Take-Two Interactive Inc. Form 10-Q – Fiscal Year 2026, Quarter 3

Take‑Two Interactive Inc. reported a net loss of $92.9 million for the quarter ended December 31, 2025, a narrowing from the $125.2 million loss in the same period a year earlier. Net revenue rose 25% YoY to $1.699 billion, driven by game sales of $1.570 billion and advertising revenue of $128.7 million, with recurrent consumer‑spending accounting for 77% of total revenue. Gross margin held steady at 55.6%, supported by flagship franchises such as Grand Theft Auto and NBA 2K, while operating cash flow turned positive at $388.9 million for the quarter, largely due to software‑development amortization and stock‑based compensation. Cash balances stood at $2.16 billion against unchanged debt of $2.49 billion, leaving shareholders’ equity at $3.50 billion.

For the nine‑month period, net revenue increased to $4.976 billion from $4.051 billion, and the comprehensive loss narrowed to $177.9 million from $752.7 million a year earlier. Operating expenses rose modestly to $2.986 billion, with selling‑and‑marketing and R&D costs offset by a small reduction in G&A. The company’s liquidity remains robust, with cash and equivalents at $2.25 billion after equity issuances and debt repayments.

Financially, Take‑Two maintains a $1 billion revolving credit facility and has issued senior notes totaling $2.7 billion to fund the Zynga acquisition and refinance debt, with remaining 2026 notes of $29.4 million. Convertible notes from Zynga were largely tendered or converted in 2025, leaving a $32.6 million fair‑value liability recorded in operating results.

Operating results are seasonal, peaking in Q4, and the company hedges interest‑rate and foreign‑currency exposure with forward contracts. Internal controls over financial reporting were deemed effective, and the share‑repurchase program remained largely idle during the quarter.