# Take-Two Interactive Software (TTWO.US)

Canonical: https://gigainvestors.com/s/TTWO

Analysis as of: 2026-10-16T07:32:36.018Z. Financial observations: FY1998–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $209.38 per share; close as of 2026-10-15.

Estimated value: low $42.54 per share, central $48.11 per share, high $54.47 per share. Buy at or below the central value $48.11 per share. Valuation as of 2026-10-16T07:32:36.018Z; scenarios are not confidence intervals.

Expected annual return: 4.3% at the stated quote. About 4.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 5

- Operating margin variation: 115.10×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.08×

- FY2019: 0.08×

- FY2020: 0.14×

- FY2021: 0.19×

- FY2022: 0.14×

- FY2023: -0.22×

- FY2024: -0.21×

- FY2025: -0.13×

- FY2026: -0.02×

- LTM to Jun 2026: -0.02×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 8.7%

- ROIC, second-lowest year: -19.1%

- Typical minus recent gross margin: -3.8 pp

- Typical gross margin (annual median): 52.2%

- Recent gross margin (lower of latest and 3-year median): 56.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.6%

- ROIC including acquisitions, ten-year median: 28.8%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 27.6%

- FY2019: 19.9%

- FY2020: >100%

- FY2021: >100%

- FY2022: 51.1%

- FY2023: -19.1%

- FY2024: -22.6%

- FY2025: -15.7%

- FY2026: -2.5%

- LTM to Jun 2026: -3.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$3.6B

- Net income, five-year total: -$9.2B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.4 pp

- Working capital / revenue, change between three-year averages: -2.3 pp

- Working capital / revenue, final three-year average: 10.1%

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: $517M

- FY2023: $448M

- FY2024: -$2.1B

- FY2025: -$3.3B

- FY2026: $817M

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 27.6% vs -15.7%

- Per-share earnings: 0.72 to -22.01 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 8.2%

- Ordinary dilution, 5-year annual growth: 9.7%

- Market cap gain: $31B

- Cumulative retained earnings: -$7.3B

- Diluted shares, 10-year annual growth: 8.2%

- Diluted shares, 5-year annual growth: 9.7%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value change: -$22.73

- Per-share value, starting three-year median: $0.72

- Per-share value, ending three-year median: -$22.01

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 1.1%

- Buyback history: 8 years

- Debt-funded buybacks: Yes

- Acquisition spending: $12B

- Cumulative net income, 10 years: -$7.7B

- ROIC, first three-year median: 27.6%

- ROIC, last three-year median: -15.7%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.72

- FY2018: $1.54

- FY2019: $2.90

- FY2020: $3.54

- FY2021: $5.09

- FY2022: $3.58

- FY2023: -$7.03

- FY2024: -$22.01

- FY2025: -$25.58

- FY2026: -$1.62

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.8%

- Receivables to sales index (DSRI): 0.73×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 48.9%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.77×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -10.8%

- FY2018: -8.6%

- FY2019: -12.0%

- FY2020: -5.7%

- FY2021: -5.4%

- FY2022: 2.4%

- FY2023: -7.1%

- FY2024: -30.5%

- FY2025: -48.3%

- FY2026: -9.8%

## Holders

- [Chase Coleman](https://gigainvestors.com/TGM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andreas Halvorsen](https://gigainvestors.com/vg): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 22.5% a year for ten years · sales +0.5%

Story as of 2026-10-16T09:59:44.292Z; price observation 2026-10-15.

Price needs cash profits to grow 22.5% a year for ten years

- 2025-06-04: TTWO Q1 Earnings Call: Revenue Misses Expectations, Guidance Highlights Mobile and Franchise Momentum ([finance.yahoo.com](https://finance.yahoo.com/news/ttwo-q1-earnings-call-revenue-125846579.html))

- 2025-08-07: Take-Two shares rise on strong net bookings, upbeat forecast ahead of new GTA ([finance.yahoo.com](https://finance.yahoo.com/news/two-shares-rise-strong-net-210618308.html))

- 2025-09-08: Take-Two Stock Jumps On Plans For College Basketball Video Game ([finance.yahoo.com](https://finance.yahoo.com/m/94dacbd2-a158-3097-8046-c22c35188f58/take-two-stock-jumps-on-plans.html))

- 2026-05-21: Take-Two sticks with 'GTA VI' launch timeline, forecasts annual bookings below estimates ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/two-forecasts-annual-bookings-below-201949588.html))

- 2026-06-24: Take-Two rises as GTA VI priced at $79.99, November release date confirmed ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/two-rises-gta-vi-priced-121756373.html))

- 2026-09-16: What Take-Two Interactive Software (TTWO)'s Softer Near-Term Earnings vs Costly Pipeline Means For Shareholders ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/two-interactive-software-ttwo-softer-141035525.html))

### Sales · FY2026–2027

sales +0.5%; source https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm; observed 2026-05-22.

