10-Q 1 ttwo-20240930.htm 10-Q ttwo-20240930
0000946581false2025Q203-31xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purettwo:day00009465812024-04-012024-09-3000009465812024-10-2500009465812024-09-3000009465812024-03-310000946581ttwo:GameMember2024-07-012024-09-300000946581ttwo:GameMember2023-07-012023-09-300000946581ttwo:GameMember2024-04-012024-09-300000946581ttwo:GameMember2023-04-012023-09-300000946581us-gaap:AdvertisingMember2024-07-012024-09-300000946581us-gaap:AdvertisingMember2023-07-012023-09-300000946581us-gaap:AdvertisingMember2024-04-012024-09-300000946581us-gaap:AdvertisingMember2023-04-012023-09-3000009465812024-07-012024-09-3000009465812023-07-012023-09-3000009465812023-04-012023-09-3000009465812023-03-3100009465812023-09-300000946581us-gaap:CommonStockMember2024-06-300000946581us-gaap:AdditionalPaidInCapitalMember2024-06-300000946581us-gaap:TreasuryStockCommonMember2024-06-300000946581us-gaap:RetainedEarningsMember2024-06-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000009465812024-06-300000946581us-gaap:RetainedEarningsMember2024-07-012024-09-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000946581us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300000946581us-gaap:CommonStockMember2024-07-012024-09-300000946581us-gaap:CommonStockMember2024-09-300000946581us-gaap:AdditionalPaidInCapitalMember2024-09-300000946581us-gaap:TreasuryStockCommonMember2024-09-300000946581us-gaap:RetainedEarningsMember2024-09-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000946581us-gaap:CommonStockMember2023-06-300000946581us-gaap:AdditionalPaidInCapitalMember2023-06-300000946581us-gaap:TreasuryStockCommonMember2023-06-300000946581us-gaap:RetainedEarningsMember2023-06-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000009465812023-06-300000946581us-gaap:RetainedEarningsMember2023-07-012023-09-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300000946581us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300000946581us-gaap:CommonStockMember2023-07-012023-09-300000946581us-gaap:CommonStockMember2023-09-300000946581us-gaap:AdditionalPaidInCapitalMember2023-09-300000946581us-gaap:TreasuryStockCommonMember2023-09-300000946581us-gaap:RetainedEarningsMember2023-09-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000946581us-gaap:CommonStockMember2024-03-310000946581us-gaap:AdditionalPaidInCapitalMember2024-03-310000946581us-gaap:TreasuryStockCommonMember2024-03-310000946581us-gaap:RetainedEarningsMember2024-03-310000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000946581us-gaap:RetainedEarningsMember2024-04-012024-09-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-09-300000946581us-gaap:AdditionalPaidInCapitalMember2024-04-012024-09-300000946581us-gaap:CommonStockMember2024-04-012024-09-300000946581us-gaap:CommonStockMember2023-04-012023-09-300000946581us-gaap:AdditionalPaidInCapitalMember2023-04-012023-09-300000946581us-gaap:CommonStockMember2023-03-310000946581us-gaap:AdditionalPaidInCapitalMember2023-03-310000946581us-gaap:TreasuryStockCommonMember2023-03-310000946581us-gaap:RetainedEarningsMember2023-03-310000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310000946581us-gaap:RetainedEarningsMember2023-04-012023-09-300000946581us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-09-300000946581us-gaap:TransferredOverTimeMember2024-07-012024-09-300000946581us-gaap:TransferredOverTimeMember2023-07-012023-09-300000946581us-gaap:TransferredOverTimeMember2024-04-012024-09-300000946581us-gaap:TransferredOverTimeMember2023-04-012023-09-300000946581us-gaap:TransferredAtPointInTimeMember2024-07-012024-09-300000946581us-gaap:TransferredAtPointInTimeMember2023-07-012023-09-300000946581us-gaap:TransferredAtPointInTimeMember2024-04-012024-09-300000946581us-gaap:TransferredAtPointInTimeMember2023-04-012023-09-300000946581ttwo:RecurrentCustomerSpendingMember2024-07-012024-09-300000946581ttwo:RecurrentCustomerSpendingMember2023-07-012023-09-300000946581ttwo:RecurrentCustomerSpendingMember2024-04-012024-09-300000946581ttwo:RecurrentCustomerSpendingMember2023-04-012023-09-300000946581ttwo:FullGameAndOtherMember2024-07-012024-09-300000946581ttwo:FullGameAndOtherMember2023-07-012023-09-300000946581ttwo:FullGameAndOtherMember2024-04-012024-09-300000946581ttwo:FullGameAndOtherMember2023-04-012023-09-300000946581country:US2024-07-012024-09-300000946581country:US2023-07-012023-09-300000946581country:US2024-04-012024-09-300000946581country:US2023-04-012023-09-300000946581us-gaap:NonUsMember2024-07-012024-09-300000946581us-gaap:NonUsMember2023-07-012023-09-300000946581us-gaap:NonUsMember2024-04-012024-09-300000946581us-gaap:NonUsMember2023-04-012023-09-300000946581ttwo:MobileMember2024-07-012024-09-300000946581ttwo:MobileMember2023-07-012023-09-300000946581ttwo:MobileMember2024-04-012024-09-300000946581ttwo:MobileMember2023-04-012023-09-300000946581ttwo:ConsoleMember2024-07-012024-09-300000946581ttwo:ConsoleMember2023-07-012023-09-300000946581ttwo:ConsoleMember2024-04-012024-09-300000946581ttwo:ConsoleMember2023-04-012023-09-300000946581ttwo:PCAndOtherProductsMember2024-07-012024-09-300000946581ttwo:PCAndOtherProductsMember2023-07-012023-09-300000946581ttwo:PCAndOtherProductsMember2024-04-012024-09-300000946581ttwo:PCAndOtherProductsMember2023-04-012023-09-300000946581ttwo:DigitalOnlineMember2024-07-012024-09-300000946581ttwo:DigitalOnlineMember2023-07-012023-09-300000946581ttwo:DigitalOnlineMember2024-04-012024-09-300000946581ttwo:DigitalOnlineMember2023-04-012023-09-300000946581ttwo:PhysicalRetailAndOtherMember2024-07-012024-09-300000946581ttwo:PhysicalRetailAndOtherMember2023-07-012023-09-300000946581ttwo:PhysicalRetailAndOtherMember2024-04-012024-09-300000946581ttwo:PhysicalRetailAndOtherMember2023-04-012023-09-3000009465812024-10-012024-09-300000946581ttwo:ZelnickMediaCorporationMemberttwo:ManagementAgreement2022Member2022-05-012022-05