Take-Two Interactive Software Inc (TTWO) — Q2 2026 Transcript

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; Karl Slatoff, our President; and Lainie 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 take2games.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 had 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 team's unparalleled innovation in live services; and Grand Theft Auto 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 are again raising our net bookings outlook for fiscal 2026 to $6.4 billion to $6.5 billion. Rockstar Games has announced that Grand Theft Auto VI will now be released on November 19, 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 meta game 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 the Super Bowl power-up, which increased engagement and monetization within the game. Rollic'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, Rollic 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 CSR 3. 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 SuperCard surpassing 38 million lifetime downloads. NBA 2K Mobile continued to grow its audience, with 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 the 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 designed to support 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 MyCAREER 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 and 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 are immensely proud of Gearbox and look forward to robust post-launch content offerings that will support the game in the months ahead. 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 remain deeply engaged with Grand Theft Auto Online, which added holiday-themed jobs and rewards, as well as new vehicles, community events, and outfits. GTA+ continued to increase its membership, achieving over 20% growth year-over-year. We're pleased with the consumers' 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 net bookings in fiscal 2027, establish a new baseline for our business, and enhance our profitability. I'll now turn the call over to Karl.

Thanks, Strauss. I'd like to thank our teams for delivering another terrific quarter, which reflects our unique ability to consistently deliver the highest quality entertainment experiences. Our teams plan to sustain this momentum over the balance of the year by releasing an array of new content and product offerings. Following the successful launches of Mafia: The Old Country, NBA 2K26, and Borderlands 4, 2K plans to release new content and updates for each game that will provide our fans with even greater opportunities to engage with these franchises. Zynga will continue to enhance its portfolio with the introduction of new features and innovation in live services while also pursuing new titles. During the fourth quarter of our fiscal year, 2K and Visual Concepts will launch WWE 2K26, the next installment in our popular wrestling franchise. Since taking over the series, Visual Concepts has immersed players in the most intense and realistic action that the squared circle can hold. WWE 2K26 will continue this legacy. 2K will have more to share about the game shortly. Looking ahead, we believe strongly in our long-term pipeline, which includes the release of Grand Theft Auto VI on November 19, 2026, as well as the future launches of Judas, Project ETHOS, CSR 3, Top Goal, the next BioShock, and many other exciting new titles from across our labels. In closing, we are thrilled with our performance for the first half of fiscal 2026. As we continue to execute our proven strategy and capitalize on emerging opportunities, we expect to achieve a period of meaningful long-term growth and shareholder returns. I'll now turn the call over to Lainie.