- FY2018: $1.8B 

- FY2019: $2.7B 

- FY2020: $3.1B 

- FY2021: $3.4B 

- FY2022: $3.5B 

- FY2023: $5.3B 

- FY2024: $5.3B 

- FY2025: $5.6B 

- FY2026: $6.7B 

- FY2027: $6.7B 

### Gross margin · FY2027

gross margin 56%; source https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm; observed 2026-05-22.

- FY2018: 49.9% 

- FY2019: 42.9% 

- FY2020: 50.1% 

- FY2021: 54.5% 

- FY2022: 56.2% 

- FY2023: 42.7% 

- FY2024: 41.9% 

- FY2025: 54.4% 

- FY2026: 57.2% 

- FY2027: 56.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic gaming & multimedia; annual sales are USD 6.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm (filed 2026-05-22); FY2026: revenue 6656400000; grossProfit 3809700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TTWO.US: Take-Two Interactive Software, Inc. develops, publishes, and markets interactive entertainment solutions for consumers worldwide. 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.

### Why customers stay

Margins ranged from 41.9% to 57.2% during 2024–26; it earns 8.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2024: grossProfit / revenue = 41.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2025: grossProfit / revenue = 54.4%.

- Source: https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm (filed 2026-05-22); FY2026: grossProfit / revenue = 57.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); 10-year return on capital observations [[2018,0.27600843637903444],[2019,0.1988735706731921],[2020,1.1427346251183115],[2021,2.1337750067930688],[2022,0.5114432470829692],[2023,-0.1914435551811289],[2024,-0.22594849356169522],[2025,-0.15698935712749945],[2026,-0.025100643651258046],[2027,-0.03480603448275862]]; median 0.08688646351096703. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 2 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2017: growth capex 0; upkeep 21167000; owner earnings 305492000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2018: growth capex 0; upkeep 87522000; owner earnings 230930000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2019: growth capex 0; upkeep 66969000; owner earnings 531694000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2020: growth capex 0; upkeep 53384000; owner earnings 587618000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2021: growth capex 0; upkeep 68900000; owner earnings 722400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2022: growth capex 0; upkeep 158600000; owner earnings 516500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); FY2023: growth capex 0; upkeep 204200000; owner earnings 447800000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm (filed 2026-05-22); FY2026: growth capex 0; upkeep 162800000; owner earnings 817000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,200000],[2023,108100000],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); TTWO.US SharesStats.PercentInsiders = 1.779 percentage points; cache date 2026-10-16.

### What could break it

"A limited number of customers account for a significant portion of our sales." (SEC filing, May 2026)

- Source: https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm (filed 2026-05-22); A limited number of customers account for a significant portion of our sales.

### What the price says

The price assumes cash profits grow 22.5% yearly over ten years; actual growth was 12.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-22); Ten-year compound average after fade. Initial solved rate 0.3145936875999723. Price 209.38; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 1.4127815673064243 → FY2026 4.4426318651441. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $44.39 per share

