Inquired about the decision to partner with Netflix for the exclusive release of the GTA VI extended look trailer, rather than traditional free platforms.

Strauss Zelnick explained that Netflix is a close marketing and distribution partner, and this is a "first of its kind" groundbreaking partnership. The trailer will be available on Rockstar Games Channel and YouTube 6 hours after the initial Netflix launch. “This is the first of its kind partnership with Netflix. They're a great marketing partner for us and distribution partner, as you know. We also work with virtually every social media outlet on earth. This is part of Rockstar Games marketing strategy.”

Asked about the rationale behind pricing GTA VI at $80 while NBA 2K27 remains at $70, and the company's go-forward strategy for premium pricing.

Strauss Zelnick reiterated that Take-Two's goal is to deliver significantly more value than the price charged. He stated that GTA VI will be an "incredible bargain" given Rockstar's history of over-delivering, and that pricing decisions are made in the context of the value delivered, not to maximize price. “our goal is to deliver way more value to consumers than what we charge them. And the truth is that the real cost of a AAA video game is a whole lot lower today than it was 20 years ago. Pricing has not kept pace with inflation.”

Asked about the impact of rising chip costs and potential delays for next-gen consoles on Take-Two's business, and broader thoughts on the industry's platform evolution.

Strauss Zelnick acknowledged that rising hardware costs are not positive but not a headwind for Take-Two. He emphasized the shift to open systems (PC gaming growing) and the potential for streaming to expand the effective installed base tenfold within three years, making more devices into gaming machines. “Probably the most relevant thing is the world continues to move to open systems, and that will continue. So 20 years ago when we showed up here Take-Two for a console release that was available on PC at launch, PC would represent 1% to 2% of the overall sales. Today, that can be 40% or 50% in a similar situation.”

TTWO

Take Two Interactive Software (TTWO) Q1 FY27 earnings call: guidance and Q&A

Q: Asked if Take-Two observed a slowdown in the mobile market in Q2, similar to what a peer reported, attributing it to macro uncertainty.

Strauss Zelnick stated that Take-Two is not seeing a general slowdown in the mobile market. While user acquisition costs can be pressured by competitors, their titles are performing well, and the consumer engagement is fine. “No, it's really not what we're seeing. Our results have been affected by how Color Block JM is doing versus last year in terms of coping because it was a new title last year. But apart from that, we've delivered some really good news in mobile. There's no doubt there's a bit of pressure on user acquisition at the moment.”

Earnings call· Jun 2026 (Q1 FY27)· Information Technology· Aug 7, 2026

Source: earnings call transcript

Executive summary

Take-Two Interactive Software Q1 FY27 — Strong Start Driven by NBA 2K and Grand Theft Auto Series, Reaffirming FY27 Outlook

Take-Two delivered a strong Q1 FY27, exceeding net bookings guidance, driven by robust performance from NBA 2K and the Grand Theft Auto series, alongside solid mobile growth from key titles. The company reaffirmed its ambitious FY27 outlook, anticipating an inflection point with the upcoming Grand Theft Auto VI launch, which is expected to usher in a new era of growth and sustained scale, supported by a rich development pipeline and strategic international expansion.

Highlights

Q1 net bookings of $1.39 billion, slightly above the high end of guidance.
NBA 2K26 sold over 12 million units, reflecting 9% growth compared to NBA 2K25, with recurrent consumer spending growing 7%.
Grand Theft Auto V has sold over 230 million units worldwide, with recurrent consumer spending for the series growing 3%.
Mobile titles Toon Blast, Words With Friends, and Top Eleven exceeded expectations with net bookings growth of 8%, 8%, and 15% respectively.
Reiterating fiscal 2027 net bookings outlook of $8 billion to $8.2 billion, representing approximately 20% growth over fiscal 2026 at the midpoint.

Concerns

Cost of revenue rose 17% to $651 million, including a $43 million impairment charge related to an unannounced title.
Mobile net bookings are expected to be down in Q2 FY27, reflecting a tougher year-over-year comparison for Colorblock Jam and moderating trends for several mature titles.
User acquisition costs in the mobile market can be pressured by competitors overspending, potentially making it less economic for Take-Two to spend.

