Quality Investor

Take-Two Interactive Software, Inc.

Rank #123Startup

TTWO · Nasdaq · Communication Services

Take-Two Interactive Software, Inc. (TTWO) — Rank #123 by gross profitability (GP/assets 0.42) · ROE -8.3% · Piotroski F-Score 7 / 9.

As-of 2026-09-15 · CIK 0000946581 · all metrics point-in-time as of the filing date.

About

Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide.

Show more

The company develops and publishes action/adventure products under the Grand Theft Auto, LA Noire, Max Payne, Midnight Club, and Red Dead Redemption names, as well as other franchises. It 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, Borderlands, and Tiny Tina's Wonderland names. In addition, the company publishes sports simulation titles comprising NBA 2K series, a basketball video game; the WWE 2K professional wrestling series; mobile titles, including WWE SuperCard; and PGA TOUR 2K. Further, it offers free-to-play mobile games, such as CSR Racing, Dragon City, Empires & Puzzles, FarmVille 3, Game of Thrones: Legends, Golf Rival, Harry Potter: Puzzles & Spells, Hit It Rich!, Match Factory!, Merge Dragons!, Merge Magic!, Monster Legends, NBA 2K, Toon Blast, Top Eleven, Wizard Of Oz Slots Casino, Toy Blast, Words With Friends, and Zynga Poker; and Color Block Jam. The company's products are designed for console gaming systems; and mobiles, such as smartphones, tablets, and personal computers. It provides its products through physical retail, digital download, online platforms, and cloud streaming services. Take-Two Interactive Software, Inc.

was incorporated in 1993 and is based in New York, New York.

Industry
Electronic Gaming & Multimedia
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
March 31

Price History

TTWO+40.1% · +7.0% CAGRSPY+80.3% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens for pre-profit companies.

Market Cap

$40.17B

P/E (annual)

P/S (annual)

6.0

P/B

11.1

P/OCF (annual)

64.3

Shareholder Yield

-5.0%

Employees

12,909

Industry

Electronic Gaming & Multimedia

Exchange

Nasdaq

Signal Flags

2 green1 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

Quality Profile

Profitability

1/1 pass
GP / assets
0.42
Return on equity
-8.3%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.51
Current ratio
1.06×
Net cash
-$693.10M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
4.6%

Growth

1/2 pass
Revenue growth
18.2%
Piotroski F-Score
7 / 9
Share dilution
5.0%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

27.7%

stretched

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 5.0% — per-share value needs a total required return of 32.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 7.2%

priced above its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

22.3%

r = 10% (base)

27.7%

r = 12%

32.4%

Net debt / market cap: 1.8%

Base FCF: $461.5M3Y mean FCF: $29.7M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
34.4xmed 37.7x143.8x

P / S

Price / revenue per share

6.3xExpensive
4.1xmed 5.3x7.4x

P / B

Price / book value per share

11.9xExpensive
2.5xmed 6.3x19.5x

P / GP

Price / gross profit per share

11.0xFair
7.3xmed 11.1x13.6x

P / FCF

Price / free cash flow per share

90.7xExpensive
15.4xmed 25.4x144.7x

Burn rate (cash flow) is the primary read at this stage — TAM and product-market fit aren't metrics this dashboard tracks.

Profitability

Gross profitability (GP / assets)

0.42

Primary signal (Novy-Marx).

62nd pctl of 38 SIC 7372 peers

Return on equity

-8.3%

Gross margin

57.2%

22nd pctl of 38 SIC 7372 peers

Revenue growth (YoY)

18.2%

RPO growth (YoY)

8.8%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

7.6%

Revenue CAGR (5Y)

14.6%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.51

3rd pctl of 33 SIC 7372 peers (best = lowest)

Current ratio

1.06×

8th pctl of 38 SIC 7372 peers

Quick ratio

0.87×

Net cash

-$693.10M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$461.50M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.55

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

4.6%

Stock-based comp intensity.

Piotroski F-Score

F-Score

7 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Value
Hypergrowth
Startup