10-K – 2026-05-22 – ttwo-20260331.htm

We evaluate the future recoverability of capitalized software development costs and licenses on a quarterly basis. Recoverability is primarily assessed based on the title's actual performance. For products that are scheduled to be released in the future, recoverability is evaluated based on the expected performance of the specific products to which the cost or license relates. We use a number of criteria in evaluating expected product performance, including historical performance of comparable products developed with comparable technology, market performance of comparable titles, orders for the product prior to its release, general market conditions, and past performance of the franchise. When we determine that capitalized cost of the title is unlikely to be recovered by product sales, an impairment of software development and license costs capitalized is charged to cost of revenue in the period in which such determination is made.
    We have profit based internal royalty programs that allow selected employees to participate in the success of software titles that they assist in developing. Royalties earned under these programs are recorded as a component of Cost of revenue in the period earned. Amounts earned and not yet paid are reflected within the software development royalties component of Accrued expenses and other current liabilities on our Consolidated Balance Sheets.
Fixed Assets, net
    Office equipment, furniture and fixtures are depreciated using the straight-line method over their estimated useful life of five years . Computer equipment and software are generally depreciated using the straight-line method over three to five years . Leasehold improvements are amortized over the lesser of the term of the related lease or the useful life of the underlying asset, typically seven years . Buildings are depreciated over the remaining life of the buildings, which is typically approximately 30 years. The cost of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations, in the periods incurred. When depreciable assets are retired or sold, the cost and related allowances for depreciation are removed from the accounts and the gain or loss, if any, is recognized. The carrying amounts of these assets are recorded at historical cost.
Leases
We determine if an arrangement is a lease at contract inception. The assessment involves evaluating if the arrangement provides us with an asset that is physically distinct, or that represents substantially all of the capacity of the asset, and if we have the right to direct the use of the asset. If there is an identified asset in the contract (either explicitly or implicitly) and we have control over its use, the contract is (or contains) a lease. This assessment is required for certain of our arrangements, primarily those related to our data centers.
Lease assets and liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. Included in the lease liability are future lease payments that are fixed, in-substance fixed, or payments based on an index or rate known at the commencement date of the lease. Variable lease payments are recognized as lease expenses as incurred. The operating lease right-of-use (“ROU”) asset also includes any lease payments made prior to commencement, initial direct costs incurred, and lease incentives received.
As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate in determining the present value of future lease payments. The incremental borrowing rate represents the rate required to borrow funds over a similar term to purchase the leased asset and is based on an unsecured borrowing rate and risk-adjusted to approximate a collateralized rate at the commencement date of the lease.
In determining our lease liability, we include options to extend or terminate in the lease term when it is reasonably certain that we will exercise such option. For operating leases, the expense for minimum lease payments is recognized on a straight-line basis over the lease term. Lease modifications result in remeasurement of the lease liability. Leases with an initial term of twelve months or less are not recorded on the balance sheet. We do not separate non-lease components from the related lease components.
Goodwill
    Goodwill is the excess of purchase price paid over identified intangible and tangible net assets of acquired companies. Intangible assets consist of intellectual property, developed game technology, analytics technology, trade names, and in-process research and development. Certain intangible assets acquired in a business combination are recognized as assets apart from goodwill.
    We use either the income, cost, or market approach to aid in our conclusions of such fair values and asset lives. The income approach presumes that the value of an asset can be estimated by the net economic benefit to be received over the life of the asset, discounted to present value. The cost approach presumes that an investor would pay no more for an asset than its replacement or reproduction cost. The market approach estimates value based on what other participants in the market have
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paid for reasonably similar assets. Although each valuation approach is considered in valuing the assets acquired, the approach, or combination of approaches, ultimately selected is based on the characteristics of the asset and the availability of information.
    We test our goodwill for impairment annually, or more frequently if events and circumstances indicate the fair value of a reporting unit may be below its carrying amount. A reporting unit is defined as an operating segment or one level below an operating segment. We have determined that we operate in two reporting units, which are components of our operating segment. In the evaluation of goodwill for impairment, we have the option to first perform a qualitative assessment to determine if the fair value of a reporting unit is more likely than not (i.e., a likelihood of more than 50%) less than the carrying value before performing a quantitative impairment test.
    When a qualitative assessment is not used, or if the qualitative assessment is not conclusive, a quantitative impairment analysis for goodwill is performed at the reporting unit level. The quantitative goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value exceeds the fair value, an impairment charge is recognized equal to the difference between the carrying value of the reporting unit and its fair value, considering the related income tax effect of any goodwill deductible for tax purposes.
    In performing the quantitative assessment, we measure the fair value of the reporting unit using a combination of the income and market approaches. The assessment requires us to make judgments and involves the use of significant estimates and assumptions. These estimates and assumptions include long-term growth rates and EBITDA margins used to calculate projected future cash flows, risk-adjusted discount rates based on our weighted average cost of capital, future economic and market conditions and the determination of appropriate, comparable market data. Our estimates for market growth are based on historical data, various internal estimates, and observable external sources when available. Those estimates are based on assumptions that are consistent with the plans and estimates we use to manage the underlying business.
    There were no goodwill impairments during the fiscal year ended March 31, 2026. During the fiscal years ended March 31, 2025 and 2024, we recognized goodwill impairment charges of $ 3,545.2 and $ 2,342.1 , respectively, representing partial impairments related to one of our reporting units. The impairments were primarily due to a reduction in the forecasted performance of the reporting unit due to industry conditions and changes in our strategies for games within the reporting unit in response to those conditions. As of March 31, 2026, the goodwill balance of that reporting unit is $ 570.0 . Unanticipated changes in business performance or the regulatory environment, market declines, and other events impacting the fair value of the reporting units, or increases in the level of equity required to support these businesses, could cause additional goodwill impairment charges in future periods. Refer to Note 9 - Goodwill and Intangible Assets, Net .
Long-lived Assets
    We review all long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the related carrying amount of an asset or asset group may not be recoverable. We compare the carrying amount of the asset to the estimated undiscounted future cash flows expected to result from the use of the asset. If the carrying amount of the asset exceeds estimated expected undiscounted future cash flows, we record an impairment charge for the difference between the carrying amount of the asset and its fair value. The estimated fair value is generally measured by discounting expected future cash flows using an appropriate discount rate. Refer to Note 9 - Goodwill and Intangible Assets, Net for impairments that occurred in the fiscal years ended March 31, 2026 and 2025.
Derivatives and Hedging
    We transact business in various foreign currencies and have significant sales and purchase transactions denominated in foreign currencies, subjecting us to foreign currency exchange rate risk. From time to time, we carry out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge our exposure in currency exchange rate movements. We recognize derivative instruments as either assets or liabilities on our Consolidated Balance Sheets and we measure those instruments at fair value. The changes in fair value of derivatives that are not designated as hedges are recognized currently in earnings as Interest and other, net in our Consolidated Statements of Operations. If a derivative meets the definition of a cash flow hedge and is so designated, the effective portion of changes in the fair value of the derivative are recognized, as a component of Other comprehensive income while the ineffective portion of the changes in fair value is recorded currently in earnings as Interest and other, net in our Consolidated Statements of Operations. Amounts included in Accumulated other comprehensive loss for cash flow hedges are reclassified into earnings in the same period that the hedged item is recognized in Cost of revenue, Research and development expenses, or Interest and other, net, as appropriate.
Income Taxes
    We record a tax provision for the anticipated tax consequences of the reported results of operations. Our provision for income taxes is computed using the asset and liability method, under which deferred income taxes are recognized for differences between the financial statement and tax bases of assets and liabilities at currently enacted statutory tax rates for the
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years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment.
    Valuation allowances are established when we determine that it is more likely than not that such deferred tax assets will not be realized. We do not record income tax expense related to foreign withholding taxes or U.S. income taxes that may become payable upon the repatriation of undistributed earnings of foreign subsidiaries, to the extent such earnings are expected to be reinvested indefinitely outside of the U.S.
    We use estimates and assumptions to compute the provision for income taxes including allocations of certain transactions to different tax jurisdictions, amounts of permanent and temporary differences, the likelihood of deferred tax assets being recovered and the outcome of contingent tax risks. These estimates and assumptions are revised as new events occur, more experience is acquired and additional information is obtained. The effect of these revisions is recorded in income tax expense or benefit in the period in which they become known.
Revenue Recognition
    We derive revenue primarily from the sale of our interactive entertainment content, principally for console gaming systems, personal computers, and mobile. We also generate revenue from advertising within our software products.
Game . Our interactive entertainment content consists of full game software products that may contain offline gameplay, online gameplay, or a combination of offline and online gameplay. We may also sell separate downloadable add-on content to supplement our full game software products. Certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases.
    We determine revenue recognition by:
• identifying the contract, or contracts, with the customer;
• identifying the performance obligations in the contract;
• determining the transaction price;
• allocating the transaction price to performance obligations in the contract; and
• recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services.
    We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sales of software products and game related services when control of the promised products and services is transferred to our customers and our performance obligations under the contract have been satisfied. Revenue is recorded net of transaction taxes assessed by governmental authorities such as sales, value-added and other similar taxes.
    Our software products are sold as full games, which typically provide access to the main game content, primarily for console and PC. Generally, our full game software products deliver a license of our intellectual property that provides a functional offline gaming experience (i.e., one that does not require an Internet connection to access the main game content or other significant game related services). We recognize revenue related to the license of our intellectual property that provides offline functionality at the time control of the products has been transferred to our customers (i.e., upon delivery of the software product).
    In addition, some of our full game software products that provide a functional offline gaming experience may also include significant game related services delivered over time, such as online functionality that is dependent upon online support services and/or additional free content updates. For full game sales that offer offline functionality and significant game related services we evaluate whether the license of our intellectual property and the game related services are distinct and separable. This evaluation is performed for each software product sold. If we determine that our software products contain a license of intellectual property separate from the game related services (i.e. multiple performance obligations), we estimate a standalone selling price for each identified performance obligation. We allocate the transaction price to each performance obligation using a relative standalone selling price method (the transaction price is allocated to a performance obligation based on the proportion of the standalone selling price of each performance obligation to the sum of the standalone selling prices for all performance obligations in the contract). For the portion of the transaction price allocable to the license, revenue is recognized when the customer takes control of the product. For the portion of the transaction price allocated to game related services, revenue is recognized ratably over an estimated service period for the related software product. We also defer related product costs and recognize the costs as the revenues are recognized.
    Certain of our full game software products are delivered primarily as an online gaming experience with substantially all gameplay requiring online access to our game related services. We recognize revenue for full game software products that are dependent on our game related services over an estimated service period. For our full game online software products, we also defer related product costs and recognize the costs as the revenue is recognized.
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    In addition to sales of our full game software products, certain of our software products provide customers with the option to acquire virtual currency or make in-game purchases. Revenue from the sale of virtual currency and in-game purchases is deferred and recognized ratably over an estimated service period.
    We also sell separate downloadable add-on content to supplement our full game software products. Revenue from the sale of separate downloadable add-on content is evaluated for revenue recognition on the same basis as our full game software products.
In addition to sales of our full game software products, we also offer free-to-play software products, both of which may provide customers with the option to acquire virtual currency or make in-game purchases. For virtual currency and in-game purchases the satisfaction of our performance obligation is dependent on the nature of the virtual item purchased and as a result, we categorize our virtual items as follows:
• Consumable: Consumable virtual items represent items that can be consumed by a specific player action. Consumable virtual items do not result in a direct benefit that the player keeps or provide the player any continuing benefit following consumption, and they often enable a player to perform an in-game action immediately. For the sale of consumable virtual items, we recognize revenue as the items are consumed (i.e., over time), which approximates less than one month.
• Durable: Durable virtual items represent items that are accessible to the player over an extended period of time. We recognize revenue from the sale of durable virtual items ratably over the estimated service period for the applicable game (i.e., over time), which represents our best estimate of the average life of the durable virtual item. This estimate considers historical player usage patterns, the nature of the item, and the expected life of the related game and is reviewed periodically.