Guidance & targets

Category	Target	Timeline	Confidence
Fiscal 2027 Net Bookings	$8 billion to $8.2 billion high materiality	Fiscal Year 2027	High
Fiscal 2027 Recurrent Consumer Spending as % of Net Bookings	64% medium materiality	Fiscal Year 2027	High
Fiscal 2027 NBA 2K Net Bookings Growth	high single digits medium materiality	Fiscal Year 2027	High
Fiscal 2027 Grand Theft Auto Series Net Bookings Growth	up medium materiality	Fiscal Year 2027	High
Fiscal 2027 Mobile Net Bookings Growth	down medium materiality	Fiscal Year 2027	High
Fiscal 2027 Operating Cash Flow	in excess of $1 billion high materiality	Fiscal Year 2027	High
Net Cash Position	net cash position high materiality	by the end of the fiscal year · 2027	High
Fiscal 2027 Capital Expenditures	approximately $290 million medium materiality	Fiscal Year 2027	High
Fiscal 2027 GAAP Net Revenue	$7.9 billion to $8.1 billion high materiality	Fiscal Year 2027	High
Fiscal 2027 Cost of Revenue	$3.54 billion to $3.66 billion medium materiality	Fiscal Year 2027	High
Fiscal 2027 Total Operating Expenses	$4.15 billion to $4.17 billion medium materiality	Fiscal Year 2027	High
Fiscal 2027 Management Basis Operating Expense Growth	approximately 7% medium materiality	Fiscal Year 2027	High
Fiscal Q2 2027 Net Bookings	$1.62 billion to $1.67 billion high materiality	Q2 · 2027	High
Fiscal Q2 2027 Recurrent Consumer Spending Decline	approximately 5% medium materiality	Q2 · 2027	High
Fiscal Q2 2027 GAAP Net Revenue	$1.42 billion to $1.47 billion high materiality	Q2 · 2027	High
Fiscal Q2 2027 Operating Expenses	$1.01 billion to $1.02 billion medium materiality	Q2 · 2027	High
Fiscal Q2 2027 Management Basis Operating Expense Decline	approximately 5% medium materiality	Q2 · 2027	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Rockstar Games Expected to contribute roughly 37% of fiscal 2027 net bookings. The Grand Theft Auto series exceeded expectations in Q1, with GTA V reaching 230 million units sold and RCS growing 3%. Global excitement for GTA VI is building with exceptional preorders. Grand Theft Auto V units sold: 230 million worldwideGrand Theft Auto series recurrent consumer spending growth: 3% YoYGTA+ status: thrivingGrand Theft Auto VI preorders: exceptional start	—	—	—	—
Zynga Expected to contribute roughly 34% of fiscal 2027 net bookings. Zynga performed in line with expectations, with several titles showing strong growth and exceeding forecasts, including Toon Blast, Words With Friends, and Top Eleven. Toon Blast net bookings growth: 8% YoYWords With Friends net bookings growth: 8% YoYTop Eleven net bookings growth: 15% YoY	—	—	—	—
2K Expected to contribute roughly 29% of fiscal 2027 net bookings. NBA 2K26 performance was outstanding, concluding a record year with over 12 million units sold and significant engagement growth. 2K's mobile offerings also performed well, including NBA 2K AllStar in China. NBA 2K26 units sold: over 12 millionNBA 2K26 unit growth vs NBA 2K25: 9%NBA 2K recurrent consumer spending growth: 7% YoYNBA 2K average daily active users increase: 15%NBA 2K MyCareer daily active users increase: 25%NBA 2K average games played per user increase: 35%NBA 2K AllStar (China) registered users: over 10 million	—	—	—	—

TTWO operating KPIs by quarter

TTWO operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Jun 2025 Q1 FY26	Sep 2025 Q2 FY26	Dec 2025 Q3 FY26	Mar 2026 Q4 FY26	This call Jun 2026 Q1 FY27	Change vs prior quarter
Net bookings	$1.42B We delivered first quarter net bookings of $1.42 billion, which was significantly above our guidance range of $1.25 billion to $1.3 billion. Source: earnings call transcript	$1.96B We delivered fantastic second quarter results, including net bookings of $1.96 billion, which vastly exceeded our expectations and represent the best second quarter of net bookings in our company's history. Source: earnings call transcript	$1.76B I'm pleased to report that we delivered another outstanding quarter, including net bookings of $1.76 billion, which surpassed meaningfully the high end of our guidance. Source: earnings call transcript	$1.58B I'm pleased to report that we concluded fiscal year 2026 with excellent results, including fourth quarter Net bookings of $1.58 billion, which was above the high end of our guidance range. Source: earnings call transcript	~$1.39B We delivered first quarter net bookings of approximately $1.39 billion, which was slightly above the high end of our guidance range, primarily due to the outperformance of NBA 2K and the Grand Theft Auto series. Source: earnings call transcript	—
Employees	—	<13K I'd just like to take a moment once again to express my gratitude for the nearly 13,000 people who devote their careers to Take-Two and all of our affiliates all over the world because they're the ones who delivered these amazing results. Source: earnings call transcript	—	—	13K Guided by our core pillars to be the most creative, innovative and efficient entertainment company in the world, our 13,000 colleagues share a singular vision for excellence and hit creation. Source: earnings call transcript	—

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
PGA Tour 2K25 Season 7	update	July 8
GTA Online Court Center Heist	update	July 14
Borderlands 4 Bounty Pack 4: Mergers and Acquisitions	update	July 30
Mafia the Old Country: Man of Honor store expansion	expansion	August 14
WWE 2K26 WrestleMania 42 pack	update	August 19
NBA 2K27	launch	September 4
Top Goal	launch	currently in soft launch
Grand Theft Auto VI Extended Look	milestone	August 27
Grand Theft Auto VI	launch	November 19

Deals & partnerships

Netflix Exclusive initial distribution of Grand Theft Auto VI extended look trailer

Groundbreaking partnership for the initial exclusive release of the Grand Theft Auto VI extended look trailer on August 27, before wider availability.

