Take-Two’s fourth quarter saw a positive market reaction, as revenue growth and performance in key franchises exceeded Wall Street’s expectations. Management attributed the outperformance to strong results from its mobile business—including notable gains from TuneBlast, Match Factory, and Empires and Puzzles—alongside robust engagement in NBA 2K and Grand Theft Auto. CEO Strauss Zelnick called out the contributions of both new and established titles, stating, “All of our labels outperformed substantially our expectations and contributed to our ongoing success.”
Is now the time to buy TTWO? Find out in our full research report (it’s free for active Edge members).
Take-Two (TTWO) Q4 CY2025 Highlights:
- Revenue: $1.70 billion vs analyst estimates of $1.58 billion (24.9% year-on-year growth, 7.5% beat)
- EPS (GAAP): -$0.50 vs analyst expectations of -$0.39 (28.6% miss)
- Adjusted EBITDA: $334.3 million vs analyst estimates of $250.4 million (19.7% margin, 33.5% beat)
- Revenue Guidance for Q1 CY2026 is $1.60 billion at the midpoint, above analyst estimates of $1.52 billion
- EPS (GAAP) guidance for the full year is -$1.92 at the midpoint, missing analyst estimates by 3.4%
- EBITDA guidance for the full year is $669 million at the midpoint, below analyst estimates of $1.01 billion
- Operating Margin: -2.3%, up from -9.7% in the same quarter last year
- Market Capitalization: $37.97 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Take-Two’s Q4 Earnings Call
- Doug Creutz (TD Cowen) asked about the impact of generative AI on the business. CEO Strauss Zelnick explained that AI has always been core to game development and now offers new efficiency opportunities, with hundreds of pilots underway.
- Eric Handler (ROTH Capital Partners) inquired about the keys to mobile growth. Zelnick highlighted Zynga’s ability to repeatedly launch hit titles and the strategic importance of direct-to-consumer channels.
- Colin Sebastian (Baird) asked if Grand Theft Auto Online would remain relevant after Grand Theft Auto VI launches. Zelnick emphasized ongoing content updates and a strong player community as drivers of continued engagement.
- Chris Schoell (UBS) questioned what fuels NBA 2K’s ongoing success. President Karl Slatoff credited a data-driven approach to player feedback and constant feature refinement.
- Edward Alter (Jefferies) probed on mobile advertising revenue. Zelnick pointed to selective ad unit expansion and the opportunity to monetize non-paying users as factors supporting growth.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the scale and reception of Grand Theft Auto VI’s launch and its impact on overall franchise momentum, (2) the effectiveness of new direct-to-consumer initiatives in expanding margins, and (3) the pace at which AI-driven efficiencies translate to tangible cost savings. Further developments in mobile engagement and player monetization will also be key indicators of execution.
Take-Two currently trades at $206.25, down from $212.17 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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