TAKE TWO INTERACTIVE SOFTWARE INC (TTWO) Interim Filing — Revenue Rises Year Over Year While Operating Result Swings From Profit to Loss

Bottom line

- For the three-month reporting period identified by period-ended-2026-06-30 and filed under 10-Q (accession 0001628280-26-054870, CIK 0000946581, ticker TTWO), TAKE TWO INTERACTIVE SOFTWARE INC reported a wider top-line and bottom-line deficit than the prior-year comparative, while reversing a prior operating profit into a current operating loss. - Revenue from Contract with Customer, Excluding Assessed Tax moved higher year-over-year, rising from $1,503,800,000 in the three months ended June 30, 2025 to $1,533,900,000 in the three months ended June 30, 2026, a direction the machine catalog records as positive on both sides with an authorized increase.

- Operating Income (Loss) flipped sign: the prior-year comparative was a profit of $21,600,000, whereas the current period recorded a loss of -$35,500,000, an authorized profit-to-loss transition. - Net Income (Loss) Attributable to Parent stayed in loss territory on both sides of the comparison, worsening from -$11,900,000 in the three months ended June 30, 2025 to -$34,100,000 in the three months ended June 30, 2026, an authorized loss-to-loss transition with a decrease in magnitude. 18 per diluted share for the current quarter, an authorized loss-to-loss transition with a decrease in magnitude.

- The filing describes itself as the unaudited Condensed Consolidated Financial Statements of a leading developer, publisher, and marketer of interactive entertainment delivered through Rockstar Games and Zynga across console, mobile and PC, with revenue split between point-in-time software sales and over-time recognition tied to game-related services, virtual currency, in-game purchases and advertising. - Reporting scope is limited to the cited interim items and the cited note on revenue disaggregation; the source narrative shows immaterial reclassifications to prior period amounts to conform to current presentation, and notes pending evaluation of three recently issued FASB updates covering government grants, internal-use software, and expense disaggregation disclosures.

- The filing evidence does not attribute this change to any single cause. - No peer or industry benchmark is presented alongside these figures. The filing evidence contains no peer or industry comparison.

- Readers comparing this interim result with peers such as the REINSURANCE GROUP OF AMERICA INC filing or the UFP TECHNOLOGIES INC interim filing should treat each as a standalone event, since the filing evidence here offers no cross-company reference set.

Financial performance

- Reported figures for TAKE TWO INTERACTIVE SOFTWARE INC (TTWO) under 10-Q for period-ended-2026-06-30 cover the three months ended the three months ended June 30, 2026, with the three months ended June 30, 2025 as the comparative window. The filing's discussion frames these condensed results as preliminary and subject to material change, and notes that certain footnote disclosures ordinarily required under U.S. GAAP have been condensed or omitted under SEC rules. The cited note explains that actual results could differ materially from estimates, that disclosures are believed adequate to make the information not misleading, and that the Condensed Consolidated Financial Statements should be read alongside the annual filing. Immaterial reclassifications have been made to prior period amounts to conform to the current presentation.

- Revenue from Contract with Customer, Excluding Assessed Tax for the current three-month reporting period was $1,533,900,000 USD, compared with $1,503,800,000 USD for the prior-year three-month period. The authorized direction is an increase year over year; the prior period already sat at a positive level and the current period remains positive.

- Earnings Per Share, Diluted for the three-month reporting period was -$0.18 per diluted share USD/SHARES, versus -$0.07 per diluted share USD/SHARES for the prior-year comparative period. The authorized direction is a decrease, and the authorized transition is loss to loss — both windows are negative, with the current period deeper into loss than the prior period.

- Net Income (Loss) Attributable to Parent for the current three-month reporting period was -$34,100,000 USD, against -$11,900,000 USD for the prior-year three-month period. The authorized direction is a decrease, and the authorized transition is again loss to loss — both periods sit in negative territory, with the current period showing a wider loss than the prior period.

- Operating Income (Loss) for the current three-month reporting period was -$35,500,000 USD, compared with $21,600,000 USD for the prior-year comparative period. The authorized direction is a decrease, and the authorized transition is profit to loss — the prior period was positive while the current period has moved into negative operating territory, the most pronounced directional shift among the lines tracked.

- On accounting context, the source narrative discloses several recently issued FASB updates still under evaluation: a Government Grants ASU, an Internal-Use Software ASU that would remove prescriptive development-stage references and shift capitalization to when management has authorized and committed to funding a project, and an Expense Disaggregation Disclosures ASU. The revenue disaggregation note separates net revenue into amounts recognized over time (game-related services, virtual currency transactions, in-game purchases, in-game advertising) and amounts recognized at a point in time (control transfers of software products). Deferred revenue activity during the period reflects ordinary-course performance obligations rather than a structural shift, and certain accounts receivable are sold without recourse to a financial institution with the cash flow remitted after collection. No forward-looking guidance figures are stated in the quoted material, so the issuer's own forward expectations sit outside this filing window.

