Take-Two shares rise 8.2% despite Q2 sales miss and lower bookings

Take-Two Interactive (TTWO) posted a fiscal second-quarter loss of 29 cents per share on revenue of $1.50 billion, below the $1.61 billion consensus estimate.

Shares rose 8.2% at 3:59 p.m. ET on Nov. 10, from a $207.40 close.

Here's how the company did:

• Net loss per share: 29 cents vs. 73 cents a year earlier
• Net revenue: $1.50 billion vs. $1.77 billion a year earlier
• Net Bookings: $1.60 billion vs. $1.96 billion a year earlier
• EBITDA: $92.2 million vs. $116.7 million a year earlier

The loss compares with a 96-cent consensus estimate of profit. Net loss narrowed to $54.0 million from $133.9 million a year earlier; for the six months, it was $88.1 million, versus $145.8 million.

Net Bookings, the company's operating metric, fell 18%. Recurrent consumer spending made up 81% of the total and fell 9%.

Revenue has fallen for three straight quarters, from $1.77 billion in the second quarter of fiscal 2026 to $1.53 billion in the first quarter of fiscal 2027.

Digital online channels made up 97% of net revenue, at $1.46 billion. Mobile revenue was $731.1 million, down from $821.6 million; console $615.4 million, from $720.0 million; PC and other $150.5 million, from $232.2 million.

Top Net Bookings contributors included NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Empires & Puzzles, the Borderlands franchise and Words With Friends.

Chairman and CEO Strauss Zelnick said the company will "release new hits, explore emerging business opportunities, expand our geographic footprint, and pursue accretive M&A."

Fiscal 2027 outlook

The company reiterated its fiscal 2027 Net Bookings outlook of $8.0 billion to $8.2 billion.

Total net revenue is expected at $7.98 billion to $8.18 billion, with net income of $109 million to $142 million and diluted net income per share of 57 cents to 75 cents.

EBITDA is expected at $1.02 billion to $1.08 billion. About $290 million in capital expenditures is expected, and net cash from operating activities is expected to be over $1.00 billion.

Third-quarter outlook

For the fiscal third quarter ending Dec. 31, 2026, the company expects total net revenue of $3.27 billion to $3.42 billion and Net Bookings of $3.35 billion to $3.50 billion.

Diluted net income per share is expected at $1.30 to $1.44, on net income of $250 million to $276 million.

Cash and debt

Cash and cash equivalents were $1.15 billion at Sept. 30, down from $1.55 billion at March 31. Short-term debt, net, was $629.2 million, up from $30.0 million.