Q1 2026 Take-Two Interactive Software Inc Earnings Call

Thank you for standing by. My name is Tina and I will be your conference operator. Today at this time, I would like to welcome everyone. To the first quarter fiscal year 26, take to interactive software earnings call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again, it is now my pleasure to turn the call over to Nicole Shannon, senior, vice president of administer relations and corporate Communications. You may begin

The beliefs of our management as well as assumptions made by an information currently available to us. We have no obligations 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, 10K, and quarterly report on form 10q including the risk. 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 gaps. 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 in 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. And now, I'll turn the call over to Strauss.

Thanks Nicole, good afternoon, and thank you for joining us today.

Fiscal 2026 is off to an excellent start reflecting ongoing demand for our core franchises and the increasingly Diversified successful nature of our business.

Net bookings for the first quarter exceeded 1.4 billion dollars, which was meaningfully above the high end of our expectations. Led by the outperformance of several mobile titles, as well as it continued success of NBA 2K and the Grand Theft Auto series.

We're optimistic about the year ahead and we're raising our notebooks outlook for fiscal 2026 to 6.05 to 6.15 billion dollars. We have great confidence in our long-term Pipeline and expect to achieve record levels of net. Bookings in fiscal 2027 that we believe will establish a higher Baseline for our business and set us on a path of enhanced profitability.

I'd like to express my gratitude to all of our teams across our worldwide Organization for their deep passion and intense commitment to our Collective vision.

We strive daily to do our best work and exemplify our core pillars of creativity, innovation, and efficiency, all in service of our goal to make the biggest and best hits in the entertainment business.

Turning to highlights from the period, our mobile business, vastly exceeded expectations, Peaks, successful forever, franchise, toon blast grew 22% over last year and nearly 75%, on a 2-year basis driven by the seasonal collection feature that provided a new Avenue of Engagement for the game's millions of active players.

Match Factory. Another hit title from Peak achieved record. Net, bookings as the title grew 33% over last year.

Players experienced new features, such as the treasure cave event as well as new levels.

Rock's newest hit color, Block Jam, maintained its positive momentum and has become the highest-grossing title in the studio's history. Throughout the quarter, Block Jam remained at the top of the app charts, demonstrating its strong market position and mass appeal.

Rolex supported the title with, its first bold beat Pilot's drops where players receive progressively larger rewards with each consecutive win, amplifying engagement and monetization.

2k's mobile offerings also had a great quarter including WWE SuperCard, which Remains the label's most successful mobile game with over 37 million lifetime downloads.

NBA2K mobile has been steadily growing, its audience with new content and challenges. While NBA2K, 25 arcade edition continues to top the Apple arcade charts and NBA 2K All-Star. In China has been posting strong and profitable results since its launch in March.

We continue to focus on our mobile direct to Consumer business and we're achieving better conversion, driven by new offers events and enhanced personalization.

In the context of recent court rulings, we see ample runway for further growth in the area.

The Grand Theft Auto series. Once Again, exceeded our expectations, momentum remains exceptionally strong and to date Grand Theft Auto 5 has sold in over 215 million units, worldwide.

During the quarter engagement for Grand Theft Auto online, benefited from the record setting launch of Grand Theft Auto 6 trailer 2, and the successful release of the money front. Summer, content, pack which culminated in higher than expected recurrent, consumer spending growth. We're pleased that new player accounts for GTA online who over 50% year-over-year.

Units and engagement grew, significantly year-over-year with daily active users, and my career. Daily active. Users each up 30%, which helped Drive 48% growth and recurrent consumer spending

We're thrilled that 2K announced. A new multi-year, Global partnership expansion with the NBA, NBA and WNBA PA and extended. Its long-standing relationship with the NBA G league and USA Basketball.

We're excited to continue our highly successful Partnerships and look forward to building upon the record setting achievements that we've accomplished together.

Engagement with our other sports titles has been healthy, including WWE 2K 25, the title launched on Nintendo switch 2 in July which expanded its audience and featured the same game modes that are available to players on PS5 and Xbox series X and S.

For axis games continues to introduce monthly updates for Sid Meyers civilization, 7. In addition, the studio released the title for Nintendo switch 2. Our first offering for the platform, featuring new mouse controls that offer a more intuitive gameplay experience. We're very pleased to continue supporting Nintendo with additional titles launching throughout the year.