Certain software products are sold to customers with a “street date” (the earliest date these products may be sold by these retailers). For the transaction price related to the license for these products that also provide a functional offline gaming experience, we recognize revenue on the later of the street date or the sale date as this is generally when we have transferred control of this performance obligation. For the sale of physical software products, recognition of revenue allocated to game related services does not begin until the product is sold-through by our customer to the end user. We currently estimate sell-through to the end user for all our titles to be approximately two months after we have sold-in the software products to retailers or the street date, whichever is later. Determining the estimated sell-through period requires management judgment and estimates.
    Our software products are sold as digital downloads either through a third-party platform or directly to consumers. Revenue from digital downloads generally commences when the download is made available to the end user.
     Advertising. We have contractual relationships with advertising networks, agencies, advertising brokers, and directly with advertisers to display advertisements in our games. For our in-game advertising arrangements, our performance obligation is to provide the inventory for advertisements to be displayed in our games. For contracts made directly with advertisers, we are also obligated to serve the advertisements in our games. However, for those direct advertising arrangements, providing the advertising inventory and serving the advertisement is considered a single performance obligation, as the advertiser cannot benefit from the advertising space without its advertisements being displayed.
For in-game display advertisements, in-game offers, engagement advertisements, and other advertisements, our performance obligation is satisfied over the life of the contract, with revenue being recognized as advertising units are delivered.
Contract Balances
     We generally record a receivable related to revenue when we have an unconditional right to invoice and receive payment, and we record deferred revenue when cash payments are received or due in advance of satisfying our performance obligations, even if amounts are refundable. Contract assets generally consist of arrangements for which we have recognized revenue to the extent it is probable that significant reversal will not occur but do not have a right to invoice as of the reporting date.
    Our allowances for doubtful accounts are typically immaterial and, if required, are based on our best estimate of expected credit losses inherent in our accounts receivable balance.
    Deferred revenue is comprised primarily of unsatisfied revenue related to the portion of the transaction price allocable to game related services of our full game software products, sales of virtual currency, and in-game purchases. These sales are typically invoiced at the beginning of the contract period, and revenue is recognized ratably over the estimated service period. Deferred revenue may also include amounts related to software products with future street dates.
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    Refer to Note 2 - Revenue from Contracts with Customers for further information, including changes in deferred revenue during the period.
Principal Agent Considerations
    We offer certain software products via third-party digital storefronts, such as Microsoft’s Xbox Live, Sony’s PlayStation Network, Valve's Steam, Apple's App Store, and the Google Play Store. For sales of our software products via third-party digital storefronts, we determine whether or not we are acting as the principal in the sale to the end user, which we consider in determining if revenue should be reported based on the gross transaction price to the end user or based on the transaction price net of fees retained by the third-party digital storefront. An entity is the principal if it controls a good or service before it is transferred to the customer. Key indicators that we use in evaluating these sales transactions include, but are not limited to, the following:
• the underlying contract terms and conditions between the various parties to the transaction;
• which party is primarily responsible for fulfilling the promise to provide the specified good or service; and
• which party has discretion in establishing the price for the specified good or service.
     Based on our evaluation of the above indicators, for sales arrangements via Microsoft’s Xbox Live, Sony’s PlayStation Network, and Valve's Steam we have determined we are not the principal in the sales transaction to the end user and therefore we report revenue based on the consideration received from the digital storefront. For sales arrangements via Apple's App Store and the Google Play Store, we have determined that we are the principal to the end user and thus report revenue on a gross basis and mobile platform fees charged by these digital storefronts are expensed as incurred and reported within Cost of revenue. These conclusions reflect differences in contractual arrangements, including which party controls pricing, the customer relationship, and fulfillment responsibilities prior to transfer to the end user.
Shipping and Handling
    Shipping and handling costs are incurred to move physical software products to customers. We recognize all shipping and handling costs as an expense in Cost of revenue because we are responsible for delivery of the product to our customers prior to transfer of control to the customer.
Estimated Service Period
    For certain performance obligations satisfied over time, we have determined that the estimated service period is the time period in which an average user plays our software products (“user life”) which most faithfully depicts the timing of satisfying our performance obligation. We consider a variety of data points when determining and subsequently reassessing the estimated service period for players of our software products. Primarily, we review the weighted average number of days between players’ first day played online or first in-game purchase and last day played online. When a new game is launched and therefore no history of online player data is available, we consider other factors to determine the user life, such as the estimated service period of other games actively being sold with similar characteristics. We also consider known online trends, the service periods of our previously released software products, and, to the extent publicly available, the service periods of our competitors’ software products that are similar in nature to ours. We believe this provides a reasonable depiction of the transfer of our game related services to our customers, as it is the best representation of the period during which our customers play our software products. Determining the estimated service period is subjective and requires significant management judgment and estimates. Future usage patterns may differ from historical usage patterns, and therefore the estimated service period may change in the future. The estimated service periods for players of our current software products are generally between five and fifteen months depending on the software product.
Revenue Arrangements with Multiple Performance Obligations
    Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment. For software products in which the software license has offline functionality and benefits from meaningful game related services, which may include online functionality that is dependent on our online support services and/or additional free content updates, we believe we have separate performance obligations for the license of the intellectual property and the game related services. Additionally, because each of our product offerings has unique features and because we do not sell our game related services separately, we typically do not have observable standalone selling prices for each performance obligation. Significant judgment and estimates are also required to determine the standalone selling price for each distinct performance obligation and whether a discount needs to be allocated based on the relative standalone selling price of our products and services.
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    To estimate the standalone selling price for each performance obligation, we consider, to the extent available, a variety of data points such as past selling prices of the product or other similar products, competitor pricing, and market data. If observable pricing is not available, we use an expected cost-plus margin approach taking into account relevant costs including product development, post-release support, marketing and licensing costs. This evaluation is performed on a product by product basis.
Price Protection, Allowances for Returns, and Sales Incentives
    We grant price protection and accept returns in connection with our distribution arrangements. Following reductions in the price of our physical software products, we grant price protection to permit customers to take credits against amounts they owe us with respect to merchandise unsold by them. Our customers must satisfy certain conditions to entitle them to receive price protection or return products, including compliance with applicable payment terms and confirmation of field inventory levels.
At contract inception and at each subsequent reporting period, we make estimates of price protection and product returns related to current period software product revenue. We estimate the amount of price protection and returns for software products based upon, among other factors, historical experience and performance of the titles in similar genres, historical performance of the hardware platform, customer inventory levels, analysis of sell-through rates, sales force and retail customer feedback, industry pricing, market conditions, and changes in demand and acceptance of our products by consumers.
    We enter into various sales incentive arrangements with our customers, such as rebates, discounts, and cooperative marketing. These incentives are considered adjustments to the transaction price of our software products and are reflected as reductions to revenue. Sales incentives incurred by us for distinct goods or services received, such as the appearance of our products in a customer’s national circular ad, are included in Selling and marketing expense if there is a separate identifiable benefit and the benefit’s fair value can be established. Otherwise, such sales incentives are reflected as a reduction to revenue.
Revenue is recognized after deducting the estimated price protection, allowances for returns, and sales incentives, which are accounted for as variable consideration. Price protection, allowances for returns, and sales incentives are considered refund liabilities and are reported within Accrued expenses and other current liabilities on our Consolidated Balance Sheet.
Estimates Used in Revenue Recognition
    Certain aspects of revenue recognition involve the use of estimates, including the allocation of consideration to distinct performance obligations and the determination of the service period over which revenue is recognized. These estimates are based on observable data, historical experience and consistently applied methodologies. While actual results may differ from estimates due to changes in circumstances or market conditions, adjustments to estimates are recorded in the period in which they become known.
Payment Terms
Our payment terms and conditions vary by customer and typically provide net 30- to 60-day terms. In instances where the timing of revenue recognition differs from the timing of invoicing, we do not adjust the promised amount of consideration for the effects of a significant financing component when we expect, at contract inception, that the period between our transfer of a promised product or service to our customer and payment for that product or service will be one year or less.
Marketing
    We expense marketing costs as incurred, except for production costs associated with media advertising, which are deferred and charged to expense when the related advertisement is run for the first time. Advertising, marketing, and other promotional expenses for the fiscal years ended March 31, 2026, 2025, and 2024 amounted to $ 1,287.1 , $ 1,253.9 , and $ 1,132.4 , respectively, and are included in Selling and marketing expense in our Consolidated Statements of Operations.
Stock-based Compensation
    We have stock-based compensation plans that are broad-based long-term retention programs intended to attract and retain talented employees and align stockholder and employee interests, which allows for awards of restricted stock, restricted stock units and other stock-based awards of our common stock to employees and non-employees. Our plans include time-based, market-based, and performance-based awards of our common stock to employees and non-employees. Refer to Note 16 - Stock-Based Compensation .
    We account for stock-based awards under the fair value method of accounting. The fair value of all stock-based compensation is either capitalized and amortized in accordance with our software development cost accounting policy or
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recognized as expense on a straight-line basis over the full vesting period of the awards for time-based stock awards and on an accelerated attribution method for market-based and performance-based stock awards.
    We estimate the fair value of time-based and performance-based awards using our closing stock price on the date of grant. We estimate the fair value of market-based awards using a Monte Carlo Simulation method, which takes into account assumptions such as the expected volatility of our common stock, the risk-free interest rate based on the contractual term of the award, expected dividend yield, vesting schedule and the probability that the market conditions of the awards will be achieved. For performance-based shares, we do not record expense until the performance criteria are considered probable.
We estimate the fair value of stock options using the Black-Scholes option-pricing model. This model requires the use of the following assumptions: expected volatility of our common stock, which is based on our own calculated historical rate; expected life of the option award; expected dividend yield, which is 0 %, as we have not paid and do not have any plans to pay dividends on our common stock; and the risk-free interest rate, which is based on the U.S. Treasury rate in effect at the time of grant with maturities commensurate to the stock option award’s expected life. If any of the assumptions used in the Black-Scholes model changes significantly, stock-based compensation expense for future awards may differ materially compared to awards granted previously. We record stock-based compensation expense for stock options based on the grant date fair value on a straight-line basis over the requisite service period of the award.
    Stock-based compensation expense is recorded net of forfeitures as they occur.
Beginning in April 2024, employee participants fulfilled their related tax withholding obligation by selling vested shares at the time of vesting in non-discretionary transactions pursuant to our mandatory sell-to-cover policy. The proceeds from the employee participants' sales of vested shares are remitted to us to cover the tax withholding payments to tax authorities.
Earnings (loss) per Share ("EPS")
    Basic EPS is computed by dividing the net (loss) income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. Diluted EPS is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents are measured using the treasury stock method and represent unvested stock-based awards.
Foreign Currency
    The functional currency for our foreign operations is primarily the applicable local currency. Accounts of foreign operations are translated into U.S. dollars using exchange rates for assets and liabilities at the balance sheet date and average prevailing exchange rates for the period for revenue and expense accounts. Adjustments resulting from translation are included in Accumulated other comprehensive loss. Realized and unrealized transaction gains and losses are included in our Consolidated Statements of Operations in the period in which they occur.
Comprehensive (Loss) Income
    Comprehensive (loss) income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss includes foreign currency translation adjustments, which relate to investments that are permanent in nature and therefore do not require tax adjustments, and the amounts for unrealized gains (losses), net on derivative instruments designated as cash flow hedges, as well as any associated tax impact, and available for sale securities.
Recently Issued Accounting Pronouncements
Government Grants
In December 2025, the Financial Accounting Standards Board ("FASB") issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities . The ASU establishes the accounting and presentation for government grants received by a business entity. ASU 2025-10 is effective for fiscal years beginning after December 15, 2028 (April 1, 2029 for the Company) and interim periods within fiscal years beginning after December 15, 2029
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(April 1, 2030 for the Company). We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures.