Thanks, Karl, and good afternoon, everyone. Our second quarter results were truly fantastic. We are excited to raise our annual net bookings outlook for the second consecutive quarter. Our outperformance was driven by many of our key titles, which underscores the strength of our core franchises and the power of our diverse portfolio of owned intellectual property. I'd like to thank our teams for their outstanding execution and unwavering focus on creativity, innovation, and efficiency. Turning to our results. We delivered second quarter net bookings of $1.96 billion, which was significantly above our guidance range of $1.7 billion to $1.75 billion. This reflected better-than-expected performance from NBA 2K, Mafia: The Old Country and several mobile titles, including Toon Blast, Color Block Jam, Match Factory!, and Empires & Puzzles, which more than offset softness in the initial launch of Borderlands 4. Recurrent consumer spending rose 20% for the period, which outperformed our guidance of 1% growth and accounted for 73% of net bookings. NBA 2K grew 45%, mobile increased mid-teens, and Grand Theft Auto Online declined as expected. During the quarter, we launched Mafia: The Old Country, NBA 2K26, and Borderlands 4. GAAP net revenue increased 31% to $1.77 billion. Cost of revenue increased 27% to $793 million, and operating expenses increased 5% to $1.1 billion. On a management basis, operating expenses rose 13% year-over-year, which represented significant operating expense leverage on our strong top line growth. Operating expense dollars were above our forecast due to incremental user acquisition investments to support robust performance in our mobile portfolio and higher performance-based compensation, which was partly offset by a shift in some console marketing and IT expenses into the second half of the year. Turning to our guidance. I'll begin with our full fiscal year expectations. Our momentum is strong, and we are raising our net bookings outlook range to $6.4 billion to $6.5 billion, which represents 14% growth over fiscal 2025 at the midpoint. The increase reflects our second quarter outperformance and higher expectations for many of our core franchises for the second half of the year. The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, Borderlands 4, Color Block Jam, Empires & Puzzles, the Red Dead Redemption series, and Words with Friends. We now expect recurrent consumer spending to grow approximately 11%, representing 77% of net bookings. This growth percentage is more than double our prior forecast of 4%, driven by NBA 2K and higher expectations for several mobile titles. Our revised recurrent consumer spending forecast assumes that NBA 2K now grows in the mid-20% range. Mobile now increases approximately 10%, and Grand Theft Auto Online declines, which is unchanged from our prior forecast. We project the net bookings breakdown from our labels to be roughly 46% Zynga, 39% 2K, and 15% Rockstar Games. We are raising our operating cash flow forecast to approximately $250 million, reflecting the strength in our business. We now expect to deploy approximately $180 million in capital expenditures, which is above our prior guidance due to the acquisition of an office building to support our global footprint. We are also increasing our forecasts for GAAP net revenue, which is now expected to range from $6.38 billion to $6.48 billion and cost of revenue, which is now expected to range from $2.66 billion to $2.69 billion. Our total operating expenses are expected to range from $3.98 billion to $4 billion compared to $7.45 billion last year. On a management basis, we now expect operating expense growth of approximately 9% year-over-year, which represents notable operating expense leverage on our higher net bookings outlook. Our forecast for operating expense dollars is increasing due to incremental marketing to support our mobile portfolio and higher performance-based compensation. Now moving on to our guidance for the fiscal third quarter. We project net bookings to range from $1.55 billion to $1.6 billion compared to $1.37 billion in the prior year. The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, Match Factory!, the Red Dead Redemption Series, Color Block Jam, Empires & Puzzles, Borderlands 4, and Words with Friends. We project recurrent consumer spending to increase by approximately 8%, which assumes low double-digit growth in mobile, a mid-single-digit increase for NBA 2K, and a decline for Grand Theft Auto Online. We expect GAAP net revenue to range from $1.57 billion to $1.62 billion. Operating expenses are planned to range from $980 million to $990 million. On a management basis, operating expenses are expected to grow by approximately 12% year-over-year, which is primarily driven by incremental user acquisition investments to support our robust performance in our mobile portfolio and higher performance-based compensation. In closing, we are thrilled with the strength in our business today, and we are extremely optimistic about the future ahead. As we execute on our strategic priorities, which include expanding our core franchises to even greater levels of commercial success, releasing groundbreaking new hits, driving efficiencies, and capitalizing on new business opportunities, we believe that we will meaningfully grow our scale and our profitability. I'd like to thank you all for your support and look forward to sharing more details on our exciting pipeline in the coming months. Thank you. I'll now turn the call back to Strauss.

Thanks, Lainie and Karl. On behalf of our entire management team, I'd like to thank our colleagues for continuing to deliver outstanding results for Take-Two. To our shareholders, I want to express our appreciation for your continued support. We'll now take your questions. Operator?

On the performance of RCS, it's really impressive. I'm wondering if there are any similarities between NBA Mobile and other titles that are showing this strength. Is there anything specific you've learned from this that you can apply to other franchises in the future? Also, with the change in the release date for GTA, does that affect the schedule for content updates or marketing support for GTA Online over the next year as you work to keep engagement high in the meantime?

Addressing your second question first, I don't anticipate any changes, as Rockstar has consistently supported GTA Online. The title continues to perform exceptionally well. Additionally, GTA+ saw a 20% increase year-over-year this quarter, which is fantastic news. Grand Theft Auto V has now reached 220 million units sold, which is quite an achievement. We expect that trend to continue similarly. As for your first question, are you inquiring whether we believe there are industry trends that are boosting recurrent consumer spending overall?

Well, actually, it could be that or more specific to the way that you're developing games. Is there something within RCS within the mechanics that you're seeing is resonating with gamers in particular or maybe they're just specific to those titles?

My impression is that despite what some industry observers are suggesting about modest tailwinds in the business, we are indeed experiencing those. Our goal is to strive for excellence in everything we do while engaging and captivating our consumers. When we execute this effectively, monetization naturally follows. We are not in the business of celebrating prematurely, although we take pride in the quarter. In response to your question, our creative teams are performing at the highest level. When I encounter negative commentary in the industry, I believe that correlating quality with performance reveals a strongly positive relationship. Furthermore, I think there is causation as well—when you provide people with something exceptional, they will respond positively.

It appears that you're soon going to be the last publicly traded stand-alone publisher of scale standing. I wondered your view on how that affects your ability to attract talent, your ability to place games in the market. Just sort of is there anything about that strategically that affects your competitive position?