-310000946581ttwo:ZelnickMediaCorporationMembersrt:MaximumMemberttwo:ManagementAgreement2022Member2022-05-012022-05-310000946581ttwo:ZelnickMediaCorporationMember2024-07-012024-09-300000946581ttwo:ZelnickMediaCorporationMember2023-07-012023-09-300000946581ttwo:ZelnickMediaCorporationMember2024-04-012024-09-300000946581ttwo:ZelnickMediaCorporationMember2023-04-012023-09-300000946581us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300000946581us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300000946581us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-09-300000946581us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-09-300000946581ttwo:TimeBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMember2024-04-012024-09-300000946581ttwo:TimeBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMember2023-04-012023-09-300000946581ttwo:MarketBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMember2024-04-012024-09-300000946581ttwo:MarketBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMember2023-04-012023-09-300000946581ttwo:PerformanceBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMember2024-04-012024-09-300000946581ttwo:PerformanceBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMember2023-04-012023-09-300000946581us-gaap:RestrictedStockUnitsRSUMemberttwo:ZelnickMediaCorporationMember2024-04-012024-09-300000946581us-gaap:RestrictedStockUnitsRSUMemberttwo:ZelnickMediaCorporationMember2023-04-012023-09-300000946581ttwo:ZelnickMediaCorporationMemberttwo:ManagementAgreement2022Member2024-04-012024-09-300000946581ttwo:PerformanceBasedRestrictedUnitsMemberttwo:ZelnickMediaCorporationMemberttwo:ManagementAgreement2022Member2024-04-012024-09-300000946581ttwo:MarketBasedRestrictedStockMemberttwo:ZelnickMediaCorporationMemberttwo:ManagementAgreement2022Member2024-04-012024-09-300000946581ttwo:MarketBasedRestrictedStockMembersrt:MaximumMemberttwo:ManagementAgreement2022Member2024-04-012024-09-300000946581us-gaap:RestrictedStockUnitsRSUMemberttwo:ZelnickMediaCorporationMemberttwo:ManagementAgreement2022Member2024-09-300000946581us-gaap:RestrictedStockUnitsRSUMemberttwo:ZelnickMediaCorporationMemberttwo:ManagementAgreement2022Member2024-03-310000946581us-gaap:RestrictedStockUnitsRSUMemberttwo:ManagementAgreement2022Member2024-04-012024-09-300000946581us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2024-09-300000946581us-gaap:MoneyMarketFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel1Memberus-gaap:BankTimeDepositsMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberus-gaap:BankTimeDepositsMember2024-09-300000946581us-gaap:FairValueInputsLevel3Memberus-gaap:BankTimeDepositsMember2024-09-300000946581us-gaap:BankTimeDepositsMember2024-09-300000946581us-gaap:FairValueInputsLevel1Memberus-gaap:PrivateEquityFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberus-gaap:PrivateEquityFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel3Memberus-gaap:PrivateEquityFundsMember2024-09-300000946581us-gaap:PrivateEquityFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel1Memberus-gaap:EquityFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberus-gaap:EquityFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel3Memberus-gaap:EquityFundsMember2024-09-300000946581us-gaap:EquityFundsMember2024-09-300000946581us-gaap:FairValueInputsLevel1Member2024-09-300000946581us-gaap:FairValueInputsLevel2Member2024-09-300000946581us-gaap:FairValueInputsLevel3Member2024-09-300000946581us-gaap:FairValueInputsLevel1Memberus-gaap:MoneyMarketFundsMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMember2024-03-310000946581us-gaap:FairValueInputsLevel3Memberus-gaap:MoneyMarketFundsMember2024-03-310000946581us-gaap:MoneyMarketFundsMember2024-03-310000946581us-gaap:FairValueInputsLevel1Memberus-gaap:BankTimeDepositsMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberus-gaap:BankTimeDepositsMember2024-03-310000946581us-gaap:FairValueInputsLevel3Memberus-gaap:BankTimeDepositsMember2024-03-310000946581us-gaap:BankTimeDepositsMember2024-03-310000946581us-gaap:FairValueInputsLevel1Memberus-gaap:PrivateEquityFundsMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberus-gaap:PrivateEquityFundsMember2024-03-310000946581us-gaap:FairValueInputsLevel3Memberus-gaap:PrivateEquityFundsMember2024-03-310000946581us-gaap:PrivateEquityFundsMember2024-03-310000946581us-gaap:FairValueInputsLevel1Member2024-03-310000946581us-gaap:FairValueInputsLevel2Member2024-03-310000946581us-gaap:FairValueInputsLevel3Member2024-03-310000946581ttwo:SoftwareInternalDevelopmentMember2024-09-300000946581ttwo:SoftwareInternalDevelopmentMember2024-03-310000946581ttwo:SoftwareExternalDevelopmentMember2024-09-300000946581ttwo:SoftwareExternalDevelopmentMember2024-03-310000946581ttwo:SoftwareLicensesMember2024-09-300000946581ttwo:SoftwareLicensesMember2024-03-310000946581ttwo:A2026NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2026NotesMember2024-09-300000946581ttwo:A2027NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2027NotesMember2024-09-300000946581ttwo:A2028NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2028NotesMember2024-09-300000946581ttwo:A2029NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2029NotesMember2024-09-300000946581ttwo:A2032NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2032NotesMember2024-09-300000946581ttwo:A2034NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2034NotesMember2024-09-300000946581ttwo:A2026ConvertibleNotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2026ConvertibleNotesMember2024-09-300000946581ttwo:A2025NotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2025NotesMember2024-03-310000946581ttwo:A2026NotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2026NotesMember2024-03-310000946581ttwo:A2027NotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2027NotesMember2024-03-310000946581ttwo:A2028NotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2028NotesMember2024-03-310000946581ttwo:A2032NotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2032NotesMember2024-03-310000946581ttwo:A2026ConvertibleNotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2026ConvertibleNotesMember2024-03-310000946581ttwo:A2025NotesMember2024-09-300000946581us-gaap:FairValueInputsLevel2Memberttwo:A2025NotesMember2024-09-300000946581ttwo:A2024ConvertibleNotesMember2024-03-310000946581us-gaap:FairValueInputsLevel2Memberttwo:A2024ConvertibleNotesMember2024-03-310000946581ttwo:A2024NotesMember2024-07-012024-09-300000946581ttwo:A2024NotesMember2023-07-012023-09-300000946581ttwo:A2024NotesMember2024-04-012024-09-300000946581ttwo:A2024NotesMember2023-04-012023-09-300000946581ttwo:A2025NotesMember2024-07-012024-09-300000946581ttwo:A2025NotesMember2023-07-012023-09-300000946581ttwo:A2025NotesMember2024-04-012024-09-300000946581ttwo:A2025NotesMember2023-04-012023-09-300000946581ttwo:A2026NotesMember2024-07-012024-09-300000946581ttwo:A2026NotesMember2023-07-012023-09-300000946581ttwo:A2026NotesMember2024-04-012024-09-300000946581ttwo:A2026NotesMember2023-04-012023-09-300000946581ttwo:A2027NotesMember2024-07-012024-09-300000946581ttwo:A2027NotesMember2023-07-012023-09-300000946581ttwo:A2027NotesMember2024-04-012024-09-300000946581ttwo:A2027NotesMember2023-04-012023-09-300000946581ttwo:A2028NotesMember2024-07-012024-09-300000946581ttwo:A2028NotesMember2023-07-012023-09-300000946581ttwo:A2028NotesMember2024-04-012024-09-300000946581ttwo:A2028NotesMember2023-04-012023-09-300000946581ttwo:A2029NotesMember2024-07-012024-09-300000946581ttwo:A2029NotesMember2023-07-012023-09-300000946581ttwo:A2029NotesMember2024-04-012024-09-300000946581ttwo:A2029NotesMember2023-04-012023-09-300000946581ttwo:A2032NotesMember2024-07-012024-09-300000946581ttwo:A2032NotesMember2023-07-012023-09-300000946581ttwo:A2032NotesMember2024-04-012024-09-300000946581ttwo:A2032NotesMember2023-04-012023-09-300000946581ttwo:A2034NotesMember2024-07-012024-09-300000946581ttwo:A2034NotesMember2023-07-012023-09-300000946581ttwo:A2034NotesMember2024-04-012024-09-300000946581ttwo:A2034NotesMember2023-04-012023-09-300000946581ttwo:TermLoanMember2024-07-012024-09-300000946581ttwo:TermLoanMember2023-07-012023-09-300000946581ttwo:TermLoanMember2024-04-012024-09-300000946581ttwo:TermLoanMember2023-04-012023-09-300000946581us-gaap:SeniorNotesMember2024-06-120000946581ttwo:A2029NotesMemberus-gaap:SeniorNotesMember2024-06-120000946581ttwo:A2034NotesMemberus-gaap:SeniorNotesMember2024-06-120000946581ttwo:A2029And2034NotesMemberus-gaap:SeniorNotesMember2024-06-120000946581ttwo:ZyngaIncMemberus-gaap:SeniorNotesMember2023-04-140000946581ttwo:A2026NotesMemberus-gaap:SeniorNotesMember2023-04-140000946581ttwo:A2028NotesMemberus-gaap:SeniorNotesMember2023-04-140000946581us-gaap:SeniorNotesMember2024-01-080000946581ttwo:A2026NotesMemberus-gaap:SeniorNotesMember2024-01-080000946581ttwo:A2028NotesMemberus-gaap:SeniorNotesMember2024-01-080000946581us-gaap:SeniorNotesMember2022-04-140000946581ttwo:A2024NotesMemberus-gaap:SeniorNotesMember2022-04-140000946581ttwo:A2025NotesMemberus-gaap:SeniorNotesMember2022-04-140000946581ttwo:A2027NotesMemberus-gaap:SeniorNotesMember2022-04-140000946581ttwo:A2032NotesMemberus-gaap:SeniorNotesMember2022-04-140000946581ttwo:A20252027And2032NotesMemberus-gaap:SeniorNotesMemberus-gaap:SeniorNotesMember2024-04-012024-09-300000946581us-gaap:SeniorNotesMember2024-07-012024-09-300000946581us-gaap:SeniorNotesMember2023-07-012023-09-300000946581us-gaap:SeniorNotesMember2024-04-012024-09-300000946581us-gaap:SeniorNotesMember2023-04-012023-09-300000946581ttwo:A2024NotesMember2023-06-052023-06-050000946581ttwo:A2024NotesMember2023-06-050000946581us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-05-232022-05-230000946581us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-05-230000946581us-gaap:LetterOfCreditMemberus-gaap:LineOfCreditMember2022-05-230000946581us-gaap:LineOfCreditMember2022-05-232022-05-230000946581us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-05-160000946581us-gaap:LineOfCreditMemberus-gaap:BaseRateMembersrt:MinimumMember2024-04-012024-09-300000946581us-gaap:LineOfCreditMemberus-gaap:BaseRateMembersrt:MaximumMember2024-04-012024-09-300000946581us-gaap:LineOfCreditMemberus-gaap:BaseRateMember2024-09-300000946581us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MinimumMember2024-04-012024-09-300000946581us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMembersrt:MaximumMember2024-04-012024-09-300000946581us-gaap:LineOfCreditMemberus-gaap:SecuredOvernightFinancingRateSofrMember2024-09-300000946581us-gaap:LineOfCreditMember2024-09-300000946581us-gaap:LineOfCreditMember2024-04-012024-09-300000946581us-gaap:LineOfCreditMember2024-07-012024-09-300000946581us-gaap:LineOfCreditMember2023-07-012023-09-300000946581us-gaap:LineOfCreditMember2023-04-012023-09-300000946581ttwo:A2022CreditAgreementMemberus-gaap:LineOfCreditMember2024-09-300000946581us-gaap:LineOfCreditMember2024-03-310000946581ttwo:TermLoanMember2022-06-222022-06-220000946581ttwo:TermLoanMember2022-06-220000946581ttwo:ZyngaIncMemberttwo:A025ConvertibleSeniorNotesDue2024Memberus-gaap:ConvertibleDebtMember2022-05-230000946581ttwo:ZyngaIncMemberttwo:A0ConvertibleSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-05-230000946581ttwo:ZyngaIncMemberus-gaap:ConvertibleDebtMember2022-05-232022-05-230000946581ttwo:ZyngaIncMemberus-gaap:ConvertibleDebtMember2022-05-230000946581ttwo:A025ConvertibleSeniorNotesDue2024Memberus-gaap:ConvertibleDebtMember2022-06-222022-06-220000946581ttwo:A0ConvertibleSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-06-222022-06-220000946581ttwo:A025ConvertibleSeniorNotesDue2024Memberus-gaap:ConvertibleDebtMember2022-06-220000946581ttwo:A0ConvertibleSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-06-220000946