Here is our preliminary tackle Take-Two Interactive‘s (TTWO 1.35%) monetary report.
Key Metrics
| Metric | This autumn 2024 | This autumn 2025 | Change | vs. Expectations |
|---|---|---|---|---|
| Income | $1.40 billion | $1.58 billion | +13% | Beat |
| Earnings per share | ($17.02) | ($21.08) | N/A | Missed |
| Web Bookings | $1.35 billion | $1.58 billion | +17% | n/a |
| EBITDA | ($19.6 million) | $161 million | N/A | n/a |
EBITDA = earnings earlier than curiosity, taxes, depreciation, and amortization.
Treading Water in Fiscal 2026
Take-Two Interactive completed out fiscal 2025 on a robust notice, with double-digit income and web bookings progress. Round three-quarters of web bookings got here from recurrent client spending. Grand Theft Auto V and Grand Theft Auto On-line continued to be main contributors to web bookings within the fourth quarter.
Take-Two took a big hit to earnings as a consequence of impairment fees associated to earlier acquisitions. The corporate wrote off $3.55 billion associated to goodwill and one other $176 million value of acquisition-related intangible belongings, driving earnings per share deep into detrimental territory.
Because of the delay of Grand Theft Auto VI to Could 2026, that upcoming blockbuster has been pushed into fiscal 2027. For fiscal 2026, now devoid of a GTA-related enhance, the corporate expects to generate income between $5.95 billion and $6.05 billion, together with web bookings between $5.9 billion and $6.0 billion. For comparability, web bookings in fiscal 2025 got here in at $5.65 billion. Take-Two additionally expects to report a large web loss between $439 million and $499 million for fiscal 2026.
Speedy Market Response
Shares of Take-Two had been down about 2.5% in after-hours buying and selling quickly after the fourth-quarter report was launched. Ever for the reason that firm delayed GTA VI, a weak outlook for fiscal 2026 has been anticipated, and the large earnings miss was as a consequence of fees that do not essentially mirror the corporate’s working efficiency.
What to Watch
Fiscal 2027 will nearly definitely be Take-Two’s greatest 12 months ever, due to a brand new iteration of the Grand Theft Auto franchise. The corporate does have some vital releases deliberate for fiscal 2026, together with Borderlands 4 and a number of new sports activities video games. Nevertheless, nothing on the discharge schedule will come near the gross sales GTA VI is predicted to generate.
Take-Two might be largely treading water in fiscal 2026 as it really works towards releasing the primary new GTA sport in over a decade.
Useful Assets
Timothy Inexperienced has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Take-Two Interactive Software program. The Motley Idiot has a disclosure coverage.
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