In closing, we're thrilled with our company's positive momentum and of enormous anticipation. For this quarter, launches of Mafia, the old country, and ba 2K 26, and Borderlands 4.

We remain deeply committed to Excellence to delivering the highest quality entertainment experiences for all of our audiences and to driving meaningful returns for our shareholders.

I'll now turn the call over to Carl.

Thanks Charles.

I'd like to thank our teams for delivering a fantastic start to the year and for setting the stage for what promises to be an exciting chapter in our history.

I'll now discuss our upcoming releases.

Tomorrow, 2K in Hangar 13. Will once again immerse players in the details, rich and storied world of organized crime with Mafia, the old country with more than 2.5 million wish lists across all platforms, Community sentiments to this linear narrative-driven, action game is very strong.

Bouquet unveiled, a new story trailer during the annual summer game Fest show and provided the Press with early play time, which resulted in glowing Impressions and previews.

We are very excited to expand our beloved franchise and hope that players feel the passion and pride that our team brought to this exciting release.

On September 5th. 2K. And visual concepts will release MBA, 2K 26, which promises to once again, raise the bar for our top selling basketball experience.

The title will be available on Early Access on August 29th and will be the first game from our series to launch on Nintendo Switch, offering to complete the Gen 9 experience for the platform.

With all new Pro Play features players on gen 9 will experience. Our immersive technology like never before including revamped size ups and fast-paced dynamic movements. Fans can build a Transcendent, my player, as they strive to reach the Pinnacle of NBA stardom and a reimagine, my career journey and team up with friends to battle rival, squads in a fresh and more optimized City.

NBA 2K 26 is my team will put past and present Legends to test in new single and multiplayer modes. While also offering 30 unique story lines to win a championship.

More details on NBA2K, 26 will be shared in the coming weeks.

On September 12th 2K and Gearbox Software will launch Borderlands 4. The eagerly anticipated next entry, in our iconic looter shooter franchise,

Recently, Global press and content creators played the game. For the first time in response was extremely positive with some calling it, the best in the series.

In June, our team, hosted the first ever Borderlands FanFest where attendees played a demo of Borderlands 4 and generated over 600,000 hours of streams and videos.

With the title launching on Nintendo switch, 2, in October, we are excited to harness the power of the new console and allow players to enjoy our Mayhem fuel, booster shooter at home, or on the go.

Later this fiscal year Duke and visual concepts will once again challenge players to step into the squared circle with WWE. 2K 26 the forthcoming installment in our popular wrestling franchise, that continues to set new standards for excellence with each release.

Today, we'll have more to share about this game in the coming months.

This is 1 of the strongest lineups. For 2 case, history, positioning us to deliver. Best-in-class gameplay, for our players and outstanding Financial results.

In closing, we are deeply excited about this, year's release light, and our ability to deliver entertainment experiences, that Captivate and engage audiences throughout the world.

As we continue to execute our proven strategy and capitalize on emerging markets and opportunities. We believe that we will achieve a period of meaningful long-term growth and shareholder returns.

I'll now turn the call over to Laney.

Thanks, Carl and good afternoon everyone.

We achieved outstanding first quarter results, given by our strong franchises, talented teams and unwavering commitment to our strategic vision.

Our performance is broad-based across our labels as we engage players with exciting new game features and content updates. While also advancing development of our highly anticipated pipelines. I'd like to thank our incredible teams worldwide for their hard work and passion for our business.

Earning to our results. We delivered first quarter net, bookings of 1.42 billion dollars which was significantly above our guidance range of 1.25 to 1.3 billion.

This reflected better than expected performance from several mobile titles. Including team blasts match Factory NBA 2K All-Star and color block jams as well as NBA 2K and the Grand Theft Auto series.

The current consumer spending grew 17% for the period, which was meaningfully above our guidance of 7% growth and accounted for 83% of net booking.

Several of our businesses outperformed including NBA 2K, which was up nearly 50% mobile, which grew low teens and Grand Theft Auto online, which increased low single digits.

During the quarter. We released civilization 7 for metaquest VR and Nintendo switch 2.

Gaap, net revenue, increased 12% to 1.5 billion. While cost of Revenue declined, 1% to 559 million and operating expenses. Decreased 3% to 923 million

on a management basis. Operating expenses, Rose 3% year-over-year, which was slightly above our forecast of 2% growth, primarily due to the higher Personnel costs. While total marketing expenses were within our forecast range for the quarter Zynga made incremental user acquisition Investments to support, its robust performance, which was offset by 2K shifting. Some marketing out of q1 into later, this fiscal year,

returning to our guidance. I'll begin with our full fiscal year expectation.