Internal-Use Software
In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software . The ASU amends the existing standard to remove all references to prescriptive and sequential software development project stages. Under this guidance, eligible software development costs will begin capitalization when management has authorized and committed to funding the software project, and it is probable that the project will be completed and the software will be used to perform the function intended. In evaluating whether it is probable the project will be completed, management is required to consider whether there is significant uncertainty associated with the development activities of the software.
ASU 2025-06 is effective for fiscal years beginning after December 15, 2027 (April 1, 2028 for the Company) and interim periods within those annual periods. Early adoption is permitted as of the beginning of an annual reporting period. Entities may adopt the guidance using a prospective, retrospective, or modified retrospective approach. We are currently evaluating the potential impact of adopting this guidance on our Consolidated Financial Statements and related disclosures, including the appropriate transition method.
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 annual periods 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. ASU 2023-09 only affects financial statement disclosures. Refer to Note 15 - Income Taxes .

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:

Fiscal Year Ended March 31,
2026 2025 2024
Net revenue recognized:
Over time $ 5,291.9   $ 4,504.8   $ 4,312.2  
Point in time 1,364.5   1,128.8   1,037.4  
Total net revenue $ 6,656.4   $ 5,633.6   $ 5,349.6  

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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:

Fiscal Year Ended March 31,
2026 2025 2024
Net revenue recognized:
Recurrent consumer spending $ 5,196.6   $ 4,474.6   $ 4,213.5  
Full game and other 1,459.8   1,159.0   1,136.1  
Total net revenue $ 6,656.4   $ 5,633.6   $ 5,349.6  

Platform
Net revenue by platform was as follows:
Fiscal Year Ended March 31,
2026 2025 2024
Net revenue recognized:
Mobile $ 3,333.0   $ 2,942.0   $ 2,748.0  
Console 2,597.3   2,099.1   2,167.3  
PC and other 726.1   592.5   434.3  
Total net revenue $ 6,656.4   $ 5,633.6   $ 5,349.6  

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:

Fiscal Year Ended March 31,
2026 2025 2024
Net revenue recognized:
Digital online $ 6,459.7   $ 5,431.8   $ 5,112.2  
Physical retail and other 196.7   201.8   237.4  
Total net revenue $ 6,656.4   $ 5,633.6   $ 5,349.6  

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 March 31, 2026 and March 31, 2025 were $ 1,189.6 and $ 1,108.9 , respectively. For the fiscal year ended March 31, 2026, the additions to our deferred revenue balance were primarily due to cash payments received or due in advance of satisfying our performance obligations, while the reductions to our deferred revenue balance were primarily due to the recognition of revenue upon fulfillment of our performance obligations, both of which were in the ordinary course of business.
During the fiscal year ended March 31, 2026 and 2025, $ 1,065.7 and $ 1,044.4 , of revenue was recognized, respectively, that was included in the deferred revenue balance at the beginning of each respective period.
As of March 31, 2026, the aggregate amount of contract revenue allocated to unsatisfied performance obligations is $ 1,446.5 , which includes our deferred revenue balances and amounts to be invoiced and recognized as revenue in future periods. We expect to recognize approximately $ 1,240.0 of this balance as revenue over the next 12 months, and the remainder
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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 March 31, 2026 and March 31, 2025, our contract asset balances were $ 89.7 and $ 80.8 , respectively.
Accounts Receivable sale program
On May 19, 2025, we entered into an arrangement to sell designated pools of high credit quality accounts receivable under an uncommitted accounts receivables purchase facility in an initial aggregate amount of up to $ 215.0 to an unaffiliated financial institution on a true sale basis. As these accounts receivable are sold without recourse, we do not retain the associated risks of lack of payment due to insolvency of the account debtors following the transfer of such accounts receivable to such financial institution. We will continue to collect cash from our account debtors and remit to the financial institution. We will derecognize the carrying value of the financial assets transferred and recognize a net gain or loss on the sale under Interest and other, net on our Consolidated Statements of Operations. The proceeds from these arrangements will be reflected as cash provided by operating activities in the Consolidated Statements of Cash Flows.
No receivables were sold under this facility during the fiscal year ended March 31, 2026. We may utilize this facility in future periods depending on cash flow needs and market conditions.

3.      MANAGEMENT AGREEMENT
We have a management agreement (the "2022 Management Agreement") with ZMC Advisors, L.P. (“ZMC”), which became effective May 23, 2022 and replaced our previous management agreement. Pursuant to the 2022 Management Agreement, ZMC will continue to provide financial and management consulting services to the Company through March 31, 2029, 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 for the term of the agreement and a maximum annual bonus opportunity of $ 13.2 for 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, market-based, and performance-based restricted units to ZMC.
    In consideration for ZMC's services, we recorded consulting expense within General and administrative expenses on our Consolidated Statements of Operations of $ 16.6 , $ 10.2 , and $ 6.5 for the fiscal years ended March 31, 2026, 2025, and 2024, respectively.
    During the fiscal years ended March 31, 2026, 2025, and 2024, we recorded stock-based compensation expense for restricted stock units granted to ZMC, which is also included in General and administrative expenses on our Consolidated Statements of Operations of $ 62.9 , $ 56.2 , and $ 52.8 , respectively. See Note 16 - Stock-Based Compensation for a discussion of such awards.

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.
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March 31, 2026
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 $ 909.0   $ —   $ —   $ 909.0  
Bank-time deposits 204.5   —   —   204.5  
Short-term investments:
Bank-time deposits 443.8   —   —   443.8  
Restricted cash and cash equivalents:
Money market funds 11.9   —   —   11.9  
Bank-time deposits 1.2   —   —   1.2  
Restricted cash and cash equivalents, long term:
Money market funds 79.4   —   —   79.4  

Other assets:
Private equity —   —   23.6   23.6  
Equity securities 9.3   —   —   9.3  
Foreign currency forward contracts —   0.2   —   0.2  
Total financial assets $ 1,659.1   $ 0.2   $ 23.6   $ 1,682.9  

Liabilities:

Short-term debt, net:
Convertible notes —   30.0   —   30.0  
Total financial liabilities $ —   $ 30.0   $ —   $ 30.0  

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March 31, 2025
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 $ 842.6   $ —   $ —   $ 842.6  
Bank-time deposits 296.4   —   —   296.4  
Short-term investments:
Bank-time deposits 9.4   —   —   9.4  
Restricted cash and cash equivalents:
Money market funds 12.0   —   —   12.0  
Bank-time deposits 1.9   —   —   1.9  
Restricted cash and cash equivalents, long term:
Money market funds 88.2   —   —   88.2  
Other assets:
Equity securities 7.3   —   —   7.3  
Private equity —   —   24.3   24.3  
Total financial assets $ 1,257.8   $ —   $ 24.3   $ 1,282.1  

Liabilities:
Accrued expenses and other current liabilities:
Foreign currency forward contracts $ —   $ 0.1   $ —   $ 0.1  
Long-term debt, net:
Convertible notes —   28.5   —   28.5  
Total financial liabilities $ —   $ 28.6   $ —   $ 28.6  

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 fiscal year ended March 31, 2026.
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 March 31, 2026 and March 31, 2025, we held $ 18.5 and $ 8.0 , respectively, of such investments in Other assets within our Consolidated Balance Sheet.
See Note 9 - Goodwill and Intangible Assets, Net for goodwill and intangible related fair value measurements.
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5.      SHORT-TERM INVESTMENTS
     Our short-term investments consisted of the following as of March 31, 2026:

  March 31, 2026
  Cost or
Amortized Cost Gross
Unrealized
Gains Losses Fair Value
Short-term investments        
Bank time deposits $ 443.8   $ —   $ —   $ 443.8  

Total Short-term investments $ 443.8   $ —   $ —   $ 443.8  

  March 31, 2025
  Cost or
Amortized Cost Gross
Unrealized
Gains Losses Fair Value
Short-term investments        
Bank time deposits $ 9.4   $ —   $ —   $ 9.4  
Total Short-term investments 9400000 $ 9.4   $ —   $ —   $ 9.4  

     The following table summarizes the contracted maturities of our short-term investments at March 31, 2026:

  March 31, 2026
Amortized
Cost Fair
Value
Short-term investments    
Due in 1 year or less $ 443.8   $ 443.8  

Total Short-term investments $ 443.8   $ 443.8  

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:

  March 31,
2026 2025
Forward contracts to sell foreign currencies $ 349.2   $ 299.8  
Forward contracts to purchase foreign currencies 140.3   97.0  

    For the fiscal years ended March 31, 2026, 2025, and 2024, we recorded a loss of $ 5.5 , a gain of $ 5.3 , and a gain of $ 5.3 , respectively, related to foreign currency forward contracts in Interest and other, net on our 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.
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7.      SOFTWARE DEVELOPMENT COSTS AND LICENSES
     Details of our capitalized software development costs and licenses are as follows:
  March 31,
  2026 2025
Current Non-current Current Non-current
Software development costs, internally developed $ 46.1   $ 2,224.6   $ 62.9   $ 1,845.6  
Software development costs, externally developed 1.7   52.2   0.5   39.7  
Licenses 21.0   0.7   17.4   7.3  
Software development costs and licenses $ 68.8   $ 2,277.5   $ 80.8   $ 1,892.6  

    Software development costs and licenses, net of current portion as of March 31, 2026 and 2025 included $ 2,149.7 and $ 1,815.0 , respectively, related to titles that have not been released.
Amortization and impairment of software development costs and licenses are as follows:
  Fiscal Year Ended March 31,
2026 2025 2024
Amortization of software development costs and licenses $ 385.9   $ 265.7   $ 207.2  
Impairment of software development costs and licenses ( 1.0 ) 77.5   109.9  
Portion representing stock-based compensation 27.9   ( 9.4 ) ( 24.4 )
Amortization and impairment, net of stock-based compensation $ 412.8   $ 333.8   $ 292.7  

    During the fiscal year ended March 31, 2026, $( 6.0 ) of the impairment charges were recorded within Business reorganization and were primarily due to the recovery of previously incurred costs related to the termination of development of two of our titles in connection with the 2024 Plan (our cost reduction program in Fiscal 2025). The remaining $ 5.0 were recorded within Cost of revenue and primarily related to a decision not to proceed with further development of certain interactive entertainment software products.
During the fiscal year ended March 31, 2025, $ 42.4 of the impairment charges related to a decision not to proceed with further development of certain interactive entertainment software products. The remaining $ 35.1 of the impairment charges related to our cost reduction program.
During the fiscal year ended March 31, 2024, $ 88.2 of the impairment charges related to our cost reduction program, the remaining $ 21.7 related to (i) a decision not to proceed with further development of certain interactive entertainment software products, and (ii) recognizing unamortized capitalized costs for the development of a title that exceed the anticipated net realizable value of the asset at the time they were impaired.
As a result of government grants earned on qualified production spend to date, our software development costs and licenses were reduced by $ 233.2 and $ 170.5 as of March 31, 2026 and 2025, respectively. We had $ 32.8 and $ 128.1 current receivable within Prepaid expenses and other, and $ 250.6 and $ 150.6 non-current receivable within Other assets on our Consolidated Balance Sheets relating to such government grants as of March 31, 2026 and 2025, respectively. Within our Consolidated Statements of Operations, for fiscal years ended March 31, 2026, 2025, and 2024, Cost of revenue, was reduced by $ 75.5 , $ 167.4 , and $ 45.3 , respectively, and Research and development expense was reduced by $ 9.9 , $ 43.2 , and $ 5.9 , respectively.
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8.      FIXED ASSETS, NET
     Fixed asset balances by category are as follows:
  March 31,
2026 2025
Computer equipment $ 394.4   $ 365.0  
Leasehold improvements 333.1   313.2  
Computer software 184.9   147.5  
Buildings 57.9   29.5  
Land 46.9   35.6  
Furniture and fixtures 43.5   43.4  
Office equipment 19.0   20.7  
Total $ 1,079.7   $ 954.9  
Less: accumulated depreciation ( 634.3 ) ( 511.1 )
Fixed assets, net $ 445.4   $ 443.8  

    Depreciation expense related to fixed assets for the fiscal years ended March 31, 2026, 2025, and 2024 was $ 166.4 , $ 153.9 , and $ 135.5 , respectively.

