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 growth factor scored well due to the 18.2% revenue increase and dramatic narrowing of losses, while the momentum factor reflected a stable revenue run-rate and partial operating income recovery.
- The profitability factor scored zero because all three key metrics — net margin, operating margin, and return on assets — are negative in FY2026, which is the single largest structural drag on the composite.
- The dividend and theme factors both scored zero, as the company pays no dividend and is not assigned to any of the 24 tracked macro themes, further limiting the composite score.
Why Not Higher
- Persistent unprofitability across net margin (-4.5%), operating margin (-1.6%), and return on assets (-3.2%) in FY2026 means the profitability factor contributes nothing to the composite score.
- A negative interest coverage ratio of -0.7 and the complete absence of dividend income or macro-theme tailwinds collectively prevent the score from reaching a higher tier despite strong revenue growth.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2025's $5,633,600,000 to FY2026's $6,656,400,000, an increase of +18.2%. Net income improved from FY2025's -$4,478,900,000 to FY2026's -$298,200,000 (+93.3%), and diluted EPS moved from FY2025's -$25.58 to FY2026's -$1.62 (+93.7%).
The model rewarded the substantial top-line expansion and the dramatic narrowing of losses across both net income and EPS, reflecting meaningful year-over-year improvement even though the company remains unprofitable in absolute terms.
In FY2026, Take-Two reported a net margin of -4.5%, an operating margin of -1.6%, and a return on assets of -3.2%, all of which are negative.
The model assigns the lowest possible profitability score because all three key profitability metrics are negative in FY2026, indicating the company is not yet generating profits relative to its revenue or asset base.
In FY2026, the company carried a debt-to-equity ratio of 0.72 and total assets of $9,383,200,000, but its interest coverage ratio stood at -0.7, meaning operating income did not cover interest expense.
The model likely gave partial credit for a moderate leverage ratio and a substantial asset base, while the negative interest coverage ratio in FY2026 weighed heavily against a higher score, signaling that current operating income is insufficient to service debt obligations.
Quarterly revenue rose from $1,503,800,000 in 2026Q1 to $1,773,800,000 in 2026Q2, then moderated to $1,699,000,000 in 2026Q3 and $1,679,800,000 in 2026Q4. Operating income showed a recovery pattern, moving from $21,600,000 in 2026Q1 to a trough of -$98,000,000 in 2026Q2, then improving to -$38,700,000 in 2026Q3 and returning to positive $10,900,000 in 2026Q4.
The model rewarded the overall elevated revenue run-rate across all four quarters and the partial recovery in operating income by 2026Q4, reflecting a stabilizing trend even though mid-year quarters showed operating losses.
Take-Two Interactive does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
The model assigns a score of zero for this factor because dividend income is entirely absent, which is consistent with a growth-oriented gaming company that reinvests capital rather than distributing it to shareholders.
Take-Two Interactive is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment is a neutral classification outcome; the zero score reflects that no macro-theme tailwind was credited under the model's current methodology, not that the company's business is viewed negatively.
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 posted strong top-line growth in FY2026, with revenue rising 18.2% to $6,656,400,000 and net losses narrowing dramatically from -$4,478,900,000 to -$298,200,000, yet the company remains unprofitable across all key metrics including a net margin of -4.5% and an operating margin of -1.6%. Financial health is constrained by a negative interest coverage ratio of -0.7, meaning operating income does not cover interest expense, though a debt-to-equity ratio of 0.72 and a substantial asset base of $9,383,200,000 provide partial structural support. Quarterly momentum showed a stabilizing revenue run-rate across all four quarters of FY2026 and a partial recovery in operating income by Q4, but the absence of dividends and no macro-theme assignment both scored zero, weighing on the composite. The overall picture is one of meaningful directional improvement alongside persistent structural unprofitability, earning a High risk rating and a Monitor Only label.
Plain English
Take-Two is bringing in a lot more money than last year and losing far less, but it's still not profitable, can't fully cover its interest payments from operations, and pays no dividend — so while things are moving in the right direction, there's still real financial risk here.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 18.2% year-over-year to $6,656,400,000 in FY2026, demonstrating strong top-line momentum that the model rewarded with a high growth score.
- Net losses narrowed sharply from -$4,478,900,000 in FY2025 to -$298,200,000 in FY2026, and diluted EPS improved from -$25.58 to -$1.62, signaling meaningful progress toward profitability.
- Quarterly operating income recovered to positive $10,900,000 in 2026Q4 after mid-year losses, suggesting a stabilizing operational trend heading into the next fiscal year.
Bear Case
- All three core profitability metrics remain negative in FY2026 — net margin at -4.5%, operating margin at -1.6%, and return on assets at -3.2% — earning the lowest possible profitability score.
- The interest coverage ratio of -0.7 in FY2026 means operating income is insufficient to cover interest expense, raising concerns about the company's ability to service its debt obligations.
- Take-Two pays no dividend and carries no macro-theme assignment, both of which scored zero and weighed on the overall composite score.
What Could Change the Picture
Bullish Triggers
- A sustained return to positive operating income across multiple consecutive quarters — beyond the single positive quarter seen in 2026Q4 — would signal that the operational recovery is durable rather than episodic.
- If net margin turns positive in a future period, it would directly address the profitability factor that currently scores zero and represents the most significant drag on the composite.
Bearish Triggers
- A reversal in revenue growth or a widening of net losses from the FY2026 level of -$298,200,000 would undermine the primary bull case and suggest the improvement was temporary.
- A deterioration in the interest coverage ratio below its current -0.7 level would heighten debt-servicing risk given the already-negative operating income environment.
Risk Profile
High RiskThe interest coverage ratio of -0.7 in FY2026 indicates that operating income does not cover interest expense, creating meaningful debt-servicing risk on a total asset base of $9,383,200,000. While quarterly operating income returned to a slim positive in 2026Q4, the mid-year swings — including a trough of -$98,000,000 in 2026Q2 — highlight that operational stability has not yet been firmly established.
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.