Take-Two Interactive Software, Inc.

Thank you for standing by. My name is Carly and I will be your conference operator today. At this time, I would like to welcome everyone to the second quarter fiscal year 2026 earnings call for Take-Two Interactive Software. All lights 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 1 again. Thank you. I would now like to turn the call over to Nicole Chevins, Senior Vice President of Investor Relations and Corporate Communications. Please go ahead.

Good afternoon. Thank you for joining our conference call to discuss our results for the second quarter of fiscal year 2026, ended September 30, 2025. Today's call will be led by Strauss Zelnick, Take-Two's Chairman and Chief Executive Officer, Carl Sladoff, our President, and Rainey 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 10-K and quarterly report on Form 10-Q, 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 GAAP and all comparisons are year-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 GAAP financial results in order to evaluate our operating performance. Our press release also contains a reconciliation of any non-GAAP financial measure to the most comparable GAAP 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 TakeTwoGames.com. And now I'll turn the call over to Strauss.

Thanks, Nicole. Good afternoon, and thank you for joining us today. We delivered fantastic second quarter results, including net bookings of $1.96 billion, which vastly exceeded our expectations and represent the best second quarter of net bookings in our company's history. We have many achievements during the period. 2K launched three major titles, including NBA 2K26, which set multiple records and has been delivering an unprecedented level of in-game spending. Our mobile business outperformed substantially, driven by our teams on parallel to innovation and live services. And GrantUp.Online continued to benefit from its highly engaged community. Due to these outstanding second quarter results and our optimism for the balance of the fiscal year, we're again raising our netbooking's outlook for fiscal 2026 to $6.4 to $6.5 billion. Rockstar Games has announced that Grand Theft Auto 6 will now be released on November 19th, 2026, giving the team some additional time to finish the game with a high level of polish players expect and deserve. Rockstar has our full support, of course, and we're confident they'll deliver an unrivaled blockbuster entertainment experience. Turning to highlights from the period, our mobile business delivered another quarter of excellent results. Peak's Forever franchise, Toon Blast, grew 26% year-over-year and approximately 90% over the past two years, driven by new gameplay elements and metagame features, such as card collection. Match Factory, another hit title from Peak, achieved record net bookings and grew 20% over last year. Players responded positively to innovative new features, including a Super Ball power-up, which increased engagement and monetization within the game. Rollick's hit title, Color Block Jam, continues to engage and grow its audience with new features and levels, and remains the highest-grossing title in the studio's history. In addition, Rollick surpassed 3.8 billion lifetime downloads and achieved a new net bookings record for the quarter. The CSR franchise achieved $1 billion in lifetime in-game spending, with more than 180 million players worldwide since its launch in 2012, which we believe indicates great momentum ahead of the release of CSR3. Zynga Poker launched on Steam with full cross-functionality, enabling players to enjoy the game freely across mobile, web browsers, and PC. 2K's mobile offerings had another strong quarter, with WWE Super Cards surpassing 38 million lifetime downloads, NBA 2K Mobile continued to grow its audience, NBA 2K26 Arcade Edition holding its top five position on the Apple Arcade charts, and NBA 2K All-Star in China capturing 8 million registered users after just six months in market. We continue to focus on our mobile direct-to-consumer business and are achieving higher conversion driven by new offers, events, and enhanced personalization. Also, as a result of recent legislative changes, our teams have rolled out new technologies that enable direct transactions and new payment mechanisms, including solutions, designs, or international growth, which should help us expand meaningfully net bookings and margins via this highly accretive channel. With the record-breaking launch of NBA 2K26, 2K and Visual Concepts proved once again their ability to create phenomenal gameplay, innovate with new features, and optimize live service offerings. To date, the title has sold in over 5 million units, representing a double-digit increase over NBA 2K25, and with average selling prices reaching an all-time high, led by higher sales on premium editions. We were pleased to see daily active users and my career daily active users grow nearly 30% and nearly 40% respectively, which contributed to recurrent consumer spending growth of 45%. Players love many of the game's new features, including a thriving hub of competition, a more accessible layout, all new rewards, and fresh cosmetics. I'd like to congratulate 2K and Visual Concepts for once again delivering a superb basketball experience led by innovation and an unwavering commitment to excellence. 2K and Gearbox Software launched Borderlands 4, the latest offering in our beloved looter-shooter franchise. The game received high critical praise, with many reviewers calling it the best Borderlands yet. The series' highly active community eagerly welcomed the title, and during its opening weekend, it reached the largest concurrent player count on Steam in franchise history. Borderlands 4 also dominated YouTube with 300 million views and earned the number one spot on Twitch during its launch, underscoring the franchise's enduring mass appeal. While we experienced some challenges with optimization of performance on PC, Gearbox has been addressing these issues and releasing updates to improve gameplay. We're confident that Borderlands 4 will achieve strong unit sales over its lifetime. We're immensely proud of Gearbox and look forward to robust post-launch content offerings that will support the game in a month's head. 2K and Hangar 13 released Mafia the Old Country, the first new entry in our popular organized crime franchise in nearly a decade, which earned vast praise from critics and consumers alike. The title quickly surpassed our internal expectations and affirmed our belief that consumer demand remains strong for premium, narrative-driven experiences that over-index on value. The team at Hangar 13 will continue to push the boundaries for cinematic experiences in this series and in future creative pursuits. Grand Theft Auto V continues to grow its audience, and to date, the title has sold in more than 220 million units worldwide, Players remained deeply engaged with Grand Theft Auto Online, which added holiday-themed jobs and rewards, as well as new vehicles, community events, and outfits. GTA Plus continued to increase its membership, achieving over 20% growth year-over-year. We're pleased with the consumer's ongoing passion and engagement with the franchise, which we believe will help usher in a record-breaking launch for Grand Theft Auto VI. In closing, we're very pleased with our position as one of the largest, most diversified companies within the interactive entertainment industry, a sector that we believe will enjoy robust growth. As we embrace our core values and focus on delivering the most captivating and engaging entertainment experiences, we expect to achieve record levels of netbookings in fiscal 2027, establish a new baseline for our business, and enhance our profitability. I'll now turn the call over to Carl.