Education
About Us
Working with TipRanks
Follow Us
Take-Two (TTWO)
NASDAQ:TTWO
Top Page
Take-Two
(NASDAQ:TTWO)
60Neutral
Positive Factors
Financial Performance
Take-Two is set to deliver strong free cash flow over the next few years.
Price Target
Analyst remains bullish on TTWO and raises price target to $270.
Sales Potential
A growing console install base and a premium $80+ retail price for GTA VI are expected to drive higher sales.
Negative Factors
Mobile Performance
Mobile data appears weaker year-over-year, and the rest of the mobile portfolio remains under pressure.
Pricing and Pre-Orders
There is a list of unknowns in the FY26 guide, including pricing and pre-orders for Borderlands 4 and the level of mobile marketing spend.
Release Delays
The delay of Grand Theft Auto VI to 2026 has led to adjusted forward estimates for FY:26, with lowered revenue and EPS expectations.
Take-Two (TTWO) vs. S&P 500 (SPY)
Market Cap
$40.51B
Dividend YieldN/A
Average Volume (3M)2.35M
Price to Earnings (P/E)―
Beta (1Y)0.89
Revenue Growth1.00%
EPS Growth-148.89%
CountryUS
Employees12,371
SectorCommunication Services
Sector Strength87
IndustryElectronic Gaming & Multimedia
Share Statistics
EPS (TTM)1.07
Shares Outstanding176,495,710
10 Day Avg. Volume2,920,756
30 Day Avg. Volume2,351,364
Financial Highlights & Ratios
PEG Ratio13.53
Price to Book (P/B)6.97
Price to Sales (P/S)0.00
P/FCF Ratio-80.84
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue1.98
Enterprise Value/Gross Profit15.02
Enterprise Value/Ebitda-6.06
Forecast
1Y Price Target
$253.60Price Target Upside9.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Take-Two Business Overview & Revenue Model
Company DescriptionTake-Two Interactive Software, Inc. is a leading developer, publisher, and marketer of interactive entertainment for consumers around the world. The company operates through two primary labels, Rockstar Games and 2K, which are renowned for creating popular video game franchises such as Grand Theft Auto, NBA 2K, and Borderlands. Take-Two is headquartered in New York City and engages in the production and distribution of games for console, PC, and mobile platforms, offering both physical and digital formats.
How the Company Makes MoneyTake-Two generates revenue through the sale of its video game products across various platforms, including console, PC, and mobile. The company employs a diverse revenue model that includes both the sale of physical game copies and digital downloads. In addition to direct sales, Take-Two earns money from in-game purchases, downloadable content (DLC), and microtransactions, which are prevalent in its popular titles like Grand Theft Auto Online and NBA 2K. Recurring consumer spending on virtual currency, add-on content, and other in-game items forms a significant portion of its revenue stream. Furthermore, the company benefits from licensing and merchandise sales related to its game franchises. Strategic partnerships and collaborations, such as those with sports leagues for its NBA 2K series, also play a role in enhancing its market presence and revenue opportunities.
Take-Two Key Performance Indicators (KPIs)
Any
Net Bookings
Measures the total value of products and services sold digitally or physically, indicating the company's sales performance and future revenue potential.
Measures the total value of products and services sold digitally or physically, indicating the company's sales performance and future revenue potential.
