TAKE TWO INTERACTIVE SOFTWARE INC Q4 FY2025 earnings call

• Concluded 2025 fiscal year with outstanding results, including fourth quarter net bookings of $1.58 billion (top of guidance range). - Each label contributed meaningfully: 2K had successful launches of Civilization VII, WWE 2K25, PGA TOUR 2K25; NBA 2K had strong recurrent spending growth; Rockstar Games' series exceeded forecasts; Zynga gained momentum. - Provided initial financial outlook for fiscal 2026 with net bookings $5.9B-$6B (5% Y/Y growth midpoint). - Rockstar expects to release Grand Theft Auto VI on May 26, 2026. - Details on upcoming titles: Mafia: The Old Country (Aug 8), Borderlands 4 (Sep 12), and updates on NBA 2K, WWE 2K, and mobile releases.

2K: Fourth quarter had strong performance with successful launches like Sid Meier’s Civilization VII, WWE 2K25, and PGA TOUR 2K25. NBA 2K had 42% recurrent consumer spending growth. WWE 2K25 saw 20% recurrent spending growth and PGA TOUR 2K25 had significant recurrent consumer spending growth compared to prior iteration. Rockstar Games: Grand Theft Auto and Red Dead Redemption series exceeded forecasts. GTA V sold-in over 215 million units with 5% year-over-year recurrent consumer spending growth. Red Dead Redemption 2 net bookings grew 23%. Zynga: Overperformed with titles like Match Factory, Toon Blast, and Color Block Jam leading to strong mobile performance.

• Fiscal 2026 net bookings range $5.9B-$6B (5% Y/Y growth midpoint). - First quarter 2026 net bookings range $1.25B-$1.3B. - Recurrent consumer spending expected flat in 2026 vs 2025, accounting for 76% of net bookings. - GAAP net revenue for 2026 ranges $5.95B-$6.05B, cost of revenue $2.52B-$2.55B, operating expenses $3.78B-$3.8B. - Fiscal first quarter 2026 net bookings $1.25B-$1.3B, GAAP net revenue $1.35B-$1.4B, cost of revenue $544M-$562M.

• Forward-looking statements are subject to factors that could cause actual results to differ, as described in SEC filings including risk factors. - Market conditions, competition, and regulatory issues could impact operating results.

Q: Thoughts on pricing strategy for titles like Mafia: The Old Country and future variable pricing?

A: We aim to deliver value to consumers. For Mafia: The Old Country, we want to get it into as many hands as possible, and revenue will take care of itself if it's a hit.

Q: About $3.5 billion goodwill impairment related to Zynga?

A: It was a partial impairment of one reporting unit, resulting from updating long-term expectations, tested annually or when impairment indicators arise.

Q: Structural changes with Zynga?

A: It's a result of testing long-term expectations and updating forecasts, no structural changes indicated.

Q: Can margins return to previous levels?

A: No reason they can't, as we've been working on cost reduction and efficiency to achieve those margins.

Q: Mobile segment performance and future growth?

A: Zynga is creating new mobile hits like Match Factory! and Color Block Jam, with learnings shared across studios. Future growth depends on continued successful releases and leveraging consumer database and ecosystem promotion.

Q: Partnership with Netflix for games?

A: Partnership with Netflix has been great, with learnings from scaling games, and potential for more titles, though not focused on other media transformation as a driver.

Q: Impact of GTA VI trailers on GTA Online?

A: Early to say on immediate results, but the second trailer had 475M views in 24 hours, showing strong anticipation for GTA VI.