Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) were down over 2% on Friday. The stock has gained 8% over the past three months. The company delivered strong top line performance in the fourth quarter of 2025 and has provided an encouraging outlook for the upcoming fiscal year. However, gains from the release of its highly anticipated Grand Theft Auto VI title will not appear until fiscal year 2027, which is a slight dampener.
Q4 numbers
In the fourth quarter of 2025, Take-Two’s revenues increased 13% year-over-year to $1.58 billion, with strong contributions from the NBA 2K, Grand Theft Auto, and Red Dead Redemption franchises, as well as Civilization VII, WWE 2K25, Toon Blast, Match Factory!, Empires & Puzzles, and the hyper-casual mobile portfolio.
The company reported a loss of $21.08 per share in Q4 2025 compared to $17.02 per share in the year-ago period. The bottom line was hurt by impairment charges of $3.55 billion related to goodwill and $176.3 million for acquisition-related intangible assets.
Business performance
In Q4, Take-Two saw net bookings increase 17% YoY to $1.58 billion, with the largest contributors being NBA 2K25, Grand Theft Auto Online and Grand Theft Auto V, Red Dead Redemption 2 and Red Dead Online, WWE 2K25, Civilization VII, Toon Blast, Match Factory!, Empires & Puzzles, and the hyper-casual mobile portfolio. Net bookings from recurrent consumer spending increased 14%.
TTWO benefited from strong performance in its core franchises and new releases during the quarter. NBA 2K25 exceeded expectations and has sold-in nearly 10 million units to-date. Engagement saw significant growth with a 30% rise in Daily Active Users.
The Grand Theft Auto series maintained its momentum during the quarter. GTA V has sold-in over 215 million units to-date, and recurrent consumer spending grew 5% YoY. The much-anticipated release of GTA VI, which is slated for fiscal year 2027, is expected to take net bookings to a record level for the company.
Red Dead Redemption 2 saw net bookings grow 23% YoY in Q4. Zynga performed well with net bookings growth in Match Factory and Toon Blast. It is also seeing gains from its newest release Color Block Jam.
In fiscal year 2026, TTWO plans to release 13 titles, including Mafia: The Old Country, Borderlands 4, and the next iterations of its NBA 2K and WWE 2K franchises.
Outlook
For the first quarter of 2026, Take-Two expects net revenue of $1.35-1.40 billion and loss per share of $0.78-0.65. Net bookings are expected to range between $1.25-1.30 billion, compared to $1.22 billion in Q1 2025.
The largest contributions to bookings are expected to come from NBA 2K, the Grand Theft Auto series, Toon Blast, Color Block Jam, Match Factory, Empires & Puzzles, Words With Friends, the Red Dead Redemption series, and Zynga Poker. Recurrent consumer spending is projected to increase by approx. 7%, assuming strong double-digit growth for NBA 2K, flat results for mobile, and a modest decline for Grand Theft Auto Online.
For fiscal year 2026, the company expects revenue of $5.95-6.05 billion and loss per share of $2.79-2.45. Net bookings are expected to be $5.90-6.00 billion, representing 5% growth over fiscal year 2025 at the midpoint.
The largest contributions to bookings are expected from NBA 2K, the Grand Theft Auto series, Toon Blast, Borderlands 4, Match Factory, Empires & Puzzles, Words With Friends, the Red Dead Redemption series, and Zynga Poker. Recurrent consumer spending is expected to be flat compared to FY2025.
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