Take-Two Interactive (TTWO)

Communication Services · $38.8B market cap · SEC CIK 0000946581

Next reports on Feb 1, 2027, with analysts expecting $4.03 in earnings per share.

52-week range $183.86 to $265.94. 16% below its 52-week high and 22% above its low.

The case for TTWO

• Revenue growing 15.3% year over year.
• Has compounded revenue at 14.6% a year over five years.
• Gross margin of 57% absorbs cost shocks.

The case against

• Losing money over the last year: net margin −4.8%, return on equity −9%.
• Free cash flow is only 1.2% of its market value, a thin cash return for the price.
• The price trend is weak (34/100): −10.6% over a year, −18.2% over three months, 16% below its 52-week high.
• Stability is weak (34/100): beta 0.90, 4.0 years of cash flow to clear its debt, a 31% swing over the year, a loss against its interest bill.
• Trailed the S&P 500 by 23 points over the past year.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Communication Services companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• It is losing money, so it has no P/E; that counts against value rather than being skipped.
• Each factor except momentum is half fixed thresholds, half rank among the 19 Communication Services companies.

The financials

The financials, five years deep

Pulled from Take-Two Interactive's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Take-Two Interactive says it does

We are a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. We develop, operate, and publish products principally through Rockstar Games, 2K, and Zynga. Our products are currently designed for console gaming systems, mobile, including smartphones and tablets, and personal computer ("PC"). We deliver our products through physical retail, digital download, online platforms, and cloud streaming services. Our website address is www.take2games.com. We make all of our filings with the Securities and Exchange Commission ("SEC") available free of charge on our website under the caption "Investors—Financial Information—SEC Filings." Included in these filings are our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, which are available as soon as reasonably practicable after we electronically file or furnish such…

Risk factors TTWO lists in its 10-K

• The interactive entertainment software industry is highly competitive
• We are subject to product development risks which could result in delays and additional costs, and we must adapt to changes in software technologies
• Our quarterly and annual operating results are dependent on the release of hit titles and therefore dependent on the timing of our product releases, which may cause our quarterly operating results to fluctuate significantly
• We are dependent on the future success of our Grand Theft Auto products and other hit titles, and we must continue to publish hit titles or sequels to such hit titles in order to compete successfully in our industry
• The development, use, and incorporation of artificial intelligence (“AI”) into our products and within our industry may present operational, reputational, financial, and competition risks
• Our business is subject to our ability to develop commercially successful products for the current video game platforms
• We rely on complex information technology systems and networks to operate our business. Any significant system or network disruption or cyberattack could have a negative impact on our business
• Our business could be adversely affected if our consumer data protection measures are not seen as adequate or there are breaches of our security measures or unintended disclosures of consumer data
• We depend on our key management and product development personnel
• Attracting, managing and retaining our talent is critical to our success
• Our results of operations or reputation may be harmed as a result of offensive or potentially dangerous consumer-created content
• Our business is partly dependent on our ability to enter into successful software development arrangements with third parties
• Our business may be harmed if our distributors, retailers, development, and licensing partners, or other third parties with whom we do business are unable to honor their commitments or act in ways that put our brand at risk
• The increasing importance of digital sales and free-to-play games to our business exposes us to the risks of that business model, including greater competition
• We face risks from our international operations
• We use open-source software in connection with certain of our games and services, which may pose particular risks to our proprietary software, products, and services in a manner that could have a negative impact on our business
• Our software is susceptible to errors, which can harm our financial results and reputation
• Our ability to acquire and maintain licenses to intellectual property, especially for sports titles, affects our revenue and profitability. Competition for these licenses may make them more expensive and increase our costs
• We may experience declines or fluctuations in the recurring portion of our business
• Price protection granted to our customers and returns of our published titles by our customers may adversely affect our operating results
• Increased competition for limited promotional support from retailers could affect the success of our business and require us to incur greater expenses to market our titles
• A limited number of customers account for a significant portion of our sales. The loss of a principal customer or other significant business relationship could seriously hurt our business
• Content policies adopted by retailers, consumer opposition and litigation could negatively affect sales of our products
• If we are unable to protect the intellectual property relating to our software, the commercial value of our products will be adversely affected, and our competitive position could be harmed
• The value of our virtual items is highly dependent on how we manage the economies in our games. If we fail to manage our game economies properly, our business may suffer
• Some of our players may make sales or purchases of virtual items used in our games through unauthorized or fraudulent third-party websites, which may reduce our revenue
• Companies and governmental agencies may restrict access to platforms, our website, mobile applications or the Internet generally, which could have a negative impact on our business
• The laws and regulations concerning data privacy, consumer protection, and certain other aspects of our business are continually evolving. Failure to comply with these laws and regulations could harm our business
• If we infringe on or are alleged to infringe on the intellectual property rights of third parties, our business could be adversely affected
• We have a significant amount of outstanding indebtedness, and may incur other indebtedness in the future, all of which may adversely affect our financial condition and future financial results
• Delaware law, our charter documents, and provisions of our debt agreements may impede or discourage a takeover, which could cause the market price of our shares to decline
• Changes in our tax rates or exposure to additional tax liabilities could adversely affect our earnings and financial condition
• We are subject to risks and uncertainties of international trade, including fluctuations in the values of local foreign currencies against the dollar
• Our reported financial results could be adversely affected by the application of existing or future accounting standards to our business as it evolves
• Declines in consumer spending and other adverse changes in the economy could have a material adverse effect on our business, financial condition and operating results
• Additional issuances or sales of equity securities by us would dilute the ownership of our existing stockholders and could adversely affect the market price of our common stock
• We are subject to risks related to corporate and social responsibility and reputation
• Catastrophic events and climate change may have a long-term impact on our business
• We may be adversely affected by the effects of inflation
• We are and may become involved in legal proceedings that may result in adverse outcomes

Filings

Other Communication Services companies