581us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:ConvertibleDebtMember2022-06-222022-06-220000946581us-gaap:DebtInstrumentRedemptionPeriodTwoMemberus-gaap:ConvertibleDebtMember2022-06-222022-06-220000946581ttwo:A025ConvertibleSeniorNotesDue2024Memberus-gaap:ConvertibleDebtMember2022-05-230000946581ttwo:A0ConvertibleSeniorNotesDue2026Memberus-gaap:ConvertibleDebtMember2022-05-230000946581ttwo:A025ConvertibleSeniorNotesDue2024Member2024-07-012024-09-300000946581us-gaap:ConvertibleDebtMember2024-07-012024-09-300000946581us-gaap:ConvertibleDebtMember2023-07-012023-09-300000946581us-gaap:ConvertibleDebtMember2024-04-012024-09-300000946581us-gaap:ConvertibleDebtMember2023-04-012023-09-300000946581us-gaap:StockCompensationPlanMember2024-07-012024-09-300000946581us-gaap:ConvertibleDebtSecuritiesMember2024-07-012024-09-300000946581us-gaap:StockCompensationPlanMember2024-04-012024-09-300000946581us-gaap:ConvertibleDebtSecuritiesMember2024-04-012024-09-300000946581us-gaap:RestrictedStockMember2024-07-012024-09-300000946581ttwo:ZyngaV.s.IBMMemberus-gaap:PendingLitigationMember2024-09-132024-09-130000946581ttwo:GearboxMember2024-06-110000946581ttwo:GearboxMemberus-gaap:CommonStockMember2024-06-112024-06-110000946581ttwo:GearboxMember2024-06-112024-06-110000946581ttwo:GearboxMemberus-gaap:IntellectualPropertyMember2024-06-110000946581ttwo:GearboxMemberus-gaap:IntellectualPropertyMember2024-06-112024-06-110000946581ttwo:GearboxMemberttwo:DevelopedGameTechnologyMember2024-06-110000946581ttwo:GearboxMemberttwo:DevelopedGameTechnologyMember2024-06-112024-06-110000946581ttwo:GearboxMemberttwo:GamesInDevelopmentMember2024-06-110000946581ttwo:GearboxMemberttwo:GameEngineTechnologyMember2024-06-110000946581ttwo:GearboxMemberttwo:GameEngineTechnologyMember2024-06-112024-06-110000946581ttwo:GearboxMemberus-gaap:TradeNamesMember2024-06-110000946581ttwo:GearboxMemberus-gaap:TradeNamesMember2024-06-112024-06-110000946581ttwo:GearboxMember2024-07-012024-09-300000946581ttwo:GearboxMember2024-04-012024-09-300000946581ttwo:DevelopedGameTechnologyMember2024-09-300000946581ttwo:DevelopedGameTechnologyMember2024-03-310000946581us-gaap:TradeNamesMember2024-09-300000946581us-gaap:TradeNamesMember2024-03-310000946581ttwo:GameEngineTechnologyMember2024-09-300000946581ttwo:GameEngineTechnologyMember2024-03-310000946581us-gaap:IntellectualPropertyMember2024-09-300000946581us-gaap:IntellectualPropertyMember2024-03-310000946581ttwo:DeveloperRelationshipsMember2024-09-300000946581ttwo:DeveloperRelationshipsMember2024-03-310000946581ttwo:AdvertisingTechnologyMember2024-09-300000946581ttwo:AdvertisingTechnologyMember2024-03-310000946581us-gaap:CustomerRelationshipsMember2024-09-300000946581us-gaap:CustomerRelationshipsMember2024-03-310000946581us-gaap:LeasesAcquiredInPlaceMember2024-09-300000946581us-gaap:LeasesAcquiredInPlaceMember2024-03-310000946581us-gaap:CostOfGoodsTotalMember2024-07-012024-09-300000946581us-gaap:CostOfGoodsTotalMember2023-07-012023-09-300000946581us-gaap:CostOfGoodsTotalMember2024-04-012024-09-300000946581us-gaap:CostOfGoodsTotalMember2023-04-012023-09-300000946581us-gaap:SellingAndMarketingExpenseMember2024-07-012024-09-300000946581us-gaap:SellingAndMarketingExpenseMember2023-07-012023-09-300000946581us-gaap:SellingAndMarketingExpenseMember2024-04-012024-09-300000946581us-gaap:SellingAndMarketingExpenseMember2023-04-012023-09-300000946581us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-300000946581us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300000946581us-gaap:ResearchAndDevelopmentExpenseMember2024-04-012024-09-300000946581us-gaap:ResearchAndDevelopmentExpenseMember2023-04-012023-09-300000946581ttwo:DepreciationAndAmortizationMember2024-07-012024-09-300000946581ttwo:DepreciationAndAmortizationMember2023-07-012023-09-300000946581ttwo:DepreciationAndAmortizationMember2024-04-012024-09-300000946581ttwo:DepreciationAndAmortizationMember2023-04-012023-09-300000946581ttwo:A2024PlanMembersrt:MinimumMember2024-09-300000946581ttwo:A2024PlanMembersrt:MaximumMember2024-09-300000946581ttwo:TitleCancellationsMemberttwo:A2024PlanMembersrt:MinimumMember2024-09-300000946581ttwo:TitleCancellationsMemberttwo:A2024PlanMembersrt:MaximumMember2024-09-300000946581ttwo:EmployeeSeveranceAndEmployeeRelatedCostsMemberttwo:A2024PlanMembersrt:MinimumMember2024-09-300000946581ttwo:EmployeeSeveranceAndEmployeeRelatedCostsMemberttwo:A2024PlanMembersrt:MaximumMember2024-09-300000946581ttwo:OfficeSpaceReductionsMemberttwo:A2024PlanMembersrt:MinimumMember2024-09-300000946581ttwo:OfficeSpaceReductionsMemberttwo:A2024PlanMembersrt:MaximumMember2024-09-300000946581ttwo:A2024PlanMember2023-04-012024-03-310000946581ttwo:TitleCancellationsMemberttwo:A2024PlanMember2023-04-012024-03-310000946581ttwo:EmployeeRelatedCostsMemberttwo:A2024PlanMember2023-04-012024-03-310000946581ttwo:ProfessionalFeesMemberttwo:A2024PlanMember2023-04-012024-03-310000946581ttwo:TitleCancellationsMemberttwo:A2024PlanMember2024-07-012024-09-300000946581ttwo:TitleCancellationsMemberttwo:A2024PlanMember2024-04-012024-09-300000946581ttwo:EmployeeRelatedCostsMemberttwo:A2024PlanMember2024-07-012024-09-300000946581ttwo:EmployeeRelatedCostsMemberttwo:A2024PlanMember2024-04-012024-09-300000946581ttwo:ImpairmentLossOfRightOfUseAssetMemberttwo:A2024PlanMember2024-07-012024-09-300000946581ttwo:ImpairmentLossOfRightOfUseAssetMemberttwo:A2024PlanMember2024-04-012024-09-300000946581ttwo:ProfessionalFeesMemberttwo:A2024PlanMember2024-07-012024-09-300000946581ttwo:ProfessionalFeesMemberttwo:A2024PlanMember2024-04-012024-09-300000946581ttwo:A2024PlanMember2024-07-012024-09-300000946581ttwo:A2024PlanMember2024-04-012024-09-300000946581us-gaap:AccruedLiabilitiesMember2024-09-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2024
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                             to                              .

