📊 TTWO Key Takeaways
Is Take Two Interactive Software Inc. (TTWO) a Good Investment?
Take Two demonstrates strong fundamentals with 18.2% revenue growth and industry-leading 57.2% gross margins, supported by robust free cash flow generation of $461.5M. However, current GAAP unprofitability (-4.5% net margin, negative ROE/ROA) and negative interest coverage present material concerns that must be resolved before rating improvement, despite the disconnect between cash generation and reported losses suggesting significant non-cash charges.
Take Two Interactive Software Inc. Key Strengths (TTWO)
- Strong revenue growth of 18.2% YoY demonstrates market demand and business expansion
- Exceptional 57.2% gross margin indicates pricing power and operational efficiency at the product level
- Positive operating cash flow of $624M and free cash flow of $461M provide financial flexibility despite GAAP losses
- Reasonable leverage at 0.71x debt-to-equity with $1.5B cash position relative to $2.5B debt
TTWO Stock Risks: Take Two Interactive Software Inc. Investment Risks
- Currently unprofitable with negative operating margin (-1.6%) and net margin (-4.5%), reflecting structural profitability challenges
- Negative return metrics (ROE -8.5%, ROA -3.2%) indicate inefficient capital deployment and equity destruction
- Negative interest coverage (-0.7x) signals inability to cover debt service from operating earnings despite positive cash flow
- Large discrepancy between negative GAAP profitability and positive cash flow suggests potential one-time charges, acquisition integration costs, or accounting policy risks that may persist
Key Metrics to Watch
- Return to operating profitability and operating margin expansion trajectory
- Reconciliation of operating cash flow to GAAP net income to identify and quantify non-cash charges
- Debt service coverage and free cash flow sustainability as indication of balance sheet risk
- Quarterly revenue growth sustainability and gross margin trajectory
Take Two Interactive Software Inc. (TTWO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Take Two Interactive Software Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
TTWO Profit Margin, ROE & Profitability Analysis
TTWO vs Technology Sector: How Take Two Interactive Software Inc. Compares
How Take Two Interactive Software Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Take Two Interactive Software Inc. Stock Overvalued? TTWO Valuation Analysis 2026
Based on fundamental analysis, Take Two Interactive Software Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Take Two Interactive Software Inc. Balance Sheet: TTWO Debt, Cash & Liquidity
TTWO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Take Two Interactive Software Inc.'s revenue has grown significantly by 90% over the 5-year period, indicating strong business expansion. The most recent EPS of $-22.01 indicates the company is currently unprofitable.
TTWO Revenue Growth, EPS Growth & YoY Performance
TTWO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.4B | -$92.9M | $-0.50 |
| Q2 2026 | $1.4B | -$133.9M | $-0.73 |
| Q1 2026 | $1.3B | -$11.9M | $-0.07 |
| Q3 2025 | $1.4B | -$91.6M | $-0.54 |
| Q2 2025 | $1.3B | -$365.5M | $-2.08 |
| Q1 2025 | $1.3B | -$206.0M | $-1.22 |
| Q3 2024 | $1.4B | -$91.6M | $-0.54 |
| Q2 2024 | $1.3B | -$257.0M | $-1.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Take Two Interactive Software Inc. Dividends, Buybacks & Capital Allocation
TTWO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Take Two Interactive Software Inc. (CIK: 0000946581)
📋 Recent SEC Filings
❓ Frequently Asked Questions about TTWO
What is the AI rating for TTWO?
Take Two Interactive Software Inc. (TTWO) has an AI grade of B with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TTWO's key strengths?
Claude: Strong revenue growth of 18.2% YoY demonstrates market demand and business expansion. Exceptional 57.2% gross margin indicates pricing power and operational efficiency at the product level.
What are the risks of investing in TTWO?
Claude: Currently unprofitable with negative operating margin (-1.6%) and net margin (-4.5%), reflecting structural profitability challenges. Negative return metrics (ROE -8.5%, ROA -3.2%) indicate inefficient capital deployment and equity destruction.
What is TTWO's revenue and growth?
Take Two Interactive Software Inc. reported revenue of $6.7B.
Does TTWO pay dividends?
Take Two Interactive Software Inc. does not currently pay dividends.
Where can I find TTWO SEC filings?
Official SEC filings for Take Two Interactive Software Inc. (CIK: 0000946581) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is TTWO's EPS?
Take Two Interactive Software Inc. has a diluted EPS of $-1.62.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is TTWO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Take Two Interactive Software Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is TTWO stock overvalued or undervalued?
Valuation metrics for TTWO: ROE of -8.5% (sector avg: 22%), net margin of -4.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is TTWO's AI grade for 2026?
Our dual AI analysis gives Take Two Interactive Software Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is TTWO's free cash flow?
Take Two Interactive Software Inc.'s operating cash flow is $624.3M, with capital expenditures of $162.8M. FCF margin is 6.9%.
How does TTWO compare to other Technology stocks?
Vs Technology sector averages: Net margin -4.5% (avg: 18%), ROE -8.5% (avg: 22%), current ratio 1.24 (avg: 2.5).