The quarter beat published revenue expectations but missed the company’s own bookings target. Net revenue was $1,533.9 million versus published estimates around $1.45–$1.48 billion, while Net Bookings were $1,385.9 million—well below Take-Two’s prior $1,620–$1,670 million outlook, though above some external estimates around $1.32–$1.34 billion. The gap matters because bookings better capture current-period demand; reported revenue benefited from a $148.0 million unfavorable adjustment related to deferred revenue recognition. (Financial Highlights; Net Revenue and Net Bookings by Content)
| Metric | Q1 FY2027 | Q1 FY2026 | Outlook / expectation |
|---|---|---|---|
| Net revenue | $1,533.9M | $1,503.8M | Company guide: $1,420–$1,470M |
| Net Bookings | $1,385.9M | $1,423.1M | Company guide: $1,620–$1,670M; published estimates: ~$1.32–$1.34B |
| GAAP net loss | $(34.1)M | $(11.9)M | Published EPS consensus: ~$0.33 profit |
| EBITDA | $167.0M | $225.5M | No reliable published consensus provided |
| Operating cash flow | $(168.8)M | $(44.7)M | Full-year outlook: over $1,000M cash from operations |
Underlying demand was softer than the headline revenue suggests. Net Bookings declined 2.6% year over year, with recurrent consumer spending bookings down to $1,169.4 million from $1,183.5 million and mobile bookings falling to $739.5 million from $792.8 million. Console bookings improved to $525.2 million from $474.4 million, but that was not enough to offset mobile and PC weakness. (Net Revenue and Net Bookings by Content, Platform Mix, Distribution Channel, and Geographic Region)
Profitability also deteriorated, partly for a disclosed one-time reason. GAAP net loss widened to $34.1 million from $11.9 million, and EBITDA fell to $167.0 million from $225.5 million. Cost of revenue included a $43.4 million impairment charge tied to an abandoned third-party title, so the GAAP loss overstates the recurring damage; nevertheless, even EBITDA declined materially, while software development costs and royalties rose to $135.1 million from $30.1 million. (Statement of Operations; Reconciliation of GAAP to Non-GAAP Measure)
Management left the full-year GTA VI setup unchanged rather than raising the bar. Fiscal 2027 Net Bookings guidance remains $8.0–$8.2 billion, with Grand Theft Auto VI still scheduled for November 19, 2026. That preserves the central thesis, but the company did not use the quarter to increase expectations after the bookings shortfall. Near-term guidance calls for $1.62–$1.67 billion of second-quarter bookings and negative-to-breakeven EBITDA, placing more weight on the upcoming release slate and GTA VI launch. (Fiscal Year Ending March 31, 2027 Outlook; Three Months Ending September 30, 2026 Outlook)
Net read: modestly negative versus the full information set. Revenue and external bookings estimates were better than feared, but the miss against Take-Two’s own bookings guide, weaker recurring bookings, lower EBITDA, and heavier operating cash burn outweigh the revenue beat. Reaffirming the annual outlook prevents this from being a fundamental reset, but it leaves the quarter dependent on execution later in the year rather than demonstrating that momentum is already accelerating. (Cash Flow Statement; Financial Outlook)
Read the original 8-K on SEC EDGAR ↗