With Grand Theft Auto, Red Dead Redemption and NBA 2K, Take-Two owns some of the most valuable game brands in the world. In the financial year ended March 31, 2026, revenue reached USD 6.66 billion and the net loss narrowed to USD 298.2 million. At the same time, free cash flow, calculated as operating cash flow less purchases of fixed assets, was positive at USD 461.5 million.
The market is currently valuing the earnings power expected after the planned launch of GTA 6. The game is scheduled for release on November 19, 2026. The current share price therefore already contains a large part of the hoped-for recovery.
1. Quick overview
Take-Two is an international developer and publisher of console, PC and mobile games. The company combines individual full-price titles with long-term revenue from virtual goods, additional content, advertising and online services.
| Metric | Value |
|---|---|
| Name | Take-Two Interactive Software, Inc. |
| Ticker | TTWO |
| WKN | 914508 |
| ISIN | US8740541094 |
| Country | USA |
| Sector | Communication Services |
| Industry | Electronic Gaming & Multimedia |
| Market capitalization | USD 39.88 billion |
| Dividend yield | 0.00% |
| P/E ratio (TTM) | not meaningful to calculate because of TTM net loss |
| P/S ratio (TTM) | approx. 5.96 |
The closing price used is USD 213.29 as of September 8, 2026. Together with market capitalization of USD 39.88 billion, this produces a calculated share count of around 187.0 million. That is consistent with the 186.98 million shares outstanding.
The TTM P/E ratio is not meaningful because of a net loss of around USD 320 million. The P/S ratio is based on TTM revenue of around USD 6.69 billion. The calculation is 39.88 / 6.6865 = 5.96. The market value therefore corresponds to almost six times the most recently achieved annual revenue.
For private investors, this combination of loss and revenue multiple means that the share price is not supported by current profit, but by the expected earnings turnaround after GTA VI.
2. Company profile
2.1 History & founding
Take-Two was founded in 1993 and incorporated in the US state of Delaware. Its headquarters are in New York City. The shares are traded on Nasdaq under the ticker TTWO.
The company operates primarily through the Rockstar Games, 2K and Zynga labels. Rockstar stands for Grand Theft Auto, Red Dead Redemption and other major single-player brands. 2K publishes NBA 2K, WWE 2K, Borderlands and Civilization, among others. Zynga expands the business with mobile games such as Toon Blast, Empires & Puzzles and Words With Friends.
With the acquisition of Zynga in May 2022, Take-Two significantly expanded its mobile business. At the same time, total assets, debt and intangible assets increased. The subsequent loss-making years show that a large acquisition does not automatically lead to consistent profit growth.
GTA V has sold more than 225 million copies worldwide. Red Dead Redemption 2 exceeded 80 million units. These brands provide broad reach and long revenue cycles. They also make Take-Two dependent on a small number of major releases.
2.2 Business model
Take-Two sells complete games through traditional retail, digital platforms, PC stores and its own online offerings. This is supplemented by virtual currencies, additional content, in-game purchases, subscriptions and advertising, especially in the mobile business.
Take-Two uses the Net Bookings metric for operational management. It includes digital and physical sales, licenses, in-game advertising and other revenue, among other items. In fiscal 2026, Net Bookings rose 19% to USD 6.72 billion.
Recurring spending by existing players makes the business more predictable. In fiscal 2026, this recurring consumer spending accounted for 78% of Net Bookings. In the first quarter of fiscal 2027, the share was 84%. This reduces dependence on the one-time sale of a new game, but does not eliminate it.
Take-Two remains a hit-driven company. Development costs are incurred long before release. Revenue from games and online services is partly spread over longer periods. Delays to release dates can therefore substantially change individual quarters and entire financial years.
2.3 Industry & segments (GICS)
Under the usual industry classification, Take-Two belongs to Communication Services and the Electronic Gaming & Multimedia industry.
Economically, Take-Two is a mixture of media company, software developer and rights holder. Its most important assets are not factories, but brands, development teams, game worlds and the ability to generate further revenue from a successful title over many years.
This structure explains the high margins in successful release years. It also explains the fluctuations: one game can generate money for years while the next major title initially causes high development costs.
3. Historical share-price performance
The Take-Two share has fluctuated considerably in recent years. The closing price was USD 207.79 at the end of 2020, USD 177.72 at the end of 2021 and USD 104.13 at the end of 2022. In 2023, the share recovered to USD 160.95, in 2024 to USD 184.08 and in 2025 to USD 256.03.