We are raising our net bookings Outlook range to 6.05 to 6.15 billion dollars, which represents 8% growth over fiscal 2025 at the midpoint.

The increase predominantly reflects our strong first quarter performance. And to a lesser degree update store forecasts, including edex.

The largest contributors to net. Bookings, are expected to be NBA 2K to Grant Theft Auto series. June blast Borderlands 4 match Factory the Red Dead Redemption series color, block jams, and Empires and puzzles and Words With Friends.

We now expect for current consumer spending to grow approximately 4%, which is revised upward from our prior forecast of flats, representing 76% of net, bookings,

With best NBA 2K to grow mid teens mobile to grow low, single digits, and Grand Theft Auto online to decline. Expect the net booking breakdown from our labels to be roughly. 45% Zynga, 39%, 2K, and 16 Rockstar Games.

We continue to expect operating cash flow of approximately $130 million and capital expenditures of approximately $140 million.

We now expect gaap, net revenue to range from 6.1 to 6.2 billion dollars and cost of Revenue to range from 2.55 to 2.57 billion dollars.

A total operating expenses are now expected to range from 3.84, to 3.86 billion compared to 7.45 billion last year on a management thesis. We expect operating expense growth of approximately 5% year-over-year. This is up slightly from our prior forecast due to higher Personnel costs as well as increased marketing, spend to support our mobile portfolio and FX.

I'd like to point out that our earnings per share calculations reflect their higher, share accounts, following our recent Equity issuance.

Now, moving on to our guidance, for the fiscal second quarter, we project net bookings. To range from 1.7 to 1.75 billion dollars compared to 1.47 billion dollars in the second quarter last year.

Color block Jam. The Red Dead Redemption Series, where is his friends and Mafia the old country.

We project with current consumer spending to increase by approximately 1%, which assumes a low single digit increase for NBA2K flight growth for mobile. And it's a decline for Grand Theft Auto online. We expect gaap net revenue to rain from 1.65 to 1.7 billion dollars.

Operating expenses are planned to range from 1.02 to 1.03 billion.

On a management basis. Operating expenses are expected to grow by approximately 7% year-over-year which is primarily driven by marketing to support our strong relief slates During the period.

Looking ahead. Our confidence in our Outlook is exceptionally strong. Our company is set to deliver the most ambitious pipeline in our history, which we believe will unlock a new record level of scale as well as enhanced profitability. As we release exciting, new hits and explore additional growth opportunities. Both organic and inorganic we expect to achieve meaningful returns for our shareholders.

Thank you. I'll now turn the call back to Strauss.

Thanks Lenny and Carl on behalf of our entire management team. I'd like to thank our colleagues for delivering, a stellar start to what is poised to be an outstanding year for Take 2.

To our shareholders. I want to express our appreciation for your continued support.

We'll now take your questions, operator.

This time I would like to remind everyone to ask a question, press star 1.

We respectfully ask that you limit your questions to 1 and 1 follow up. Thank you. Our first question comes from the line of Eric Handler with mkm Partners. Please go ahead.

Good afternoon, thank you for the question. Um, Charles wonder if you could talk a little bit about NBA2K. Um,

You know, you've sold about a half million more units, um, than last year overall. Um, RCS in the quarter of 48%. That's, you said that's an acceleration of growth from not just last quarter but two quarters ago as well. Is there something within the RCS that's particularly resonating this year that you can point out to?

Uh, hi, Eric. Eric it's Carl. Um, look, I mean, we're obviously very thrilled with performance of NBA 2K. We've sold in over an 11 and a half million units. Um, and engagement is just a cross, the board up significantly year-over-year. Um, and its really, a um, not necessarily any of our single modes. It's really both of our, our primary RCS generating modes, which is my career. Um, and also um, excuse me, uh, my career and our, uh,

My team. Sorry about that. Um, so it's, it's really, um, over time. Uh, we're getting much, much better about managing and reading our in-game Telemetry. I'm knowing what the consumers like to spend money on, um, what they like to engage with, uh, and 2K and the folks at VC, have done, an amazing job managing that process. So we continue to get better and better every year. Um, and this is just a really great title. So there's nothing really specific that 1 can point to other than the fact that folks have really reacted positively to the efforts that we've made in the development process. And, um, we still think there's a lot of Greenfield in front of us.

