Despite posting impressive revenue growth and exceeding key profit expectations, Take-Two Interactive saw its stock value decline following its latest earnings report. The market’s negative reaction stems from a significant announcement: the highly anticipated Grand Theft Auto VI has been delayed once more, now scheduled for a November 2026 release.
Strong Financials Overshadowed by Weak Guidance
Take-Two reported third-quarter calendar year 2025 revenue of $1.77 billion, a figure that comfortably surpassed analyst projections of $1.71 billion. The company’s adjusted EBITDA was a standout, reaching $387.6 million against expectations of just $288 million. This performance was fueled by robust results from mobile titles such as Toon Blast and the successful launch of NBA 2K26, which set new records for player spending on in-game purchases. CEO Strauss Zelnick highlighted a 20 percent surge in recurrent consumer spending.
However, the positive news was tempered by the bottom line. The company reported a GAAP earnings per share loss of -$0.73, which was worse than the anticipated -$0.62. Furthermore, the full-year EBITDA forecast of only $608 million delivered a major disappointment to the market, where experts had been looking for over $910 million.
The Core Issue: A Pivotal Delay
The primary driver behind the investor exodus was the confirmation that Grand Theft Auto VI has been pushed back. Initially slated for late 2025, then moved to May 2026, the flagship title is now expected nearly a full year later than its last planned date. For a franchise that has historically generated billions in revenue, this further postponement represents a substantial blow. The financial markets responded immediately, with the stock price tumbling from over $253 to below $239.
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Although the company’s operating margin showed improvement, moving to -5.5 percent from -20.1 percent the previous year, the weak annual EBITDA outlook signals that profitability will remain under significant pressure in the absence of its blockbuster release.
Labor Dispute Adds to Corporate Challenges
Compounding the quarterly results, news emerged that Rockstar Games, a subsidiary of Take-Two, has laid off 34 employees across its UK and Canadian offices. The IWGB union has accused the company of “union-busting” and has filed a discrimination lawsuit related to union activities. Take-Two has refuted these allegations, stating the terminations were due to “serious misconduct” and the leaking of confidential company information. This dispute introduces additional reputational and legal risks at a time when investor confidence is already fragile.
Analyst Confidence Meets Market Reality
In the wake of the sell-off, a notable consensus remains among market experts; 14 out of 15 analysts continue to recommend a “Strong Buy” for Take-Two stock. The critical question now is how long this optimism can persist if the GTA VI timeline stretches further. The company’s ability to bridge the gap with other upcoming titles like WWE 2K26 and its portfolio of live-service games will be crucial in the coming quarters. Nevertheless, it is evident that without its core franchise, the stock remains vulnerable, and any further headlines concerning Rockstar Games will likely fuel additional market nervousness.
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