Take-Two Interactive

Take-Two Interactive (TTWO) Q1 2025 Earnings

Reported Aug 8, 2024 at 4:15 PM ET · SEC Source

Q1 25 EPS

$N/A

Est. $-0.02

Q1 25 Revenue

$1.34B

BEAT +6.78%

Est. $1.25B

vs S&P Since Q1 25

+23.9%

BEATING MARKET

TTWO +65.5% vs S&P +41.6%

Market Reaction

Did TTWO Beat Earnings? Q1 2025 Results

Take-Two Interactive delivered a stronger-than-expected fiscal Q1 2025, with GAAP net revenue climbing 4.2% year-over-year to $1.34 billion, beating consensus estimates of $1.25 billion by 6.78%, as robust game revenue growth to $1.22 billion more th… Read more Take-Two Interactive delivered a stronger-than-expected fiscal Q1 2025, with GAAP net revenue climbing 4.2% year-over-year to $1.34 billion, beating consensus estimates of $1.25 billion by 6.78%, as robust game revenue growth to $1.22 billion more than offset a sharp decline in advertising revenue from $188.60 million to $121.50 million. The company posted a GAAP net loss of $262.00 million, wider than the prior-year loss of $206.00 million, pressured by $49.50 million in business reorganization charges tied to the ongoing Zynga integration and a $49.80 million tax provision swing. Mobile continued to anchor the business, representing 54% of revenue, while recurrent consumer spending accounted for 82% of GAAP net revenue, reflecting the company's live-services-heavy model. Looking ahead, Take-Two reiterated its fiscal 2025 Net Bookings outlook of $5.55 to $5.65 billion, with management pointing to a loaded release slate including Grand Theft Auto VI, NBA 2K25, and Civilization VII as the primary catalysts for sequential Net Bookings growth expected in fiscal 2026 and 2027.

Key Takeaways

  • Net Bookings grew 1% YoY to $1.22 billion, in line with guidance
  • Recurrent consumer spending accounted for 83% of Net Bookings
  • NBA 2K24, GTA Online and GTA V were the largest contributors to Net Bookings
  • Game revenue increased from $1,096.1M to $1,216.7M YoY
  • Gross profit improved to $771.1M from $679.2M driven by lower cost of revenue
  • Digital online revenue accounted for 97% of total net revenue
  • Mobile platform represented 54% of net revenue
24/7 Wall St

TTWO YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

TTWO Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 23 Q4 26
24/7 Wall St

TTWO Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 23 Q4 26

“We achieved solid first quarter results by engaging our players with exciting new game releases and content updates, while also maintaining our focus on efficiency. Our management team remains confident in our path forward and we are reiterating our Net Bookings outlook for the year of $5.55 to $5.65 billion.”

— Strauss Zelnick, Q1 2025 Earnings Press Release