Take-Two’s first-quarter results exceeded expectations, driven by the strong performance of NBA 2K6 and GTA, along with support from Zynga’s mobile portfolio. The company maintained its full-year net bookings projection of $8-8.2 billion.
The company also disclosed a $43.4 million revenue impairment due to the cancellation of an undisclosed title from a third-party developer, leading to a significant year-over-year increase in net loss. Chief Accounting Officer Hannah Sage confirmed that the canceled title was one of the three “core new IP” mentioned in the FY 2026 report, leaving Project ETHOS and Ken Levine’s Judas as the only confirmed new IPs in development.
During an earnings call, CEO Strauss Zelnick mentioned that GTA 6 pre-orders were “unprecedented,” but details were not shared as the figures were so significant that their impact on sales was uncertain.
The numbers
For the three months ending June 30, 2026:
- Net revenue: $1.53 billion (up 2% YoY)
- Net bookings: $1.39 billion (down 3% YoY)
- Net loss: $34.1 million (up 186% YoY)
The highlights
The company described the results as “excellent,” attributing them to the strong performance of NBA 2K and the Grand Theft Auto series. GTA 5 has now sold over 230 million units, and recurrent consumer spending (RCS) increased by 3% during the period.
NBA 2K6 achieved record sales for the franchise, with a 9% increase over the previous release, totaling 12 million units sold. RCS also saw a 7% increase. Engagement metrics showed significant growth, with a 15% increase in average daily active users, a 25% increase in MyCAREER Daily Active Users, and a 35% increase in average games played per user.
Total RCS declined by 1% for the period, surpassing the company’s previous guidance of a 3% decline, with 84% of net bookings coming from RCS. While NBA 2K and GTA saw growth, mobile experienced a 7% decline.
The company highlighted the importance of direct-to-consumer web stores in driving revenue and margin growth, with expectations for further expansion. However, mobile RCS is anticipated to decline year-over-year due to the previous success of Color Block Jam and expected moderation in trends for Zynga’s mature mobile titles.
GAAP net loss for the quarter was $34.1 million, compared to $11.9 million in Q1 2026. The cost of revenue included a $43.4 million impairment charge related to the decision to halt development of the undisclosed title from a third-party developer.
Looking ahead, the company projects $8 to $8.2 billion in net bookings, with Rockstar Games accounting for 37%, Zynga for 34%, and 2K for 29%. Key contributors are expected to be the Grand Theft Auto series, NBA 2K, Toon Blast, Match Factory, Empires & Puzzles, Words With Friends, the Red Dead Redemption series, WWE 2K, Color Block Jam, and Zynga Poker.
RCS is forecasted to decline by 5%, driven by growth in NBA 2K and GTA, and a decline in mobile. The company anticipates FY27 to be a significant year, promising new levels of success and groundbreaking entertainment experiences through curated opportunities such as live-service enhancements, franchise extensions, new IP launches, and international expansion.