Commission file number 001-34003
TAKE-TWO INTERACTIVE SOFTWARE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 51-0350842
(State or Other Jurisdiction of
Incorporation or Organization)		(I.R.S. Employer
Identification No.)
110 West 44th Street 10036
New YorkNew York(Zip Code)
 (Address of principal executive offices)
Registrant's Telephone Number, Including Area Code: (646) 536-2842
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $0.01 par valueTTWONASDAQ Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý    No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerýAccelerated fileroNon-accelerated fileroSmaller reporting company☐Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐    No ý

As of October 25, 2024, there were 175,627,391 shares of the Registrant's Common Stock outstanding, net of treasury stock.


INDEX


(All other items in this report are inapplicable)

1
PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
 September 30, 2024March 31, 2024
(Unaudited)
ASSETS  
Current assets:  
Cash and cash equivalents$876.1 $754.0 
Short-term investments3.5 22.0 
Restricted cash and cash equivalents357.5 252.1 
Accounts receivable, net of allowances of $1.3 and $1.2 at September 30, 2024 and March 31, 2024, respectively
858.9 679.7 
Software development costs and licenses96.9 88.3 
Contract assets79.4 85.0 
Prepaid expenses and other433.4 378.6 
Total current assets2,705.7 2,259.7 
Fixed assets, net433.5 411.1 
Right-of-use assets 336.6 325.7 
Software development costs and licenses, net of current portion1,731.2 1,446.5 
Goodwill4,648.7 4,426.4 
Other intangibles, net2,896.5 3,060.6 
Long-term restricted cash and cash equivalents86.0 95.9 
Other assets237.1 191.0 
Total assets$13,075.3 $12,216.9 
LIABILITIES AND STOCKHOLDERS' EQUITY  
Current liabilities:  
Accounts payable$177.1 $195.9 
Accrued expenses and other current liabilities1,300.3 1,062.6 
Deferred revenue1,064.9 1,059.5 
Lease liabilities59.0 63.8 
Short-term debt, net599.2 24.6 
Total current liabilities3,200.5 2,406.4 
Long-term debt, net3,055.9 3,058.3 
Non-current deferred revenue34.7 42.9 
Non-current lease liabilities 398.3 387.3 
Non-current software development royalties91.2 102.1 
Deferred tax liabilities, net281.9 340.9 
Other long-term liabilities214.3 211.1 
Total liabilities$7,276.8 $6,549.0 
Commitments and contingencies (See Note 11)
Stockholders' equity:  
Preferred stock, $0.01 par value, 5.0 shares authorized; no shares issued and outstanding at September 30, 2024 and March 31, 2024
— — 
Common stock, $0.01 par value, 300.0 and 300.0 shares authorized; 199.2 and 194.5 shares issued and 175.5 and 170.8 outstanding at September 30, 2024 and March 31, 2024, respectively
2.0 1.9 
Additional paid-in capital10,063.4 9,371.6 
Treasury stock, at cost; 23.7 and 23.7 common shares at September 30, 2024 and March 31, 2024, respectively
(1,020.6)(1,020.6)
Accumulated deficit(3,207.4)(2,579.9)
Accumulated other comprehensive loss(38.9)(105.1)
Total stockholders' equity$5,798.5 $5,667.9 
Total liabilities and stockholders' equity$13,075.3 $12,216.9 
See accompanying Notes.
2
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except per share amounts)
 Three Months Ended September 30,Six Months Ended September 30,
 2024202320242023
Net revenue:
Game$1,233.9 $1,128.6 $2,450.6 $2,224.7 
Advertising119.2 170.6 240.7 359.2 
Total net revenue1,353.1 1,299.2 2,691.3 2,583.9 
Cost of revenue625.2 883.8 1,192.3 1,489.3 
Gross profit727.9 415.4 1,499.0 1,094.6 
Selling and marketing461.3 334.6 892.7 734.0 
Research and development246.7 232.1 466.5 470.7 
General and administrative253.0 178.3 463.5 376.2 
Depreciation and amortization47.3 45.3 92.1 85.7 
Goodwill impairment— 165.4 — 165.4 
Business reorganization16.8 3.4 66.3 10.6 
Total operating expenses1,025.1 959.1 1,981.1 1,842.6 
Loss from operations(297.2)(543.7)(482.1)(748.0)
Interest and other, net(25.9)(31.1)(50.1)(56.5)
Loss on fair value adjustments, net(1.2)(2.2)(4.3)(1.4)
Loss before income taxes(324.3)(577.0)(536.5)(805.9)
Provision for (benefit from) income taxes41.2 (33.4)91.0 (56.3)
Net loss$(365.5)$(543.6)$(627.5)$(749.6)
Loss per share:    
Basic and diluted loss per share$(2.08)$(3.20)$(3.61)$(4.42)
See accompanying Notes.
3
TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited)
(in millions)
 Three Months Ended
September 30,		Six Months Ended September 30,
 2024202320242023
Net loss$(365.5)$(543.6)$(627.5)$(749.6)
Other comprehensive (loss) income:    
Foreign currency translation adjustment71.6 (63.1)66.2 (37.1)
Change in fair value of available for sale securities— 0.4 — 1.3 
Other comprehensive (loss) income71.6 (62.7)66.2 (35.8)
Comprehensive loss$(293.9)$(606.3)$(561.3)$(785.4)
   
See accompanying Notes.
4

TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
 Six Months Ended September 30,
 20242023
Operating activities:  
Net loss$(627.5)$(749.6)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization and impairment of software development costs and licenses139.6 108.1 
Stock-based compensation161.5 169.1 
Noncash lease expense31.3 32.7 
Amortization and impairment of intangibles374.1 676.8 
Depreciation74.0 67.9 
Goodwill impairment— 165.4 
Interest expense80.4 71.4 
Gain on debt extinguishment— (7.7)
Fair value adjustments4.3 1.4 
Other, net5.9 28.8 
Changes in assets and liabilities, net of effect from purchases of businesses:
Accounts receivable(169.6)(52.2)
Software development costs and licenses(362.8)(300.7)
Prepaid expenses and other current and other non-current assets22.1 (44.5)
Deferred revenue(4.6)65.3 
Accounts payable, accrued expenses and other liabilities(48.1)(162.4)
Net cash (used in) provided by operating activities(319.4)69.8 
Investing activities:  
Change in bank time deposits18.5 12.5 
Sale and maturities of available-for-sale securities— 131.0 
Purchases of fixed assets(71.9)(59.9)
Purchases of long-term investments(14.7)(6.5)
Business acquisitions9.4 (13.0)
Other(9.3)(3.8)
Net cash (used in) provided by investing activities(68.0)60.3 
Financing activities:
Tax payment related to net share settlements on restricted stock awards— (57.1)
Issuance of common stock23.8 18.8 
Payment for settlement of convertible notes(8.3)— 
Proceeds from issuance of debt598.9 999.3 
Cost of debt(5.4)(7.5)
Repayment of debt— (989.6)
Payment of contingent earn-out consideration(12.0)(35.0)
Net cash provided by (used in) financing activities597.0 (71.1)
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash and cash equivalents8.0 (7.4)
Net change in cash, cash equivalents, and restricted cash and cash equivalents217.6 51.6 
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of year (1)
1,102.0 1,234.6 
Cash, cash equivalents, and restricted cash and cash equivalents, end of period (1)
$1,319.6 $1,286.2 
(1) Cash, cash equivalents and restricted cash and cash equivalents shown on our Condensed Consolidated Statements of Cash Flow includes amounts in the Cash and cash equivalents, Restricted cash and cash equivalents, and Long-term restricted cash and cash equivalents on our Condensed Consolidated Balance Sheet.
See accompanying Notes.
5

TAKE-TWO INTERACTIVE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited)
(in millions)

Three Months Ended September 30, 2024
 Common StockAdditional
Paid-in
Capital		Treasury StockRetained
Earnings/(Accumulated Deficit)		Accumulated
Other
Comprehensive Loss		Total Stockholder's Equity
 SharesAmountSharesAmount
Balance, June 30, 2024198.8 $2.0 $9,962.5 (23.7)$(1,020.6)$(2,841.9)$(110.5)$5,991.5 
Net loss— — — — — (365.5)— (365.5)
Change in cumulative foreign currency translation adjustment— — — — — — 71.6 71.6 
Stock-based compensation— — 106.3 — — — — 106.3 
Issuance of restricted stock, net of forfeitures and cancellations0.4 — — — — — — — 
Other changes, net— — (5.4)— — — — (5.4)
Balance, September 30, 2024199.2 $2.0 $10,063.4 (23.7)$(1,020.6)$(3,207.4)$(38.9)$5,798.5 

Three Months Ended September 30, 2023
 Common StockAdditional
Paid-in
Capital		Treasury StockRetained
Earnings/Accumulated Deficit)		Accumulated
Other
Comprehensive
Loss		Total Stockholder's Equity
 SharesAmountSharesAmount
Balance, June 30, 2023193.5 $1.9 $9,087.0 (23.7)$(1,020.6)$958.3 $(86.4)$8,940.2 
Net loss— — — — — (543.6)— (543.6)
Change in cumulative foreign currency translation adjustment— — — — — — (63.1)(63.1)
Net unrealized gain on available-for-sale securities, net of taxes— — — — — — 0.4 0.4 
Stock-based compensation— — 112.0 — — — — 112.0 
Issuance of restricted stock, net of forfeitures and cancellations0.3 — — — — — — — 
Net share settlement of restricted stock awards(0.1)— (15.8)— — — — (15.8)
Balance, September 30, 2023193.7 $1.9 $9,183.2 (23.7)$(1,020.6)$414.7 $(149.1)$8,430.1 

See accompanying Notes.

