Take-Two Reports Q1 Results: Strong Performance and Cancellation of Unannounced Game

Take-Two's Q1 results exceeded expectations, driven by the strong performance of NBA 2K and GTA, supported by the Zynga mobile portfolio. The company maintains its full-year net bookings projection of $8-8.2 billion. However, a $43.4 million revenue impairment was recorded due to the cancellation of an unannounced title from a third-party developer, resulting in a significant increase in net loss. The cancelled title was one of the company's new core IP projects, leaving Project ETHOS and Judas as the only confirmed new IP in development. CEO Strauss Zelnick described GTA 6 pre-orders as 'unprecedented' but declined to share details. For the quarter ending June 30, 2026, net revenue was $1.53 billion, up 2% year-over-year, while net bookings were $1.39 billion, down 3% year-over-year. Net loss was $34.1 million, up 186% year-over-year. The company attributed the results to better-than-expected performance from NBA 2K and GTA, with GTA 5 exceeding 230 million units sold and recurrent consumer spending increasing 3%. NBA 2K6 achieved record performance, with sales of 12 million units, a 9% increase over the previous release, and a 7% increase in recurrent consumer spending. Total recurrent consumer spending declined 1% for the period, beating the company's previous guidance of a 3% decline. The launch of direct-to-consumer web stores remains a significant driver of revenue and margin enhancement, with further growth anticipated. The company expects mobile recurrent consumer spending to decline year-over-year due to last year's success of Color Block Jam and moderating trends for Zynga's mature mobile titles. Looking ahead, the company's projected $8-8.2 billion in net bookings is expected to be driven by Rockstar Games, Zynga, and 2K, with the Grand Theft Auto series, NBA 2K, and other titles contributing to growth. The company expects recurrent consumer spending to decline 5%, with growth from NBA 2K and GTA offset by a decline in mobile spending. Take-Two believes FY27 will be a milestone year, driven by new opportunities, including live-service enhancements, franchise extensions, and international expansion.