On September 8, 2026, the share closed at USD 213.29. This put it around 17% below the 2025 year-end level and almost 20% below the 52-week high of USD 265.94.
The share-price movement closely follows the expected release pipeline. After the announcement of GTA VI and the later confirmation of its November 2026 release, the share was valued significantly higher. The current decline does not change the game’s importance. Rather, it shows how much attention and expectation are already priced in.
Take-Two is not valued like an ordinary software group. The market expects a significant jump in revenue, Net Bookings and cash flow around GTA VI. Disappointments regarding timing, quality, monetization or long-term player retention would therefore have a greater impact than at a company with many small, evenly predictable products.
Take-Two Interactive
Interactive price history chart for Take-Two Interactive (USD).
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4. Fundamental analysis
The following tables use fiscal years according to their actual closing date. The period covered runs from March 31, 2022 to March 31, 2026.
4.1 Earnings development – last five financial years
Revenue growth returned in fiscal 2026, while GAAP earnings remained negative. Conventional free cash flow was positive in fiscal 2026 after three negative years, so the latest cash-flow improvement is real but does not yet establish a stable multiyear pattern.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|---|---|
| Revenue | USD 3.50 billion | USD 5.35 billion | USD 5.35 billion | USD 5.63 billion | USD 6.66 billion |
| Revenue growth | 3.9% | 52.6% | 0.0% | 5.3% | 18.2% |
| EBIT | USD 0.47 billion | -USD 1.15 billion | -USD 1.14 billion | -USD 0.74 billion | -USD 0.11 billion |
| EBIT margin | 13.5% | -21.5% | -21.4% | -13.1% | -1.6% |
| Net income | USD 0.42 billion | -USD 1.12 billion | -USD 3.74 billion | -USD 4.48 billion | -USD 0.30 billion |
| Net margin | 11.9% | -21.0% | -70.0% | -79.5% | -4.5% |
| Diluted EPS | USD 3.61 | -USD 7.03 | -USD 22.01 | -USD 25.58 | -USD 1.62 |
| Free cash flow¹ | USD 0.10 billion | -USD 0.20 billion | -USD 0.16 billion | -USD 0.21 billion | USD 0.46 billion |
| Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Calculation: Free cash flow here means operating cash flow less purchases of fixed assets. Development and licensing cash flows already reflected in operating cash flow are not deducted a second time. Free cash flow figures may differ depending on the calculation method.
Revenue rose from USD 3.50 billion to USD 6.66 billion. The growth was not even, however. Two years with little movement followed the strong jump in fiscal 2023. Revenue did not pick up significantly again until fiscal 2026.
Profitability recovered more slowly. The EBIT margin was still 13.5% in fiscal 2022. Take-Two then moved into operating losses for three consecutive financial years. In fiscal 2026, the operating loss was still USD 108.6 million. Revenue and Net Bookings have recovered, but a sustainably positive GAAP profit has yet to emerge.
The high losses in fiscal 2024 and 2025 stand out in the net results. These years are marked by extraordinary charges. As a result, net margin, EPS and returns on capital are heavily distorted. The loss of USD 298.2 million in fiscal 2026 is considerably smaller, but it remains a loss.
Using the definition above, free cash flow was positive in fiscal 2022 and fiscal 2026, and negative in fiscal 2023 through fiscal 2025. In fiscal 2026, operating cash flow was USD 624.3 million and purchases of fixed assets were USD 162.8 million, producing free cash flow of USD 461.5 million. One positive year after three negative years is an improvement, not proof of a durable trend. Development and licensing costs already reflected in operating cash flow are not deducted again in this calculation.
Revenue growth, GAAP profit and cash generation tell different parts of the story. Fiscal 2026 produced positive conventional free cash flow alongside a GAAP net loss; investors still need to see sustained profitability and a more consistent cash-flow pattern.