- The filing evidence does not attribute this change to any single cause.

- The filing evidence contains no peer or industry comparison.

Operating drivers and segments

The filing covers TAKE TWO INTERACTIVE SOFTWARE INC as a single consolidated interactive entertainment group, organized around three named publishing labels rather than discrete reportable segments with separate margins. Management describes the operating model as developing, operating, and publishing titles principally through Rockstar Games, the cited second label, and Zynga, with products distributed across console systems, mobile (including smartphones and tablets), and PC, and delivered through physical retail, digital download, online platforms, and cloud streaming services.

Within that single reportable view, revenue for the three-month reporting period is reported under the line Revenue from Contract with Customer, Excluding Assessed Tax of $1,533,900,000, which is higher than the prior-year comparative of $1,503,800,000 for the three months ended June 30, 2025, an authorized increase on a positive base. Operating Income (Loss), by contrast, has shifted in the opposite direction: the three-month reporting period shows an Operating Loss of -$35,500,000, an authorized decrease against the prior-year comparative Operating Income of $21,600,000, moving the line from a profit in the three months ended June 30, 2025 to a loss in the three months ended June 30, 2026.

No segment-level revenue or margin breakdown is presented in the quoted narrative, so the analyst cannot separate label economics, platform mix, or geography from the consolidated figures. Management's framing is descriptive rather than causal. The narrative positions the company as a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe and emphasizes the breadth of distribution channels.

Disaggregation of revenue is explained through timing of recognition rather than by segment: net revenue recognized at a point in time is described as the portion of revenue from software products recognized when the customer takes control of the product, while net revenue recognized over time is described as revenue from software products that include game-related services, separate virtual currency transactions, and in-game purchases, recognized over an estimated service period, plus in-game advertising recognized over a contractual term.

Management also flags that certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation, and that interim results may not be indicative of the full fiscal year. Beyond disclosure of those reclassifications and the timing-based revenue description, management offers no quantitative driver for the swing from operating profit to operating loss on higher revenue. The revenue direction is consistent with the kind of top-line growth readers can cross-check against peers such as REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in Filing, although that comparison spans an unrelated industry and the filing evidence contains no peer or industry benchmark, so any sector read-across must be made cautiously and on a qualitative basis only.

On the cost side, the filing does not attribute the profit-to-loss transition to a single identifiable driver. The filing evidence does not attribute this change to any single cause.

Cash flow and capital

The three-month period under review showed operating cash outflows of -$168,800,000, a deeper use of cash than the prior-year comparative period of -$44,700,000. Investing activities absorbed -$52,400,000 during the quarter, again a larger outflow than the prior-year -$36,800,000, indicating continued deployment of cash into the investment portfolio. Financing activities were a source of cash, contributing $30,500,000 versus $618,300,000 in the prior-year period — a smaller inflow year over year. Capital expenditures, captured within investing outflows, ran at $25,000,000, below the prior-year level of $25,100,000, consistent with the asset-light software model.

On the balance sheet at the balance sheet date of June 30, 2026, liquidity remained the headline figure, with cash and cash equivalents of $1,364,900,000. Working-capital items showed accounts receivable of $606,900,000 and accounts payable of $179,500,000. Long-term debt, excluding current maturities, stood at $1,889,800,000.

Counter-evidence to a deteriorating cash story comes from the financing line, which remained positive in the current quarter, suggesting the company continues to access capital markets even as operations consumed cash. The financing inflow remains materially smaller than the prior year, however, so the cushion from external sources is thinner than it once was. The filing evidence does not attribute this change to any single cause.

Management explanation cited in the filing highlights the use of receivables-sale arrangements, noting that "as these accounts receivable are sold without recourse, we do not retain the associated risks of lack of payment due to insolvency of the account debtors following the transfer of such accounts receivable to such financial institution," and confirming that "no receivables were sold under this facility during the three months" — meaning the reported operating cash flow figure understates any potential liquidity enhancement the facility could have provided. The filing also notes that proceeds from such arrangements "will be reflected as cash provided by operating activities." Deferred-revenue mechanics are described as moving "in the ordinary course of business," with additions tied to "cash payments received or due in advance of satisfying our performance obligations" and reductions tied to "the recognition of revenue upon fulfillment of our performance obligations."