9.    GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill
     The change in our goodwill balance is as follows:
Total
Balance at March 31, 2024 $ 4,426.4  
Gearbox acquisition 192.9  
Additions from immaterial acquisitions 3.1  
Currency translation adjustment ( 4.1 )
Divestitures ( 15.8 )
Impairment ( 3,545.2 )
Balance at March 31, 2025 $ 1,057.3  
Currency translation adjustment 8.4  
Purchase price adjustments related to prior acquisitions ( 3.8 )
Balance at March 31, 2026 $ 1,061.9  

As of March 31, 2026, the gross amount of goodwill was $ 6,949.2 and our accumulated impairments were $ 5,887.3 for a net carrying amount of $ 1,061.9 . As of March 31, 2025, the gross amount of goodwill was $ 6,944.6 and our accumulated impairments were $ 5,887.3 for a net carrying amount of $ 1,057.3 .
There were no goodwill impairment charges for the fiscal year ended March 31, 2026. As of March 31, 2026, our qualitative and quantitative assessments indicated that it is more likely than not that the fair value of our reporting units exceeds their carrying amounts.
During the fiscal year ended March 31, 2025, and 2024, we recognized goodwill impairment charges of $ 3,545.2 and $ 2,342.1 , respectively, representing partial impairments related to one of our reporting units. We identified various qualitative factors that, collectively, indicated that the fair value of one of our reporting units was more likely than not less than its carrying amount, including a reduction in the forecasted performance of the reporting unit due to industry conditions and changes in our strategies for games within the reporting unit in response to those conditions. As a result of this qualitative analysis, we performed a valuation of the reporting unit using discounted cash flow and guideline public company methodologies. Key assumptions and estimates used in deriving the fair value are forecasted revenue, EBITDA margins, long-term growth rate, and discount rate.
Indefinite-lived intangibles
Other intangibles, net, as of March 31, 2026, included in-process research and development ("IPR&D") assets of $ 22.0 acquired as part of the Gearbox acquisition, which are indefinite-lived intangibles and therefore not subject to amortization until the related games are released or development is abandoned, which would result in an impairment.
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During fiscal 2026, one IPR&D project with a fair value of $ 14.0 was completed upon the commercial release of the related game. As a result, this asset was reclassified from an indefinite-lived intangible asset to a definite-lived intangible asset (Developed Game Technology) and is being amortized on a straight-line basis over its estimated useful life of 3 years.
Definite-lived intangibles
     The following table sets forth the intangible assets that are subject to amortization:
March 31,
2026 2025
Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value Weighted average useful life
Developed Game Technology $ 3,579.2   $ ( 2,277.6 ) $ 1,301.6   $ 3,624.0   $ ( 1,781.6 ) $ 1,842.4   6 years
Branding and Trade Names 354.2   ( 130.5 ) 223.7   354.0   ( 98.5 ) 255.5   12 years
Game Engine Technology 334.6   ( 301.0 ) 33.6   331.2   ( 223.0 ) 108.2   5 years
User Base 319.2   ( 319.2 ) —   319.2   ( 319.2 ) —   0 years
Developer Relationships 57.0   ( 55.0 ) 2.0   57.0   ( 40.7 ) 16.3   5 years

Intellectual Property 94.8   ( 24.5 ) 70.3   94.8   ( 17.4 ) 77.4   14 years
In Place Lease 2.1   ( 2.1 ) —   2.0   ( 1.8 ) 0.2   0 years
Analytics Technology 32.0   ( 32.0 ) —   29.9   ( 29.9 ) —   0 years
Total intangible assets $ 4,773.1   $ ( 3,141.9 ) $ 1,631.2   $ 4,812.1   $ ( 2,512.1 ) $ 2,300.0  

     Amortization of intangible assets, including impairments, is included in our Consolidated Statements of Operations as follows:
  Fiscal Year Ended 1 Fiscal Year Ended March 31,
2026 2025 2024
Cost of revenue $ 665.0   $ 814.3   $ 1,303.5  
Selling and marketing —   4.1   51.0  
Research and development
28.7   28.7   28.7  
Depreciation and amortization 32.0   75.5   35.7  
Total amortization of intangible assets $ 725.7   $ 922.6   $ 1,418.9  

During the fiscal year ended March 31, 2026, we recorded impairment charges of $ 24.1 for acquisition-related Developed Game Technology intangible assets within Cost of revenue as a result of a reduction in the forecasted performance of certain games due to changes in our strategies.
During the fiscal year ended March 31, 2025, we recorded impairment charges of $ 137.0 for acquisition-related Developed Game Technology intangible assets within Cost of revenue and $ 39.3 for acquisition-related Branding and Trade Names intangible assets within Depreciation and amortization as a result of a reduction in the forecasted performance of certain games due to industry conditions and changes in our strategies in response to those conditions.
During the fiscal year ended March 31, 2024, we recorded impairment charges of $ 577.4 for acquisition-related Developed Game Technology intangible assets within Cost of revenue as a result of a reduction in the forecasted performance of certain games due to industry conditions and changes in our strategies in response to those conditions.
The fair value of Developed Game Technology assets was measured using the multi-period excess earnings method, consistent with the approach used at acquisition. Key assumptions and estimates used in deriving the fair value are forecasted revenue, EBITDA margins, long-term decay rates, and discount rates. The fair value of Branding and Trade Names assets was measured using the relief-from-royalty method, consistent with the approach used at acquisition. Key assumptions and estimates used in deriving the fair value are forecasted revenue, royalty rates, and discount rates.
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     Estimated future amortization of intangible assets that will be recorded in Cost of revenue and operating expenses for the years ending March 31, are as follows:
Fiscal Year Ending March 31, Amortization
2027 $ 604.6  
2028 554.1  
2029 205.2  
2030 111.5  
2031 38.2  

10.    ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
     Accrued expenses and other current liabilities consisted of the following:
  March 31,
2026 2025
Software development royalties $ 359.3   $ 419.8  
Compensation and benefits 371.5   268.3  
Licenses 100.1   91.4  
Marketing and promotions 58.5   77.0  
Tax payable 36.1   41.5  
Refund liability 34.0   32.8  
Deferred acquisition payments 31.3   35.9  
Interest payable 29.2   39.2  

Other 97.8   121.7  
Accrued expenses and other current liabilities $ 1,117.8   $ 1,127.6  

11. DEBT
The components of Long-term debt, net on our Consolidated Balance Sheet were as follows:

Annual Interest Rate Maturity Date March 31, 2026 Fair Value (Level 2)
2027 Notes 3.70 % April 14, 2027 $ 600.0   594.6  
2028 Notes 4.95 % March 28, 2028 800.0   807.3  
2029 Notes 5.40 % June 12, 2029 300.0   306.6  
2032 Notes 4.00 % April 14, 2032 500.0   477.0  
2034 Notes 5.60 % June 12, 2034 300.0   305.3  
Total $ 2,500.0   $ 2,490.8  
Unamortized discount and issuance cost ( 12.0 )
Long-term debt, net $ 2,488.0  

Annual Interest Rate Maturity Date March 31, 2025 Fair Value (Level 2)
2027 Notes 3.70 % April 14, 2027 $ 600.0   $ 590.8  
2028 Notes 4.95 % March 28, 2028 800.0   808.5  
2029 Notes 5.40 % June 12, 2029 300.0   308.3  
2032 Notes 4.00 % April 14, 2032 500.0   468.6  
2034 Notes 5.60 % June 12, 2034 300.0   308.9  
2026 Convertible Notes 0.00 % December 15, 2026 28.5   28.5  
Total $ 2,528.5   $ 2,513.6  
Unamortized discount and issuance cost ( 15.9 )
Long-term debt, net $ 2,512.6  

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The components of Short-term debt, net on our Consolidated Balance Sheet were as follows:

  Annual Interest Rate Maturity Date March 31, 2026 Fair Value (Level 2)
2026 Convertible Notes 0.00 % December 15, 2026 30.0   30.0  
Total $ 30.0   $ 30.0  
Unamortized discount and issuance cost —  
Short-term debt, net $ 30.0  

  Annual Interest Rate Maturity Date March 31, 2025 Fair Value (Level 2)
2025 Notes 3.55 % April 14, 2025 $ 600.0   $ 599.9  
2026 Notes 5.00 % March 28, 2026 550.0   552.7  
Total $ 1,150.0   $ 1,152.6  
Unamortized discount and issuance cost ( 1.5 )
Short-term debt, net $ 1,148.5  

The interest expense as it relates to our debt is recorded within Interest and other, net in our Consolidated Statements of Operations for the fiscal year ended March 31, 2026, and 2025, respectively, and was as follows:

Fiscal Year Ended March 31,
2026 2025
2025 Notes $ 0.8   $ 21.3  
2026 Notes 27.3   27.5  
2027 Notes 22.2   22.2  
2028 Notes 39.6   39.6  
2029 Notes 16.2   12.9  
2032 Notes 20.0   20.0  
2034 Notes 16.8   13.4  
Total $ 142.9   $ 156.9  

The following table outlines the aggregate amount of maturities of our borrowings, as of March 31, 2026:

Fiscal Year Ending March 31, Maturities
2027 $ 29.4  
2028 1,400.0  
2029 —  
2030 300.0  
2031 —  
Thereafter 800.0  
Total 2,529.4  
Fair value adjustments 0.6  
Total face value $ 2,530.0  

