Take-Two's first-quarter results highlight net bookings surpassing expectations, a modest rise in revenue, and the cancellation of a previously unannounced "new core IP" game.

GTA 6

Image credit: Rockstar Games

Take-Two reported better-than-expected Q1 results due to the success of NBA 2K6 and GTA, buttressed by its Zynga mobile offerings. The company maintains an annual net bookings forecast of $8 billion to $8.2 billion.

The firm disclosed a $43.4 million revenue impairment from the cancellation of an unnamed third-party developed game. This decision contributed to a notable surge in net loss compared to the previous year. Hannah Sage, Chief Accounting Officer, confirmed to GamesIndustry.biz that this canceled project was one of the three "core new IPs" mentioned in the FY 2026 report. As a result, Project ETHOS and Ken Levine's Judas remain as the only confirmed new IPs under development.

During an earnings call, CEO Strauss Zelnick described the pre-orders for GTA 6 as "unprecedented" but withheld further details, stating the numbers were so remarkable that their correlation to eventual sales remains uncertain.

Financial Summary

For the quarter ending June 30, 2026:

Net revenue: $1.53 billion, a 2% increase year-on-year
Net bookings: $1.39 billion, a 3% decrease year-on-year
Net loss: $34.1 million, a 186% increase year-on-year

Key Highlights

According to the company, the outcomes were "excellent," driven by standout performances from NBA 2K and the GTA franchise. GTA 5 has surpassed 230 million in units sold, with a 3% rise in recurrent consumer spending (RCS) for the period.

NBA 2K6 hit record sales for the series, selling 12 million units and achieving a 9% increase over its predecessor, with RCS growing by 7%. The company recorded a notable boost in user engagement including a 15% rise in average daily active users, a 25% jump in MyCAREER Daily Active Users, and a 35% surge in average games played per user.

While total RCS saw a 1% decline, this was stronger than the expected 3% drop and represented 84% of net bookings. The decline in mobile earnings (7%) offset gains in NBA 2K and GTA.

Direct-to-consumer web stores continue to significantly enhance revenue and margins. Despite expected declines in mobile RCS, due to last year’s success of Color Block Jam and moderating trends for some of Zynga's older titles, growth is anticipated.

GAAP net loss reached $34.1 million, compared to $11.9 million in Q1 2026. The increase included a $43.4 million impairment from scrapping further development on a third-party unannounced title.

Future projections show net bookings expected to consist of 37% from Rockstar Games, 34% from Zynga, and 29% from 2K. Main revenue drivers will include 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 projected to decline by 5%, foreseeing growth in NBA 2K and GTA, alongside a reduction in mobile.

The firm anticipates FY27 as "a milestone year," marking a new era of success through "groundbreaking entertainment experiences." They aim to achieve this via "carefully curated new opportunities," involving live-service improvements, franchise extensions, new IP launches, and international growth.