TTWO
Take-Two Interactive Software, Inc.
Communication Services · Electronic Gaming & Multimedia · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The model score of 35.5 reflects partial credit from the growth sub-score of 17.5, where filing data shows year-over-year revenue growth, which is the primary driver keeping the score above the lowest tiers.
- The momentum sub-score of 14.4 adds further support, as the quarterly progression of revenue and earnings metrics within the FY2026 10-K shows improving operational trends, preventing a lower overall score.
- Despite these positive signals, the zero profitability sub-score, low financial health sub-score of 8.0, and absent dividend and theme scores together cap the overall model score well below the threshold for higher research labels.
Why Not Higher
- The single largest constraint on a higher score is the profitability sub-score of 0.0, which means the model receives no contribution from net margin, operating margin, or return on assets — the most heavily weighted indicators of sustainable business quality.
- The financial health sub-score of 8.0 reflects a leveraged balance sheet with weak interest coverage derived from the filing, which limits upward movement in the overall model score even as revenue growth trends positively.
Data Confidence
8 / 10
High — most data fields present
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Take-Two Interactive Software, Inc. is a major US-based video game publisher and developer known for flagship franchises including Grand Theft Auto, NBA 2K, Red Dead Redemption, and Borderlands, as well as a growing mobile gaming segment through its Zynga acquisition. The company operates across console, PC, and mobile platforms and is one of the largest interactive entertainment companies by revenue scale. Its FY2026 10-K filing underpins this model score of 35.5/100, a figure that reflects a deeply uneven financial profile: while revenue growth contributes a partial growth sub-score of 17.5 and quarterly momentum registers 14.4, the profitability sub-score is a complete zero, meaning the filing data shows no meaningful positive net margin, operating margin, or return on assets to reward. Financial health scores only 8.0 out of 20, indicating elevated leverage and constrained interest coverage, consistent with the debt load taken on to finance the Zynga acquisition. Dividend and theme sub-scores are also zero, reflecting no dividend program and insufficient mapped macro theme exposure. The research tradeoff is stark: TTWO possesses genuine top-line scale and franchise momentum, but the absence of profitability and the weight of its debt structure suppress the overall model score significantly, placing it in the Monitor Only research label rather than an actionable tier.
Plain English
Take-Two Interactive makes some of the most popular video games in the world, like Grand Theft Auto and NBA 2K, but right now the company is spending far more than it earns, so it is not profitable. The model score of 35.5 out of 100 reflects that while the company is growing its revenues, it has a high debt load and no profits showing up in its filings. The High risk rating means researchers should expect significant uncertainty around whether profitability will arrive before financial pressures compound.
Bull Case vs. Bear Case
Bull Case
- The growth sub-score of 17.5 indicates measurable year-over-year revenue improvement in the FY2026 filing, suggesting the company's pipeline and Zynga integration are beginning to translate into top-line scale.
- The momentum sub-score of 14.4 reflects positive sequential improvement in revenue and earnings metrics across quarterly periods within the filing, indicating operational trajectory is moving in a constructive direction.
- Take-Two's portfolio includes Grand Theft Auto VI, one of the most anticipated game releases in the industry, which represents a potential step-change catalyst for revenues and could materially shift future profitability metrics captured in subsequent filings.
Bear Case
- The profitability sub-score of 0.0 confirms that net margin, operating margin, and return on assets as derived from the FY2026 10-K filing provide no positive contribution to the model, meaning the company is not converting its revenue scale into bottom-line results.
- The financial health sub-score of only 8.0 out of 20 reflects elevated leverage ratios and constrained interest coverage, consistent with the significant debt burden accumulated through the multi-billion dollar acquisition of Zynga.
- Both the dividend sub-score and theme sub-score are zero, indicating the company returns no capital to shareholders via dividends and does not benefit from identifiable macro thematic tailwinds in the model's framework, limiting its appeal across multiple investor profiles.
What Could Change the Picture
Bullish Triggers
- A future filing showing a materially positive operating margin and net margin — particularly driven by Grand Theft Auto VI launch revenues — would raise the profitability sub-score from zero and could meaningfully increase the overall model score.
- Evidence in a subsequent 10-K of meaningful debt reduction and improved interest coverage ratios would strengthen the financial health sub-score, reducing the risk profile and potentially upgrading the research label above Monitor Only.
Bearish Triggers
- If a future filing reveals further revenue deceleration or a continuation of zero or worsening profitability despite major title launches, it would confirm that the company's cost structure cannot support profitability at current scale, deepening research concerns.
- An increase in total debt or a deterioration in interest coverage ratios — for example from additional acquisitions or capitalized development costs — would push the financial health sub-score lower and further compress the overall model score.
Red Flags
- A profitability sub-score of 0.0 is a material red flag, indicating the FY2026 filing shows no positive net margin, operating margin, or return on assets — meaning the company is consuming capital without generating accounting profits at this stage.
- A financial health sub-score of 8.0 reflects a balance sheet under strain, with leverage levels and interest coverage ratios that leave limited cushion if revenue growth slows or major title releases are delayed.
- The combination of zero profitability and elevated debt creates a compounding risk: rising interest obligations are absorbing capital that could otherwise fund game development, and any sustained release delay could deteriorate the financial position further.
Risk Profile
High RiskThe High risk rating reflects the combination of zero profitability, an elevated leverage profile from the Zynga acquisition, and dependence on a small number of high-cost blockbuster titles whose release timing and commercial reception introduce significant variability in financial outcomes. For a company of Take-Two's scale, the absence of a profit buffer means any operational or market disruption flows directly and disproportionately into balance sheet stress.
Key Catalysts to Watch
The primary catalyst to monitor is the commercial launch and revenue recognition of Grand Theft Auto VI, which has the potential to generate unprecedented unit volumes and shift the company's profitability metrics from zero into positive territory within a single filing period. Secondary catalysts include the pace of Zynga integration efficiencies, mobile revenue contribution trends, and any announcements regarding debt repayment or capital structure optimization visible in upcoming 10-K filings.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.