The mobile gaming market in the United States is showing signs of recovery! Take-Two Interactive Software (TTWO.US) reports better-than-expected Q1 performance and raises full-year booking guidance.

The manufacturer of the Grand Theft Auto (GTA) series of games, Take-Two Interactive Software (TTWO.US), saw its US stock rise over 5% in pre-market trading on Friday. The company's strong performance guidance indicates that the mobile gaming industry, which has been struggling for years, is experiencing a recovery. Take-Two Interactive Software released its first quarter earnings for the 2026 fiscal year ending June 30, 2025, after the US stock market closed on Thursday. The report showed that the company's Q1 net bookings reached $1.42 billion, a 16% increase compared to the same period last year, far exceeding the earlier expected range of $1.25 billion to $1.3 billion. The company stated that this impressive performance was mainly due to the better-than-expected performance of multiple mobile games and the continued strong market feedback for the Grand Theft Auto series under Rockstar. Q1 net losses significantly narrowed from $262 million in the same period last year to $11.9 million, with adjusted EBITDA profit of $225.5 million. In addition, the company raised its full-year bookings forecast from $5.9-6.0 billion to $6.05-6.15 billion, expecting strong demand for new games "Mafia" and "Borderlands," while confirming that "Grand Theft Auto VI" will be released on May 26 next year, with expectations of generating billions of dollars in revenue within weeks of release. The mobile gaming market, once seen as the next significant growth engine for the gaming industry, has shown weak performance in recent years, as people spent more time outdoors after the end of the pandemic, and high inflation suppressed consumer spending on non-essential items. However, Take-Two Interactive Software's better-than-expected performance in the first quarter and the upgraded full-year guidance provide the clearest signal yet - the US mobile gaming market is warming up. The company's CFO Lainie Goldstein stated, "We are seeing such strong momentum in many of our major games." TD Cowen analysts commented, "It is actually not common in this industry to upgrade full-year guidance after a better-than-expected first quarter performance, especially when major new products have not been released yet. However, the continuous strong performance in mobile games leaves plenty of room for the company to simply upgrade its guidance." In addition, the mobile gaming market is benefiting from the increasing application of "live-service" features in games, which help stimulate ongoing player spending. Sensor Tower data shows that in-app purchase revenue increased from $78.6 billion in 2023 to $81.7 billion in 2024.