I think the answer is I'm not sure. We're always running scared around here. I'm fond of saying arrogance is the enemy of continued success. And I do think we're in a terrific position. We're performing much better than expected economically, and that's because we're performing better than expected creatively, and that's always our story around here. And if we can maintain that, then we have a wonderful future ahead of us. It is true that at year-end, we're really very under-leveraged. It is true that in relatively short order, we expect to be a net cash company again. And it's true that we're independent and we have a publicly traded security. And I think all of those things can be advantages in the right hands. But none of that will lead us to claim success before we deliver it. And whenever we have good results, our approach around here is to take no victory lap, hence to get up the next day and try to do it again. So that's what we'll keep doing. We do think we're well positioned.

We saw one of your peers see outperformance on mobile margins due to the recent iOS changes. Can you just walk us through how widely available alternate payment mechanisms are across your portfolio today? And did that provide any uplift to gross margins in the quarter or your expectations for the year? And maybe just along these lines, any thoughts on the recently proposed changes to Google Play and what it means for your business?

Look, I've been saying for years that I expected the cost of third-party distribution to decline. And as soon as we close the Zynga transaction, we launched a direct-to-consumer initiative that has been successful. We value our partnerships with retailers. We don't have any reason to believe that those will ever become extinct. At the same time, distribution costs, naturally will decline with competition and in certain instances with litigation and legislation. And you're seeing that now. So our direct-to-consumer business is doing really well. It has been rolled out almost across our entire mobile portfolio, not the entire portfolio because it doesn't necessarily fit everywhere. And the most recent litigation result definitely puts us in a stronger position. And not only will net bookings rise more rapidly than expected but margins too will rise with them. So it's all good news. We're not specifically calling out how that margin change will affect our year, except obviously, we've increased our guidance for the year.

Got it. And if I can just fit in one more. Maybe just on the new GTA timeline, anything you can share as to what the drivers were? And what gives you confidence that the state will stick?

Yes, the drivers are a desire to deliver as perfect an entertainment experience as we possibly can and to try to live up to consumers' extraordinary expectations and then exceed those expectations. And it's always painful when we move a date. We have done so occasionally in the past, and we've never regretted it in retrospect. I would like to point out that we have some competitors in the event where more polish was required and required slipping a date, they chose not to slip the date, and they did so at their peril.

Maybe one question about the NBA and another about Borderlands. In terms of the NBA, I noticed that some of the metrics you shared today were significantly higher than what is typically seen for a mature sports franchise. Can you explain where these additional audiences are coming from? Are you reaching out to new groups of players? Also, what stage do you think you are at in terms of reaching the overall NBA audience? I'll ask my Borderlands question after that.

Returning players are a significant group for us, and we are improving each year at bringing them back into the games. However, there is still considerable potential for enhancement. We are definitely not retaining all our players every year, and achieving that would provide considerable growth opportunities. While I can't guarantee we will reach that level of retention, there remains much room for improvement. We are also finding success internationally, along with increasing engagement from our existing player base, which has played a crucial role in driving recurring consumer spending in NBA, showing significant year-over-year improvements. We are introducing new initiatives, such as early access for premium users, and tightening the game based on feedback from our audience. As we always emphasize, higher engagement leads to better monetization, not the other way around. While I might like to say we are in the first inning, that's likely not accurate. We are not yet even at the seventh-inning stretch; we are probably somewhere in between.

Got it. Really appreciate that. And then on Borderlands, in these kind of longer-lived titles, how important is the launch period? And I guess, to the extent that the PC issues caused a little bit of a drag, how does player behavior change in one of those titles versus maybe an annual release where maybe you don't have as much time to sort of make up anything that fell short of expectations around the launch period?

We acknowledge your observation. The release was not as strong as we had hoped for the reasons you've mentioned. Gearbox is actively working on the PC issues. Looking back, we realize there are aspects we could have improved, and we plan to enhance our approach moving forward. Ultimately, we believe the unit sales for this title will be robust, and the financial outcomes will align with our expectations.

I wanted to ask a little bit about mobile and Zynga. Obviously, it's been a stretch here of really strong outperformance for that business versus the broader mobile gaming market. So 2-parter. One, what is your level of confidence in their ability to sustain that continued outperformance in the market versus the market? Do you see that as a function of new game launches, growing existing titles? And then connected to that, is there an opportunity to do M&A in the mobile gaming space. Something that as an independent company, Zynga I think has had a lot of success with. Is that something you're considering doing more of to build on the momentum Zynga has today?