Revenue and Net Income
Show data table
| Period | Revenue (bn. USD) | Net Income (bn. USD) |
|---|---|---|
| FY 2020 | 3.09 | 0.40 |
| FY 2021 | 3.37 | 0.59 |
| FY 2022 | 3.50 | 0.42 |
| FY 2023 | 5.35 | -1.12 |
| FY 2024 | 5.35 | -3.74 |
| FY 2025 | 5.63 | -4.48 |
| FY 2026 | 6.66 | -0.30 |
4.2 Balance-sheet quality and returns on capital – last five financial years
The balance sheet is smaller and less comfortable after the loss-making years than before the Zynga acquisition. The following table shows how assets, liquidity, debt and equity have developed.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|---|---|
| Total assets | USD 6.55 billion | USD 15.86 billion | USD 12.22 billion | USD 9.18 billion | USD 9.38 billion |
| Cash and cash equivalents | USD 1.73 billion | USD 0.83 billion | USD 0.75 billion | USD 1.46 billion | USD 1.55 billion |
| Total current assets | USD 3.87 billion | USD 2.51 billion | USD 2.26 billion | USD 2.82 billion | USD 3.20 billion |
| Long-term debt | USD 0.00 billion | USD 1.73 billion | USD 3.06 billion | USD 2.51 billion | USD 2.49 billion |
| Total equity | USD 3.81 billion | USD 9.04 billion | USD 5.67 billion | USD 2.14 billion | USD 3.51 billion |
Total assets reached almost USD 15.9 billion in fiscal 2023 and then fell back to USD 9.4 billion. Equity was also heavily affected by the large losses and stood at only USD 2.14 billion in fiscal 2025. The recovery to USD 3.51 billion in fiscal 2026 does not change the fact that several years of weak capital productivity have left their mark.
Liquidity has improved recently. At the end of March 2026, Take-Two held USD 1.55 billion in cash and cash equivalents and a further USD 443.8 million in short-term investments. Total debt of around USD 2.52 billion was therefore offset by around USD 1.99 billion in cash and short-term investments. Net debt was roughly USD 529 million.
In the first quarter of fiscal 2027, the short-term liquidity ratio deteriorated somewhat. Current assets were USD 2.96 billion and current liabilities were USD 2.78 billion. This produces a current ratio of around 1.06. For the current EV calculation, net debt excluding restricted cash is assumed to be USD 693.1 million: USD 2.5197 billion in debt minus USD 1.8266 billion in cash and short-term investments.
The balance sheet is therefore not acutely overextended. The greater point to examine is capital productivity.
For private investors, the question is therefore less the absolute size of the balance sheet than whether Take-Two can once again reliably generate profits and cash flow with this capital.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|---|---|
| ROE (adj.) | 11.1% | -12.9% | -109.2% | -380.3% | -8.4% |
| ROA (adj.) | 6.5% | -7.4% | -50.7% | -88.6% | -3.1% |
| ROIC | 9.5% | -8.7% | -63.0% | -120.0% | -4.3% |
| Current ratio | 1.84 | 0.66 | 0.94 | 0.79 | 1.27 |
| Net debt/EBITDA | -4.77 | -1.95 | -2.29 | -3.75 | 9.15 |
Returns on capital were still positive in fiscal 2022. Losses and impairments then led to clearly negative values. In fiscal 2026, ROE, ROA and ROIC improved, but had not yet returned to positive territory. The capital employed is therefore not yet working at a reliable return again.
The Net Debt/EBITDA ratio of 9.15 should be read with caution. It is based on derived EBITDA of only USD 57.8 million. Adjusted EBITDA for fiscal 2026, by contrast, is USD 760.6 million. Using this adjusted figure, net debt would be considerably lower relative to earnings. Both figures use different definitions and must not be mixed without comment.
Take-Two therefore has financial room to develop new games. This room does not replace cash-flow quality, however. If investment in new titles remains high and releases are delayed, the balance sheet can be burdened for several years despite sufficient liquidity.
4.3 Dividend and distribution policy – last five financial years
Take-Two does not pay a dividend. The capital remains in the company and is intended to finance development, acquisitions and the expansion of its platforms.
| Metric | FY 2022 | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
|---|---|---|---|---|---|
| Dividend per share | USD 0.00 | USD 0.00 | USD 0.00 | USD 0.00 | USD 0.00 |
| Payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
For the share, this means that the return depends entirely on rising profits and a higher valuation. Ongoing distributions provide no buffer if the recovery after GTA VI is weaker than expected.
5. Valuation analysis
The valuation is based on the closing price of USD 213.29 and market capitalization of USD 39.88 billion. The TTM figures include the first quarter of fiscal 2027, which ended on June 30, 2026.
| Metric | Value |
|---|---|
| P/E ratio (TTM) | not meaningful to calculate |
| Forward P/E ratio | approx. 20.8 as a consensus estimate for a later forecast period |
| P/S ratio (TTM) | approx. 5.96 |
| EV/Sales | approx. 6.07 |
| ROE (current) | approx. -9.0% TTM |
| Dividend per share (last completed FY) | USD 0.00 |
A P/S ratio of 5.96 is demanding for a company with negative TTM earnings, even though fiscal 2026 conventional free cash flow was positive at USD 461.5 million. Market capitalization of USD 39.88 billion corresponds to 5.96 times TTM revenue of USD 6.6865 billion.