- 2016-11: $49.23 per share

- 2016-12: $49.29 per share

- 2017-01: $53.65 per share

- 2017-02: $56.98 per share

- 2017-03: $59.27 per share

- 2017-04: $62.85 per share

- 2017-05: $76.74 per share

- 2017-06: $73.38 per share

- 2017-07: $79.48 per share

- 2017-08: $97.79 per share

- 2017-09: $102.23 per share

- 2017-10: $110.65 per share

- 2017-11: $111.55 per share

- 2017-12: $109.78 per share

- 2018-01: $126.67 per share

- 2018-02: $111.87 per share

- 2018-03: $97.78 per share

- 2018-04: $99.71 per share

- 2018-05: $112.08 per share

- 2018-06: $118.36 per share

- 2018-07: $113.02 per share

- 2018-08: $133.56 per share

- 2018-09: $137.99 per share

- 2018-10: $128.87 per share

- 2018-11: $109.67 per share

- 2018-12: $102.94 per share

- 2019-01: $105.55 per share

- 2019-02: $87.26 per share

- 2019-03: $94.37 per share

- 2019-04: $96.83 per share

- 2019-05: $108.15 per share

- 2019-06: $113.53 per share

- 2019-07: $122.52 per share

- 2019-08: $131.97 per share

- 2019-09: $125.34 per share

- 2019-10: $120.35 per share

- 2019-11: $121.35 per share

- 2019-12: $122.43 per share

- 2020-01: $124.64 per share

- 2020-02: $107.48 per share

- 2020-03: $118.61 per share

- 2020-04: $121.05 per share

- 2020-05: $136.17 per share

- 2020-06: $139.57 per share

- 2020-07: $164.02 per share

- 2020-08: $171.19 per share

- 2020-09: $165.22 per share

- 2020-10: $154.92 per share

- 2020-11: $180.51 per share

- 2020-12: $207.79 per share

- 2021-01: $200.45 per share

- 2021-02: $184.46 per share

- 2021-03: $176.70 per share

- 2021-04: $175.38 per share

- 2021-05: $185.56 per share

- 2021-06: $177.02 per share

- 2021-07: $173.42 per share

- 2021-08: $161.22 per share

- 2021-09: $154.07 per share

- 2021-10: $181.00 per share

- 2021-11: $165.88 per share

- 2021-12: $177.72 per share

- 2022-01: $163.34 per share

- 2022-02: $162.00 per share

- 2022-03: $153.74 per share

- 2022-04: $119.51 per share

- 2022-05: $124.53 per share

- 2022-06: $122.53 per share

- 2022-07: $132.73 per share

- 2022-08: $122.56 per share

- 2022-09: $109.00 per share

- 2022-10: $118.48 per share

- 2022-11: $105.69 per share

- 2022-12: $104.13 per share

- 2023-01: $113.23 per share

- 2023-02: $109.55 per share

- 2023-03: $119.30 per share

- 2023-04: $124.29 per share

- 2023-05: $137.73 per share

- 2023-06: $147.16 per share

- 2023-07: $152.94 per share

- 2023-08: $142.20 per share

- 2023-09: $140.39 per share

- 2023-10: $133.75 per share

- 2023-11: $158.20 per share

- 2023-12: $160.95 per share

- 2024-01: $164.93 per share

- 2024-02: $146.93 per share

- 2024-03: $148.49 per share

- 2024-04: $142.81 per share

- 2024-05: $160.36 per share

- 2024-06: $155.49 per share

- 2024-07: $150.53 per share

- 2024-08: $161.71 per share

- 2024-09: $153.71 per share

- 2024-10: $161.72 per share

- 2024-11: $188.38 per share

- 2024-12: $184.08 per share

- 2025-01: $185.51 per share

- 2025-02: $211.98 per share

- 2025-03: $207.25 per share

- 2025-04: $233.32 per share

- 2025-05: $226.28 per share

- 2025-06: $242.85 per share

- 2025-07: $222.73 per share

- 2025-08: $233.27 per share

- 2025-09: $258.36 per share

- 2025-10: $256.37 per share

- 2025-11: $246.07 per share

- 2025-12: $256.03 per share

- 2026-01: $220.30 per share

- 2026-02: $211.48 per share

- 2026-03: $197.50 per share

- 2026-04: $213.76 per share

- 2026-05: $224.16 per share

- 2026-06: $249.98 per share

- 2026-07: $242.92 per share

- 2026-08: $219.70 per share

- 2026-09: $207.50 per share

- 2026-10: $200.32 per share

## Annual estimated value (USD per share)

- FY2017: low $31.66 per share, central $34.04 per share, high $37.20 per share

- FY2018: low $34.67 per share, central $37.75 per share, high $41.86 per share

- FY2019: low $45.78 per share, central $50.28 per share, high $56.27 per share

- FY2020: low $67.77 per share, central $74.77 per share, high $84.09 per share

- FY2021: low $83.64 per share, central $92.00 per share, high $103.12 per share

- FY2022: low $83.64 per share, central $92.25 per share, high $103.70 per share

- FY2023: low $75.24 per share, central $84.83 per share, high $97.60 per share

- FY2024: low $55.25 per share, central $63.12 per share, high $72.72 per share

- FY2025: low $37.91 per share, central $43.00 per share, high $48.75 per share

- FY2026: low $43.99 per share, central $49.62 per share, high $56.06 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:38:21.367Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/946581/000162828026037434/ttwo-20260331.htm); period 2026-03-31, filed 2026-05-22.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.