Take-Two delivered a solid Q3 FY2025 (quarter ended December 31, 2024) with net bookings of $1.37 billion, broadly within guidance, underscored by the outsized performance of NBA 2K that more than offset softer mobile trends. GAAP net revenue was $1.36 billion, while net income came in at a negative $125.2 million with EPS of −$0.71, reflecting ongoing investments, a shift of operating expenses into the fourth quarter, and a lack of near-term profitability on some growth initiatives. Management highlighted a multi-year, high-visibility pipeline anchored by GTA VI (Fall 2025), Sid Meier’s Civilization VII (February 2025 launch in early access), and a slate of marquee titles across Zynga and 2K, positioning Take-Two for a pronounced inflection point in calendar year 2025 and beyond.
The company reiterated its full-year net bookings guidance of $5.55–$5.65 billion and outlined a constructive longer-term outlook through 2026–2027, emphasizing sequential increases in net bookings and an expanding pipeline. Notably, NBA 2K delivered exceptional engagement with >7 million unit sales to date and meaningful improvements in daily and monthly active users. Zynga’s mobile portfolio showed resilience and continued progress, led by Match Factory, Tune Blast, and Merge with Friends, even as certain hyper-casual titles faced headwinds. Management cautioned that the fourth quarter could reflect continued mobile dynamics and a shift of operating expenses. They also signaled a capital allocation framework that prioritizes debt reduction while preserving optionality for acquisitions. Overall, TTWO’s risk-reward balance remains favorable given a diversified IP portfolio, a robust pipeline, and improving direct-to-consumer (D2C) capabilities, albeit offset by near-term profitability pressures and a higher investment cadence.
Key takeaways for investors: (1) The NBA 2K ecosystem and associated live services remain a durable growth engine; (2) GTA VI and Civ VII are meaningful catalysts with potential multi-year impact on bookings and engagement; (3) Zynga’s scale provides a valuable mobile growth vector, with Match Factory turning profitable toward year-end; (4) Balance sheet remains liquidity-rich but levered, with a plan to improve cash flow through cost controls and selective capex.