The enterprise-value calculation slightly sharpens the picture. With USD 2.5197 billion in debt and USD 1.8266 billion in cash and short-term investments, net debt is USD 693.1 million. Enterprise value is therefore USD 40.5731 billion. Dividing this by TTM revenue of USD 6.6865 billion produces EV/Sales of 6.07.
For private investors, this is the price of the earnings turnaround: even after deducting net debt, revenue is valued at more than six times, although TTM profit is still negative.
The official forecast for fiscal 2027 calls for revenue of USD 7.9 to 8.1 billion, Net Bookings of USD 8.0 to 8.2 billion, operating cash flow of more than USD 1 billion and GAAP EPS of USD 0.55 to 0.75. At the current share price, this corresponds to a calculated P/E ratio of approximately 284 to 388.
The significantly lower consensus estimate of around 20.8 for the forward P/E ratio apparently refers to higher profits in a later forecast period. The difference shows what the share price depends on: fiscal 2027 must not merely work. Earnings after the launch of GTA VI must also settle at a considerably higher level.
Take-Two has the brands and recurring player revenue to justify a higher valuation. The current figures do not yet provide that earnings power, however. The share price is therefore primarily paying for a successful release, high demand and long-lasting monetization. Every delay shifts not only revenue, but also the point at which today’s valuation is covered by profits.
6. Opportunities and risks
6.1 Opportunities
- GTA VI is scheduled for release on November 19, 2026. Take-Two expects Net Bookings of USD 8.0 to 8.2 billion and operating cash flow of more than USD 1 billion in fiscal 2027.
- Recurring consumer spending on virtual goods, additional content, advertising and online services accounts for a large part of the business. This generates revenue between the major full-price titles.
- Rockstar, 2K and Zynga cover different platforms and types of games. Console blockbusters, sports games and mobile titles at least partially diversify the sources of revenue.
- Despite its debt, the balance sheet has significant liquid funds. With a successful GTA VI launch, Take-Two can use the additional cash flow for new projects, debt repayment or further acquisitions.
- The strong position of its well-known game brands enables long-term extensions through online modes, additional content, remasters and new platforms. This allows a successful title to earn money for considerably longer than a one-off film release.
6.2 Risks
- GTA VI accounts for a large share of expectations. A delay, a weak launch or low long-term player retention would hit revenue and profit assumptions at the same time.
- Cash flow has been volatile: conventional free cash flow was negative in fiscal 2023 through fiscal 2025 and positive in fiscal 2022 and fiscal 2026. Take-Two still has to fund high development costs before new games deliver their returns.
- The loss-making years 2024 and 2025 show how strongly impairments and extraordinary charges can affect the balance sheet. In the first quarter of fiscal 2027, an impairment of USD 43.4 million on a discontinued third-party developer title also weighed on earnings.
- Take-Two depends on Sony, Microsoft, Nintendo, PC platforms and the cost of acquiring mobile customers. Changes in platform fees, reach or advertising costs can squeeze margins.
- The valuation leaves little room for an ordinary trajectory. With a TTM loss and a P/S ratio of around 5.96, Take-Two must generate considerably higher profits for years so that the share does not live on expectations alone.
7. Conclusion and assessment
Take-Two has a strong portfolio of durable game brands and recurring online revenue, and recent revenue performance is pointing upward again. The completed financial years do not yet demonstrate a stable profit and cash-flow company. A GAAP net loss and weak returns on capital remain the factual starting point; fiscal 2026 conventional free cash flow was positive after three negative years, so the recovery has not yet proved durable.
GTA VI can take the company to a new scale. The official forecast for Net Bookings and operating cash flow is correspondingly ambitious. The current share price is not waiting for proof, however. It already pays for a successful launch and high profits in the following years.
The Take-Two share is therefore an event-driven growth bet on earnings normalization. The quality of the brands supports the long-term case. The fact that the market has already largely anticipated the success of the next major game argues against a large margin of safety.
This analysis is intended solely for editorial information purposes and does not constitute investment advice, a recommendation to buy or an invitation to trade securities. Despite careful preparation, no guarantee can be given regarding the timeliness, completeness or accuracy of the information. Market-related metrics such as market capitalization, dividend yield, P/E ratio, P/S ratio or EV/Sales should be verified again with current data before an investment decision.
Note: This analysis is for informational purposes only and does not constitute investment advice. Investing in stocks involves risks.
