$TTWO · TAKE TWO INTERACTIVE SOFTWARE INC
Take-Two Interactive filed its 10-Q for Q2 FY2027 (ended September 30, 2026). Total net revenue declined 15.6% YoY to $1.497B, driven by lower game revenue ($1.376B vs $1.641B) and advertising ($121.0M vs $132.9M). Net loss narrowed to $54.0M ($0.29/share) from $133.9M ($0.73/share) a year earlier, helped by a $57.9M income tax benefit. Gross margin improved to 57.5% from 55.3%. Operating loss widened to $117.5M from $98.0M.
- Revenue fell 15.6% YoY to $1.497B, with game revenue down $264.9M to $1.376B.
- Net loss narrowed to $54.0M ($0.29/share) from $133.9M ($0.73/share) a year earlier.
- Gross margin improved to 57.5% from 55.3% on lower cost of revenue.
- Borderlands franchise revenue fell $128.0M and Mafia fell $56.3M YoY.
- Recurrent consumer spending rose to 80.8% of revenue from 71.9% a year ago.
Extended-hours trading shows the stock up 3.76% to $215.20 vs the $207.40 regular close, suggesting investors focused on the narrowed loss and margin improvement despite the revenue decline.
Take-Two's shrinking top line and widening operating loss show the post-launch revenue gap, even as a tax benefit and margin gains narrowed the net loss.
The revenue decline reflects tough comparisons against September 2025's Borderlands 4 and August 2025's Mafia: The Old Country launches, a common post-launch hangover for major publishers.
Revenue concentration risk is rising as recurrent consumer spending (80.8% of revenue) and mobile (48.8%) dominate, while full-game sales fell sharply. Deferred revenue declined to $1.042B from $1.190B, signaling weaker future bookings.