Analyst inference must stay narrow: operating and investing outflows both widened year over year, while financing inflows narrowed, leaving the net cash trajectory implicitly weaker without quantifying it. The recurring fair-value hierarchy described in the filing — referencing Level 1, Level 2, and Level 3 — is presented only as policy context and does not, on this section's facts, disclose material level-three balances that would alter the liquidity picture. The filing evidence contains no peer or industry comparison.

Unknowns that this filing does not resolve include any segment-level cash-flow allocation, beyond the consolidated figures cited, and any causal attribution for the year-over-year changes. As required, those gaps are flagged with the machine-owned statements rather than narrative explanation.

Peer and historical context

- Reader-facing analysis grounded only in the source record and the catalog keys is written below, with reported figures, prior-period comparatives, and the reported directional relations presented as published. - Revenue from Contract with Customer, Excluding Assessed Tax is the headline top-line anchor for this period comparison. Against the prior-year comparative, the authorized direction is increase, so the current quarter sits higher than the prior-year comparative period; both windows are positive.

Reported revenue for the three-month reporting period is recorded at $1,533,900,000 USD, with the prior-year comparative period at $1,503,800,000 USD. - Operating Income (Loss) tells the opposite story on profitability. The authorized direction is decrease, and the authorized transition is profit to loss — meaning the prior-year comparative period was a profit and the current quarter is a loss.

The current Operating Income (Loss) is recorded at -$35,500,000 USD, and the prior-year comparative period is recorded at $21,600,000 USD. The change in operating profitability therefore coincides with top-line growth on this single-window read. - Net Income (Loss) Attributable to Parent shows a loss on both windows.

The authorized direction is decrease and the authorized transition is loss to loss, so the current-quarter loss is deeper than the prior-year comparative loss. The current figure is recorded at -$34,100,000 USD and the prior-year comparative at -$11,900,000 USD. Against the operating swing above, the bottom-line picture is a wider loss rather than a narrowing one.

- Net Cash Provided by (Used in) Operating Activities is negative on both windows. The authorized direction is decrease, so the cash outflow in the current quarter is larger in magnitude than the cash outflow in the prior-year comparative period. The current value is recorded at -$168,800,000 USD and the prior-year comparative at -$44,700,000 USD.

This widening operating outflow is consistent in the direction-of-change sense with the profit-to-loss shift above, while the prior-period cash flow comparison itself remains a loss on both windows. - Across these four lines, the pattern within this single filing window is: higher revenue than the prior-year period, a profit turning into an operating loss, a loss-to-loss net income line that is larger in magnitude, and an operating cash outflow that is larger in magnitude. The filing evidence does not attribute this combined pattern to any single cause, so further driver commentary is omitted from this section.

- The filing evidence contains no peer or industry comparison for TAKE TWO INTERACTIVE SOFTWARE INC on these dimensions, so no external benchmarking is presented in this section. The peer-and-historical read here is therefore a self-comparison against the prior-year comparative period only. - The fair-value hierarchy context, management-agreement context, and derivative-instrument context in the filing narrative do not contain period-over-period figures that would change the directional read above; they are not used here to derive a separate comparative claim.

- No segment-level detail is disclosed for these dimensions in the filing evidence, so this section intentionally does not break out a by-segment view.

Scenario analysis

the filing for TAKE TWO INTERACTIVE SOFTWARE INC under 10-Q for period-ended-2026-06-30 (accession 0001628280-26-054870, CIK 0000946581, ticker TTWO) offers only a narrow slice of operational data from which to build conditional scenarios. The interim disclosure provides two anchor facts for any branching view: revenue ($1,533,900,000) for the three-month period the three months ended June 30, 2026 versus the prior-year comparative ($1,503,800,000 for the three months ended June 30, 2025), and net income attributable to parent (-$34,100,000 for the three months ended June 30, 2026 against -$11,900,000 for the three months ended June 30, 2025). The reported comparison confirms revenue moved higher year-over-year while the bottom line moved lower, both against losses. Beyond these two facts, the quoted evidence does not break out cost lines, margin compression, or segment health, so the scenario fan is necessarily built on qualitative branching rather than a quantified base case.

Reported facts: - Revenue for the three-month period the three months ended June 30, 2026 printed at $1,533,900,000 USD, above the prior-year comparative of $1,503,800,000 USD for the three months ended June 30, 2025. - Net loss attributable to parent for the three months ended June 30, 2026 was -$34,100,000 USD, wider than the prior-year loss of -$11,900,000 USD. - The interim report references only the residual cover-page items in the second part: legal proceedings, risk factors, unregistered sales of equity, controls and procedures, quantitative and qualitative market-risk disclosures, other information, exhibits, and signatures — all summarized under Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, and Item 6.

