📊 TTWO Key Takeaways
Is Take Two Interactive Software Inc. (TTWO) a Good Investment?
Take Two is unprofitable with deteriorating earnings (-19.6% net income decline, -$238.7M loss) and negative operating income despite strong 57.7% gross margins, indicating severe operational expense management issues. While the company generates healthy free cash flow ($262.9M) and maintains a solid balance sheet with $2.2B cash, the negative interest coverage and persistent profitability crisis present material risk. Management must demonstrate rapid improvement in operating leverage to justify investment.
Why Buy Take Two Interactive Software Inc. Stock? TTWO Key Strengths
- Exceptional gross margin of 57.7% demonstrates strong product unit economics and pricing power in gaming software
- Positive free cash flow of $262.9M indicates underlying business generates cash despite accounting losses, with non-cash charges likely inflating net losses
- Fortress balance sheet with $2.2B cash, 0.71x debt-to-equity, and reasonable leverage provides financial flexibility to weather operational challenges
TTWO Stock Risks: Take Two Interactive Software Inc. Investment Risks
- Critical profitability crisis: net loss of $238.7M trending worse (-19.6% YoY) with negative operating income of -$115.1M and interest coverage ratio of -1.1x
- Operating expenses consuming 60% of gross profit suggests structural cost issues; $3.9B gap between gross profit and operating loss requires major operational restructuring
- Negative return metrics (ROE -6.8%, ROA -2.4%) and deteriorating EPS trend (-16.2%) signal shareholder value destruction and potential further dilution
Key Metrics to Watch
- Operating margin recovery trajectory - must return to positive territory with clear path visible within next 2-3 quarters
- Operating expense ratio as percentage of revenue - decline from current unsustainable levels is essential for profitability
- Free cash flow sustainability and conversion to net income - timing of transition from cash generation to GAAP profitability
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 67% over the 5-year period, indicating strong business expansion. The most recent EPS of $-7.03 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 rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are TTWO's key strengths?
Claude: Exceptional gross margin of 57.7% demonstrates strong product unit economics and pricing power in gaming software. Positive free cash flow of $262.9M indicates underlying business generates cash despite accounting losses, with non-cash charges likely inflating net losses.
What are the risks of investing in TTWO?
Claude: Critical profitability crisis: net loss of $238.7M trending worse (-19.6% YoY) with negative operating income of -$115.1M and interest coverage ratio of -1.1x. Operating expenses consuming 60% of gross profit suggests structural cost issues; $3.9B gap between gross profit and operating loss requires major operational restructuring.
What is TTWO's revenue and growth?
Take Two Interactive Software Inc. reported revenue of $5.0B.
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 $-1.30.
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 rating reflects both perspectives for balanced insights.
Is TTWO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Take Two Interactive Software Inc. has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is TTWO stock overvalued or undervalued?
Valuation metrics for TTWO: ROE of -6.8% (sector avg: 22%), net margin of -4.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy TTWO stock in 2026?
Our dual AI analysis gives Take Two Interactive Software Inc. a combined SELL rating 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 $388.9M, with capital expenditures of $126.0M. FCF margin is 5.3%.
How does TTWO compare to other Technology stocks?
Vs Technology sector averages: Net margin -4.8% (avg: 18%), ROE -6.8% (avg: 22%), current ratio 1.14 (avg: 2.5).