Tue, May 20, 10:33 AM (35 days ago)
### Summary of Financial Performance **Revenue:** - **Fiscal Year 2025:** $5,633.6 million, an increase of $284.0 million (5.3%) compared to 2024. - **Key Contributors:** NBA 2K, Grand Theft Auto, Red Dead Redemption, WWE 2K, Sid Meier's Civilization, Toon Blast, hyper-casual mobile portfolio, Empires & Puzzles, Match Factory!, and Words With Friends. **Net Income:** - **Fiscal Year 2025:** Net loss of $4,478.9 million, compared to a net loss of $3,744.2 million in 2024. - **Diluted Loss per Share:** $25.58 for 2025, compared to $22.01 for 2024. **Operating Expenses:** - **Total Operating Expenses:** $7,453.3 million for 2025, an increase of $1,620.9 million (27.8%) compared to 2024. - **Key Expenses:** Selling and marketing ($1,683.7 million), research and development ($1,005.2 million), general and administrative ($883.3 million), depreciation and amortization ($229.4 million), goodwill impairment ($3,545.2 million), and business reorganization ($106.5 million). **Cash and Cash Equivalents:** - **Fiscal Year 2025:** $1,559.2 million, compared to $1,102.0 million in 2024. ### Strategic Overview **Core Pillars:** - **Creativity, Innovation, and Efficiency:** Focus on high-quality, captivating experiences for consumers. - **Player-First Approach:** Commitment to creativity and innovation to differentiate products. - **Diverse Portfolio:** Spans all key platforms and numerous genres, appealing to a wide array of consumers. - **Internal Development:** Most intellectual property is internally owned and developed. - **Strategic Acquisitions:** Expand portfolio and talent base through strategic acquisitions and partnerships. **Key Strategies:** - **Increase Scale and Profitability:** Launch new intellectual properties, grow core franchises, and expand intellectual property portfolio. - **Identify New Paradigms:** Evaluate and invest in emerging platforms, technologies, business models, and geographies. - **Community Engagement:** Develop robust player relationships through post-launch content and engagement tools. ### Future Outlook **Upcoming Releases:** - **Grand Theft Auto VI:** Planned for release on May 26, 2026. **Market Position:** - **Strong Brand Recognition:** Grand Theft Auto is the most iconic and critically acclaimed brand in the industry. - **Diverse Product Offerings:** Includes action, adventure, family, casual, hyper-casual, role-playing, shooter, social casino, sports, and strategy genres. ### Risk Factors **Operational Risks:** - **Development Risks:** Dependence on internal development studios and third-party software developers. - **Technological Changes:** Need to adapt to rapid technological changes and evolving business models. - **Market Competition:** Intense competition in the interactive entertainment industry. **Financial Risks:** - **Debt Obligations:** Significant outstanding indebtedness and potential future indebtedness. - **Economic Conditions:** Sensitivity to general economic conditions and economic cycles. **Regulatory Risks:** - **Legal Compliance:** Subject to a variety of laws and regulations, including data privacy, consumer protection, and intellectual property laws. - **International Operations:** Risks associated with international trade, including tariffs, duties, and foreign currency exchange rates. ### Financial Condition **Liquidity and Capital Resources:** - **Cash and Cash Equivalents:** $1,559.2 million as of March 31, 2025. - **Short-Term Investments:** $9.4 million as of March 31, 2025. - **Debt Obligations:** $3,650.0 million in Senior Notes outstanding as of March 31, 2025. **Market Position Changes:** - **Strong Brand Recognition:** Grand Theft Auto and other hit titles contribute significantly to revenue. - **Diverse Product Offerings:** Includes action, adventure, family, casual, hyper-casual, role-playing, shooter, social casino, sports, and strategy genres. **Note:** All amounts are in thousands, 000s.