6

Six Months Ended September 30, 2024
 Common StockAdditional
Paid-in
Capital		Treasury StockRetained
Earnings/(Accumulated Deficit)		Accumulated
Other
Comprehensive
Loss		Total
Stockholders'
Equity
 SharesAmountSharesAmount
Balance, March 31, 2024194.5 $1.9 $9,371.6 (23.7)$(1,020.6)$(2,579.9)$(105.1)$5,667.9 
Net loss— — — — — (627.5)— (627.5)
Change in cumulative foreign currency translation adjustment— — — — — — 66.2 66.2 
Stock-based compensation— — 203.5 — — — — 203.5 
Issuance of restricted stock, net of forfeitures and cancellations1.6 — — — — — — — 
Employee share purchase plan settlement0.2 — 23.3 — — — — 23.3 
Issuance of shares related to Zynga convertible notes0.1 — 16.0 — — — — 16.0 
Issuance of shares related to Gearbox acquisition2.8 — 448.6 — — — — 448.6 
Other changes, net— 0.1 0.4 — — — — 0.5 
Balance, September 30, 2024199.2 $2.0 $10,063.4 (23.7)$(1,020.6)$(3,207.4)$(38.9)$5,798.5 
Six Months Ended September 30, 2023
 Common StockAdditional
Paid-in
Capital		Treasury StockRetained
Earnings/(Accumulated Deficit)		Accumulated
Other
Comprehensive
Loss		Total
Stockholders'
Equity
 SharesAmountSharesAmount
Balance, March 31, 2023192.6 $1.9 $9,010.2 (23.7)$(1,020.6)$1,164.3 $(113.3)$9,042.5 
Net loss— — — — — (749.6)— (749.6)
Change in cumulative foreign currency translation adjustment— — — — — — (37.1)(37.1)
Net unrealized gain on available-for-sale securities, net of taxes— — — — — — 1.3 1.3 
Stock-based compensation— — 211.4 — — — — 211.4 
Issuance of restricted stock, net of forfeitures and cancellations1.3 — — — — — — — 
Net share settlement of restricted stock awards(0.4)— (57.1)— — — — (57.1)
Employee share purchase plan settlement0.2 — 18.5 — — — — 18.5 
Exercise of stock options— — 0.2 — — — — 0.2 
Balance, September 30, 2023193.7 $1.9 $9,183.2 (23.7)$(1,020.6)$414.7 $(149.1)$8,430.1 

See accompanying Notes.
7
TAKE-TWO INTERACTIVE SOFTWARE, INC.
Notes to Condensed Consolidated Financial Statements (Unaudited)
(in millions, except per share amounts)
1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
Take-Two Interactive Software, Inc. (the "Company," "we," "us," or similar pronouns) was incorporated in the state of Delaware in 1993. We are a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop, operate, and publish products principally through Rockstar Games, 2K, and Zynga. In October 2024, we sold our Private Division label, including our rights to substantially all of the label's titles. Our products are designed for console gaming systems, PC, and mobile, including smartphones and tablets. We deliver our products through physical retail, digital download, online platforms, and cloud streaming services.
Basis of Presentation
The accompanying Condensed Consolidated Financial Statements are unaudited and include the accounts of the Company and its wholly-owned subsidiaries and, in our opinion, reflect all normal and recurring adjustments necessary for the fair presentation of our financial position, results of operations, and cash flows. Interim results may not be indicative of the results that may be expected for the full fiscal year. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of these Condensed Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") requires management to make estimates and assumptions that affect the amounts reported in these Condensed Consolidated Financial Statements and accompanying notes. As permitted under U.S. GAAP, interim accounting for certain expenses, including income taxes, is based on full year assumptions when appropriate. Actual results could differ materially from those estimates, which may affect economic conditions in a number of different ways and result in uncertainty and risk.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"), although we believe that the disclosures are adequate to make the information presented not misleading. These Condensed Consolidated Financial Statements and accompanying notes should be read in conjunction with our annual Consolidated Financial Statements and the notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2024.
Certain immaterial reclassifications have been made to prior period amounts to conform to the current period presentation.
Recent Accounting Pronouncements
Expense Disaggregation Disclosures
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires additional, disaggregated disclosure about certain income statement expense line items. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 (April 1, 2027 for the Company) and interim periods within fiscal years beginning after December 15, 2027 (April 1, 2028 for the Company). We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures.
Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and regarding cash taxes paid both in the U.S. and foreign jurisdictions. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 (April 1, 2025 for the Company). The amendments in this ASU are required to be applied on a prospective basis and retrospective adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures.
8

Segment Reporting Disclosures
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 (April 1, 2024 for the Company) and interim periods within fiscal years beginning after December 15, 2024 (April 1, 2025 for the Company). The amendments in this ASU must be applied on a retrospective basis to all prior periods presented in the financial statements. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures.

2. 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:
Three Months Ended September 30,Six Months Ended September 30,
2024202320242023
Net revenue recognized:
Over time$1,086.3 $1,006.6 $2,213.9 $2,086.4 
Point in time266.8 292.6 477.4 497.5 
Total net revenue$1,353.1 $1,299.2 $2,691.3 $2,583.9 
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:

Three Months Ended September 30,Six Months Ended September 30,
2024202320242023
Net revenue recognized:
Recurrent consumer spending$1,079.0 $1,000.4 $2,176.7 $2,068.8 
Full game and other274.1 298.8 514.6 515.1 
Total net revenue$1,353.1 $1,299.2 $2,691.3 $2,583.9 
Geography
We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows:
9

