Take-Two Interactive Software, Inc.

Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the first quarter fiscal year 26, take two interactive software earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. It is now my pleasure to turn the call over to Nicole Shiven, Senior Vice President of Investor Relations and Corporate Communications. You may begin.

Good afternoon. Thank you for joining our conference call to discuss our results for the first quarter of fiscal year 2026 and to June 30, 2025. Today's call will be led by Straus Zelnick, Take Two's Chairman and Chief Executive Officer, Carl Sladoff, our President, and Lainey Goldstein, our Chief Financial Officer. We will be available to answer your questions during the Q&A session following our prepared remarks. Before we begin, I'd like to remind everyone that statements made during this call that are not historical facts are considered forward-looking statements under federal securities laws. These forward-looking statements are based on the beliefs of our management, as well as assumptions made by and information currently available to us. We have no obligation to update these forward-looking statements. Actual operating results may vary significantly from these forward-looking statements based on a variety of factors. These important factors are described in our filings with the SEC, including the company's most recent annual report on Form 10K and quarterly report on Form 10Q, including the risks summarized in the section entitled Risk Factors. I'd also like to note that, unless otherwise stated, all numbers we will be discussing today are GAP and all comparisons are -over-year. Additional details regarding our actual results and outlook are contained in our press release, including the items that our management uses internally to adjust our GAP financial results in order to evaluate our operating performance. Our press release also contains a reconciliation of any non-GAP financial measure to the most comparable GAP measure. In addition, we have posted to our website a slide deck that visually presents our results and financial outlook. Our press release and filings with the SEC may be obtained from our website at taketogames.com. And now I'll turn the call over to Strauss.

Thanks, Nicole. Good afternoon and thank you for joining us today. Fiscal 2026 is off to an excellent start, reflecting ongoing demand for our core franchises and the increasingly diversified, successful nature of our business. Net bookings for the first quarter exceeded $1.4 billion, which was meaningfully above the high end of our expectations, led by the outperformance of several mobile titles, as well as the continued success of NBA2K and the Grand Theft Auto series. We're optimistic about the year ahead and we're raising our net bookings outlook for Fiscal 2026 to 6.05 to $6.15 billion. We have great confidence in our long-term pipeline and expect to achieve record levels of net bookings in Fiscal 2027 that we believe will establish a higher baseline for our business and set us on a path of enhanced profitability. I'd like to express my gratitude to all of our teams across our worldwide organization for their deep passion and intense commitment to our collective vision. We strive daily to do our best work and to exemplify our core pillars of creativity, innovation, and efficiency, all in service of our goal to make the biggest and best hits in the entertainment business. Turning to highlights from the period, our mobile business vastly exceeded expectations. Peak successful forever franchise, Toonblast, grew 22% over last year and nearly 75% on a two-year basis, driven by the seasonal collection feature that provided a new avenue of engagement for the game's millions of active players. Match Factory, another hit title from Peak, achieved record net bookings as the title grew 33% over last year. Players experienced new features such as the Treasure Cave event, as well as new levels. Rolloc's newest hit, Color Block Jam, maintained its positive momentum and has become the highest grossing title in the studio's history. Throughout the quarter, Color Block Jam remained at the top of the app charts, demonstrating its strong market position and mass appeal. Rolloc supported the title with its first bold beat, Pilot's Drop, where players received progressively larger rewards with each consecutive win, amplifying engagement and monetization. 2K's mobile offerings also had a great quarter, including WWE Supercard, which remains the label's most successful mobile game with over 37 million lifetime downloads. NBA 2K Mobile has been steadily growing its audience with new content and challenges, while NBA 2K 25 Arcade Edition continues to top the Apple Arcade charts, and NBA 2K All-Star in China has been posting strong and profitable results since its launch in March. We continue to focus on our mobile direct to consumer business, and we're achieving better conversion, driven by new offers, events, and enhanced personalization. In the context of recent court rulings, we see ample runway for further growth in this area. The Grand Theft Auto series once again exceeded our expectations. Momentum remains exceptionally strong, and to date, Grand Theft Auto V has sold in over 215 million units worldwide. During the quarter, engagement for Grand Theft Auto Online benefited from the record-setting launch of Grand Theft Auto VI Trailer 2 and the successful release of the Moneyfront Summer Content Pack, which culminated in higher than expected recurring consumer spending growth. We're pleased that new player accounts for GTA Online grew over 50% -over-year. NBA 2K 25 delivered another quarter of fantastic results. To date, the title has sold in over 11.5 million units, and engagement grew significantly -over-year, with daily active users, and my career daily active users, each up 30%, which helped drive 48% growth in recurring consumer spending. We're thrilled that 2K announced a new multi-year global partnership expansion with the NBA, NBAPA, and WNBAPA, and extended its longstanding relationship with the NBA G League and USA Basketball. We're excited to continue our highly successful partnerships and look forward to building upon the record-setting achievements that we've accomplished together. Engagement with our other sports titles has been healthy, including WWE 2K 25. The title launched on Nintendo Switch 2 in July, which expanded its audience and featured same game modes that are available to players on PS5 and Xbox Series X and S. Braxis Games continues to introduce monthly updates for Sid Meier's Civilization VII. In addition, the studio released the title for Nintendo Switch 2, our first offering for the platform, featuring new mouse controls that offer a more intuitive gameplay experience. We're very pleased to continue supporting Nintendo with additional titles launching throughout the year. In closing, we're thrilled with our company's positive momentum and have enormous anticipation for this quarter's launches of Mafia of the Old Country, NBA 2K 26, and Borderlands 4. We remain deeply committed to excellence and delivering the highest quality entertainment experiences for all of our audiences and to driving meaningful returns for our shareholders. I'll now turn the call over to Karl.