Take-Two Interactive Software: $1.60 Billion Pre-GTA VI Quarter

By Olivia Hart

Take-Two Interactive Software reported fiscal second-quarter 2027 net bookings of $1.60 billion, down 18% from $1.96 billion a year earlier. The company reported GAAP net revenue of $1.50 billion, compared with $1.77 billion in the prior-year quarter. Take-Two's year-on-year booking gap was $360 million, and its revenue gap was $270 million.

How dependent is Take-Two on repeat spending?

Take-Two said recurrent consumer spending declined 9% and represented 81% of total net bookings. On a GAAP basis, recurrent consumer spending fell 5% and made up 81% of net revenue. In practical terms, more than four-fifths of both measures came from ongoing consumer spending.

Take-Two named these major contributors:

• NBA 2K
• Grand Theft Auto
• Toon Blast
• Match Factory
• Empires & Puzzles
• Borderlands
• Words With Friends
• Red Dead Redemption
• WWE 2K

Take-Two's quarter therefore remained heavily dependent on repeat spending, and that engine weakened in both reported measures.

What must Grand Theft Auto VI deliver?

Take-Two said its outlook depends heavily on the commercial performance of Grand Theft Auto VI and continuing engagement across its portfolio. Management described preorders shortly before launch as reaching unprecedented levels, without disclosing a unit count.

Strauss Zelnick, Chairman and Chief Executive Officer of Take-Two Interactive Software, said:

“The launch of Grand Theft Auto VI is ten days away and, with pre-orders continuing to reach unprecedented levels, we expect to deliver an historic year for our company.”

Neither statement quantifies completed sales or the game's share of annual bookings. Take-Two disclosed no estimate of the title's revenue contribution. The forecast therefore depends on converting preorder momentum into bookings while preserving engagement elsewhere.

Did Take-Two's losses improve?

Take-Two narrowed its GAAP net loss to $54 million, or $0.29 per share, from $133.9 million, or $0.73 per share, a year earlier. The year-on-year improvement was $79.9 million, or $0.44 per share. Even so, Take-Two remained unprofitable under GAAP.

Take-Two also reported EBITDA of $92.2 million before management adjustments related to deferred revenue, stock compensation, acquired intangible amortization, acquisition costs, and other items. It did not provide an adjusted EBITDA total or the values needed to reconcile one. The loss narrowed, but Take-Two remained GAAP-unprofitable and left the EBITDA bridge incomplete.

What has Take-Two forecast for fiscal 2027?

Take-Two maintained its fiscal 2027 net bookings outlook of $8 billion to $8.2 billion. It forecast GAAP net revenue of $7.98 billion to $8.18 billion, net income of $109 million to $142 million, and diluted earnings of $0.57 to $0.75 per share. Management also expected operating cash flow of more than $1 billion.

Take-Two left the range unchanged despite the 18% year-on-year decline in quarterly bookings. Take-Two characterized lower bookings and the continuing GAAP loss as material, although the narrower loss and reaffirmed outlook pointed to a major expected second-half step-up. The annual target therefore requires acceleration from the latest quarter.

What sits beyond Grand Theft Auto VI?

Take-Two said future growth will also rely on new titles, geographic expansion, recurring spending, and disciplined acquisition activity. Take-Two expects the Grand Theft Auto VI release to create a historic year alongside those additional growth levers.

Those initiatives create several potential paths to growth. Take-Two did not identify a specific new title, territory, or acquisition, and it disclosed no financial contribution from those initiatives. The broader plan remains directionally clear but financially unquantified.

What should investors test now?

Take-Two disclosed no Grand Theft Auto VI release date beyond Zelnick's formulation that the launch was ten days away. It also disclosed no preorder total or game-specific revenue estimate. The annual forecast will depend on preorders converting into bookings, recurrent spending stabilizing after its 9% decline, and the wider portfolio sustaining engagement. The first test is whether that expected second-half step-up appears in reported bookings rather than remaining a management expectation.