Senior Notes
On June 12, 2024, we completed our offering and sale of $ 600.0 aggregate principal amount of our senior notes, consisting of $ 300.0 principal amount of our 5.400 % Senior Notes due 2029 (the "2029 Notes") and $ 300.0 principal amount of our 5.600 % Senior Notes due 2034 (the "2034 Notes"). The 2029 Notes and 2034 Notes (the "New Notes") were issued as additional notes under the existing Indenture. Debt issuance costs of $ 5.4 and original issuance discount of $ 1.1 were incurred in connection with the 2029 Notes and 2034 Notes. These debt issuance costs and original issuance discount are included as a reduction of the debt within Long-term debt, net on our Consolidated Balance Sheet and will be amortized into Interest and other, net in our Consolidated Statements of Operations over the contractual term of the New Notes.
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On April 14, 2023, we completed our offering and sale of $ 1,000.0 aggregate principal amount of our senior notes, consisting of $ 500.0 principal amount of our 5.000 % Senior Notes due 2026 (the "2026 Notes") and $ 500.0 principal amount of our 4.950 % Senior Notes due 2028 (the "2028 Notes"). On January 8, 2024, we completed our add-on offering and sale of $ 350.0 aggregate principal amount of our senior notes, consisting of $ 50.0 principal amount of additional 2026 Notes and $ 300.0 principal amount of additional 2028 Notes (the "Add-On Offering Notes").
On April 14, 2022, we completed our offering and sale of $ 2,700.0 aggregate principal amount of our senior notes, consisting of $ 1,000.0 principal amount of our 3.300 % Senior Notes due 2024 (the “2024 Notes”), $ 600.0 principal amount of our 3.550 % Senior Notes due 2025 (the “2025 Notes”), $ 600.0 principal amount of our 3.700 % Senior Notes due 2027 (the “2027 Notes”), and $ 500.0 principal amount of our 4.000 % Senior Notes due 2032 (the “2032 Notes” and together with the 2024 Notes, 2025 Notes, 2026 Notes, 2027 Notes, 2028 Notes, 2029 Notes, and 2034 Notes, the "Senior Notes").
The Senior Notes were issued under an indenture, dated as of April 14, 2022 (the “Base Indenture”), between the Company and The Bank of New York Mellon, as trustee (the “Trustee”) and (i) a first supplemental indenture, with respect to the 2024 Notes, (ii) a second supplemental indenture, with respect to the 2025 Notes, (iii) a third supplemental indenture, with respect to the 2027 Notes, (iv) a fourth supplemental indenture, with respect to the 2032 Notes, (v) a fifth supplemental indenture, with respect to the 2026 Notes, (vi) a sixth supplemental indenture, with respect to the 2028 Notes, (vii) a seventh supplemental indenture, with respect to the 2029 Notes, and (viii) an eighth supplemental indenture, with respect to the 2034 Notes (collectively, the “Supplemental Indentures” and together with the Base Indenture, the “Indenture”), between the Company and the Trustee.
The proceeds from the issuances of the Senior Notes in April 2022 were used to finance a portion of our acquisition of Zynga, and the proceeds from the subsequent issuance of Senior Notes were used, or are expected to be used, to repay certain of our debt or for general corporate purposes.
The Senior Notes are the Company’s senior unsecured obligations and rank equally with all of our other existing and future unsubordinated obligations. We will pay interest on the 2026 Notes and 2028 Notes semi-annually on March 28 and September 28 of each year, commencing September 28, 2023. We will pay interest on each of the 2025 Notes, 2027 Notes, and 2032 Notes semi-annually on April 14 and October 14 of each year, commencing October 14, 2022. We will pay interest on each of the 2029 Notes and 2034 Notes semi-annually on June 12 and December 12 of each year, commencing on December 12, 2024. During the fiscal year ended March 31, 2026, we made interest payments of $ 153.0 .
The Senior Notes are not entitled to any sinking fund payments. We may redeem each series of the Senior Notes at any time in whole or from time to time in part at the applicable redemption prices set forth in each Supplemental Indenture. Upon the occurrence of a Change of Control Repurchase Event (as defined in each of the Supplemental Indentures) with respect to a series of the Senior Notes, each holder of the Senior Notes of such series will have the right to require the Company to purchase that holder’s Notes of such series at a price equal to 101 % of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of repurchase, unless the Company has exercised its option to redeem all the Senior Notes.
In the case of an event of default arising from certain events of bankruptcy or insolvency with respect to the Company, all outstanding Senior Notes will become due and payable immediately. If any other event of default specified in the Indenture occurs and is continuing with respect to any series of the Senior Notes, the Trustee or the holders of at least 25 % in aggregate principal amount of that series of the outstanding Notes may declare the principal of such series of Senior Notes immediately due and payable.
The Indenture contains certain limitations on the ability of the Company and its subsidiaries to grant liens without equally securing the Senior Notes, or to enter into certain sale and lease-back transactions. These covenants are subject to a number of important exceptions and limitations, as further provided in the Indenture.
During the fiscal year ended March 31, 2026 and 2025, we recognized $ 5.0 and $ 6.1 , respectively, of amortization of debt issuance costs and $ 0.5 and $ 0.6 , respectively, of amortization of the original issuance discount.
Retirement of Senior Notes
On March 28, 2026, we repaid our 2026 Notes with a principal amount of $ 550.0 , with proceeds from our May 2025 equity issuance.
On April 14, 2025, we repaid our 2025 Notes with a principal amount of $ 600.0 , with proceeds from the New Notes.
Credit Agreement
On May 19, 2025, we entered into an Amendment No. 3 (the "Amendment") to our credit agreement, dated as of May 23, 2022, (as amended, the "2022 Credit Agreement"), which increased the commitments to the unsecured five-year
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revolving credit facility (the “Revolving Credit Facility”) from $ 750.0 to $ 1,000.0 , with sublimits for borrowings and letters of credit denominated in Pounds Sterling, Euros and Canadian Dollars in an aggregate face amount of up to $ 200.0 . The 2022 Credit Agreement will continue to provide uncommitted incremental capacity permitting the incurrence of up to an additional amount not to exceed the greater of $ 250.0 and 35.0 % of the Company's Consolidated Adjusted EBITDA (as defined in the 2022 Credit Agreement).
Under the Amendment, the maturity date was extended to May 19, 2030 but retains the extension option permitting us, subject to certain requirements, to arrange to extend the Revolving Credit Facility for an additional one-year term which may be exercised no more than two times under the 2022 Credit Agreement.
Loans under the 2022 Credit Agreement will bear interest at a rate of (a) 0.000 % to 0.625 % above an alternate base rate ( 6.75 % at March 31, 2026) or (b) 1.000 % to 1.625 % above Secured Overnight Financing Rate ("SOFR"), approximately 3.66 % at March 31, 2026, which rates are determined by the Company's credit rating.
The 2022 Credit Agreement also includes, among other terms and conditions, a maximum leverage ratio covenant, as well as customary affirmative and negative covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to, among other things, incur subsidiary indebtedness, grant liens, and dispose of all or substantially all assets, in each case subject to certain exceptions and baskets. In addition, the 2022 Credit Agreement provides for events of default customary for a credit facility of this size and type, including, among others, non-payment of principal and interest when due thereunder, breaches of representations and warranties, noncompliance with covenants, acts of insolvency, cross-defaults to material indebtedness, and material judgment defaults (subject to certain limitations and cure periods).
Upon execution of the 2022 Credit Agreement, we incurred $ 4.9 of debt issuance costs that were capitalized within Other assets on our Consolidated Balance Sheet and will be amortized on a straight-line basis over the term of the 2022 Credit Agreement, with the expense recorded within Interest and other, net in our Consolidated Statements of Operations. During the fiscal year ended March 31, 2026 and 2025, we amortized $ 0.6 and $ 6.1 , respectively, of these debt issuance costs.
As of March 31, 2026, there were no borrowings under the 2022 Credit Agreement, and we had approximately 997.7 available for additional borrowings.
Information related to availability on our 2022 Credit Agreement for each period was as follows:

March 31, 2026 March 31, 2025
Available borrowings $ 997.7   $ 747.8  
Outstanding letters of credit 2.3   2.2  

Convertible Notes
In conjunction with the acquisition of Zynga on May 23, 2022, we entered into (a) the First Supplemental Indenture (the “2024 Supplemental Indenture”) to the Indenture, dated as of June 14, 2019 (the “2024 Indenture”), between Zynga and Computershare Trust Company, N.A. (as successor to Wells Fargo Bank, National Association) (the “Convertible Notes Trustee”), relating to Zynga’s 0.25 % Convertible Senior Notes due 2024 (the “2024 Convertible Notes”), and (b) the First Supplemental Indenture (the “2026 Supplemental Indenture” and, together with the 2024 Supplemental Indenture, the “Supplemental Indentures”) to the Indenture, dated as of December 17, 2020 (the “2026 Indenture” and, together with the 2024 Indenture, the “Indentures”), between Zynga and the Convertible Notes Trustee, relating to Zynga’s 0.00 % Convertible Senior Notes due 2026 (the “2026 Convertible Notes” and, together with the 2024 Convertible Notes, the “Convertible Notes”). As of the closing date of the acquisition, approximately $ 690.0 aggregate principal amount of the 2024 Convertible Notes was outstanding and approximately $ 874.5 aggregate principal amount of the 2026 Convertible Notes was outstanding.
Following the acquisition and according to the Supplemental Indentures, we assumed all of Zynga’s rights and obligations under the Indentures, and the Company guaranteed the payment and other obligations of Zynga under the Convertible Notes. As a result of our acquisition of Zynga, the right to convert each one thousand principal amount of such Convertible Notes into shares of Zynga common stock was changed into a right to convert such principal amount of such Convertible Notes into the number of units of Reference Property equal to the conversion rate in effect immediately prior to the closing, in each case pursuant to the terms and procedures set forth in the applicable Indenture. A unit of Reference Property is defined in each Indenture as 0.0406 shares of Take-Two common stock and $ 3.50 in cash, without interest, plus cash in lieu of any fractional shares of Take-Two common stock.
The acquisition of Zynga constituted a Fundamental Change, a Make-Whole Fundamental Change, and a Share Exchange Event (each as defined in the Indentures) under the Indentures. The effective date of the Fundamental Change, Make-Whole Fundamental Change and Share Exchange Event in respect of the Convertible Notes was May 23, 2022, and the related
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tender and conversion periods expired on June 22, 2022. As a result, each holder of Convertible Notes had the right to tender its Convertible Notes to the Company for cash or surrender its Convertible Notes for conversion into the Reference Property at the applicable conversion rate, in each case pursuant to the terms and procedures set forth in the applicable Indenture.
As of the expiration of the Fundamental Change, Make-Whole Fundamental Change, and Share Exchange Event, (a) $ 0.3 aggregate principal amount of the 2024 Convertible Notes and (b) $ 845.1 aggregate principal amount of the 2026 Convertible Notes were tendered for cash. In addition, (a) $ 668.3 aggregate principal amount of the 2024 Convertible Notes, and (b) no 2026 Convertible Notes were surrendered for conversion into the applicable Reference Property. In total, we paid $ 321.6 for the tendered or converted 2024 Convertible Notes, including interest, and $ 845.1 for the tendered 2026 Convertible Notes in cash, and we issued 3.7 shares of our common stock upon the conversion of the 2024 Convertible Notes. After settlement of all Convertible Notes tendered or surrendered for conversion, and after giving effect to the maturity of the 2024 Convertible Notes described below, no 2024 Convertible Notes remained outstanding and $ 29.4 aggregate principal amount of the 2026 Convertible Notes remained outstanding at March 31, 2026.
The 2026 Convertible Notes constitute senior unsecured indebtedness of Zynga, ranking pari passu with all of our other existing and future senior unsecured unsubordinated obligations of Zynga. As a result, the 2026 Convertible Notes are structurally senior to the indebtedness of the Company as to Zynga, its subsidiaries, and their respective assets. As noted above, the Company also guaranteed the payment and other obligations of Zynga under the Convertible Notes. The Company's guarantees of the 2026 Convertible Notes are the Company's senior unsecured obligations and rank equally with all of the Company's other existing and future senior unsecured unsubordinated obligations.
Under the terms of the applicable Indentures, prior to the close of business on the business day immediately preceding September 15, 2026 with respect to the 2026 Convertible Notes, the Convertible Notes will be convertible only under the following circumstances:
•    during any calendar quarter, if the value of a unit of Reference Property (based on the last reported sales price of our common stock), for at least 20 trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 % of the conversion price of the applicable series of the 2026 Convertible Notes, on each applicable trading day;