Three Months Ended September 30,Six Months Ended September 30,
2024202320242023
Net revenue recognized:
United States$814.5 $795.6 $1,635.0 $1,599.5 
International538.6 503.6 1,056.3 984.4 
Total net revenue$1,353.1 $1,299.2 $2,691.3 $2,583.9 
Platform
Net revenue by platform was as follows:
Three Months Ended September 30,Six Months Ended September 30,
2024202320242023
Net revenue recognized:
Mobile$740.2 $646.2 $1,462.7 $1,326.2 
Console491.1 546.7 1,000.0 1,051.0 
PC and other121.8 106.3 228.6 206.7 
Total net revenue$1,353.1 $1,299.2 $2,691.3 $2,583.9 
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:
Three Months Ended September 30,Six Months Ended September 30,
2024202320242023
Net revenue recognized:
Digital online$1,300.0 $1,239.7 $2,595.5 $2,479.7 
Physical retail and other53.1 59.5 95.8 104.2 
Total net revenue$1,353.1 $1,299.2 $2,691.3 $2,583.9 
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 September 30, 2024 and March 31, 2024 were $1,099.6 and $1,102.4, respectively. For the six months ended September 30, 2024, the additions to our deferred revenue balance were due primarily to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were due primarily to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business.
During the three months ended September 30, 2024 and 2023, $300.6 and $314.3, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. During the six months ended September 30, 2024 and 2023, $824.5 and $838.2, respectively, of revenue was recognized that was included in the deferred revenue balance at the beginning of the respective period. As of September 30, 2024, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $1,218.1, which includes our deferred revenue balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $1,125.4 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 September 30, 2024 and March 31, 2024, our contract asset balances were $79.4 and $85.0, respectively.
3. MANAGEMENT AGREEMENT
In May 2022, we entered into a management agreement (the "2022 Management Agreement") with ZelnickMedia Corporation ("ZelnickMedia") that replaced our previous agreement with ZelnickMedia and pursuant to which ZelnickMedia will continue to provide financial and management consulting services to the Company through March 31, 2029. The 2022 Management Agreement became effective May 23, 2022. On May 21, 2022, ZelnickMedia assigned substantially all of its
10
rights and obligations and other liabilities under the 2022 Management Agreement to ZMC Advisors, L.P. ("ZMC Advisors"). References to "ZMC" herein shall mean either ZelnickMedia or ZMC Advisors, as appropriate. As part of the 2022 Management Agreement, Strauss Zelnick continues to serve as Executive Chairman and Chief Executive Officer of the Company, and Karl Slatoff continues to serve as President of the Company. The 2022 Management Agreement provides for an annual management fee of $3.3 over the term of the agreement and a maximum annual bonus opportunity of $13.2 over the term of the agreement, based on the Company achieving certain performance thresholds. In connection with the 2022 Management Agreement, we have granted and expect to grant time-based and performance-based restricted units to ZMC.
In consideration for ZMC's services, we recorded consulting expense in General and administrative expenses on our Condensed Consolidated Statements of Operations of $2.5 and $2.4 during the three months ended September 30, 2024 and 2023, respectively, and $5.1 and $5.2 during the six months ended September 30, 2024 and 2023, respectively. We recorded stock-based compensation expense for restricted stock units granted to ZMC, which is also included in General and administrative expenses, of $14.7 and $13.9 during the three months ended September 30, 2024 and 2023, respectively, and $27.1 and $25.1 during the six months ended September 30, 2024 and 2023, respectively.
In connection with the 2022 Management Agreement, we granted restricted stock units (in thousands) to ZMC as follows:
 Six Months Ended September 30,
 20242023
Time-based102 97 
Market-based(1)
311 295 
Performance-based(1)
104 98 
Total Restricted Stock Units517 490 
(1) Represents the maximum of shares eligible to vest
Time-based restricted stock units granted pursuant to the 2022 Management Agreement in fiscal year 2025 will vest on June 1, 2025, June 1, 2026, and June 1, 2027, and those granted in fiscal year 2024, partially vested on June 1, 2024 and will also vest June 1, 2025 and June 1, 2026. Time-based restricted stock units granted in fiscal year 2023, partially vested on June 1, 2023 and June 1, 2024 and will also vest June 1, 2025.
Market-based restricted stock units granted pursuant to the 2022 Management Agreement in fiscal year 2025 are eligible to vest on June 1, 2027, those granted in fiscal year 2024 are eligible to vest on June 1, 2026, and those granted in fiscal year 2023 are eligible to vest on June 1, 2025. Market-based restricted stock units are eligible to vest based on the Company's Total Shareholder Return (as defined in the relevant grant agreement) relative to the Total Shareholder Return (as defined in the relevant grant agreement) of the companies that constitute the NASDAQ 100 index under the 2022 Management Agreement (as defined in the relevant grant agreement) as of the grant date measured over a three-year period, as applicable. To earn the target number of market-based restricted stock units (which represents 50% of the number of the market-based restricted stock units set forth in the table above), the Company must perform at the 50th percentile, with the maximum number of market-based restricted stock units earned if the Company performs at the 75th percentile.
Performance-based restricted stock units granted pursuant to the 2022 Management Agreement in fiscal year 2025 are eligible to vest on June 1, 2027, those granted in fiscal year 2024 are eligible to vest on June 1, 2026, and those granted in fiscal year 2023 are eligible to vest on June 1, 2025. The performance-based restricted stock units are tied to "RCS" (as defined in the relevant grant agreement) and are eligible to vest based on the Company's achievement of certain performance metrics (as defined in the relevant grant agreement) of "RCS" measured over a three-year period. The target number of performance-based restricted stock units that may be earned pursuant to these grants is equal to 50% of the grant amounts set forth in the above table (the numbers in the table represent the maximum number of performance-based restricted stock units that may be earned). At the end of each reporting period, we assess the probability of each performance metric and upon determination that certain thresholds are probable, we record expense for the unvested portion of the shares of performance-based restricted stock units.
The unvested portions of time-based, market-based and performance-based restricted stock units held by ZMC were 1.4 and 1.3 as of September 30, 2024 and March 31, 2024, respectively. During the six months ended September 30, 2024, 0.4 restricted stock units previously granted to ZMC vested, and 0.1 restricted stock units were forfeited by ZMC.
11
4. FAIR VALUE MEASUREMENTS
Recurring fair value measurements
The carrying amounts of our financial instruments, including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, prepaid expenses and other, accounts payable, and accrued expenses and other current liabilities, approximate fair value because of their short maturities.
We follow a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of "observable inputs" and minimize the use of "unobservable inputs." The three levels of inputs used to measure fair value are as follows:
•Level 1—Quoted prices in active markets for identical assets or liabilities.

•Level 2—Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active or other inputs that are observable or can be corroborated by observable market data.

•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.
The table below segregates all assets and liabilities that are measured at fair value on a recurring basis (which is measured at least annually) into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.

September 30, 2024
 Quoted prices
in active
markets for
identical
assets
(level 1)		Significant
other
observable
inputs
(level 2)		Significant
unobservable
inputs
(level 3)		Total
Assets:
Cash and cash equivalents:
Money market funds$489.8 $— $— $489.8 
Bank-time deposits87.8 — — 87.8 
Short-term investments:
Bank-time deposits3.5 — — 3.5 
Restricted cash and cash equivalents:
Money market funds342.7 — — 342.7 
Bank-time deposits0.5 — — 0.5 
Restricted cash and cash equivalents, long term:
Money market funds86.0 — — 86.0 
Other assets:
Private equity— — 26.0 26.0 
Equity securities7.0 — — 7.0 
Total financial assets$1,017.3 $— $26.0 $1,043.3 
Liabilities:
Accrued expenses and other current liabilities:
Contingent earn-out consideration$— $— $0.5 $0.5 
Other-long term liabilities:
Contingent earn-out consideration — — 2.8 2.8 
Long-term debt, net:
Convertible notes— 26.0 — 26.0 
Total financial liabilities$— $26.0 $3.3 $29.3 
12
 