Great. Thanks a lot.

Our next question comes from the line of Doug cruise with KD Co Cohen. Please go ahead.

Hey thanks. I couldn't help noticing that. Um your advertising Revenue was flat year over year and up sequentially which I think is the first time we've seen that in a long time. Uh can you talk about whether we're we're seeing finally a bottoming in that market or is this maybe due to some game specific things that impacted the quarter? Thank you.

Yeah, I think for us it's really that we adjusted our approach to advertising by moving from hyper casual to hyper, casual and that hybrid casual too. Um, and at this point, I think we feel very good about sort of where we're at and we would certain hope to grow from here.

Great. Thank you.

Next question comes from the line of crucial with UBS Financial. Please go ahead.

Great. Thank you. So, mobile did come in much stronger than we expected for fiscal Q1, with low teens growth, but your guidance does imply a deceleration from here. Can you just kind of walk us through the drivers there and why you anticipate that the momentum you saw in fiscal Q1 might not repeat?

On a multi-year basis. And given the age of these titles, we really still expect moderation. Even though we haven't really seen it over the course of the fiscal year, and we also have some hyper and hydrogen casual, um, titles that have performed really well. And when we forecast, for those titles, we're looking at the life cycle in the South curve of Prior, hyper and hybrid casual titles. So, we have to build that into our forecasts. So that's what we're seeing, um, right now, but hopefully it'll continue to go in the same momentum and we'll see some, you know, great surprises towards the end of the year.

Great, thank you. And if I can just fit in 1 more just as the free cash flow generation of the business scales here in the coming years and Leverage is now coming down. Following the equity race. Can you just remind us how you're thinking about Capital allocation going forward and where potential shareholder returns might fall into your list of priorities

Yeah, great question. And just to, to put it in context, right now, we've left 2 billion dollars in cash and our net Leverage is about 1.2 turns. So um, we feel like we're pretty conservatively geared which is our goal. You're right. That our expectations obviously would be over the next few years that we build up our cash balance to strengthen, our balance sheet further, which is a position we like to be in.

And our approach to Capital allocation is unchanged. You know, there are really 3 uses of of our Capital first is support organic growth. That's been our story around. Here, we are largely an organic host story. Secondly selectively, and on a creative basis, only to support inorganic opportunities that are strategically sound, and we're really proud of the fact that pretty much everything we've done in that area has worked out. And you see in this quarter that we're now reporting just how well our mobile approach is working out, just how wonderful in addition it is to the Enterprise and and uh, and it's always our goal. Um, to to make sure that inorganic growth is sound, it's atypical for industry but typical for us and our most recent deal, the acquisition of gearbox has also been Stellar for the company and third is returning Capital to the shareholders which we've done regularly over the

Years typically in the form of BuyBacks which are opportunistic. Uh, we do aim to purchase shares at Deep value. And so far, we've found that right 100% of the time kind of, which is kind of amazing so that that remains unchanged and we feel good about being able to actually execute against all 3 approaches in the coming years.

Great. Thank you.

Our next question comes from the line of Andrew Morrow with Raymond James, please go ahead.

Thanks for taking my question. Uh I guess thinking about what went into the decision to price Borderlands 4, it's seventy dollars, I guess more broadly. When a peer came out with full games at 80, it seemed like a foregone conclusion, that the rest of the industry would follow. But now we've seen that not necessarily be the case. So I guess from your seat, what is the price? And how do you feel about the ability to take price? And when do you think the the player is ready for that? Uh, to be born. Thank you.

Well, I think our approach may be a little bit different. We, we believe that any consumer experience is the intersection of the thing itself and what you paid for this thing. So, our goal is to vastly exceed expectations, we want to put out the best entertainment on Earth and we want to deliver more value than what we charge for it. Um, and we think we've generally speaking gotten that right? Variable pricing has been the nature of this industry forever. You know, most Frontline releases will go out at a higher price. So sometimes with special editions and then over time, usually the price is discounted to optimize for the largest possible market. And I don't I don't think that's going to change anytime soon. Um, but as but the rubric um, that that informs us is really that

Delivering more value than what we charge.

Our next question comes from the line of Mike Hickey with the Benchmark Company. Please go ahead.