•    during the five business-day period after any five consecutive trading-day period in which the trading price per one thousand principal amount of each applicable series of the 2026 Convertible Notes for such trading day was less than 98 % of the product of the value of a unit of Reference Property (based on the last reported sale price of our common stock) and the conversion rate of the applicable series of the 2026 Convertible Notes, on each such trading day;

•    if we call the 2026 Convertible Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the respective redemption date; or

•    upon the occurrence of specified corporate events described in the respective Indentures.
Upon any conversion, holders will receive either cash or a combination of cash and shares of Take-Two common stock, at our election. As of March 31, 2026, the conditions allowing holders of the 2026 Convertible Notes to convert their series of the Convertible Notes have not been met, and, therefore, they are not yet convertible.
We have elected to account for these Convertible Notes, which are considered derivatives, using the fair value option (Level 2) under ASC 825, as the Convertible Notes were initially recognized at fair value under the acquisition method of accounting in connection with the Zynga Acquisition and we do not expect significant fluctuations in fair value through maturity. We initially recorded $ 778.6 as the acquisition date fair value for the 2024 Convertible Notes and $ 874.5 for the 2026 Convertible Notes. The fair value was determined as the expected cash payment and value of shares to be issued to settle the Convertible Notes.
The 2024 Convertible Notes matured on June 1, 2024. During the fiscal year ended March 31, 2025, we paid $ 8.3 for converted 2024 Convertible Notes, including interest, and we issued 0.1 shares of our common stock upon conversion of the 2024 Convertible Notes.
The 2026 Convertible Notes mature on December 15, 2026, unless earlier converted, redeemed, or repurchased in accordance with their terms, prior to the maturity date. The 2026 Convertible Notes do not bear regular interest, and the principal amount does not accrete. An aggregate principal amount of $ 29.4 of the 2026 Convertible Notes remained outstanding at March 31, 2026. We recorded $ 30.0 as the fair value of the remaining outstanding 2026 Convertible Notes, within Short-term
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debt, net, in our Consolidated Balance Sheet. During the fiscal year ended March 31, 2026 and 2025, we recognized a loss of $ 1.4 and loss of $ 2.3 , respectively, within Interest and other, net in our Consolidated Statements of Operations.

12.   LOSS PER SHARE
     The following table sets forth the computation of basic and diluted loss per share:
  Fiscal Year Ended March 31,
2026 2025 2024
Computation of Basic and diluted loss per share
Net loss $ ( 298.2 ) $ ( 4,478.9 ) $ ( 3,744.2 )
Weighted average common shares outstanding—basic 183.9   175.1   170.1  
Basic and diluted loss per share ( 1.62 ) ( 25.58 ) ( 22.01 )

We incurred a net loss for the fiscal year ended March 31, 2026, 2025, and 2024; therefore, the diluted weighted average shares outstanding excludes the effect of unvested common stock equivalents because their effect would be antidilutive.
For the fiscal year ended March 31, 2026, we had 1.6 potentially dilutive shares from share-based awards and 0.1 of shares from Convertible Notes that are excluded due to the net loss for the period.
On May 22, 2025, we issued 5.5 shares of our common stock, at a price to the public of $ 225.00 per share, resulting in $ 1,192.8 of proceeds net of underwriting fees and expenses. We intend to use the net proceeds from this offering for general corporate purposes, which may include the repayment of outstanding debt and future acquisitions.

13.    LEASES
    Our lease arrangements are primarily for (1) corporate, administrative, and development studio offices and (2) data centers and server equipment. Our existing leases have remaining lease terms ranging from one to twelve years. In certain instances, such leases include one or more options to renew, with renewal terms that generally extend the lease term by  one  to  five years for each option. The exercise of lease renewal options is generally at our sole discretion. Additionally, the majority of our leases are classified as operating leases.
Information related to our operating leases are as follows:

Fiscal Year Ended March 31,
2026 2025 2024
Lease costs
Operating lease costs $ 78.0   $ 84.9   $ 80.5  
Short-term lease costs 1.6   3.8   4.9  

There were no impairment charges during fiscal year ended March 31, 2026 related to our ROU assets. During the fiscal year ended March 31, 2025, we recognized $ 3.9 of impairment charges for office closures related to the 2024 Plan. There were no impairment charges during the fiscal year ended March 31, 2024 related to our ROU assets.

Fiscal Year Ended March 31,
2026 2025 2024
Supplemental operating cash flow information
Cash paid for amounts included in the measurement of lease liabilities $ 82.4   $ 87.1   $ 73.9  
ROU assets obtained in exchange for lease obligations 58.9   80.4   89.5  

Fiscal Year Ended March 31,
2026 2025 2024
Weighted average information
Remaining lease term 7.14 years 7.91 years 8.40 years
Discount rate 4.74   % 4.75   % 4.56   %

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Future undiscounted lease payments for our operating lease liabilities, and a reconciliation of these payments to our operating lease liabilities at March 31, 2026, are as follows:

Fiscal Year Ending March 31,
2027 $ 92.9  
2028 86.0  
2029 84.0  
2030 74.6  
2031 64.4  
Thereafter 146.6  
Total future lease payments $ 548.5  
Less imputed interest ( 108.2 )
Total lease liabilities $ 440.3  

As of March 31, 2026, we have entered into a facility lease that has not yet commenced with future lease payments of approximately $ 2.4 . This lease is expected to commence within the next twelve months and will have lease term of 5 years.

14.    COMMITMENTS AND CONTINGENCIES
A summary of annual minimum contractual obligations and commitments as of March 31, 2026 is as follows:
Fiscal Year Ending March 31, Software
Development
and Licensing Marketing Purchase Obligations Total
2027 $ 61.1   $ 30.4   $ 232.2   $ 323.7  
2028 33.4   35.7   92.5   161.6  
2029 20.5   36.3   25.6   82.4  
2030 20.8   36.0   5.5   62.3  
2031 20.0   29.5   1.2   50.7  
Thereafter 20.0   39.0   0.4   59.4  
Total $ 175.8   $ 206.9   $ 357.4   $ 740.1  

    Software Development and Licensing Agreements:     We make payments to third-party software developers that include contractual payments to developers under several software development agreements that expire at various times. Our aggregate outstanding software development commitments assume satisfactory performance by third-party software developers. We also have licensing commitments that primarily consist of obligations to holders of intellectual property rights for use of their trademarks, copyrights, technology or other intellectual property rights in the development of our products.
    Marketing Agreements:     We have certain minimum marketing support commitments where we commit to spend specified amounts related to marketing our products. Marketing commitments expire at various times and primarily reflect our agreements with major sports leagues and players' associations.
    Purchase Obligations:     These obligations are primarily related to agreements to purchase services that are enforceable and legally binding on us that specifies all significant terms, including fixed, minimum or variable pricing provisions; and the approximate timing of the transactions, expiring at various times.
    Employee Savings Plans:     For our U.S. employees we maintain a 401(k) retirement savings plan and trust. Our 401(k) plan is offered to all eligible employees and participants may make voluntary contributions. We also have various pension plans for our non-U.S. employees, some of which are required by local laws, and allow or require employer contributions. Employer contributions under all defined contribution and pension plans during the fiscal years ended March 31, 2026, 2025, and 2024 were $ 55.1 , $ 51.4 , and $ 43.0 , respectively.
    Legal and Other Proceedings:     We are, or may become, subject to demands and claims (including intellectual property and employment related claims) and are involved in routine litigation in the ordinary course of business which we do not believe to be material to our business or financial condition or results of operations. We have appropriately accrued amounts related to certain of these claims and legal and other proceedings. While it is reasonably possible that a loss may be incurred in excess of the amounts accrued in our financial statements, we believe that such losses, unless otherwise disclosed, would not be material.
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15.    INCOME TAXES
     Components of Loss before income taxes are as follows:
  Fiscal Year Ended March 31,
2026 2025 2024
Domestic $ ( 447.2 ) $ ( 2,471.1 ) $ ( 2,081.8 )
Foreign 249.4   ( 2,020.2 ) ( 1,621.0 )
Loss before income taxes $ ( 197.8 ) $ ( 4,491.3 ) $ ( 3,702.8 )

Provision for (benefit from) current and deferred income taxes consists of the following:
  Fiscal Year Ended March 31,
2026 2025 2024
Current:      
U.S. federal $ 9.9   $ 0.2   $ 23.0  
U.S. state and local 2.1   11.5   12.4  
Foreign 166.1   115.0   107.5  
Total current income taxes 178.1   126.7   142.9  
Deferred:
U.S. federal 0.3   ( 55.3 ) 24.6  
U.S. state and local —   —   ( 22.6 )
Foreign ( 78.0 ) ( 83.8 ) ( 103.5 )
Total deferred income taxes ( 77.7 ) ( 139.1 ) ( 101.5 )
Provision for (benefit from) income taxes $ 100.4   $ ( 12.4 ) $ 41.4  

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Beginning with fiscal year ended March 31, 2026, we adopted ASU 2023-09 prospectively (refer to Note 1 – Basis of Presentation and Significant Accounting Policies). A reconciliation of our effective tax rate to the U.S. statutory federal income tax rate pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended March 31, 2026 is as follows:

Fiscal Year Ended March 31, 2026
U.S. federal statutory rate $ ( 41.5 ) 21.0   %
State and local taxes, net of U.S. federal benefit (1)
4.9   ( 2.5 ) %
Foreign tax effects (2)

Turkey
Withholding taxes 62.6   ( 31.7 ) %
Nondeductible and other 10.6   ( 5.4 ) %

United Kingdom
Nondeductible and other (3)
11.2   ( 5.6 ) %

Switzerland
Foreign tax rate differential 9.3   ( 4.7 ) %
Nondeductible and other 7.1   ( 3.6 ) %

Other foreign jurisdictions 9.9   ( 5.0 ) %
Effect of cross-border tax laws (4)
( 30.4 ) 15.3   %

Research & development credits ( 45.1 ) 22.8   %
Changes in valuation allowances (5)
103.8   ( 52.5 ) %
Nontaxable or nondeductible items
Excess tax benefits from stock-based compensation ( 25.3 ) 12.8   %
Nondeductible compensation 7.0   ( 3.6 ) %
Nondeductible and other 2.4   ( 1.1 ) %
Changes in unrecognized tax benefits, including interest (6)
13.9   ( 7.0 ) %

Effective tax rate $ 100.4   ( 50.8 ) %

(1) California and Minnesota state taxes make up the majority (greater than 50%) of this category. Changes in state valuation allowances as a result of a determination in the fiscal year ended March 31, 2026 that it was more likely than not that such deferred tax assets would not be realized, are reflected in this category.
(2) Foreign tax effects include the changes in our valuation allowance on deferred tax assets as a result of a determination in the fiscal year ended March 31, 2026 that it was more likely than not that such deferred tax assets would not be realized. The changes are included in their respective international jurisdictions.
(3) Includes the impact of Pillar Two.
(4) Effect of cross-border tax laws are presented on a net basis, primarily related to Net Controlled Foreign Corporation Tested Income (NCTI), formally known as Global Intangible Low Taxed Income (GILTI) and foreign tax credits.
(5) The change in domestic valuation allowance includes an increase in our valuation allowance on deferred tax assets as a result of a determination in the fiscal year ended March 31, 2026 that it was more likely than not that such deferred tax assets would not be realized.
(6) Changes in unrecognized tax benefits are presented on an aggregated basis for all jurisdictions.

