Lainie Goldstein
Chief Financial Officer at Take-Two Interactive Software
Thanks, Karl, and good afternoon, everyone. We achieved another consecutive quarter of strong results, led by our diversified portfolio of industry-leading intellectual properties.
During the period, we delivered exciting new offerings and continued to make great progress advancing our development pipeline, which reinforces our confidence in our outlook for this year and our multiyear growth trajectory. I'd like to thank our teams for their consistent execution and unwavering focus on creativity, innovation and efficiency.
Turning to our results. We delivered second quarter net bookings of $1.47 billion, which was at the top of our guidance range of $1.42 billion to $1.47 billion, driven by the strength of the Grand Theft Auto and Borderlands franchises. Recurrent consumer spending rose 6% for the period, which was slightly above our guidance of 5% and accounted for 81% of net bookings. Mobile increased high single digits, driven by the addition of Match Factory! and strong growth in Toon Blast, which was partially offset by declines in our hypercasual mobile portfolio and Empires & Puzzles.
NBA 2K grew low single digits, while Grand Theft Auto Online was relatively flat. During the quarter, we launched NBA 2K25 and Game of Thrones: Legends. GAAP net revenue increased 4% to $1.35 billion, while cost of revenue declined 29% to $625 million, as the prior year included an impairment charge related to acquired intangibles. Operating expenses increased by 7% to $1 billion. On a management basis, operating expenses rose 24% year-over-year. This was favorable to our forecast, largely due to a shift in timing of marketing expense within the year and drove operating results that were above our prior guidance range.
Turning to our guidance. I'll begin with our full fiscal year expectations. Our business is performing well. And as Strauss mentioned, we are reiterating our net bookings outlook range of $5.55 billion to $5.65 billion, which represents 5% growth over fiscal 2024. The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, hypercasual mobile portfolio, Match Factory!, Empires & Puzzles, the Red Dead Redemption series, Sid Meier's Civilization VII and Words With Friends.
We now expect recurrent consumer spending to grow approximately 4%, representing 78% of net bookings. This is up slightly from our prior forecast of 3%, driven by NBA 2K. Our recurrent consumer spending forecast continues to assume a high single-digit increase for mobile, driven by Match Factory! and Toon Blast, partially offset by declines in our hypercasual mobile portfolio and Empires & Puzzles. NBA 2K is expected to grow low single digits, which is up from our prior forecast of flat, while Grand Theft Auto Online is still expected to decline. We project a net bookings breakdown from our labels to be roughly 51% Zynga, 32% 2K and 17% Rockstar Games. And we forecast our geographic net bookings split to be about 60% United States and 40% international.
Non-GAAP adjusted unrestricted operating cash flow is expected to be an outflow of $150 million, which is unchanged from our prior forecast, and we remain on track to deploy approximately $140 million of capital expenditures, primarily for game technology and office build-outs. We continue to expect GAAP net revenue to range from $5.57 billion to $5.67 billion, while we now expect cost of revenue to range from $2.4 billion to $2.42 billion.
Total operating expenses are now expected to range from $3.77 billion to $3.79 billion as compared to $5.83 billion last year. On a management basis, we continue to expect operating expense growth of approximately 10% year-over-year. This is largely due to an increase in ongoing marketing support for Match Factory! as well as other mobile and immersive core launches planned for the year, the addition of Gearbox and higher personnel costs, partially offset by savings from our cost reduction program. Excluding incremental marketing and the addition of Gearbox, our operating expenses are expected to grow low single digits over last year.
Now moving on to our guidance for the fiscal third quarter. We project net bookings to range from $1.35 billion to $1.40 billion compared to $1.34 billion in the prior year. Our release slate for the quarter includes Red Dead Redemption and Undead Nightmare for PC, which launched last week. The largest contributors to net bookings are expected to be NBA 2K, the Grand Theft Auto series, Toon Blast, our hypercasual mobile portfolio, Match Factory!, Empires & Puzzles, the Red Dead Redemption Series, Words With Friends and Merge Dragons!
We project recurrent consumer spending to increase by approximately 9%, which assumes a low double-digit increase for mobile, driven by the addition of Match Factory! and growth in Toon Blast, partially offset by declines in our hypercasual mobile portfolio and Empires & Puzzles. We expect an increase for NBA 2K and a decline for Grand Theft Auto Online.
We expect GAAP net revenue to range from $1.36 billion to $1.41 billion. Operating expenses are planned to range from $913 million to $923 million. On a management basis, operating expenses are expected to grow by approximately 11% year-over-year, which is primarily driven by additional marketing for Match Factory! and the addition of Gearbox, partially offset by savings from our cost reduction program.
In closing, there are many exciting upcoming catalysts that we believe will enable our company to achieve new record levels of net bookings performance. As we expand our product offerings and grow our scale, we expect to deliver strong operating leverage and robust shareholder value. I'd like to thank you all for your support and look forward to sharing more details on our groundbreaking pipeline in the coming months.
Thank you. I'll now turn the call back to Strauss.