Take-Two (NASDAQ: TTWO) bookings slide 18% ahead of Grand Theft Auto VI launch

What happened

Take-Two Interactive Software, Inc. (NASDAQ: TTWO) said fiscal second-quarter Net Bookings fell 18% to $1.60 billion. It reiterated its full-year outlook. The quarter ended Sept. 30, 2026. Net Bookings were $1.96 billion a year earlier, a gap of about $360 million.

GAAP net revenue was $1.50 billion, down from $1.77 billion. Net Bookings is the company's operating metric for products and services sold in the period. Take-Two kept its fiscal 2027 range at $8.0 to $8.2 billion.

Chairman and CEO Strauss Zelnick said the Grand Theft Auto VI launch is ten days away. He added that "with pre-orders continuing to reach unprecedented levels, we expect to deliver an historic year for our company." The release lists the game's date as Nov. 19.

Key numbers

Metric	Latest	Change	Source
Fiscal Q2 Net Bookings	$1.60 billion	from $1.96 billion, -18%	SEC 8-K, Exhibit 99.1
Fiscal Q2 GAAP net revenue	$1.50 billion	from $1.77 billion	SEC 8-K, Exhibit 99.1
Fiscal Q2 GAAP net loss	$54.0 million	from $133.9 million	SEC 8-K, Exhibit 99.1
Fiscal 2027 Net Bookings outlook	$8.0 billion to $8.2 billion		SEC 8-K, Exhibit 99.1
Fiscal Q3 Net Bookings outlook	$3.35 billion to $3.50 billion		SEC 8-K, Exhibit 99.1
Operating cash flow, six months	-$173.5 million	from $83.7 million	SEC 8-K, Exhibit 99.1

Read more: Take-Two Interactive Software (TTWO) company research

Where the quarter fell short

Net Bookings from recurrent consumer spending, which includes virtual currency and in-game purchases, fell 9% and made up 81% of the total. Full game and other Net Bookings dropped to $299.2 million from $532.2 million.

Mobile Net Bookings were $707.6 million, down from $818.1 million. Console fell to $742.6 million from $907.9 million. PC and other also declined.

The operating loss widened to $117.5 million from $98.0 million. The net loss narrowed to $54.0 million, or $0.29 per share, from $133.9 million, or $0.73 per share. Taxes explain most of that gain. A $57.9 million tax benefit replaced an $18.4 million tax charge. The loss before taxes was little changed at $111.9 million against $115.5 million.

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Why it matters

OptimistFi has argued that Take-Two is a high-upside but execution-heavy bet that scarce owned game IP can convert a major release cycle into durable, high-margin cash earnings. The quarter reads as mixed against that view. The existing business shrank before Grand Theft Auto VI launched.

Full game and other sales supplied 19% of Net Bookings, down from 27% a year earlier. That left the quarter leaning on recurrent spending, which also fell. A reiterated range keeps the year's promise intact, but it is a hold, not a raise.

What the outlook requires

Net Bookings for the first six months were $2.99 billion, against $3.38 billion a year earlier. By OptimistFi's calculation, the full-year range leaves $5.01 billion to $5.21 billion to book in the second half.

For the fiscal third quarter ending Dec. 31, Take-Two guided to Net Bookings of $3.35 billion to $3.50 billion, more than double the quarter just reported. It also guided to GAAP net revenue of $3.27 billion to $3.42 billion. Net income is guided at $250 million to $276 million, or $1.30 to $1.44 per share.

Cash is the other test. Operating activities used $173.5 million in the six months, against $83.7 million provided a year earlier. The outlook calls for operating cash flow of over $1 billion for the year. By OptimistFi's calculation, that needs more than $1.17 billion in the second half.

Cash and equivalents were $1.15 billion on Sept. 30, down from $1.55 billion on March 31, after $600.0 million of debt repayment. Short-term debt stood at $629.2 million, up from $30.0 million.

Full-year GAAP net income is guided at $109 million to $142 million, and non-GAAP EBITDA at $1.02 billion to $1.08 billion. The outlook assumes the titles in it arrive on time. The company lists its dependence on NBA 2K and Grand Theft Auto products among its risks.

What's next

The fiscal third quarter ends Dec. 31 and includes the Nov. 19 launch. Net Bookings at or above the low end of the quarter's outlook would support the case that a release cycle can turn into earnings. A shortfall would strain the second-half math behind the full-year range.

Take-Two said the results are preliminary. Final data will appear in its Form 10-Q for the period ended Sept. 30, 2026.

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