Data provided by:
Main Street Data
Main Street DataTake-Two Financial Statement Overview
Summary
Take-Two is facing significant financial challenges, with negative profitability and cash flow trends. The income statement shows a concerning decline in profitability, with a negative net profit margin and stagnant revenue growth. The balance sheet is moderately stable, with manageable leverage and a stable asset base funded by equity. However, declining stockholders' equity and assets pose challenges. Cash flow issues further highlight liquidity concerns, with negative free cash flow and operational cash deficits.Income Statement
Take-Two's income statement shows significant financial challenges, with a notable decline in profitability. The TTM (Trailing-Twelve-Months) reflects a negative net profit margin of approximately -67.1%, indicating substantial losses. Revenue growth has been stagnant, with only a slight increase from the previous year, which is concerning given the competitive industry. Both EBIT and EBITDA margins are negative, further highlighting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet indicates a moderate financial position with a reasonable debt-to-equity ratio of approximately 0.18, suggesting manageable leverage. However, the decline in stockholders' equity over time points to potential challenges in value retention. The equity ratio stands at 45% for the TTM, indicating a stable asset base funded by equity. While there is some resilience, the overall decline in assets and equity over recent periods is a concern.60
Neutral
Cash Flow
Cash flow analysis reveals liquidity issues, with negative free cash flow in the TTM, reflecting cash outflows exceeding inflows. The operating cash flow to net income ratio is negative, which is troubling as it indicates operational cash deficits. The free cash flow growth rate is negative, underscoring a downward cash flow trend, which could hinder future investments and operations.50
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.45B | 5.35B | 5.35B | 3.50B | 3.37B | 3.09B | Gross Profit |
| 2.85B | 2.24B | 2.29B | 1.97B | 1.84B | 1.55B | EBIT |
| -318.90M | -3.59B | -1.13B | 473.60M | 629.38M | 425.27M | EBITDA |
| -1.80B | -1.72B | 656.80M | 690.56M | 876.29M | 697.62M | Net Income Common Stockholders |
| -3.66B | -3.74B | -1.12B | 418.00M | 588.90M | 404.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.23B | 776.00M | 1.01B | 2.55B | 2.73B | 2.00B | Total Assets |
| 12.68B | 12.22B | 15.86B | 6.55B | 6.03B | 4.95B | Total Debt |
| 4.10B | 3.53B | 3.49B | 250.22M | 191.27M | 177.25M | Net Debt |
| 2.90B | 2.78B | 2.66B | -1.48B | -1.23B | -1.18B | Total Liabilities |
| 6.98B | 6.55B | 6.82B | 2.74B | 2.70B | 2.41B | Stockholders Equity |
| 5.70B | 5.67B | 9.04B | 3.81B | 3.33B | 2.54B |
| Cash Flow | Free Cash Flow | ||||
| -494.60M | -157.80M | -203.10M | 99.34M | 843.39M | 632.29M | Operating Cash Flow |
| -333.10M | -16.10M | 1.10M | 257.98M | 912.32M | 685.68M | Investing Cash Flow |
| -143.40M | -28.20M | -2.88B | 139.22M | -806.72M | 4.05M | Financing Cash Flow |
| 608.80M | -91.40M | 1.93B | -256.81M | -57.34M | -77.45M |
Take-Two Technical Analysis
Positive
232.34
Price Trends
214.38
Positive
204.28
Positive
183.65
Positive
Market Momentum
4.65
Positive
60.98
Neutral
77.21
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 232.34 is above the 20-day moving average (MA) of 224.16, above the 50-day MA of 214.38, and above the 200-day MA of 183.65, indicating a bullish trend. The MACD of 4.65 indicates Positive momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 77.21 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
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $66.47B | 16.77 | 23.93% | 2.40% | 1.26% | 6.84% | |
76 Outperform | $36.92B | 34.67 | 16.13% | 0.52% | -0.81% | -9.28% | |
73 Outperform | $53.89B | ― | -460.30% | ― | 30.24% | 27.61% | |
63 Neutral | $7.54B | ― | -9.43% | ― | 17.42% | 72.64% | |
63 Neutral | $1.86B | 13.25 | -220.61% | 8.05% | 1.64% | -32.31% | |
60 Neutral | $40.51B | ― | -51.45% | ― | 1.00% | -148.89% | |
60 Neutral | $14.02B | 6.62 | -2.88% | 3.71% | 2.35% | -37.08% |
* Communication Services Sector Average
Performance Comparison
TTWO
Take-Two
232.34
84.50
57.16%
EA
Electronic Arts
149.57
22.50
17.71%
NTES
NetEase
122.76
20.65
20.22%
BILI
Bilibili
17.74
1.05
6.29%
PLTK
Playtika Holding
5.02
-3.39
-40.31%
RBLX
Roblox
80.77
47.87
145.50%
Take-Two Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2025)
| % Change Since: 0.00%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record net bookings and successful game releases, particularly NBA 2K25 and Zynga's mobile titles. However, significant operating expense increases and impairment charges present challenges. The anticipation for Grand Theft Auto VI and a robust future pipeline provide optimism for continued growth.Q4-2025 Updates
Positive Updates
Record Net Bookings
Fourth quarter net bookings reached $1.58 billion, the top of the guidance range. Annual net bookings for fiscal 2025 were $5.65 billion, also at the top of the range.
