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Take-Two Interactive

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Market Data

Financials

XBRL · SEC EDGAR

2008–2025(18yr)

Revenue

Net Income

Free CF

Metric	FY 2008	FY 2009	FY 2010	FY 2011	FY 2012	FY 2013	FY 2014	FY 2015	FY 2016	FY 2017	FY 2018	FY 2019	FY 2020	FY 2021	FY 2022	FY 2023	FY 2024	FY 2025Latest	YoY
Revenue	$1.2B	$701.1M	$762.9M	$1.1B	$825.8M	$1.2B	$2.4B	$1.1B	$1.4B	$1.8B	$1.8B	$2.7B	$3.1B	$3.4B	$3.5B	$5.3B	$5.3B	$5.6B	+5.3%
Gross Profit	$521.4M	$233.5M	$268.4M	$447.5M	$297.0M	$498.6M	$936.2M	$288.1M	$599.8M	$756.8M	$894.6M	$1.1B	$1.5B	$1.8B	$2.0B	$2.3B	$2.2B	$3.1B	+36.6%
Gross Margin	42.4%	33.3%	35.2%	39.4%	36.0%	41.1%	39.8%	26.6%	42.4%	42.5%	49.9%	42.9%	50.1%	54.5%	56.2%	42.7%	41.9%	54.4%	+12.5pp
Operating Income	$111.0M	-$120.2M	-$76.1M	$77.1M	-$84.3M	$5.2M	$415.3M	-$258.5M	-$10.8M	$91.3M	$135.6M	$206.7M	$425.3M	$629.4M	$473.6M	-$1.2B	-$3.6B	-$4.4B	-22.3%
Operating Margin	9.0%	-17.1%	-10.0%	6.8%	-10.2%	0.4%	17.7%	-23.9%	-0.8%	5.1%	7.6%	7.7%	13.8%	18.7%	13.5%	-21.8%	-67.1%	-77.9%	-10.8pp
Net Income	$97.1M	-$140.5M	-$123.0M	$48.5M	-$108.8M	-$29.5M	$361.6M	-$279.5M	-$8.3M	$67.3M	$173.5M	$333.8M	$404.5M	$588.9M	$418.0M	-$1.1B	-$3.7B	-$4.5B	-19.6%
Net Margin	7.9%	-20.0%	-16.1%	4.3%	-13.2%	-2.4%	15.4%	-25.8%	-0.6%	3.8%	9.7%	12.5%	13.1%	17.5%	11.9%	-21.0%	-70.0%	-79.5%	-9.5pp
Free Cash Flow	$139.3M	-$221.4M	-$145.6M	$125.1M	-$95.8M	-$21.4M	$670.4M	$163.3M	$224.0M	$310.3M	$332.4M	$776.5M	$632.3M	$843.4M	$99.3M	-$203.1M	-$157.8M	-$214.6M	-36.0%
FCF Margin	11.3%	-31.6%	-19.1%	11.0%	-11.6%	-1.8%	28.5%	15.1%	15.8%	17.4%	18.5%	29.1%	20.5%	25.0%	2.8%	-3.8%	-2.9%	-3.8%	-0.9pp
EPS (Diluted)	$1.25	$-1.83	$-1.58	$0.56	$-1.31	$-0.34	$3.20	$-3.48	$-0.10	$0.72	$1.54	$2.90	$3.54	$5.09	$3.58	$-7.03	$-22.01	$-25.58	-16.2%

Total Debt$2.5B

Cash & Equiv.$1.5B

Net Debt$1.1B

4 min read

1. THE BIG PICTURE

Take-Two Interactive is a business in a high-stakes transition, moving from a console-centric hit-maker to a diversified mobile and live-services giant while remaining tethered to the gravity of the Grand Theft Auto franchise. Despite reporting a $92.9 million net loss in its most recent quarter, management is positioning Take-Two Interactive for a "new financial baseline" in fiscal 2027, predicated almost entirely on the November 2026 launch of Grand Theft Auto VI (8-K).