March 31, 2024
 Quoted prices in active markets for identical assets (level 1)Significant other observable inputs (level 2)Significant unobservable inputs (level 3)Total
Assets:
Cash and cash equivalents:
Money market funds$177.5 $— $— $177.5 
Bank-time deposits64.8 — — 64.8 
Short-term investments:
Bank-time deposits22.0 — — 22.0 
Restricted cash and cash equivalents:
Money market funds238.3 — — 238.3 
Bank-time deposits0.5 — — 0.5 
Restricted cash and cash equivalents, long term:
Money market funds95.9 — — 95.9 
Other assets:
Private equity— — 26.8 26.8 
Total financial assets$599.0 $— $26.8 $625.8 
Liabilities:
Accrued expenses and other current liabilities:
Contingent earn-out consideration$— $— $12.4 $12.4 
Other long-term liabilities:
Contingent earn-out consideration— — 0.7 0.7 
Short-term debt, net:
Convertible notes— 24.6 — 24.6 
Long-term debt, net:
Convertible notes— 25.9 — 25.9 
Total financial liabilities$— $50.5 $13.1 $63.6 
We did not have any transfers between Level 1 and Level 2 fair value measurements, nor did we have any transfers into or out of Level 3 during the six months ended September 30, 2024.
Nonrecurring fair value measurements
We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the privately-held affiliates, and we do not maintain significant influence over or control of the entities. We have elected the practical expedient in Topic 321, Investments-Equity Securities, to measure these investments at cost less any impairment, adjusted for observable price changes, if any. Based on these considerations, we estimate that the carrying value of the acquired shares represents the fair value of the investment. At September 30, 2024, and March 31, 2024, we held $8.0 and $8.0, respectively, of such investments in Other assets within our Condensed Consolidated Balance Sheet.
13

5. SHORT-TERM INVESTMENTS
Our Short-term investments consisted of the following:
 September 30, 2024
  Gross
Unrealized		 
 Cost or
Amortized Cost		GainsLossesFair Value
Short-term investments    
Bank time deposits$3.5 $— $— $3.5 
Total Short-term investments$3.5 $— $— $3.5 
 
 March 31, 2024
  Gross
Unrealized
 Cost or
Amortized Cost		GainsLossesFair Value
Short-term investments    
Bank time deposits$22.0 $— $— $22.0 
Total Short-term investments$22.0 $— $— $22.0 
The following table summarizes the contracted maturities of our short-term investments at September 30, 2024:
 September 30, 2024
 Amortized
Cost		Fair
Value
Short-term investments  
Due in 1 year or less$3.5 $3.5 
Total Short-term investments$3.5 $3.5 

6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
Our risk management strategy includes the use of derivative financial instruments to reduce the volatility associated with changes in foreign currency exchange rates on earnings, cash flows, and certain balance sheet amounts. We do not enter into derivative financial contracts for speculative or trading purposes. We recognize derivative instruments as either assets or liabilities on our Consolidated Balance Sheets, and we measure those instruments at fair value. We classify cash flows from derivative transactions as cash flows from operating activities in our Consolidated Statements of Cash Flows.
Foreign currency forward contracts
The following table shows the gross notional amounts of foreign currency forward contracts:
September 30, 2024March 31, 2024
Forward contracts to sell foreign currencies$332.6 $243.0 
Forward contracts to purchase foreign currencies156.9 72.2 
For the three months ended September 30, 2024 and 2023, we recorded a loss of $3.3 and a gain of $3.6, respectively, and for the six months ended September 30, 2024 and 2023, we recorded a gain of $0.2 and a gain of $7.4, respectively, related to foreign currency forward contracts in Interest and other, net on our Condensed Consolidated Statements of Operations. Our foreign currency exchange forward contracts are not designated as hedging instruments under hedge accounting and are used to reduce the impact of foreign currency on certain balance sheet exposures. These instruments are generally short-term in nature, with typical maturities of less than one year, and are subject to fluctuations in foreign exchange rates.
14
7. SOFTWARE DEVELOPMENT COSTS AND LICENSES
Details of our capitalized software development costs and licenses were as follows:
 September 30, 2024March 31, 2024
 CurrentNon-currentCurrentNon-current
Software development costs, internally developed$71.1 $1,670.0 $53.4 $1,237.0 
Software development costs, externally developed7.4 51.5 6.1 198.5 
Licenses18.4 9.7 28.8 11.0 
Software development costs and licenses$96.9 $1,731.2 $88.3 $1,446.5 
During the three months ended September 30, 2024 and 2023, we recorded $11.5 and $3.5, respectively, of software development impairment charges (a component of Cost of revenue). The impairment charges recorded during the three months ended September 30, 2024 related to our cost reduction program (refer to Note 15 - Business Reorganization). The impairment charges recorded during the three months ended September 30, 2023 related to unamortized capitalized costs for the development of titles, which were anticipated to exceed the net realizable value of the asset at the time they were impaired.
During the six months ended September 30, 2024 and 2023, we recorded $34.8 and $21.7, respectively, of software development impairment charges (a component of Cost of revenue). The impairment charges recorded during the six months ended September 30, 2024 related to our cost reduction program (refer to Note 15 - Business Reorganization). The impairment charges recorded during the six months ended September 30, 2023 related to unamortized capitalized costs for the development of titles, which were anticipated to exceed the net realizable value of the asset at the time they were impaired.

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of the following:
 September 30, 2024March 31, 2024
Software development royalties$519.7 $413.1 
Compensation and benefits203.1 227.3 
Licenses102.5 64.4 
Tax payable91.7 32.4 
Marketing and promotions86.6 94.5 
Settlement accrual56.4 1.4 
Refund liability40.2 34.5 
Interest payable39.2 29.4 
Sales tax liability22.0 19.3 
Professional fees16.9 16.7 
Deferred acquisition payments5.6 17.6 
Other116.4 112.0 
Accrued expenses and other current liabilities$1,300.3 $1,062.6 

15
9. DEBT
The components of Long-term debt, net on our Condensed Consolidated Balance Sheet were as follows:
 Annual Interest RateMaturity DateSeptember 30, 2024Fair Value (Level 2)
2026 Notes5.00%March 28, 2026$550.0 $555.6 
2027 Notes3.70%April 14, 2027600.0 592.6 
2028 Notes4.95%March 28, 2028800.0 816.5 
2029 Notes5.40%June 12, 2029300.0 312.4 
2032 Notes4.00%April 14, 2032500.0 480.0 
2034 Notes5.60%June 12, 2034300.0 316.1 
2026 Convertible Notes0.00%December 15, 202626.0 26.0 
Total$3,076.0 $3,099.2 
Unamortized discount and issuance costs(20.1)
Long-term debt, net$3,055.9 
 Annual Interest RateMaturity DateMarch 31, 2024Fair Value (Level 2)
2025 Notes3.55%April 14, 2025$600.0 $588.9 
2026 Notes5.00%March 28, 2026550.0 547.6 
2027 Notes3.70%April 14, 2027600.0 576.5 
2028 Notes4.95%March 28, 2028800.0 797.8 
2032 Notes4.00%April 14, 2032500.0 462.9 
2026 Convertible Notes0.00%December 15, 202625.9 25.9 
Total$3,075.9 $2,999.6 
Unamortized discount and issuance costs(17.6)
Long-term debt, net$3,058.3 
The components of Short-term debt, net on our Condensed Consolidated Balance Sheet were as follows:
 Annual Interest RateMaturity DateSeptember 30, 2024Fair Value (Level 2)
2025 Notes3.55%April 14, 2025$600.0 $596.2 
Total$600.0 $596.2 
Unamortized discount and issuance costs(0.8)
Short-term debt, net$599.2 
 Annual Interest RateMaturity DateMarch 31, 2024Fair Value (Level 2)
2024 Convertible Notes0.25%June 1, 2024$