One-glance verdict
Within fair range
$111.72 our estimate vs market $201.28
Wall Street consensus: $285.13 (155.2% higher than our fair-value estimate)
80% above our estimate
Fundamentals snapshot
Take-Two Interactive Software, Inc.
TTWO · NMS · Communication Services · Electronic Gaming & Multimedia
Current price
$201.28
52-week range
$187.63 - $265.94
Market cap
$37.64B
Balance sheet
Distressed
-0.67x Concerning
Net debt $1.12B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 0.5% last year.
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -9.0% last year — the company lost money on shareholders' equity.
What this company does
Take-Two Interactive Software, Inc.
Take-Two Interactive Software, Inc. makes and sells popular video games like Grand Theft Auto and Red Dead Redemption, as well as sports games like NBA 2K. Its money mainly comes from selling these games and in-game purchases, and how well these do helps determine if the company is making a good profit on its sales (its profit margins).
How the company got here
Take-Two Interactive Software, Inc. was founded in 1993 and has grown into a major player in the video game industry. A key turning point was the acquisition of BMG Interactive in 1998, which helped establish Rockstar Games and the hugely successful Grand Theft Auto franchise. The company continued to expand its portfolio by acquiring studios like Visual Concepts and Firaxis Games, which brought popular franchises such as NBA 2K and Sid Meier's Civilization into the Take-Two family. This strategy of acquiring established studios and intellectual property has been central to its growth.
What it actually does
Take-Two Interactive develops, publishes, and markets video games for a global audience. Think of them as a company that creates the entertainment you play on your console, PC, or smartphone. They work with various development studios to bring these games to life and then handle the business side of getting them into players' hands, whether through physical stores, digital downloads, or online services.
Rockstar Games
This is one of Take-Two's most famous labels, responsible for blockbuster titles like Grand Theft Auto and Red Dead Redemption. These are typically large, open-world games that players can spend many hours exploring. Rockstar Games' releases are a significant portion of Take-Two's revenue, often generating substantial income through initial game sales and ongoing in-game content.
2K
The 2K label is a diverse business unit that publishes a wide range of games. This includes popular sports simulation titles like the NBA 2K basketball series and WWE 2K wrestling games, which often have annual releases to coincide with sports seasons. 2K also publishes critically acclaimed non-sports titles such as the BioShock and Borderlands series, contributing a substantial amount to the company's overall earnings.
Zynga
Acquired by Take-Two, Zynga is primarily known for its mobile games. These are often free-to-play titles, meaning players can download and start playing without an initial purchase. Revenue in this segment typically comes from in-game purchases, such as virtual items or currency, and advertising. Zynga's mobile games, like Words With Friends and FarmVille, represent a significant and growing part of Take-Two's business.
Private Division
Private Division acts as a publisher for games developed by independent studios. This label allows Take-Two to support a variety of unique titles that might not fit neatly into the Rockstar or 2K brands. While perhaps smaller in overall revenue compared to the other labels, Private Division allows Take-Two to tap into different markets and foster innovation in game development.
What management is betting on now
Take-Two's strategy revolves around creating high-quality, engaging entertainment experiences across various platforms. They aim to balance the release of major, premium games with a growing focus on 'recurrent consumer spending,' which means generating ongoing revenue from players through in-game purchases and other services after the initial game purchase. Management is also focused on leveraging their diverse portfolio of labels, including the recently acquired Zynga, to capture opportunities in both console/PC gaming and the expansive mobile market.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$-165.20M
FY2025 Q3
$-48.20M
FY2025 Q4
$224.90M
FY2026 Q1
$-69.80M
FY2026 Q2
$96.50M
FY2026 Q3
$236.20M
FY2026 Q4
$198.60M
FY2027 Q1
$-193.80M
Revenue
$1.53B
Net income
$-34.10M
Diluted EPS
-0.18
Operating cash flow
$-168.80M
Free cash flow
$-193.80M
Fetching…
Sources
Revenue
$1.68B
Net income
$-59.50M
Diluted EPS
-0.32
Operating cash flow
$235.40M
Free cash flow
$198.60M
Fetching…
Sources
Revenue
$1.70B
Net income
$-92.90M
Diluted EPS
-0.50
Operating cash flow
$305.20M
Free cash flow
$236.20M
Fetching…
Sources
Revenue
$1.77B
Net income
$-133.90M
Diluted EPS
-0.73
Operating cash flow
$128.40M
Free cash flow
$96.50M
Fetching…
Sources
Revenue
$1.50B
Net income
$-11.90M
Diluted EPS
-0.07
Operating cash flow
$-44.70M
Free cash flow
$-69.80M
Fetching…
Sources
Revenue
$1.58B
Net income
$-3.73B
Diluted EPS
-21.27
Operating cash flow
$279.00M
Free cash flow
$224.90M
Fetching…
Sources
Revenue
$1.36B
Net income
$-125.20M
Diluted EPS
-0.71
Operating cash flow
$-4.80M
Free cash flow
$-48.20M
Fetching…
Sources
Revenue
$1.35B
Net income
$-365.50M
Diluted EPS
-2.08
Operating cash flow
$-128.40M
Free cash flow
$-165.20M
Fetching…
Sources
Is it cheap or expensive?
Fair value $111.72 vs current price $201.28
Wall Street consensus is the average analyst price target: $285.13 (155.2% higher than our fair-value estimate).
Our most-likely fair value is $111.72 a share — about 44.5% away from today's price of $201.28, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $1.1B. Interest coverage -0.7x.
Net debt
$1.12B
Interest coverage
-0.67x
Take-Two Interactive Software, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
TTWO
BASELINE
Take-Two Interactive Software, Inc.
Total debt $2.94B Interest coverage -0.67x This is the baseline the peer rows are being compared against.
Total debt $1.87B Interest coverage 21.92x This peer still has a real interest-payment cushion, while TTWO does not.
Total debt $128.81B Interest coverage 50.88x This peer still has a real interest-payment cushion, while TTWO does not.
Total debt $0.00 Interest coverage 1,714.84x This peer still has a real interest-payment cushion, while TTWO does not.
Total debt $1.84B Interest coverage -30.79x Neither company has much profit cushion over interest right now.
What you should know
The case for and against TTWO
2 Rewards
1 Risk
Rewards
-
Revenue grew 0.5% last year.
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -9.0% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
19.58x
P/B
10.43x
P/S
5.63x
EV/EBITDA
50.56x
PEG ratio
2.79x
Profitability
How much profit each dollar creates
Gross margin
57.1%
Operating margin
0.5%
Net margin
-4.8%
ROE
-9.0%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.82x
Current ratio
1.06x
Quick ratio
0.90x
Total debt
$2.94B
Total cash
$1.83B
Growth
How the business has been compounding
Revenue TTM
$6.69B
Revenue 5Y CAGR
17.4%
EPS TTM
-1.73
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$500.20M
Free CF TTM
$461.50M
FCF margin
6.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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