Management explanations: - The narrative restricts commentary to performance-based restricted stock units, the fair value hierarchy under Level 1, Level 2, and Level 3, equity investments measured at cost less impairment, and the use of short-term foreign currency forward contracts to dampen balance-sheet exposure. No management commentary addresses the revenue increase, the wider loss, or the year-over-year gap.

Analyst inference: - The base path is a continuation of the disclosed configuration: revenue holds the year-over-year increase while the loss remains a loss, consistent with the reported transition of loss to loss. - The upside path requires the revenue lift to compound while the net-loss line stabilizes, leaving the issuer closer to break-even without requiring a claim about magnitude. - The downside path assumes the revenue gain does not absorb the cost base, leaving the loss wider than the prior-year comparable The filing evidence does not attribute this change to any single cause..

Counter-evidence: - Operating-cash and investing-cash disclosures, share count, fair-value tiers, and any segment split are not surfaced in the quoted evidence The filing evidence does not disclose segment-level detail for this dimension.. - The filing contains no peer or industry read-across The filing evidence contains no peer or industry comparison..

Unknowns: - The source of the wider loss, the durability of the revenue lift, and any non-GAAP bridge are not addressed in the quoted narrative The filing evidence does not attribute this change to any single cause.. Readers seeking comparable top-line growth can review REINSURANCE GROUP OF AMERICA INC Posts Higher Revenue and Net Income in period-ended-2026-06-30 Filing for a different mix of revenue and earnings direction.

Risks and what to watch

- Reported facts: The interim filing under 10-Q for period-ended-2026-06-30 (accession 0001628280-26-054870, CIK 0000946581, ticker TTWO) shows Revenue from Contract with Customer, Excluding Assessed Tax of $1,533,900,000 USD for the three months ended June 30, 2026, against $1,503,800,000 USD for the three months ended June 30, 2025. Net Income (Loss) Attributable to Parent for the same windows stood at -$34,100,000 USD and -$11,900,000 USD respectively, with both periods registering a loss. These are the headline datapoints a reviewer carries into any read of TAKE TWO INTERACTIVE SOFTWARE INC's risk posture.

- Management explanations: The narrative accompanying the financial statements discusses nonrecurring fair value measurements on equity investments in unconsolidated privately-held affiliates, where the practical expedient permits measurement at cost less impairment and adjusted for observable price changes. Management also discusses a derivatives program used to dampen foreign-currency volatility on earnings, cash flows, and balance sheet exposures, with short-dated forward contracts not designated as hedges under formal hedge accounting.

- Analyst inference: Given that revenue is positive on both windows but the bottom line is negative in both, and using only the authorized comparisons in the section brief, the latest quarter retained a top-line figure higher than the prior-year comparative for the three-month period (Revenue from Contract with Customer, Excluding Assessed Tax: increase authorized; both sides positive), while Net Income (Loss) Attributable to Parent tracked lower year over year (decrease authorized; loss-to-loss transition). Operating Income (Loss) registered a transition from profit in the prior-year quarter to loss in the current quarter (decrease authorized).

Cash-flow lines — operating, investing, and financing — all sit lower than the prior-year comparative (each decrease authorized), with operating and investing still negative and financing still positive. Where a single driver cannot be isolated from the cited materials, the linkage is left to the machine: - The filing evidence does not attribute this change to any single cause. - Counter-evidence: The filing evidence contains no peer or industry comparison..

There is also no segment-level breakdown for revenue or loss contributions in the filing evidence, so any inference about which product line cushioned or compressed the top line would go beyond what the filing supplies: - The filing evidence does not disclose segment-level detail for this dimension. - Unknowns: The filing does not disclose the magnitude of any single impairment on the unconsolidated equity investments, the mix between investment write-downs and operating performance in producing the reported net loss, the notional or mark-to-market exposure on the foreign-currency forwards, or any quantification of contractual commitments that could amplify cash burn next quarter.

The revalued items fall within the cited fair-value framework that references Level 3 and Level 2 alongside Level 1, but the specific carrying values and any observable price-change adjustments are not surfaced numerically here. - Metrics to watch next period: investors should track whether Revenue from Contract with Customer, Excluding Assessed Tax continues on the same year-over-year direction, whether Net Income (Loss) Attributable to Parent narrows from its current loss footing, whether Operating Income (Loss) returns toward profitability after the reported profit-to-loss transition, and whether any observable price changes or impairments are disclosed against the unconsolidated equity investments.

The fidelity of the FX-hedge program against a shifting currency backdrop is another item worth flagging, alongside the liquidity pathways implied by Note 11 on stockholders' equity and any commitments referenced under Item 1A risk-factor updates or under Item 3 for market-risk disclosures. Readers comparing across interim filings can use a cross-company checkpoint such as Lizely Finance Earnings Analysis — UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows to anchor the contrast.