2. WHERE THE RISKS HIT HARDEST

Intellectual Property Ownership is threatened by Platform Dependency: While Take-Two owns its content to maximize financial positioning, it relies on Apple and Google for 92.9% of its mobile revenue (10-K Item 1). This makes its largest growth segment—mobile now accounts for 51% of total revenue—entirely subject to third-party fee structures and privacy policies that Take-Two does not control (10-Q).
Portfolio Longevity is threatened by Franchise Dependence: Take-Two identifies its diverse range of genres as a differentiator, yet the top five franchises still account for 53.1% of net revenue (10-K Item 1A). A single delay or poor market reception for a major title like Grand Theft Auto (12.6% of revenue) would materially harm financial results, regardless of the performance of the other dozens of titles in the catalog.

3. WHAT THE NUMBERS SAY TOGETHER

The financial data reveals a company that is outgrowing its primary peer, EA (+5.3% vs -1.3% revenue growth), but doing so at the cost of profitability and cash efficiency. While revenue rose to $1.70 billion in the most recent quarter, Take-Two continues to operate at a net loss, and its 3.4% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin is dwarfed by EA’s 40.2% (XBRL). This divergence is structural; the integration of Zynga has pushed mobile to the forefront of the business mix, but Take-Two has yet to translate this scale into the double-digit net margins seen at its rival.

The recent 25% quarterly revenue jump significantly exceeds the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth rate of 5.3%, driven by the Borderlands 4 release and mobile outperformance from Color Block Jam (10-Q). However, with short interest at 5.5% of the float, a segment of the market remains skeptical that this growth can be sustained without the massive capital infusion expected from the 2026 release cycle.

4. IS IT WORTH IT AT THIS PRICE?

At 27.0x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, Take-Two trades at a premium to EA (21.7x), and the market is pricing in roughly 6.1% long-term growth (CAPM analysis). This valuation is aggressive given that Take-Two currently reports a -5.7% net margin and carries $909.2 million in net debt, whereas EA maintains a 9.9% net margin and a net cash position (XBRL).

The 27.0x multiple is in line with the peer median, but it leaves little room for error. If long-term growth expectations were to moderate to a base-case of 5.0%, the justified multiple would fall to 21.0x—a 22% decline from current levels (CAPM analysis). Investors are essentially paying a premium for the anticipated fiscal 2027 windfall, ignoring current operational losses in favor of future bookings.

5. WHAT WOULD CHANGE THIS VIEW?

Cautious if the November 19, 2026, release date for Grand Theft Auto VI is delayed, as the current valuation and fiscal 2027 "record bookings" guidance are entirely dependent on this window (8-K).
Constructive if the FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin moves toward double digits, signaling that the Zynga acquisition and mobile segment are finally generating the cash efficiency seen at peers (XBRL).
Cautious if regulatory reclassification of "loot boxes" occurs, as this would threaten the "recurrent consumer spending" model that Take-Two identifies as a key competitive advantage (10-K Item 1).

6. BOTTOM LINE

Structural Advantage: Deep ownership of high-engagement, multi-decade intellectual property combined with a massive mobile distribution footprint via Zynga.

Bottom Line: Take-Two is a high-conviction bet on a single product cycle, priced for perfection despite current net losses and significant platform risks.