Yes. I would attribute their outperformance to strong leadership and effective execution. Frank Gibeau, our CEO at Zynga, is doing an excellent job leading the team. Our creative teams at Peak, Rollic, and all of our studios are performing well, managing live services for existing titles and launching new ones. We need to continue this trend. I'm confident we can because our approach has become more focused and refined, allowing us to be more economically cautious. We're taking on far fewer titles at a time, willing to abandon those that aren't successful early on, and concentrating on our high performers. Our creative teams have truly found their rhythm. However, we don’t take our success for granted; we understand that reflecting on the past helps us learn from our mistakes, and to a lesser extent, from our successes. We must keep looking ahead, and we have some promising upcoming releases, including Top Goal from Nordeus and other titles that I am optimistic about. Yet, my optimism is not what's important; what matters is the response from consumers. Regarding mergers and acquisitions, we are very selective. We're proud that we haven't had an acquisition in our history that hasn't worked out, which is a rare and commendable record for any corporation or public company. We aim to maintain that track record. To achieve this, we ensure that any acquisition is strategically aligned and that the cultures involved can integrate well. We also prioritize that any deal is immediately beneficial, at least in terms of management and cash flow, if not in GAAP earnings. This disciplined and selective approach has proven effective. The good news is we have a solid balance sheet, and we've successfully completed acquisitions in the recent past, including our acquisition of Gearbox.

Strauss, you've been very vocal on AI and how it's not a positive for creative development for video games. But I'm curious if you're having any success implementing AI in other sort of non-creative parts of the video game development, be it QC, be it artwork or whatever and how you're adding to what your development?

Yes. To be clear, I didn't say that I didn't see it as a positive. What I said was AI is based on backward-looking data sets meeting compute, meeting LLMs. And none of that replaces forward-looking genius. That's not an opinion. That's factual. I defy anyone to controvert those facts. Of course, technology drives a lot of what we do around here. Now creativity is the lifeblood of the organization. But how do we express our creativity? We do so with computers, with technical tools we always have. So as tool sets improve, we can become more efficient, we can become more effective. And our creative people, therefore, freed up to be more creative. So AI, depending on how you define it and properly deployed, of course, is positive for creativity. And therefore, is, of course, positive for hit creation. To your question about what's the nature of the rollout, we have seen some efficiencies. I think there are plenty of areas of business where the tools that we have rolled out at the enterprise are helping us. We are not either using this as an excuse to or frankly, seeing the opportunity to reduce headcount. We are seeing this as an opportunity to take our very talented people and release them from more mundane tasks so they can do more creative and more interesting tasks, and we can work better as an organization. But if you said, can you cut your cost profile by 5% tomorrow using all things AI, the answer is no.

I appreciate the mention of the pipeline and specifically BioShock. You guys made a pretty key hire there with Rod Fergusson during the quarter. Would love to just get an update on that title and kind of what his mandate is at the studio.

We are very excited to have Rod join us to lead Cloud Chamber as the new Head of the BioShock franchise. He is an incredible industry veteran with a rich history in the BioShock franchise, particularly with Infinite, and has also worked on Gears of War and Diablo. We’re grateful for his decision to work with us at Cloud Chamber. BioShock is a crucial franchise for us, being one of 2K's biggest, and we are eager about the upcoming release of the next BioShock. We have made some organizational changes and are shifting some things around, but we believe the game is on a promising track to exceed consumer expectations. There isn't much more to share at this time, other than the fact that the next BioShock will elevate the franchise, which is our goal with all our franchises.

And then on ad revenue, it's been up 2 quarters and now for the first time in quite a while. Can you talk about what's going right there? Is that Color Block Jam? Or is there a broader Rollic portfolio just performing across the board?

It's really across the entire mobile business, particularly Rollic though, they've achieved fantastic performance, and this is what's driving the higher ad revenue for the quarter.

Congratulations on the quarter and the revised projections for the year. I regret to hear about the delay of GTA VI, but November next year is going to be exciting. I'm curious about how the Rockstar team is managing the delays internally. It might be challenging for them in terms of motivation and culture. I'm sure they are eager to get the game released. Regarding polish, I have an idea of what that entails, but I'm interested in how Rockstar defines it. Additionally, given that they have a large team now, how much of that team is focused on polish compared to other content ideas or projects related to the GTA ecosystem or beyond?