Yeah, hey Charles Laney, Carl. Nicole, uh, great quarter, guys, and nice to see the delays in the near-term guidance for fiscal 2025. The fiscal 2026 numbers just, um, in that sort of, um, area, raising their guidance here. Just giving them a macro backdrop, Styles, just to the July jobs report, which is obviously weak, and then we saw the revision down pretty meaningful.

Economic slowdown and how uh, you think that will impact your business? Obviously entertainment has been, uh, somewhat defensive historically. But uh, also vulnerable. Thank you guys.

Uh, thanks Mike. Um, you know I I'm not sure anyone really wants to listen to my macroeconomic guidance, but I'll share it, anyhow. I mean after, um, you know, negative, if you grow up in at the end of last year, we've seen a return to positive GDP growth in the first quarter of 1 to 2%. Um and I think we're going to we're going to see positive GDP growth. Um you know there's there's headwinds in tariffs, their tailwind and stimulus. Um and I think they're probably going to balance out in favor of modest growth. I think you're probably going to see a 3% increase in consumer spending, which is about what we've been accustomed to. I agree with you that unemployment probably goes up a bit. It's 4.2 and probably goes up to 4.5. Um, that's my own View. And I think you'll see 50 more bits of bed, uh, rate Cuts between now and your end, you can ignore all of that or do with it as you please with. That implies is much more much more a soft land.

Anything else, you know? It's on on balance, acceptable? It's not booming. It's not certainly not busting. And I do think that there's some risk, which you, I think alluded to in your question that consumers are going to be a little more careful with their spending and what happens when they're more careful. Well, it's not true. That entertainment is counter cyclical. It's not even true that entertainment is recession resistant. It is true that people still consume entertainment even in tough times, they're just going to be much more selective. So where are they going to go? They're going to go to Quality.

And that's a trend that's already been occurring in our business. Because our business is maturing and is entertainment, business is mature. There's a flight to Quality. Thankfully, we think ahead around here at an 18 years ago. When we came here, we made sure that the strategy of the company was not to put out the biggest number of the releases but rather to put out the best releases and only to put out the best releases and then of course over time when we established an ability to come out with the highest quality titles reflected in our leading Metacritic scores and in our revenues we were able to build up our pipeline further into diversify further and now we actually have an incredibly robust pipeline going forward. And 1 that we believe is, is identified by the Hallmark of great quality, if we're right about that, then even in more challenging macro times, our micro Behavior should be industry-leading.

Guys, thank you guys. Good luck.

On your next question, we have Martin Yang with Oppenheimer. Please go ahead.

Thanks for taking my question. I want to ask about your view on the size of your address for players versus the absolute quality you can deliver. So when you when it comes to new game releases, um, would you at most times sacrificed potential address for player base? Um,

To prioritize on the quality of the game in the sense that sometimes you will want to, maybe sacrifice. Uh, your target is narrower console or PC player base in order to deliver the quality. Um, um, um. So that's

Yeah, so so just general General Sense on, how do you think about new games and the, um, and the, the player base, they will support.

Um, look in general, we aim to be wherever the consumer is, and most of our releases end up on all platforms that have any kind of consumer, uh, attention. Um, and we've announced for example, 4 titles for switch to, um, and have supported, uh, Nintendo with, with new platform releases. We've supported some of the at Microsoft who are on Steam and numerous other digital platforms within the PC format.

So I don't really think there's a trade-off between our focus on quality and and you know how ubiquitous we are in terms of uh relief platforms. Um and I don't I don't see it that way there. There it is possible that our labels might stay to release so that they can focus on for example. Core console platforms. Um but generally speaking in the fullness of time our titles find their way to all the viable platforms,

Content. Um, um, is there any change to that view? Do you feel that there are players that you are currently not accessing by not putting content on Roblox? Or do you think that you're pretty well covered in terms of all the players and where they are?

well, well, I mean to, I didn't realize you're referring to Roblox as a platform, but let,

For the sake of argument. Let's let me accept it as 1 for the purpose of your question. Roblox is aimed at at kids, um, largely and not all of our games are rated E. So we're a highly compliant company. We Market to appropriate audiences. We work with the ESRB here and with iar outside of the Us and other local ratings, um, agencies to make sure that our our, our, our our titles are properly labeled and properly marketed. So, even if the platform like Roblox is, you put it? We're viable for some of our releases, not all of them would be appropriate for Roblox, but Roblox is not a platform. In the way you say, steam is a platform, Roblox is a certain type of environment and not all of our games would work on Roblox whether that's work. Technically, you work artistically or work commercially um, but in terms of platforms that don't have their own creative offering. So for example, Steam,

You know, steam steam doesn't apply as to who it serves, it has all different kinds of releases. So we're going to be on steam or other similar digital platforms. Most of the time just, as an example.

