Fundamental analysis · SEC EDGAR · as of 31/03/2026

Fundamental analysis of Take Two Interactive Software Inc

TTWO · Nasdaq · Technology

Fundamental quality

DEMANDING

50

out of 100

Take Two Interactive Software Inc is going through a tough financial stretch: it hasn't been profitable over the last twelve months. On fundamental quality it scores 50 out of 100, profiling it as a company with demanding fundamentals. Its weakest area is its financial strength (net debt 10.44× EBITDA). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Take-Two Interactive publishes Grand Theft Auto, Red Dead Redemption and NBA 2K. Its story boils down to one franchise: GTA, probably the most profitable entertainment product ever created, whose releases define entire decades of the company.

What will shape its future

  • GTA: each release is an economic event and its online arm earns for a decade.
  • Concentration: a few giant franchises, with long treks between releases.
  • Development costs, growing to Hollywood-blockbuster figures.

Breakdown by area

I.Growth
72

Revenue growth: 14.6%

II.Profitability
41

Net margin: -4.5% · ROE: -8.5%

III.Financial health
38

Net debt/EBITDA: 10.44x · FCF: 6.9%

Source: SEC EDGAR · as of 31/03/2026

The score combines growth, profitability and financial strength. Here its growth weighs in its favor, while its financial strength drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 7%
ROEbeats 9%
Growthbeats 52%
Cash generationbeats 15%
Less debtbeats 2%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Take Two Interactive Software Inc strengths

  • High gross margin (57.2%), pointing to pricing power.
  • Revenue growing (14.6% annualized).

Take Two Interactive Software Inc risks and weaknesses

  • Very high leverage (net debt of 10.44× EBITDA): more exposed to rates and to a rough patch.
  • No profits over the last twelve months (negative EPS).
  • Losses over the last twelve months (net margin of -4.5%).
  • It has slipped into losses after years of profit.

Take Two Interactive Software Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
20213,373589843-1,423
20223,50541899-1,732
20235,350-1,125-2032,267
20245,350-3,744-1582,347
20255,634-4,479-2152,222
20266,656-298462985

Between 2021 and 2026, revenue went from $3,373M to $6,656M (+97%) and net income went from $589M to -$298M (-151%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Take Two Interactive Software Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Take Two Interactive Software Inc a good company to invest in?

In terms of business quality, Take Two Interactive Software Inc scores 50 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Take Two Interactive Software Inc a profitable company?

Over the last twelve months, no: Take Two Interactive Software Inc posts a negative net margin (-4.5%).

Does Take Two Interactive Software Inc have a lot of debt?

Yes, its leverage is high: net debt is 10.44 times its EBITDA, and it has been rising.

Is Take Two Interactive Software Inc growing?

Its revenue has grown 14.6% annualized in recent years.

Does Take Two Interactive Software Inc generate cash?

Yes. It converts about 6.9% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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