Risks & headwinds

Pressure on mobile user acquisition costs current

less economic for us to spend

Mitigation:Pay attention to how much we spend on UA and how that fits with the lifetime value of the property; avoid overspending compared to competitors.

Rising cost of hardware (consoles) ongoing

not a good thing

Mitigation:Not seen as a headwind for Take-Two due to focus on delivering desired experiences; shift to open systems (PC) and future streaming will expand effective installed base.

Mobile net bookings decline Q2 FY27

approximately 5% decline (for RCS, mobile is a driver of this)

Mitigation:Attributed to tough year-over-year comps for Colorblock Jam and moderating trends for mature mobile titles, not a general market slowdown.

What to watch in Q2 FY27

Grand Theft Auto VI Extended Look Reception

August 27 (trailer release), leading up to November 19 (game release)

Current Exceptional start to preorders

Target Positive consumer and media response, further building anticipation

Why it matters

The reception of the extended look will be a key indicator of consumer sentiment and potential demand leading into the highly anticipated launch of Grand Theft Auto VI, which is expected to be an inflection point for the company.

Global excitement for the launch of Grand Theft Auto VI continues to build with the title having an exceptional start to preorders. With Rockstar Games recent announcement of Grand Theft Auto V, an extended look coming on August 27, we believe that consumers' passion and anticipation for the next evolution of this iconic series will grow further, leading up to the title's November 19 release.

Find out whether TTWO delivers this. Inve re-checks your case every morning.

Q&A highlights

Asked if Take-Two observed a slowdown in the mobile market in Q2, similar to what a peer reported, attributing it to macro uncertainty.

Strauss Zelnick stated that Take-Two is not seeing a general slowdown in the mobile market. While user acquisition costs can be pressured by competitors, their titles are performing well, and the consumer engagement is fine.

“No, it's really not what we're seeing. Our results have been affected by how Color Block JM is doing versus last year in terms of coping because it was a new title last year. But apart from that, we've delivered some really good news in mobile. There's no doubt there's a bit of pressure on user acquisition at the moment.”

asked by Doug Creutz · answered by Strauss Zelnick

2 min read 6 chapters

Detailed narrative

Q1 FY27 Performance Highlights

Take-Two reported Q1 FY27 net bookings of $1.39 billion, exceeding its guidance range, primarily driven by strong performances from NBA 2K and the Grand Theft Auto series. Recurrent consumer spending for the period declined 1%, which was better than the guided 3% decline, and accounted for 84% of net bookings. GAAP net revenue increased 2% to $1.5 billion.

Grand Theft Auto VI Anticipation

Global excitement for Grand Theft Auto VI continues to build, with the title experiencing an exceptional start to preorders. Rockstar Games announced an extended look for the title on August 27, further fueling anticipation for its November 19 release, which management believes will be an inflection point for the company.

Mobile Business Momentum

Zynga's mobile portfolio performed in line with expectations, with several "forever franchises" showing strong growth. Toon Blast, Words With Friends, and Top Eleven saw net bookings increase by 8%, 8%, and 15% year-over-year, respectively. NBA 2K AllStar, a mobile title in China, surpassed 10 million registered users and is yielding strong profit margins.

Strategic Focus on International Expansion

Take-Two is prioritizing increasing its international footprint, particularly in underrepresented territories like India, Africa, and Latin America. The company aims to shift the percentage of revenue derived from international markets over the next decade by leveraging geo-pricing tools and developing properties appealing to local consumers.

AI Integration and Creative Enhancement

Take-Two views AI and machine learning as integral to its entertainment creation process, enhancing creativity and efficiency rather than replacing human ingenuity. The company focuses on using AI to improve the quality of its games and create bigger hits, rather than solely for cost reduction, believing that efficiencies often lead to more ambitious creative endeavors.

Future of Gaming and Streaming

Management anticipates that the world will continue to move towards open systems, with PC gaming's share of sales growing significantly. They also believe that low-latency commercial streaming solutions will emerge within three years, potentially expanding the effective installed base of game machines tenfold by enabling non-gaming devices to become gaming platforms.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.