Take-Two’s Q1 results came in slightly ahead of guidance thanks to strong performance of NBA 2K6 and GTA supported by the Zynga mobile portfolio, with the firm maintaining its previous projection of $8-8.2 billion in net bookings for the full year.
The company also confirmed a $43.4M revenue impairment due to the cancellation of an “unannounced title in its pipeline from a third-party developer”, which contributed to a significant increase in net loss YoY. Chief Accounting Officer Hannah Sage confirmed to GamesIndustry.biz that the title was one of the three “core new IP” that the firm had referred to in its FY 2026 report, leaving the previously-announced (and recently rebooted) Project ETHOS and Ken Levine’s Judas as the company’s only confirmed new IP in development.
In an earnings call, CEO Strauss Zelnick described GTA 6 pre-orders as “unprecedented” but would not share details ahead of the game’s release, saying the figures were “so unprecedented we don’t know if it will translate into sales”.
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 firm described the results as “excellent”, saying that they reflected better-than-expected performance from NBA 2K and the Grand Theft Auto series. GTA 5 has now exceeded 230 million units sold, and recurrent consumer spending (RCS) increased 3% for the period.
NBA 2K6 achieved record performance for the franchise, with sales of 12M marking a 9% increase over the previous release, and RCS increasing by 7%. The firm said engagement was “up meaningfully during the quarter” 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 1% for the period, which beat the firm’s previous guidance of a 3% decline, and accounted for 84% of net bookings. The increases for NBA 2K and GTA were offset by a decline of 7% on mobile.
The launch of direct-to-consumer web stores “remains a significant driver of revenue and margin enhancement,” with further growth anticipated, although the firm is expecting mobile RCS to decline YoY “due to last year’s success of Color Block Jam, and our assumption that trends will moderate for several of Zynga’s mature mobile titles.”
GAAP net loss was $34.1 million, compared to $11.9 million for Q1 2026. The firm said its cost of revenue “included a $43.4 million impairment charge related to the Company’s decision not to proceed with further development of an unannounced title in its pipeline from a third-party developer,” but did not provide details.
Looking ahead, the firm’s projected $8 to $8.2B in net bookings is expected to be 37% Rockstar Games, 34% Zynga, and 29% 2K. The chief contributors are expected to be lead by “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 expected to decline 5%, with growth for NBA 2K and GTA and a decline for mobile.
The firm said FY27 was “on track to be a milestone year” that would be “an exciting new chapter in our history and provide the foundation for new levels of success and the creation of groundbreaking entertainment experiences.”
It said this would be delivered by “carefully curated new opportunities that we believe will sustain this new level of scale for the foreseeable future, including live-service enhancements, franchise extensions, the launch of new IP, and international expansion.”
