Take-Two Interactive (TTWO)
Communication Services · $38.9B market cap · SEC CIK 0000946581
fundamentals score out of 100
Next reports on Nov 4, 2026, with analysts expecting $0.96 in earnings per share.
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 (25/100): -16.3% over a year, -12.3% over three months, 23% of the way up its 52-week range.
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. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 17 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 76 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 19 |
| Momentumhow the price has behaved lately | 25 |
| Stabilityhow violently it moves, what it owes and what it pays you | 60 |
- 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.
Key numbers
| Price / earnings | n/a |
|---|---|
| Price / book | 12.86× |
| Price / sales | 5.8× |
| Revenue growth (YoY) | +15.3% |
| EPS growth (YoY) | — |
| Gross margin | 57% |
| Operating margin | -2% |
| Net margin | -5% |
| Return on equity | -9% |
| Debt / equity | 0.70× |
| Current ratio | 1.06 |
| Dividend yield | none |
| Beta | 0.92 |
| 52-week range | $187.63 – $265.94 |
| Position in that range | 23% of the way up |
| 3-month return | -12.3% |
| 1-year return | -16.3% |
Five years of financials, as filed
Pulled from Take-Two Interactive's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $6.7B | $5.6B | $5.3B | $5.3B | $3.5B |
| Gross profit | $3.8B | $3.1B | $2.2B | $2.3B | $2.0B |
| Operating income | -$104M | -$4.4B | -$3.6B | -$1.2B | $474M |
| Net income | -$298M | -$4.5B | -$3.7B | -$1.1B | $418M |
| Operating cash flow | $624M | -$45.2M | -$16.1M | $1.1M | $258M |
| Capital expenditure | $163M | $169M | $142M | $204M | $159M |
| Total assets | $10.0B | $12.7B | $14.9B | $16.9B | $6.4B |
| Total liabilities | $6.5B | $7.0B | $6.4B | $7.3B | $2.7B |
| Shareholder equity | $3.5B | $5.7B | $8.5B | $9.6B | $3.7B |
| Cash | $2.2B | $1.2B | $899M | $861M | $987M |
| Long-term debt | $2.5B | $3.1B | $2.7B | $2.7B | — |
| Free cash flow | $462M | -$215M | -$158M | -$203M | $99.4M |
| Gross margin | 57.2% | 54.4% | 41.9% | 42.7% | 56.2% |
| Operating margin | -1.6% | -77.9% | -67.1% | -21.8% | 13.5% |
| Net margin | -4.5% | -79.5% | -70.0% | -21.0% | 11.9% |
| Diluted shares | 184M | 175M | 170M | 160M | 117M |
Share count is up 57.4% over 4 years. Your slice has been diluted.
What Take-Two Interactive says it does
for additional discussion. Trends and Factors Affecting our Business Product Release Schedule. Our financial results are affected by the timing of our product releases and the commercial success of our titles. Generally, a significant portion of our revenue has been derived from a few popular franchises, particularly around new releases within those franchises, some of which have annual or biennial releases. Additionally, our Grand Theft Auto products in particular have historically accounted for a significant portion of our revenue. Sales of Grand Theft Auto products generated 12.4% of our net revenue for the fiscal year ended March 31, 2026. The timing of our Grand Theft Auto product releases may affect our financial performance on a quarterly and annual basis. Rockstar plans to release Grand Theft Auto VI on November 19, 2026. Economic Environment and Retailer Performance. We continue to monitor various macroeconomic and…
Risk factors TTWO lists in its 10-K
- Risks relating to our business and industry
- 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