Thank you.

Again, to ask a question press star 1 on your telephone keypad. Our, next question comes from the line of clay Griffith with Moffett Nathanson. Please go ahead.

Yes thanks. Good afternoon. Um, Strauss you mentioned in the open but just maybe if we could get your thoughts on, um, the court rulings, specifically related to alternative app stores on Android

How do you see that progressing from here? Does it make sense to to build your own app store within that environment? And then as a follow on um what do you think it will do to sort of the the user acquisition channels that it existed prior to this development?

All right, it's the last about user acquisition and more about user monetization just to be clear. Um, I I think that, you know, we're going to continue to cooperate with all of the app stores that are really important partners. And at the same time, the the, the sort of the momentum of court rulings is in service of making sure the market is open and fair to all as it ought to be. Um, I've been saying for years that I believe that, um, systems Distribution Systems in our business, we've moved from closed to open

And the cost of distribution would decline and we are seeing those 2 things happen, whether that's driven by Financial necessity, whether it's driven by opportunity, whether that's driven by regulation, or whether that's driven by litigation, it's kind of um unimportant to us that the the movement is all in the same direction and that direction is what's good for the consumer. What's good for the consumer is open distribution.

And is that something that you that you see an opportunity to do yourself or or does it make sense to partner with others?

So, so all of the above, for example, you you can buy, uh, currency on our own web stores. Now for most of not all of them, but most of our mobile games. I, I see that continuing we have a launcher inside of Rockstar Social Club, for example. So, I I, we don't intend to integrate forward into retail distribution and we certainly don't intend to eat retails lunch because they're value distribution partners for us. We want to be wherever the consumer is where they want to go to the Best Buy. They want to go to steam, they want to go to Microsoft or Amazon. You know, we want to be there as long as we're treated fairly but the emphasis is on being treated fairly and there's a distribution cost that's fair and there's a distribution cost that is less fair and um the world seems to be moving in the direction of more fair and the courts are helping

Sure. And then I've got a quick follow-up on NBA 2K if I can. Um, just exceptional growth here. I'm curious. I know that that you had, um, uh, 2K 24 in PlayStation Plus last, uh, year around this time. I don't know if there's any, uh, special differentiation in terms of the tears that were available, um, in gym. But I mean but Carl, maybe maybe if you could speak to just there was any impact from PlayStation Plus year-over-year that would have contributed to to growth numbers like this

So we do put our, our titles occasionally, into some of the subscription Services. They're a great partners for us and and in many cases, um, they're great. They're well, we wouldn't do it unless it was a good economic deal and the platforms wouldn't do it either. Um, so we do take advantage of that and it's been compelling from from an economic standpoint. Um, as it relates to NBA, we have done it in the past and we don't really talk about whether we're going to do anything in the future. Um, but when you do put something into a channel like that that generates obviously engagement it, generates income for us. Um, and it's something that we consider, uh, and we do if the time is right, and if, if the math makes sense,

And and just to be clear their year-over-year, was there was a meaningful Delta in the way that it came to that to that service.

Right. Meaningful. Delta over. What?

Just how it was presented last year.

Yeah, I'm not sure I'm understanding the question. I apologize. Just did you restate it? 1 more time.

Uh yeah just just trying to understand that there was any change in the economics the the the contribution from that relationship with Sony year over year that would have contributed to the exceptional growth that uh oh I understand. Okay. I'm sorry. You were asking it very straightforward question and I thought it was more complicated. The answer is no.

Got it. Got it. Thanks, great.

I'm with no further questions in queue, I will now turn the call back over to Strauss zelnick for closing remarks.

Uh, thank you so much everyone for joining us today. Obviously, we're thrilled with our first quarter results when we have great confidence for the outlook for the rest of the year. All of this is tribute to the superb work that is done by our teams, all over the world. Our development teams who are the most creative and talented in the business. Our marketing distribution teams or Innovative in the extreme. Don't take no for an answer and of course, our business teams who work hard every day to make sure that we're highly compliant. Highly organized and highly effective, thanks to everyone and we wish you all a great summer.

this concludes today's conference call, you may now disconnect

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