Take-Two Interactive 2025 Q4 Earnings Net Loss Widens by 28.4%

Take-Two Interactive (TTWO) reported its fiscal 2025 Q4 earnings on May 15th, 2025. The company posted total revenue growth of 13.1%, reaching $1.58 billion compared to $1.40 billion in the previous year's Q4. However, Take-Two's earnings results were mixed, as the net loss deepened to $-3.73 billion, a 28.4% increase from the previous year's loss. The company provided guidance for fiscal 2026 with net bookings projected between $5.9 billion and $6 billion, indicating a modest year-over-year growth. The stock experienced volatility, sliding 2.7% in after-hours trading following the earnings announcement.

Revenue

Earnings/Net Income

Take-Two Interactive's losses deepened to $21.08 per share in 2025 Q4 from a loss of $17.02 per share in 2024 Q4. Meanwhile, the company's net loss widened to $-3.73 billion in 2025 Q4, a 28.4% increase from the $-2.90 billion loss recorded in 2024 Q4. The EPS performance reflects a challenging financial period.

Post-Earnings Price Action Review

The strategy of purchasing TTWO following a revenue beat and holding for 30 days resulted in a 47.08% return, which significantly underperformed the benchmark return of 86.98%. This approach demonstrated considerable risk and volatility, as evidenced by a Sharpe ratio of 0.24 and a maximum drawdown of -58.14%. These metrics underscore the importance of robust risk management strategies in navigating the volatile nature of the market. Despite the underperformance, the stock exhibited resilience with recent price improvements, climbing 1.57% during the latest trading day, 3.06% over the past trading week, and gaining 9.11% month-to-date. Investors should remain vigilant and consider both the risks and potential rewards when employing such strategies in volatile market conditions.

CEO Commentary

Strauss Zelnick, CEO of Take-Two Interactive, highlighted the company’s outstanding fiscal performance, noting fourth-quarter net bookings of $1.58 billion, at the top of their guidance range. He emphasized the strong contributions from all labels, particularly 2K, with notable launches and a 42% growth in recurrent consumer spending for NBA 2K. Zelnick expressed confidence in future growth, attributing it to a robust pipeline including anticipated titles such as Mafia: The Old Country and Borderlands 4. He stated, "Consumer anticipation is unprecedented," for Grand Theft Auto VI, which is expected to redefine their financial baseline and profitability.

Guidance

Take-Two Interactive projects fiscal 2026 net bookings between $5.9 billion and $6 billion, reflecting 5% year-over-year growth at the midpoint. The guidance anticipates continued strong performance from NBA 2K and mobile titles, contributing to approximately 76% of net bookings. Operating cash flow is expected to be around $130 million, with capital expenditures planned at approximately $140 million for game technology and office buildouts. For the fiscal first quarter, net bookings are projected to range from $1.25 billion to $1.3 billion, with GAAP net revenue anticipated between $1.35 billion and $1.4 billion.

Additional News

Recently, Take-Two Interactive announced the release of a new gameplay trailer and developer insights video for "Mafia: The Old Country," set to launch on August 8, 2025. This announcement followed the release of the second trailer for "Grand Theft Auto VI," which has been highly anticipated by fans and is expected to release in May 2026. Additionally, Take-Two reiterated its expectations for achieving sequential increases and record levels of net bookings in fiscal 2026 and 2027, emphasizing its commitment to maintaining strong performance and growth across its portfolio. These developments reflect Take-Two's strategic focus on expanding its gaming lineup and capitalizing on consumer demand for its popular franchises.