revenue $1.53B, net income -$34.1M. Q1 FY27 swings to operating loss as GTA VI slips to November 2026

Filed August 7, 2026 · Period ending June 30, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Operating income swung from $21.6M profit to a $35.5M loss in Q1 FY27, driven by a 540 basis point gross margin compression (62.9% → 57.5%) and a $105M surge in software development costs as prior-year award forfeitures reversed.

  MD&A: Operating Results verify on EDGAR →
• high

  Grand Theft Auto VI release date moved from May 26, 2026 to November 19, 2026—a nearly six-month delay—though pre-orders commenced in June 2026.

  MD&A: Business Overview verify on EDGAR →
• high

  The company recorded $43.4M in software development impairment charges, reflecting a decision to cancel certain game projects mid-development.

  Notes: Intangible Assets verify on EDGAR →