Source: Synthesis · LLM Analysis

4 min read

1. Top 5 Material Risks

Concentration of Revenue: Take-Two Interactive derives 81.0% of its net revenue from its five largest customers. The loss of any of these relationships, or a decline in their willingness to carry products due to content ratings, would materially harm financial results.
Franchise Dependence: Take-Two Interactive’s financial results are disproportionately driven by a limited number of hit titles. Grand Theft Auto contributed 12.6% of net revenue in fiscal 2025, and the top five franchises collectively accounted for 53.1% of net revenue.
Platform Dependency: Take-Two Interactive is highly dependent on third-party platforms, with 92.9% of mobile revenue generated on Apple and Google platforms in fiscal 2025. Changes to these platforms' terms of service, fee structures, or privacy policies (such as Apple’s AppTracking Transparency) directly impact Take-Two Interactive's ability to monetize and acquire players.
Console Transition Volatility: A significant portion of revenue (37.3% in fiscal 2025) comes from console-based software. During transitions between hardware generations, consumer spending typically declines for older platforms before new ones achieve scale, creating volatility in revenue and development cost recovery.
Cybersecurity and Data Protection: Take-Two Interactive relies on complex IT systems to store source code and consumer data. Past incidents, such as the 2022 network intrusion involving Grand Theft Auto development footage, demonstrate that security breaches can lead to significant remediation costs, reputational damage, and loss of competitive advantage.

2. Company-Specific Risks

Virtual Economy Management: Take-Two Interactive’s revenue from virtual items is dependent on maintaining a balanced in-game economy. Failure to manage this, or the proliferation of unauthorized black markets for virtual goods, can lead to decreased revenue from authorized transactions and increased customer support costs.
Incentivized Marketing: The use of incentivized marketing—offering in-game currency for actions like downloading games—is a key player acquisition channel. If this practice is deemed to affect the legality of games, Take-Two Interactive may be forced to restructure its marketing, potentially reducing revenue or increasing acquisition costs.
Key Personnel Retention: Take-Two Interactive is highly dependent on its senior management team and key creative personnel responsible for hit titles. High employee mobility in the industry makes retaining this talent difficult, and the loss of key individuals could disrupt product development schedules.
Acquisition Integration: Take-Two Interactive’s growth strategy involves acquisitions like Zynga and Gearbox. These transactions carry risks, including the potential for significant accounting charges, impairment of intangible assets, and the diversion of management attention from core operations.

3. Regulatory/Legal Risks

Loot Box and Gambling Regulation: Various jurisdictions, including the U.K., Australia, Spain, and the E.U., are actively reviewing or have implemented regulations regarding "loot boxes" and in-game virtual currencies. If these mechanics are reclassified as gambling or prohibited commercial practices, Take-Two Interactive may be forced to remove them or face civil and criminal penalties.
Data Privacy Compliance: Take-Two Interactive is subject to evolving global privacy laws, including the GDPR, DPA 2018, and various U.S. state privacy acts. Non-compliance, particularly regarding the collection of data from minors, can result in substantial fines, such as the $20 million fine recently levied by the FTC against a competitor for similar violations.
Digital Services Act (DSA): The E.U. DSA imposes strict content moderation and transparency obligations on digital platforms. Non-compliance can result in fines of up to 6% of annual global revenues.
Intellectual Property Litigation: As games become more realistic and online-enabled, Take-Two Interactive faces an increasing risk of patent, copyright, and trademark infringement claims. Such litigation can be costly and may require Take-Two Interactive to discontinue the distribution of specific products.

4. Financial Impact Map

Franchise Dependence → Net Revenue → 53.1% of net revenue is generated by the top five franchises. Customer Concentration → Net Revenue → 81.0% of net revenue is generated by the five largest customers. Platform Dependency → Mobile Revenue → 92.9% of mobile revenue is derived from Apple and Google platforms. Outstanding Debt → Cash Flow / Liquidity → $3,650.0 million in Senior Notes requires significant resources for repayment or refinancing. Cybersecurity Incident → Operating Expenses → Incurred incremental one-time costs for consultants, experts, and data recovery following the 2022 intrusion.

Source: 10-K Item 1A · LLM Analysis

Recent Filings

Form	Filed	Period
10-Q	Feb 2026	Dec 2025
8-K	Feb 2026	—
14A	Jul 2025	—
10-K	May 2025	Mar 2025