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Take-Two Interactive (TTWO)
NASDAQ:TTWO
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Take-Two
(NASDAQ:TTWO)
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Rating:53Neutral
Price Target:
$251.00
▼(-0.55% Downside)
Take-Two's overall stock score reflects a mixed financial performance with strong revenue growth but significant profitability and cash flow challenges. The positive sentiment from the latest earnings call, with record net bookings and an improved outlook, is a major strength. However, technical indicators and valuation concerns temper the overall score.
Positive Factors
Revenue Growth
Strong revenue growth driven by record net bookings indicates robust demand for Take-Two's offerings, supporting long-term expansion.
Mobile Segment Expansion
Expansion in the mobile segment enhances revenue diversification and capitalizes on the growing mobile gaming market, supporting future growth.
NBA 2K26 Success
The success of NBA 2K26 demonstrates strong franchise appeal and consumer engagement, reinforcing Take-Two's competitive position in sports gaming.
Negative Factors
Profitability Challenges
Ongoing profitability issues, as indicated by negative margins, could hinder reinvestment and long-term financial health.
Cash Flow Issues
Weak cash generation relative to net income may limit operational flexibility and investment capacity, impacting future growth.
GTA VI Release Delay
The delay of a major title like GTA VI could impact revenue timing and player engagement, affecting near-term financial performance.
Take-Two (TTWO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.00B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth13.98%
EPS Growth-6.71%
CountryUS
Employees12,371
SectorCommunication Services
Sector Strength97
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.46
Shares Outstanding184,778,840
10 Day Avg. Volume842,059
30 Day Avg. Volume1,159,695
Financial Highlights & Ratios
PEG Ratio-0.50
Price to Book (P/B)16.98
Price to Sales (P/S)6.44
P/FCF Ratio-169.10
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue7.89
Enterprise Value/Gross Profit14.07
Enterprise Value/Ebitda-17.82
Forecast
1Y Price Target
$286.77Price Target Upside13.63% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)3.31
Revenue Forecast (FY)$6.48B
Take-Two Business Overview & Revenue Model
Company DescriptionTake-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games, 2K, Private Division, and T2 Mobile Games names. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names; and offers episodes and content, as well as develops brands in other genres, including the LA Noire, Bully, and Manhunt franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, and Borderlands. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and PGA TOUR 2K. Further, the company offers Kerbal Space Program, OlliOlli World, and The Outer Worlds and Ancestors: the Humankind Odyssey under Private Division; and free-to-play mobile games, such as Dragon City, Monster Legends, Two Dots, and Top Eleven. Its products are designed for console gaming systems, including PlayStation 4 and PlayStation 5; Xbox One; the Nintendo's Switch; personal computers; and mobile comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc. was incorporated in 1993 and is based in New York, New York.
How the Company Makes MoneyTake-Two generates revenue primarily through the sale of video game software, which includes both physical and digital copies of its games. The company also earns significant income from downloadable content (DLC) and microtransactions, especially in its popular online multiplayer games. Additionally, Take-Two benefits from recurring revenue through its subscription services and in-game purchases. The company has established strong partnerships with console manufacturers, such as Sony and Microsoft, which help in promoting their titles on platforms like PlayStation and Xbox. Furthermore, Take-Two invests in mobile gaming, enhancing its revenue through the acquisition of companies like Social Point, and leveraging the growing mobile gaming market. The success of its franchises and ongoing engagement with players through online services and community events are critical factors contributing to its earnings.
Take-Two Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyTake-Two Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2026
Earnings Call Sentiment Positive
The earnings call was predominantly positive with record-breaking net bookings, strong performances from mobile and NBA 2K26, and an improved financial outlook. However, there were some challenges, including performance issues with Borderlands 4 and the delay of Grand Theft Auto VI, which were acknowledged and are being addressed.Q2-2026 Updates
Positive Updates
Record-Breaking Net Bookings
Take-Two Interactive reported net bookings of $1.96 billion for the second quarter, marking the best second quarter in the company's history and significantly exceeding expectations.
Strong Mobile Performance
The mobile segment saw significant growth with Toon Blast increasing 26% year-over-year and 90% over two years. Rollic's Color Block Jam achieved a net bookings record, and Zynga Poker launched successfully on Steam.
NBA 2K26 Success
NBA 2K26 set multiple records with over 5 million units sold, a double-digit increase over NBA 2K25, and recurrent consumer spending growth of 45%.
Mafia: The Old Country and Borderlands 4 Launches
Mafia: The Old Country surpassed internal expectations, while Borderlands 4 received high critical praise and achieved the largest concurrent player count on Steam in franchise history.
Revised Financial Outlook
The company raised its net bookings outlook for fiscal 2026 to $6.4 billion to $6.5 billion, representing 14% growth over fiscal 2025 at the midpoint.
Negative Updates
Borderlands 4 PC Performance Issues
The launch of Borderlands 4 was softer than expected due to optimization and performance challenges on PC, which Gearbox is currently addressing.
Grand Theft Auto VI Release Delay
Rockstar Games announced the delay of Grand Theft Auto VI to November 19, 2026, to allow more time for polish, which may impact engagement with existing GTA titles.
Operating Expense Increase
Operating expenses increased due to higher performance-based compensation and incremental user acquisition investments, although this was partly offset by a shift in some console marketing and IT expenses.
