AI Takeaway
Take-Two Interactive (TTWO) delivered a strong FY2026, with revenue surging 18.2% to $6.66B and operating losses narrowing dramatically to -$104.2M, while operating cash flow turned sharply positive at $624.3M, signaling meaningful operational improvement ahead of major upcoming releases.
Revenue
$6.66B
++18.16% YoY
EPS (Basic)
$-1.62
++93.67% YoY
Gross Margin
57.2%
++2.88% YoY
Operating Income
$-104.2M
++97.63% YoY
Filed · Source: SEC EDGAR 10-K filing
Total revenue grew 18.2% year-over-year from $5.63B to $6.66B, reflecting continued strength in live service titles and the company's diversified gaming portfolio across mobile, console, and PC platforms.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Operating loss narrowed by 97.6% from -$4.39B to -$104.2M, indicating that the prior year's heavy impairment charges and restructuring costs have largely abated, and the core business is approaching operating breakeven.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross margin improved by approximately 2.9 percentage points to 57.2%, up from 54.4% in the prior year, as cost of revenue grew at a slower pace (10.7%) than revenue (18.2%), suggesting favorable product mix and operating leverage.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
2 more insights available
Upgrade to unlockDespite significant improvement, TTWO reported a net loss of -$298.2M in FY2026 and carries a negative ROE of -8.5% and ROA of -3.2%. The company has a history of multi-year losses, and continued investment in game development may delay a return to sustained profitability.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.80 versus the $0.57 analyst consensus — a +39.3% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.66B | $5.63B | +18.16% |
Cost of Revenue | $2.85B | $2.57B | +10.71% |
Gross Profit | $3.81B | $3.06B | +24.41% |
Operating Income | $-104.2M | $-4.39B | +97.63% |
Net Income | $-298.2M | $-4.48B | +93.34% |
EPS (Basic) | $-1.62 | $-25.58 | +93.67% |
EPS (Diluted) | $-1.62 | $-25.58 | +93.67% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $9.38B | $9.18B | +2.21% |
Current Assets | $3.2B | $2.82B | +13.62% |
Total Liabilities | $5.87B | $7.04B | -16.62% |
Current Liabilities | $2.59B | $3.62B | -28.40% |
Stockholders' Equity | $3.51B | $2.14B | +64.24% |
Cash & Equivalents | $1.55B | $1.46B | +6.14% |
Long-Term Debt | $2.49B | $2.51B | -0.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $624.3M | $-45.2M | +1481.19% |
Investing Cash Flow | $-649.2M | $-151.5M | -328.51% |
Financing Cash Flow | $94.6M | $650.5M | -85.46% |
D&A | $198.5M | $229.4M | -13.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 57.2% | 54.4% | +2.88% |
Operating Margin | -1.6% | -77.9% | +76.38% |
Net Margin | -4.5% | — | — |
ROE | -8.5% | — | — |
ROA | -3.2% | — | — |
Current Ratio | $1.236 | — | — |
Debt to Equity | $1.673 | — | — |
Other companies in Interactive Home Entertainment
TTWO had a strong FY2026, with revenue growing 18.2% to $6.66B and operating losses narrowing by 97.6% to just -$104.2M. Operating cash flow turned sharply positive at $624.3M, a major turnaround from -$45.2M in FY2025.
Yes, TTWO reported a net loss of -$298.2M in FY2026, but this is a massive improvement from the -$4.48B net loss in FY2025. The company is approaching operating breakeven, with an operating margin of -1.6% versus -77.9% the prior year.
TTWO's revenue grew 18.2% to $6.66B, driven by its live service titles and diversified gaming portfolio across mobile, console, and PC. Gross margin also expanded to 57.2%, suggesting a favorable shift toward higher-margin digital revenue streams.
Key risks include continued net losses (-$298.2M in FY2026), high leverage with $2.49B in long-term debt and a 1.67x debt-to-equity ratio, and heavy dependence on the success of major title releases. Investing cash outflows also surged to -$649.2M, indicating a significant capital commitment that must generate returns.
TTWO's balance sheet improved meaningfully in FY2026, with total liabilities falling 16.6% to $5.87B and stockholders' equity rising 64.2% to $3.51B. Cash and equivalents stand at $1.55B, and the current ratio of 1.24x provides adequate near-term liquidity, though leverage remains elevated.