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  Fiscal Year Ended March 31,
2025 2024
U.S. federal statutory rate 21.0   % 21.0   %
State and local taxes, net of U.S. federal benefit 0.4   % 0.6   %
Foreign tax rate differential (1)
( 0.2 ) % 0.2   %
Foreign earnings (2)
( 0.5 ) % ( 1.5 ) %
Tax credits (3)
1.2   % 1.7   %
Excess tax benefits from stock-based compensation 0.2   % ( 0.1 ) %
Earn-out adjustments —   % 0.1   %
Valuation allowance-domestic (4)
( 5.0 ) % ( 9.1 ) %
Valuation allowance-foreign (4)
( 0.6 ) % ( 1.1 ) %
Nondeductible compensation ( 0.1 ) % ( 0.1 ) %
Global intangible low-taxed income ( 0.5 ) % ( 1.0 ) %
Foreign-derived intangible income 0.3   % 0.5   %
Change in reserves —   % 0.9   %
Goodwill impairment ( 16.0 ) % ( 12.8 ) %
Other 0.1   % ( 0.4 ) %
Effective tax rate 0.3   % ( 1.1 ) %

(1) The foreign rate differentials in relation to foreign earnings, for all periods presented, are primarily driven by changes in the mix of our foreign earnings and the difference between the foreign and U.S. income tax rates.
(2) Fiscal year ended March 31, 2024 includes tax expense of $ 29.2 from a decrease in the deferred tax assets related to Switzerland's Federal Act on Tax Reform and AVH Financing ("TRAF") enacted on January 1, 2020.
(3) Tax benefits were recorded for fiscal years ended March 31, 2025 and 2024 attributable to certain tax credits related to software development activities.
(4) The change in domestic and foreign valuation allowance includes an increase in our valuation allowance on deferred tax assets as a result of a determination in the fiscal years ended March 31, 2025 and 2024 that it was more likely than not that such deferred tax assets would not be realized.

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     The effects of temporary differences that gave rise to our deferred tax assets and liabilities were as follows:

  March 31,
2026 2025
Deferred tax assets:    
Capitalized development costs, software and depreciation $ 388.4   $ 440.6  
Tax credit carryforward 339.3   232.5  
Net operating loss carryforward 199.8   104.1  
Equity-based compensation 146.0   158.3  
Tax basis step up related to TRAF 131.4   131.1  
Operating lease liabilities 108.3   100.2  
Accrued compensation expense 101.6   79.7  
Disallowed interest 7.7   20.8  
Deferred revenue 8.9   2.8  
Business reorganization 0.8   1.1  
Other 22.6   25.7  
Total deferred tax assets 1,454.8   1,296.9  
Less: Valuation allowance ( 1,262.3 ) ( 1,127.0 )
Net deferred tax assets $ 192.5   $ 169.9  
Deferred tax liabilities:
Intangible amortization $ ( 207.8 ) $ ( 338.1 )
Right-of-use assets ( 89.3 ) ( 76.3 )
Withholding taxes ( 77.6 ) ( 15.0 )
Total deferred tax liabilities ( 374.7 ) ( 429.4 )
Net deferred tax liability (1)
$ ( 182.2 ) $ ( 259.5 )

(1) As of March 31, 2026 and 2025, $ 0.1 and $ 0.1 are included in Deferred tax assets, included within Other assets, respectively, on our Consolidated Balance Sheets. As of March 31, 2026 and 2025, $ 182.3 and $ 259.6 are included in Deferred tax liabilities, net, respectively, on our Consolidated Balance Sheets.
    We assess the realizability of the deferred tax assets based on the available positive and negative evidence in order to determine the amount which is more likely than not to be realized and record a valuation allowance as necessary. Due to our cumulative loss position, which provides significant negative evidence, we recognized a tax expense of $ 135.3 from an increase in our valuation allowance on U.S. and foreign deferred tax assets, as a result of a determination that it was more likely than not that such deferred tax assets would not be realized. The remaining net deferred tax liability is primarily related to a basis difference in intangibles as a result of the acquisition of Zynga in May 2022.
    At March 31, 2026, we had domestic net operating loss carryforwards totaling $ 1,077.8 of which $ 34.9 will expire from 2027 to 2029, $ 205.1 will expire from 2030 to 2040, $ 339.8 will expire from 2041 to 2045, and the remainder will be carried forward indefinitely. In addition, we had foreign net operating loss carryforwards of $ 356.4 , of which $ 272.8 will expire from 2027 to 2033, $ 14.6 will expire from 2042 to 2044 and the remainder may be carried forward indefinitely.
    At March 31, 2026, we had domestic tax credit carryforwards totaling $ 514.8 , of which $ 159.1 expire from 2039 to 2046, and the remainder may be carried forward indefinitely. In addition, we had international tax credits of $ 17.2 which will expire from 2034 to 2043.
    As of March 31, 2026, it is our intention to reinvest indefinitely undistributed earnings of certain foreign subsidiaries. Accordingly, no provision has been made for foreign withholding taxes or U.S. income taxes which may become payable if undistributed earnings of such certain foreign subsidiaries are repatriated. It is not practicable to estimate the tax liability that would arise if these earnings were remitted.
    We are regularly audited by domestic and foreign taxing authorities. Audits may result in tax assessments in excess of amounts claimed and the payment of additional taxes. We believe that our tax return positions comply with applicable tax law and that we have adequately provided for reasonably foreseeable assessments of additional taxes. Additionally, we believe that any assessments in excess of the amounts provided for will not have a material adverse effect on our Consolidated Financial Statements. It is possible that settlement of audits or the expiration of the statute of limitations may have an impact on our effective tax rate in future periods.
    We recognize interest and penalties related to uncertain tax positions in the provision for income taxes in our Consolidated Statements of Operations. For the fiscal years ended March 31, 2026, 2025, and 2024, we recognized an increase
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of interest and penalties of $ 7.2 , $ 14.8 , and $ 13.5 , respectively. The gross amount of interest and penalties accrued as of March 31, 2026 and 2025 was $ 55.6 and $ 48.4 , respectively.
    As of March 31, 2026, we had gross unrecognized tax benefits, including interest and penalties, of $ 274.5 , of which $ 110.6 would affect our effective tax rate if realized. For the fiscal year ended March 31, 2026, gross unrecognized tax benefits increased by $ 7.4 .
    We are no longer subject to audit for U.S. federal income tax returns for periods prior to our fiscal year ended March 31, 2022, and with a few exceptions, and state income tax returns for periods prior to the fiscal year ended March 31, 2021. We are no longer subject to income tax examinations in non-U.S. jurisdictions for years prior to fiscal year ended March 31, 2018. Certain U.S. federal, state and foreign taxing authorities are currently examining our income tax returns for the fiscal years ended March 31, 2018 through March 31, 2025.
    The timing of the resolution of income tax examinations is highly uncertain, and the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each year. The actual amount could vary significantly depending on the ultimate timing and nature of any settlements.
     The aggregate changes to the liability for gross uncertain tax positions, excluding interest and penalties, were as follows:

  Fiscal Year Ended March 31,
2026 2025 2024
Balance, beginning of period $ 218.6   $ 242.8   $ 274.7  
Additions:
Current year tax positions 28.7   63.6   41.4  
Prior year tax positions —   —   2.3  
Reduction of prior year tax positions ( 10.2 ) ( 60.3 ) —  
Lapse of statute of limitations ( 18.3 ) ( 28.1 ) ( 76.2 )
Other —   0.6   0.6  
Balance, end of period $ 218.8   $ 218.6   $ 242.8  

    We believe that we have provided for any reasonably foreseeable outcomes related to our tax audits and that any settlement will not have a material adverse effect on our consolidated financial statements. However, there can be no assurances as to the possible outcomes.
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended March 31, 2026 were as follows:

Fiscal Year Ended March 31, 2026
U.S. federal $ —  
U.S. state and local 0.7  
Foreign:
Finland 26.0  
Turkey 83.6  
United Kingdom 19.3  
Other 19.8  
Total $ 149.4  

16.    STOCK-BASED COMPENSATION
Stock Incentive Plan
    In September 2017, our stockholders approved our 2017 Stock Incentive Plan (as amended and restated, the "2017 Plan"). The aggregate number of shares issuable under the 2017 Plan is 30.9 , subject to adjustment as set forth in the 2017 Plan, and, as of March 31, 2026, there were approximately 11.2 shares available for issuance. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the "Board") and allows for awards of restricted stock units and other stock-based awards of our common stock to employees and non-employees, including to ZMC in connection with their contract to provide executive management service to us. Subject to the provisions of the plans, the Board, or any Committee appointed
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by the Board, has the authority to determine the individuals to whom the equity awards are to be granted, the number of shares to be covered by each equity award, the vesting period, restrictions, if any, on the equity award and the terms and conditions of the equity award.
Stock-Based Compensation Expense
     The following table summarizes stock-based compensation expense included in our Consolidated Statements of Operations:

  Fiscal Year Ended March 31,
2026 2025 2024
Cost of revenue $ ( 27.9 ) $ 9.4   $ 24.4  
Selling and marketing 95.3   92.4   95.3  
Research and development
88.9   99.0   104.4  
General and administrative
149.0   123.2   111.5  
Stock-based compensation expense before income taxes 305.3   324.0   335.6  
(Benefit from) provision for for income taxes 2.8   ( 6.5 ) ( 12.2 )
Stock-based compensation expense, net of income tax benefit 308.1   317.5   323.4  
Capitalized stock-based compensation expense $ 98.0   $ 81.4   $ 85.4  

    During the fiscal year ended March 31, 2026, the forfeiture of awards resulted in the reversal of expense of $ 49.1 and amounts capitalized as software development costs of $ 20.2 . During the fiscal year ended March 31, 2025, the forfeiture of awards resulted in the reversal of expense of $ 8.3 and amounts capitalized as software development costs of $ 8.3 . During the fiscal year ended March 31, 2024, the forfeiture of awards resulted in the reversal of expense of $ 2.4 and amounts capitalized as software development costs of $ 7.4 .
    As of March 31, 2026, the total future unrecognized compensation cost related to outstanding unvested restricted stock was $ 664.6 and will be either recognized as compensation expense over a weighted-average period of approximately 2.48 years or capitalized as software development costs.
    For the fiscal years ended March 31, 2026, 2025, and 2024, the total fair values of restricted stock units that vested were $ 574.2 , $ 526.6 , and $ 309.3 , respectively.
Restricted Stock Units
Employee Awards
    Time-based restricted stock units granted to employees under our stock-based compensation plans generally vest either annually or quarterly over three years or four years from the date of grant. Certain restricted stock units granted to key officers, senior-level employees, or key employees vest based on market conditions, primarily related to the performance of the price of our common stock. Certain restricted stock units granted to key officers, senior-level employees, or key employees vest based on performance conditions, primarily related to performance metrics around certain of our titles.
ZMC Non-Employee Awards
     In connection with the 2022 Management Agreement and the 2017 Management Agreement, we granted restricted stock units (in thousands) to ZMC (see Note 3 - Management Agreement ) as follows:

Fiscal Year Ended March 31,
2026 2025
Time-based 74   102  
Market-based (1)
224   311  
Performance-based (1)
75   104  
Total Restricted Stock Units 373   517  

