Take-Two Interactive Software, Inc. (TTWO) is listed on NASDAQ and operates in the Electronic Gaming & Multimedia industry (Communication Services sector).
Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. The company offers its products under the Rockstar Games, 2K, Private Division, and T2 Mobile Games names. It develops and publishes action/adventure products under the Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption names; and offers episodes and content, as well as develops brands in other genres, including the LA Noire, Bully, and Manhunt franchises. The company also publishes various entertainment properties across various platforms and a range of genres, such as shooter, action, role-playing, strategy, sports, and family/casual entertainment under the BioShock, Mafia, Sid Meier's Civilization, XCOM series, and Borderlands. In addition, it publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; and PGA TOUR 2K. Further, the company offers Kerbal Space Program, OlliOlli World, and The Outer Worlds and Ancestors: the Humankind Odyssey under Private Division; and free-to-play mobile games, such as Dragon City, Monster Legends, Two Dots, and Top Eleven. Its products are designed for console gaming systems, including PlayStation 4 and PlayStation 5; Xbox One; the Nintendo's Switch; personal computers; and mobile comprising smartphones and tablets. The company provides its products through physical retail, digital download, online platforms, and cloud strea...
| Rating | Analysts |
|---|---|
| Strong Buy | 0 |
| Buy | 44 |
| Hold | 12 |
| Sell | 0 |
| Strong Sell | 0 |
Take-Two Interactive Software, Inc., established in 1993 and headquartered in New York, develops, publishes, and markets interactive entertainment products globally. The company operates under several labels, including Rockstar Games, 2K, Private Division, and T2 Mobile Games. It is known for action/adventure titles such as Grand Theft Auto, Max Payne, Midnight Club, and Red Dead Redemption. Additionally, Take-Two offers a variety of entertainment properties across multiple platforms and genres, including shooter, role-playing, strategy, sports, and family/casual games. Notable franchises include BioShock, Mafia, Sid Meier's Civilization, XCOM, and Borderlands. The company also produces sports simulation games like NBA 2K, WWE 2K, and PGA TOUR 2K. Under its Private Division label, it offers titles such as Kerbal Space Program and The Outer Worlds. Take-Two also provides free-to-play mobile games like Dragon City and Monster Legends. Its products are available on consoles such as PlayStation and Xbox, Nintendo Switch, personal computers, and mobile devices. Distribution channels include physical retail, digital downloads, online platforms, and cloud streaming services.
Over the past three fiscal years, the company has faced significant challenges in profitability and cash generation. Revenue showed an inconsistent growth pattern, increasing at a modest CAGR of 2.6% from $5.35 billion in 2023 to $5.63 billion in 2025. Despite this revenue growth, the company struggled with profitability, as evidenced by a consistent decline in operating and net margins. The operating margin deteriorated by 56.2pp from -21.8% to -77.9%, while the net margin fell by 58.5pp from -21.0% to -79.5%. This decline in profitability was mirrored in the company's earnings per share, which consistently decreased from -$7.03 to -$25.58. Cash flow generation also remained a concern, with operating cash flow turning negative and free cash flow remaining consistently negative, ending at -$214.6 million in 2025. The company's cash conversion ratio, however, showed improvement, reaching 1.01%, indicating some strengthening in earnings quality. Despite these challenges, the company maintained a stable liquidity position with a current ratio of 1.14. However, the increase in share count by 9.5% over the period diluted per-share gains, further impacting shareholder value. Additionally, the interest coverage ratio remained critically low at -25.5x, highlighting ongoing financial strain.
Recent developments for Take-Two Interactive Software, Inc. (TTWO) have been dominated by significant institutional trading activity and analyst ratings. On April 15, Freestone Capital Holdings LLC acquired 9,702 shares valued at approximately $2.48 million. Additionally, M&G PLC and Compass Wealth Management LLC made substantial investments in the company during the third quarter, with stakes valued at $12.47 million and $10.95 million, respectively. Analyst sentiment remains positive, with Take-Two receiving an average recommendation of "Moderate Buy" and price targets ranging from $275 to $300, as reported on April 14. UBS Group and Morgan Stanley have both increased their price targets, indicating confidence in the company's future performance. In contrast, Allspring Global Investments Holdings LLC decreased its holdings by 4% in the fourth quarter. Despite these mixed signals, Take-Two's stock has shown resilience, rising even as the broader market dipped. However, the company faced a data breach involving Rockstar Games, with hackers claiming the theft of nearly 80 million records. This incident highlights potential vulnerabilities in Take-Two's data security infrastructure. Overall, the institutional interest and positive analyst outlook suggest a cautiously optimistic view of Take-Two's prospects, tempered by recent security challenges.