Take-Two Interactive Software, Inc.

Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the fourth quarter and fiscal year 2026 Take Two Interactive Software results 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 that time, simply press star, then be number one on your telephone keypad. I would now like to turn the call over to Nicole Shebbins, Senior Vice President, Investor Relations and Corporate Communications. Nicole, please go ahead.

Good afternoon. Thank you for joining our conference call to discuss our results for the fourth quarter and fiscal year 2026. Today's call will be led by Strauss Delnick, 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 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 Take2Games.com. And now I'll turn the call over to Strauss.

Thanks, Nicole. Good afternoon, and thank you for joining us today. I'm pleased to report that we concluded fiscal year 2026 with excellent results, including fourth quarter net bookings of $1.58 billion, which was above the high end of our guidance range. Net bookings for the full fiscal year were $6.7 billion, which was approximately $750 million above the initial guidance we provided last May. MBA2K delivered record netbookings and recurrent consumer spending. Zynga achieved its highest level of netbooking since we acquired the business in 2022. And the Grand Theft Auto series once again exceeded our expectations and continued to drive significant netbookings and deep engagement with its passionate community of players. Fiscal 2027 is poised to be a breakout year for Take-Two, led by the November 19th release of Grand Theft Auto 6, arguably the most anticipated entertainment property of all time. And we're excited that Rockstar Games will start their marketing campaign this summer. Our initial financial outlook for fiscal 2027 includes record net bookings of $8 to $8.2 billion. This reflects meaningful growth over last year, led by the launch of Grand Theft Auto 6, along with a successful execution across our entire portfolio. We expect to sustain this higher level of scale and generate strong cash flows well into the future as we release our robust long-term development pipeline and capitalize on new opportunities across our highly established multifaceted business. Turning to highlights from the quarter, I'll begin with our fantastic mobile performance. Toon Blast grew approximately 25% year over year as Peak introduced new events and features, including Temple Guardians, Deep Quest, and refined level experiences. Match Factory continued to perform with players responding positively to its live service execution and a continuous pipeline of player-friendly features, such as the collectible albums. Empires and Puzzles outpaced our forecast and grew 5% over last year, driven by a robust slate of in-game events celebrating the title's ninth anniversary. Color Block Jam grew 15% year-over-year and remains the highest-grossing title in Rolex history. Top Eleven delivered its strongest quarter ever after 16 years in market, driven by superb performance of the Bundesliga and Live Operations Innovations. 2K's mobile offerings posted another solid quarter, with WWE Supercard reaching nearly 39 million lifetime downloads, NBA 2K Mobile continuing to expand its audience, NBA 2K26 Arcade Edition maintaining its top five position on the Apple Arcade charts, and NBA 2K All-Star in China growing to nearly 10 million registered users after just one year in market. Our direct-to-consumer channel continues to drive net bookings and margin growth as we integrate additional mobile titles from our portfolio and deepen our relationships with players by reducing payment friction and enhancing the end-to-end user experience, which is generating improvements in conversion and customer loyalty. As the regulatory landscape continues to evolve, we're even more confident in the sustainability and growth profile of this platform. The Grand Theft Auto series continues to outpace expectations significantly and demonstrate incredible momentum leading up to the launch of Grand Theft Auto 6 on November 19th. Recurrent consumer spending grew 5% year over year, with strong engagement in GTA Online, driven by A Safe House in the Hills, one of the best performing updates in its history. This content offering provided a wide range of community-requested features, including mansion properties, the return of Michael DeSanta from Grand Theft Auto V, all new missions, vehicles, exclusive GTA Plus benefits, and the powerful new Rockstar Mission Creator that allows content creators to make their own GTA experiences. Sales of Grand Theft Auto V advanced further, with nearly 230 million units sold in to date. GTA Plus continues to see significant growth year over year, led by the holiday update and highly attractive monthly benefits, such as the inclusion of NBA 2K26 in its games library. In addition, Rockstar Games' Red Dead Redemption 2 achieved its highest level of annual unit sales since its launch year, with over 85 million units sold in to date. During the quarter, our sports offerings also performed well. NBA 2K26 continued to expand its audience. To date, the title has sold in over 10 million units, representing a 5% increase over NBA 2K25. Our current consumer spending grew 10% as we benefited from higher daily active users and games played per user. In keeping with our strategic focus on innovation, Visual Concepts launched Season 5 for MBA2K26, their first-ever college-themed offering, featuring 16 iconic universities, which was welcomed by MBA2K's vast community and provided a glimpse of what's to come in college basketball for next year and beyond. I'd like to thank our partners at the NBA and the NBA Players Association for their continued engagement and support in our collective mission. On March 13th, 2K and Visual Concepts launched WWE 2K26, which was well-received by critics and consumers alike. Engagement has been excellent, with recurrent consumer spending up 20% year over year and more than 85 million matches played, an increase of 7% compared to WWE 2K25. 2K is supporting the title with multiple updates through its ringside pass. I'd like to thank Nick Kahn and his team at TKO for their unwavering support and partnership as we continue to evolve this series further for fans of the game. PGA Tour 2K25 enjoyed a fantastic resurgence. 2K captured an influx of new players and drove strong organic interest by aligning Season 5 with the start of the PGA Tour season in January and including the title in PlayStation Plus. During the quarter, our consumers played 60 million rounds of golf, representing a 110% increase over the third quarter. 2K will support the franchise throughout the year with several more content updates. In closing, we're incredibly excited by the promise of our future for our players, our organization, and our shareholders. This year has the opportunity to be a major inflection point for our company, defined by groundbreaking entertainment experiences, creative and operational excellence, and record net bookings. With our flexible balance sheet, our strong cash position, and our expectation that we'll generate over $1 billion in operating cash flow this fiscal year, We believe that we're extraordinarily well positioned to take measured creative risks, to pursue accretive M&A, and to invest in technology that will unlock greater creative capabilities and operational efficiencies across our organization. I'm immensely proud of our teams and exceedingly optimistic that we'll continue to drive greater success and shareholder value for the long term. I'll now turn the call over to Carl.