NBA 2K25 Success
NBA 2K25 posted near-record performance with nearly 10 million units sold, a 7% increase from NBA 2K24. Engagement metrics such as Daily Active Users increased by 30%.
Zynga's Continued Momentum
Zynga's peak performance included Match Factory exceeding expectations and Toon Blast experiencing a 7% growth in net bookings.
Upcoming Releases and Outlook
A strong pipeline with titles like Mafia: The Old Country, Borderlands 4, and Grand Theft Auto VI expected to drive significant growth. Fiscal 2026 net bookings projected to be $5.9 billion to $6 billion.
Grand Theft Auto VI Anticipation
The second trailer for GTA VI set a record with 475 million views in 24 hours, indicating high consumer anticipation.
Negative Updates
Operating Expenses Surge
Operating expenses increased by 44% to $4.6 billion in the fourth quarter, primarily due to a $3.6 billion impairment expense related to goodwill and acquired intangible assets.
Recurrent Consumer Spending Challenges
Despite strong growth in some areas, recurrent consumer spending is expected to be flat in fiscal 2026 compared to fiscal 2025.
Impairment Charge
A partial impairment of $3.6 billion related to goodwill and acquired intangible assets, which has not been specified but is assumed to be linked to Zynga.
Company Guidance
During the Take-Two Interactive Fourth Quarter 2025 Earnings Call, the company reported net bookings of $1.58 billion for the quarter, marking the top end of their guidance range. Highlights included NBA 2K's recurrent consumer spending growth of 42% and 7% year-over-year sales increase, driven by strong engagement metrics such as a 30% rise in Daily Active Users. The fiscal year concluded with net bookings of $5.65 billion, also at the top of their guidance range. Looking ahead, Take-Two provided an initial financial outlook for fiscal 2026, projecting net bookings between $5.9 billion and $6 billion, indicating a 5% year-over-year growth at the midpoint. The outlook assumes continued positive trends in mobile performance and the strength of NBA 2K, with anticipated releases like Mafia: The Old Country and Borderlands 4. The company also highlighted Grand Theft Auto VI set for release in fiscal 2027, following trailers that shattered viewership records. Operating expenses were projected to increase by 3% in fiscal 2026 due to higher marketing expenses, though operating expense leverage is expected as net bookings growth outpaces expense expansion.Take-Two Corporate Events
Product-Related AnnouncementsBusiness Operations and StrategyFinancial Disclosures
Take-Two Announces Record Net Bookings Expectations
Positive
May 2, 2025
On May 2, 2025, Take-Two Interactive Software, Inc. announced its expectations for record levels of net bookings in fiscal years 2026 and 2027. The company also revealed that Rockstar Games’ highly anticipated Grand Theft Auto VI is now scheduled for release on May 26, 2026, instead of the previously expected fall 2025. This delay is intended to allow Rockstar Games to fully realize its creative vision for the game. Take-Two plans to report its fourth-quarter and fiscal 2025 results on May 15, 2025, with a conference call to discuss these results.
Spark’s Take on TTWO Stock
According to Spark, TipRanks’ AI Analyst, TTWO is a Neutral.
Take-Two’s stock score reflects a mixed picture. Financial performance is under pressure with negative profitability and cash flow issues, but technical analysis shows stable trends. Valuation is challenged by current losses, though the positive sentiment from the earnings call, driven by strong game performance and future releases, provides some optimism. Addressing financial shortcomings is essential for future growth.
To see Spark’s full report on TTWO stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.