Take-Two (TTWO) AI Stock Analysis

• Market Cap: $47.95B
• Dividend Yield: N/A
• Average Volume (3M): 1.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 7.33%
• EPS Growth: -7.46%
• Country: US
• Employees: 12,371
• Sector: Communication Services
• Sector Strength: 97
• Industry: Electronic Gaming & Multimedia
• EPS (TTM): 0.61
• Shares Outstanding: 184,470,210
• 10 Day Avg. Volume: 2,184,223
• 30 Day Avg. Volume: 1,570,292
• 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: 0.95
• Enterprise Value/Revenue: 7.82
• Enterprise Value/Gross Profit: 14.02
• Enterprise Value/Ebitda: -15.72
• 1Y Price Target: $269.17
• Price Target Upside: 4.18% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 60 Neutral
• Price Target: $264.00 ▲(2.18% Upside)

The overall stock score reflects a mixed outlook. The most significant factor is the positive earnings call, highlighting strong performance and raised guidance, which boosts confidence in future growth. However, financial performance remains a concern due to losses and high leverage. Technical analysis supports a bullish trend, but valuation metrics are weak due to negative earnings. Investors should weigh the potential for growth against the financial risks.

Positive Factors

Strong Franchise Performance

The enduring success of key franchises like Grand Theft Auto ensures a stable revenue stream and reinforces Take-Two's market position in the gaming industry.

Raised Net Bookings Outlook

An increased net bookings outlook reflects confidence in future growth, driven by strong performances in core franchises and mobile titles, indicating robust demand.

Successful Game Launch

The successful launch of Borderlands 4 highlights Take-Two's ability to create popular titles that drive significant revenue, reinforcing its competitive edge in the gaming sector.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting the company's ability to invest in growth opportunities and affecting long-term financial stability.

Declining Cash Flow

Weak cash generation relative to net losses indicates challenges in sustaining operations and funding future projects, which could impact long-term growth.

Mobile Growth Deceleration

Expected deceleration in mobile growth due to mature titles may limit future revenue expansion, affecting the company's ability to capitalize on the growing mobile gaming market.

Take-Two Business Overview & Revenue Model

Company Description

Take-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the globe. The company operates through two primary segments: Rockstar Games and 2K. Take-Two is well-known for its critically acclaimed franchises, including Grand Theft Auto, NBA 2K, and Red Dead Redemption. The company focuses on creating high-quality gaming experiences across various platforms, including consoles, PC, and mobile devices, and is committed to innovation in the gaming industry.

How the Company Makes Money

Take-Two generates revenue primarily through the sales of video games, downloadable content (DLC), and in-game microtransactions. The company benefits from a diverse portfolio of successful game franchises that drive significant sales during both initial launches and subsequent years. Key revenue streams include retail and digital sales of games, subscriptions, and ongoing monetization of online gaming services. Additionally, Take-Two has established strong partnerships with various platforms, including consoles like PlayStation and Xbox, which enhance distribution and visibility. The rise of esports and online gaming has also contributed to revenue growth through in-game purchases and seasonal content updates, further boosting earnings.

Take-Two Financial Statement Overview

Summary

Take-Two is facing financial difficulties with consistent losses and high leverage. While there are some positive signs in revenue growth and gross profit margins, the company needs to address its cash flow and leverage issues to improve financial health and stability.

Income Statement

Take-Two's income statement shows a challenging financial period with negative net income and EBIT margins, indicating losses. However, there is a slight improvement in revenue growth at 2.94% TTM, suggesting some potential for recovery. The gross profit margin remains relatively stable at 55.80% TTM, which is a positive sign of operational efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.01 TTM, indicating significant leverage, which could pose financial risks. The return on equity is negative, suggesting that the company is not generating returns on shareholders' investments. However, the equity ratio of 35.94% TTM shows a reasonable level of equity financing.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth by -72.83% TTM, and the operating cash flow to net income ratio is low at 0.036 TTM, indicating weak cash generation relative to net losses. The free cash flow to net income ratio is negative, reflecting cash flow challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.80B	5.63B	5.35B	5.35B	3.50B	3.37B
Gross Profit	3.24B	3.06B	2.24B	2.29B	1.97B	1.84B
EBITDA	-2.89B	-2.98B	-1.80B	582.50M	747.00M	890.80M
Net Income	-4.23B	-4.48B	-3.74B	-1.12B	418.00M	588.90M
Balance Sheet
Total Assets	9.68B	9.18B	12.22B	15.86B	6.55B	6.03B
Cash, Cash Equivalents and Short-Term Investments	2.04B	1.48B	776.00M	1.01B	2.55B	2.73B
Total Debt	3.51B	4.11B	3.53B	3.49B	250.22M	191.27M
Total Liabilities	6.20B	7.04B	6.55B	6.82B	2.74B	2.70B
Stockholders Equity	3.48B	2.14B	5.67B	9.04B	3.81B	3.33B
Cash Flow
Free Cash Flow	-58.30M	-214.60M	-157.80M	-203.10M	99.34M	843.39M
Operating Cash Flow	101.10M	-45.20M	-16.10M	1.10M	257.98M	912.32M
Investing Cash Flow	-153.60M	-151.50M	-28.20M	-2.88B	139.22M	-806.72M
Financing Cash Flow	672.30M	650.50M	-91.40M	1.93B	-256.81M	-57.34M

Take-Two Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 258.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 258.36 is above the 20-day moving average (MA) of 249.09, above the 50-day MA of 236.94, and above the 200-day MA of 218.83, indicating a bullish trend. The MACD of 5.18 indicates Negative momentum. The RSI at 61.99 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 is Negative, 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	80 Outperform	$91.53B	20.53	22.87%	1.90%	2.86%	19.96%
EA	75 Outperform	$50.55B	50.73	17.13%	0.38%	2.68%	-6.15%
RBLX	74 Outperform	$98.14B	-97.10	-269.61%	―	27.39%	16.59%
BILI	68 Neutral	$11.04B	386.91	-9.55%	―	22.89%	―
TTWO	60 Neutral	$47.95B	―	-89.29%	―	7.33%	-7.46%
PLTK	59 Neutral	$1.47B	16.96	-98.41%	10.28%	4.98%	-60.29%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Take-Two Corporate Events

Take-Two Completes $1.04 Billion Stock Offering

On May 20, 2025, Take-Two Interactive Software, Inc. announced the pricing of an underwritten public offering of 4,750,000 shares of its common stock at $225.00 per share, with an option for underwriters to purchase an additional 712,500 shares. The offering, which closed on May 22, 2025, is expected to generate net proceeds of approximately $1.04 billion, or $1.19 billion if the option is fully exercised, intended for general corporate purposes including debt repayment and future acquisitions. This strategic move is likely to impact Take-Two’s financial flexibility and market positioning, potentially benefiting stakeholders by supporting growth initiatives.