TAKE TWO INTERACTIVE SOFTWARE INCTTWO
TAKE TWO INTERACTIVE SOFTWARE INC Revenue Disclosure
REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
Timing of recognition
Net revenue recognized at a point in time is primarily comprised of the portion of revenue from software products that is recognized when the customer takes control of the product (i.e. upon delivery of the software product).
Net revenue recognized over time is primarily comprised of revenue from our software products that include game related services, separate virtual currency transactions, and in-game purchases, which are recognized over an estimated service period. Net revenue recognized over time also includes in-game advertising, which is recognized over a contractual term.
Net revenue by timing of recognition was as follows:
| Fiscal Year Ended March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2024 | ||||||||||||||||||
| Net revenue recognized: | ||||||||||||||||||||
| Over time | $ | 5,291.9 | $ | 4,504.8 | $ | 4,312.2 | ||||||||||||||
| Point in time | 1,364.5 | 1,128.8 | 1,037.4 | |||||||||||||||||
| Total net revenue | $ | 6,656.4 | $ | 5,633.6 | $ | 5,349.6 | ||||||||||||||
Content
Recurrent consumer spending ("RCS") is generated from ongoing consumer engagement and includes revenue from virtual currency, add-on content, in-game purchases, and in-game advertising.
Full game and other revenue primarily includes the initial sale of full game software products, which may include offline and/or significant game related services.
Net revenue by content was as follows:
| Fiscal Year Ended March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2024 | ||||||||||||||||||
| Net revenue recognized: | ||||||||||||||||||||
| Recurrent consumer spending | $ | 5,196.6 | $ | 4,474.6 | $ | 4,213.5 | ||||||||||||||
| Full game and other | 1,459.8 | 1,159.0 | 1,136.1 | |||||||||||||||||
| Total net revenue | $ | 6,656.4 | $ | 5,633.6 | $ | 5,349.6 | ||||||||||||||
Platform
Net revenue by platform was as follows:
| Fiscal Year Ended March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2024 | ||||||||||||||||||
| Net revenue recognized: | ||||||||||||||||||||
| Mobile | $ | 3,333.0 | $ | 2,942.0 | $ | 2,748.0 | ||||||||||||||
| Console | 2,597.3 | 2,099.1 | 2,167.3 | |||||||||||||||||
| PC and other | 726.1 | 592.5 | 434.3 | |||||||||||||||||
| Total net revenue | $ | 6,656.4 | $ | 5,633.6 | $ | 5,349.6 | ||||||||||||||
Distribution Channel
Our products are delivered through digital online services (digital download, online platforms, and cloud streaming) and physical retail and other.
Net revenue by distribution channel was as follows:
| Fiscal Year Ended March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2024 | ||||||||||||||||||
| Net revenue recognized: | ||||||||||||||||||||
| Digital online | $ | 6,459.7 | $ | 5,431.8 | $ | 5,112.2 | ||||||||||||||
| Physical retail and other | 196.7 | 201.8 | 237.4 | |||||||||||||||||
| Total net revenue | $ | 6,656.4 | $ | 5,633.6 | $ | 5,349.6 | ||||||||||||||
Deferred Revenue
We record deferred revenue when payments are due or received in advance of the fulfillment of our associated performance obligations. The balance of deferred revenue, including current and non-current balances as of March 31, 2026 and March 31, 2025 were $1,189.6 and $1,108.9, respectively. For the fiscal year ended March 31, 2026, the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business.
During the fiscal year ended March 31, 2026 and 2025, $1,065.7 and $1,044.4, of revenue was recognized, respectively, that was included in the deferred revenue balance at the beginning of each respective period.
As of March 31, 2026, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $1,446.5, which includes our deferred revenue balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1,240.0 of this balance as revenue over the next 12 months, and the remainder
thereafter. This balance does not include an estimate for variable consideration arising from sales-based royalty license revenue in excess of the contractual minimum guarantee.
As of March 31, 2026 and March 31, 2025, our contract asset balances were $89.7 and $80.8, respectively.
Accounts Receivable sale program
On May 19, 2025, we entered into an arrangement to sell designated pools of high credit quality accounts receivable under an uncommitted accounts receivables purchase facility in an initial aggregate amount of up to $215.0 to an unaffiliated financial institution on a true sale basis. 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. We will continue to collect cash from our account debtors and remit to the financial institution. We will derecognize the carrying value of the financial assets transferred and recognize a net gain or loss on the sale under Interest and other, net on our Consolidated Statements of Operations. The proceeds from these arrangements will be reflected as cash provided by operating activities in the Consolidated Statements of Cash Flows.
No receivables were sold under this facility during the fiscal year ended March 31, 2026. We may utilize this facility in future periods depending on cash flow needs and market conditions.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 22, 2026 | Showing above |
| 2025 | May 20, 2025 | |
| 2024 | May 22, 2024 | |
| 2023 | May 26, 2023 | |
| 2022 | May 17, 2022 | |
| 2021 | May 19, 2021 | |
| 2020 | May 22, 2020 | |
| 2019 | May 14, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.