Company Guidance
During the second quarter of fiscal year 2026, Take-Two Interactive Software reported record-breaking net bookings of $1.96 billion, significantly surpassing expectations and marking the highest second-quarter net bookings in the company's history. This outstanding performance led to an upward revision of the fiscal year 2026 net bookings outlook to $6.4 billion to $6.5 billion. Key contributors included NBA 2K26, which set multiple records and achieved a 45% growth in recurrent consumer spending, as well as Toon Blast, which grew by 26% year-over-year. The mobile segment showed notable strength with Rollic's Color Block Jam and Peak's Match Factory! posting record net bookings, contributing to a 20% rise in overall recurrent consumer spending. Take-Two also announced a new release date for Grand Theft Auto VI, now set for November 19, 2026, aiming for a polished product that meets high consumer expectations. The company expects NBA 2K and mobile titles to drive future growth, with recurrent consumer spending projected to grow approximately 11% and operating cash flow expected to reach $250 million.Take-Two Financial Statement Overview
Summary
Take-Two is experiencing revenue growth but faces significant profitability and cash flow challenges. The company has a stable capital structure with manageable leverage, but negative returns on equity and cash flow issues highlight the need for operational improvements.Income Statement
Take-Two's income statement shows a mixed performance. The TTM data reveals a gross profit margin of 56.1%, which is healthy, but the company is struggling with profitability, as indicated by a negative net profit margin of -64.3%. Revenue growth is positive at 7.3%, suggesting some top-line expansion. However, the negative EBIT and EBITDA margins highlight significant operational challenges.Balance Sheet
The balance sheet presents a moderate picture. The debt-to-equity ratio has improved to 0.29 in the TTM, indicating a manageable level of leverage compared to previous periods. However, the return on equity is negative, reflecting ongoing profitability issues. The equity ratio stands at 34.0%, suggesting a stable capital structure.Cash Flow
Cash flow analysis indicates challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low at 0.11, reflecting weak cash generation relative to net income. The free cash flow to net income ratio is 0.57, suggesting some ability to cover net losses with free cash flow, but overall cash flow health is concerning.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.22B | 5.63B | 5.35B | 5.35B | 3.50B | 3.37B |
| Gross Profit | 3.49B | 3.06B | 2.24B | 2.29B | 1.97B | 1.84B |
| EBITDA | -2.75B | -2.98B | -1.80B | 582.50M | 747.00M | 890.80M |
| Net Income | -4.00B | -4.48B | -3.74B | -1.12B | 418.00M | 588.90M |
Balance Sheet | ||||||
| Total Assets | 10.08B | 9.18B | 12.22B | 15.86B | 6.55B | 6.03B |
| Cash, Cash Equivalents and Short-Term Investments | 2.12B | 1.47B | 776.00M | 1.01B | 2.55B | 2.73B |
| Total Debt | 3.51B | 4.11B | 3.53B | 3.49B | 250.20M | 191.27M |
| Total Liabilities | 6.65B | 7.04B | 6.55B | 6.82B | 2.74B | 2.70B |
| Stockholders Equity | 3.43B | 2.14B | 5.67B | 9.04B | 3.81B | 3.33B |
Cash Flow | ||||||
| Free Cash Flow | 192.00M | -214.60M | -157.80M | -203.10M | 99.34M | 843.39M |
| Operating Cash Flow | 357.90M | -45.20M | -16.10M | 1.10M | 257.98M | 912.32M |
| Investing Cash Flow | -397.50M | -151.50M | -28.20M | -2.88B | 139.22M | -806.72M |
| Financing Cash Flow | 671.50M | 650.50M | -91.40M | 1.93B | -256.81M | -57.34M |
Take-Two Technical Analysis
Positive
252.38
Price Trends
246.71
Positive
247.44
Positive
237.06
Positive
Market Momentum
2.63
Negative
52.68
Neutral
49.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TTWO, the sentiment is Positive. The current price of 252.38 is above the 20-day moving average (MA) of 250.05, above the 50-day MA of 246.71, and above the 200-day MA of 237.06, indicating a bullish trend. The MACD of 2.63 indicates Negative momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 49.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTWO.
Take-Two Risk Analysis
Take-Two disclosed 48 risk factors in its most recent earnings report. Take-Two reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Take-Two Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $87.69B | 18.13 | 24.65% | 2.19% | 5.69% | 32.87% | |
66 Neutral | $1.39B | 16.18 | ― | 9.98% | 7.49% | -60.32% | |
66 Neutral | $51.15B | 59.69 | 13.20% | 0.37% | -1.45% | -11.99% | |
62 Neutral | $11.23B | 111.66 | 5.30% | ― | 16.84% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $47.00B | ― | -86.61% | ― | 13.98% | -6.71% | |
51 Neutral | $53.64B | -51.83 | -324.24% | ― | 32.70% | 12.57% |
* Communication Services Sector Average
TTWO
Take-Two
252.38
73.77
41.30%
EA
Electronic Arts
204.22
64.04
45.68%
NTES
NetEase
141.87
51.92
57.72%
BILI
Bilibili
28.64
11.86
70.68%
PLTK
Playtika Holding
3.74
-2.39
-38.99%
RBLX
Roblox
73.89
12.07
19.52%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.