD 1.6 billion against guidance of USD 1.62 billion to USD 1.67 billion and reiterated its fiscal 2027 outlook of USD 8 billion to USD 8.2 billion. Management cited recurrent consumer spending relative to guidance and the November 19 release date for Grand Theft Auto VI.