(1) Represents the maximum number of shares eligible to vest.
    Time-based restricted stock units granted pursuant to the 2022 Management Agreement in fiscal year 2026 will vest on June 1, 2026, June 1, 2027, and June 1, 2028, and those granted in fiscal year 2025 partially vested on June 1, 2025 and will
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also vest in part on June 1, 2026, and June 1, 2027. Time-based restricted stock units granted in fiscal year 2024, partially vested on June 1, 2024, and June 1, 2025, and will also vest on June 1, 2026.
Market-based restricted stock units granted pursuant to the 2022 Management Agreement in fiscal year 2026 are eligible to vest on June 1, 2028, those granted in fiscal year 2025 are eligible to vest on June 1, 2027, and those granted in fiscal year 2024 are eligible to vest on June 1, 2026. 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 50 th percentile, with the maximum number of market-based restricted stock units earned if the Company performs at the 75 th percentile.
Performance-based restricted stock units granted pursuant to the 2022 Management Agreement in fiscal year 2026 are eligible to vest on June 1, 2028, those granted in fiscal year 2025 are eligible to vest on June 1, 2027, and those granted in fiscal year 2024 are eligible to vest on June 1, 2026. 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 portion of time-based, market-based and performance-based restricted stock units held by ZMC as of March 31, 2026 and 2025 were 1.3 and 1.4 , respectively. During the fiscal year ended March 31, 2026, 0.5 restricted stock units previously granted to ZMC vested, and 0.0 restricted stock units were forfeited by ZMC.
Fair Value of Stock-Based Awards
Time-Based Awards
    The estimated value, based on the closing price of our stock on the grant date, of time-based restricted stock units granted to employees during the fiscal years ended March 31, 2026, 2025, and 2024 was $ 227.49 , $ 162.17 , and $ 138.25 per share, respectively.
    For the fiscal years ended March 31, 2026, 2025, and 2024, the estimated value, based on the closing price of our stock on the grant date, of time-based restricted stock awards granted to ZMC was $ 226.28 , $ 163.64 , and $ 137.59 per share, respectively.
     The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with time-based restricted stock awards presented at 100% of target number of shares that may potentially vest:

Shares (in millions) Weighted Average Fair Value on Grant Date
Non-vested restricted stock units at March 31, 2025 3.7   $ 144.18  
Granted 1.2   227.42  
Vested ( 1.7 ) 141.44  
Forfeited ( 0.3 ) 151.17  
Non-vested restricted stock units at March 31, 2026 2.9   ) $ 181.05  

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Market-Based Awards
     The following table summarizes the weighted-average assumptions used in the Monte Carlo Simulation to estimate the fair value of market-based awards:

Fiscal Year Ended March 31,
2026 2025 2024
Employee Market- Based Non- Employee Market-Based Employee Market- Based Non- Employee Market-Based Employee Market- Based Non- Employee Market-Based
Risk- free interest rate 3.8   % 3.9   % 4.7   % 4.6   % 4.0   % 4.0   %
Expected stock price volatility 31.0   % 31.0   % 34.1   % 34.1   % 36.6   % 36.6   %
Expected service period (years) 2.8 2.8 2.8 2.8 2.8 2.8
Dividends None None None None None None

    The estimated value of market-based restricted stock awards granted to employees during the fiscal years ended March 31, 2026, 2025, and 2024 was $ 240.83 , $ 241.52 , and $ 195.85 per share, respectively.
For the fiscal years ended March 31, 2026, 2025, and 2024, the estimated value of the market-based restricted stock awards granted to ZMC was $ 225.09 , $ 232.00 , and $ 193.41 per share, respectively.
     The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with market-based restricted stock awards presented at 100% of target number of shares that may potentially vest:

Shares (in millions) Weighted Average Fair Value on Grant Date
Non-vested restricted stock units at March 31, 2025 1.2   $ 194.30  
Granted 0.6   234.44  
Vested ( 0.7 ) 175.94  
Forfeited —   229.37  
Non-vested restricted stock units at March 31, 2026 1.1   ) $ 231.70  

Performance-Based Awards
    The estimated value of performance-based restricted stock awards granted to employees during the fiscal year ended March 31, 2026, 2025, and 2024 was $ 231.31 , $ 201.82 , and $ 139.21 , respectively.
For the fiscal years ended March 31, 2026, 2025, and 2024, the estimated value of the performance-based restricted stock awards granted to ZMC was $ 168.76 , $ 150.40 , and $ 148.42 per share, respectively.
The following table summarizes the activity in non-vested restricted stock units to employees and ZMC under our stock-based compensation plans with performance restricted stock awards presented at 100% of target number of shares that may potentially vest:

Shares (in millions) Weighted Average Fair Value on Grant Date
Non-vested restricted stock units at March 31, 2025 3.9   $ 115.40  
Granted 1.0   225.82  
Vested ( 0.1 ) 126.25  
Forfeited ( 0.7 ) 212.55  
Non-vested restricted stock units at March 31, 2026 4.1   ) $ 125.05  

Employee Stock Purchase Plans
    In September 2017, our stockholders approved our 2017 Global Employee Stock Purchase Plan as amended and restated ("ESPP"). The maximum aggregate number of shares of common stock that may be issued under the plan is 9.0 , and as of March 31, 2026, there were approximately 7.2 shares available for issuance. The ESPP is administered by the Compensation Committee of the Board and allows for eligible employees an option to purchase shares of our common stock, which the
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employee may or may not exercise during an offering period. Eligible employees may authorize payroll deductions of between 1 % and 15 % of their compensation to purchase shares of common stock at 85 % of the lower of the market price of our common stock on the date of commencement of the applicable offering period or on the last day of each six-month purchase period.
    The fair value is determined using the Black-Scholes valuation model. Key assumptions of the Black-Scholes valuation model are the risk-free interest rate, expected volatility, expected term, and expected dividends. The risk-free interest rate is based on U.S. Treasury yields in effect at the time of grant for the expected term of the option. Expected volatility is based on historical stock price volatility. Expected term is determined based on historical exercise behavior, post-vesting termination patterns, options outstanding and future expected exercise behavior. The following table summarizes the assumptions used in the Black-Scholes valuation model to value our purchase rights:

  Fiscal Year Ended March 31,
2026 2025
Risk-free interest rate 3.8 - 4.2 %
4.4 - 5.4 %

Expected stock price volatility 24.9 - 34.5 %
23.6 - 25.1 %

Expected service period (years) 0.5 0.5
Dividends None None

    For the fiscal year ended March 31, 2026, our employees purchased 0.3 shares for $ 55.2 with a weighted-average fair value of $ 169.55 . For the fiscal year ended March 31, 2025, our employees purchased 0.4 shares for $ 46.8 with a weighted-average fair value of $ 117.53 .

17.    INTEREST AND OTHER, NET

  Fiscal Year Ended March 31,
2026 2025 2024
Interest income $ 85.1   $ 98.6   $ 62.3  
Interest expense ( 151.4 ) ( 167.3 ) ( 140.6 )
Foreign currency exchange loss ( 17.4 ) ( 22.6 ) ( 28.6 )
Other ( 9.9 ) ( 8.9 ) ( 5.3 )
Interest and other, net $ ( 93.6 ) $ ( 100.2 ) $ ( 112.2 )

18.    ACCUMULATED OTHER COMPREHENSIVE LOSS
     The following table provides the components of Accumulated other comprehensive loss:

Foreign
currency
translation
adjustments Unrealized
(loss) gain on
available-for-
sales
securities Total
Balance at March 31, 2024 $ ( 105.0 ) $ ( 0.1 ) $ ( 105.1 )
Other comprehensive loss before reclassifications 8.2   —   8.2  
Balance at March 31, 2025 $ ( 96.8 ) $ ( 0.1 ) $ ( 96.9 )
Other comprehensive loss before reclassifications 29.6   —   29.6  
Balance at March 31, 2026 $ ( 67.2 ) $ ( 0.1 ) $ ( 67.3 )

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19.    SUPPLEMENTARY FINANCIAL INFORMATION
     The following table provides details of our valuation and qualifying accounts:

Beginning balance Additions Deductions Ending balance
Fiscal Year Ended March 31, 2026
Valuation allowance for deferred income taxes $ 1,127.0   229.4   ( 94.1 ) $ 1,262.3  
Fiscal Year Ended March 31, 2025 Fiscal Year Ended
Valuation allowance for deferred income taxes $ 799.1   330.5   ( 2.6 ) $ 1,127.0  
Fiscal Year Ended March 31, 2024
Valuation allowance for deferred income taxes $ 338.2   488.0   ( 27.1 ) $ 799.1  

20.    ASSET ACQUISITIONS
On October 27, 2025, we purchased a building located in Los Angeles, California, for total cash consideration of $ 32.0 .
On November 13, 2025, we purchased an office space located in New York, New York, for total cash consideration of $ 6.1 .
Both transactions were treated as asset acquisitions, in which the cash consideration and direct transaction costs were allocated on a relative fair value basis to identified assets. The following table summarizes the acquisition date fair value of tangible assets, which are included within Fixed assets, net on our Consolidated Balance Sheets, acquired:

March 31, 2026
Fair Value Weighted average useful life
Building $ 27.8   30 years
Land 10.3 N/A
Total $ 38.1  

21. SEGMENT REPORTING AND GEOGRAPHIC INFORMATION
We have one operating and reportable segment. Our operations involve similar products and customers worldwide. Revenue earned is primarily derived from the sale of software titles, which are developed internally and by third parties. Our Chief Executive Officer, who is our Chief Operating Decision Maker ("CODM"), manages our operations on a consolidated basis. Our CODM uses consolidated net income (loss) – supplemented by sales information by product category, major product title, and platform – for the purpose of evaluating performance and allocating resources. All significant expense categories are presented on our Consolidated Statements of Operations. Our other segment items include Depreciation and amortization, Business reorganization, Interest and other, net, and Provision for (benefit from) income taxes. The measure of segment assets is reported on the Consolidated Balance Sheet as Total assets. The CODM does not review segment assets at a level other than that presented on the Consolidated Balance Sheet.
Geography
We attribute net revenue to geographic regions based on software product destination. Net revenue by geographic region was as follows:

Fiscal Year Ended March 31,
2026 2025 2024
Net revenue recognized:
United States $ 3,940.4   $ 3,406.8   $ 3,279.2  
International 2,716.0   2,226.8   2,070.4  
Total net revenue $ 6,656.4   $ 5,633.6   $ 5,349.6  

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The following represents our fixed assets, net by location:

March 31,
2026 2025
Fixed assets, net:
United States $ 274.5   $ 263.5  
International 170.9   180.3  
Fixed assets, net $ 445.4   $ 443.8  

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

  TAKE-TWO INTERACTIVE SOFTWARE, INC.
By: /s/ STRAUSS ZELNICK
  Strauss Zelnick
Chairman and Chief Executive Officer
May 21, 2026    

POWER OF ATTORNEY
Each individual whose signature appears below constitutes and appoints Strauss Zelnick and Lainie Goldstein and each of them, his or her true and lawful attorneys-in-fact and agents with full power of substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and all documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or his, her or their substitute or substitutes, may lawfully do or cause to be done or by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant in the capacities and on the date indicated.

Signature   Title   Date
/s/ STRAUSS ZELNICK Chairman and Chief Executive Officer (Principal Executive Officer)
Strauss Zelnick May 21, 2026
/s/ LAINIE GOLDSTEIN Chief Financial Officer (Principal Financial and Accounting Officer)
Lainie Goldstein May 21, 2026
/s/ LAVERNE SRINIVASAN
LaVerne Srinivasan Lead Independent Director May 21, 2026
/s/ MICHAEL DORNEMANN
Michael Dornemann Director May 21, 2026
/s/ WILLIAM "BING" GORDON
William "Bing" Gordon Director May 21, 2026
/s/ ROLAND HERNANDEZ
Roland Hernandez Director May 21, 2026
/s/ J MOSES
J Moses Director May 21, 2026
/s/ MICHAEL SHERESKY
Michael Sheresky Director May 21, 2026
/s/ ELLEN SIMINOFF
Ellen Siminoff Director May 21, 2026
/s/ SUSAN TOLSON
Susan Tolson Director May 21, 2026
/s/ PAUL VIERA
Paul Viera Director May 21, 2026

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