Take-Two (TTWO) AI Stock Analysis

• Market Cap: $45.80B
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.76
• Revenue Growth: 13.98%
• EPS Growth: -6.71%
• Country: US
• Employees: 12,371
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 1.46
• Shares Outstanding: 184,778,840
• 10 Day Avg. Volume: 1,128,600
• 30 Day Avg. Volume: 1,714,200
• 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 Cap: 1.07
• Enterprise Value/Revenue: 7.89
• Enterprise Value/Gross Profit: 14.07
• Enterprise Value/Ebitda: -17.82
• 1Y Price Target: $287.00
• Price Target Upside: 16.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $251.00 ▲(1.50% Upside)

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 Business Overview & Revenue Model

Company Description

Take-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 Money

Take-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 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

• Technical Analysis Sentiment: Positive
• Last Price: 247.28
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 247.28 is above the 20-day moving average (MA) of 241.30, below the 50-day MA of 249.94, and above the 200-day MA of 232.65, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 53.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TTWO.

Take-Two Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTES	81 Outperform	$86.02B	17.86	24.65%	2.21%	5.69%	32.87%
EA	69 Neutral	$51.00B	59.60	13.20%	0.37%	-1.45%	-11.99%
PLTK	66 Neutral	$1.59B	18.34	―	9.43%	7.49%	-60.32%
BILI	62 Neutral	$10.83B	100.58	5.30%	―	16.84%	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
TTWO	53 Neutral	$45.80B	―	-86.61%	―	13.98%	-6.71%
RBLX	50 Neutral	$67.58B	―	-324.24%	―	32.70%	12.57%

Take-Two Corporate Events

Take-Two Approves 2017 Stock Plan Amendment

On September 18, 2025, Take-Two Interactive Software, Inc. held its annual stockholders meeting, where several key decisions were made. The amendment and restatement of the 2017 Stock Incentive Plan were approved, alongside the election of directors and the ratification of Ernst & Young LLP as independent auditors for the fiscal year ending March 31, 2026. These decisions reflect the company’s ongoing commitment to strategic governance and financial oversight, potentially impacting its operational efficiency and stakeholder confidence.

Take-Two Announces New Investor Presentation Materials

On September 10, 2025, Take-Two Interactive Software, Inc. announced that its senior management and certain board members will utilize new investor presentation materials for shareholder meetings. The company reported strong financial results for Q1 FY2026, with net revenue of $1.50 billion, and highlighted its ambitious development pipeline, including major upcoming titles like Grand Theft Auto VI. The company also emphasized its commitment to shareholder value and detailed its diverse board composition and executive compensation structure, which is heavily performance-based.