Yes, Mike, you're familiar with us. Unfortunately, I can't discuss how the studio's internal workings relate to current activities. Regarding the first point, the culture at Rockstar is exceptional, and we are all striving for perfection. This is reflected in the Metacritic scores of our releases, which are generally over 95, with very few exceptions. GTA V has set a benchmark not only for our company but for the entire industry across three console generations, and to this day, I believe it remains the most technologically advanced title available, even though it's over a decade old. This level of success doesn't happen by chance. Rockstar fosters a performance-oriented culture. Overall, Take-Two's culture, evident in all our labels, emphasizes excellence, teamwork, and kindness, which is a highly effective combination. Admittedly, if circumstances don't align perfectly, there can be disappointment. However, we excel at regrouping and persevering. We learn from setbacks, strive to surpass expectations—both our own and those of our consumers—and we rarely fall short. We maintain our focus and work harder, which I believe encapsulates the current sentiment and direction at Rockstar.

Can you talk about the premium SKU mix in NBA this year? How much is it higher than previous years? And then can you also talk about the impact of having more season passes embedded in the premium SKU, whether or not that's a material uplift to your RCS growth for 2K26?

One of the key factors is that a higher mix of premium SKUs naturally leads to a higher average selling price. This has certainly been the case this time, and we've received excellent feedback on our premium SKUs. We believe that part of the success can be attributed to offering seven days of early access to our players, which is longer than our previous offering. This package also includes some RCS, which significantly contributes to the overall effect. This strategy has effectively raised our average selling price and has proven to be a successful approach for us this year.

I actually want to go back to the first question that was asked and maybe actually ask about macro in the mobile game or in the game category in general. I think people consider this a mature category, maybe low single-digit grower. But suddenly, Take-Two RCS is up 20%. We have mobile game ad networks growing well in excess of 20%. Roblox seems to be growing bookings 50% or 60%. And so from your guys' perspective, is it possible or are you maybe starting to feel like we're entering a more positive cycle for industry growth? And to the extent that's true, perhaps you might opine on what the consumer behavior behind that is?

I feel there are favorable trends, and while I would like to take credit for all the positive developments and avoid blame for the negatives, I mostly agree with you. It seems that consumers are starting to shift in our favor again, similar to how it felt at the onset of the pandemic, although perhaps not with the same level of excitement. We are not used to the environment feeling this way, especially after the decline in mid-'22 which took some time to stabilize. There was a modest recovery, but as you mentioned, growth has been limited to certain areas. These areas of growth are characterized by quality, and we need to continue to be exceptional to achieve results like these, which is our aim.

I want to go back to mobile. Strauss, you covered all the key points regarding margin improvement in the near term and over the past several fiscal years. It seems that the mobile business is likely close to where it stood on a pro forma basis back in 2022. I would appreciate it if you could provide some clarity on various aspects, whether it's discipline in titles, efficiency in user acquisition spending, or other factors. There appears to be a significant increase in margins from that time to now, despite the opportunities you mentioned. Could you share a framework regarding the overall improvement in mobile margins from two or three years ago to the present?

Look, honestly, we're just executing better. There were things that we were doing upon the acquisition that we either stopped doing or we're doing a whole lot more efficiently and effectively. And one of the reasons that, that transaction came about is that we had like-minded cultures. And I think we aligned on the culture I described earlier, and we aligned on our pillars of creativity, innovation, and efficiency. And we have an extraordinary leadership team that is open-minded and wants to win. And then we have amazing, creative people throughout the organization who are bound and determined to do the very best work anyone can in the space. I think that's what it comes down to. And all of that done right is reflected in things like net bookings and margins. If you think about all these calls that we've been doing for all this time, we talk about the numbers quite correctly, I think, as a result of what we do, not a driver of what we do. None of us wakes up in the morning and says, let's talk about where our stock price ought to go. We talk about where our company ought to go. And if we get that right, the stock price is going to do just fine. I think and Nicole, our Head of IR, is sitting with me that in the 18 years that this management team has been responsible for overseeing Take-Two, our stock has appreciated something close to 5,000%. And that's a result of our strategy. That is not our strategy. And what we aim to do around here is make the best entertainment on earth and bring it to everyone on earth wherever they want it, whenever they want it, however they want it. If we do that right, if we keep doing that right, and if we're willing to question ourselves and always try harder and try again when we fall short, we probably ought to see continued performance.

I'd just like to take a moment once again to express my gratitude for the nearly 13,000 people who devote their careers to Take-Two and all of our affiliates all over the world because they're the ones who delivered these amazing results. I want to thank the team at Rockstar who's diligently working on delivering the best entertainment experience of all time. And of course, I want to thank our shareholders for all of their support. So thank you for attending the call today. We really appreciate it.