Take-Two Interactive Software Inc reported QQ1 2025 revenue of USD 1.3382 billion, with a gross profit of USD 771.1 million and a gross margin of 57.6%. EBITDA stood at USD 116.3 million, while operating income was negative USD 184.9 million and net income was a negative USD 262.0 million. The quarter showed a modest year-over-year revenue increase of 4.16% but a QoQ revenue decline of 4.37%. Net income, by contrast, fell 27.2% YoY and rose about 91% QoQ, reflecting ongoing cost pressures and a high operating expense base that continued to weigh on profitability. The company generated negative operating cash flow of USD 191.0 million and free cash flow of USD -226.1 million, with a cash balance of USD 1.4719 billion at period end and total debt of USD 4.1223 billion, resulting in a net debt position of USD 2.7351 billion.
From a balance sheet perspective, Take-Two carries a substantial goodwill and intangible asset load (Goodwill USD 4.7068 billion; Intangibles USD 4.6119 billion; total intangible/goodwill around USD 9.3187 billion), underscoring the importance of intellectual property and acquisition-driven growth but highlighting impairment risk if near-term performance does not meet expectations. Liquidity remains supported by cash and equivalents (USD 1.3872 billion) but the current ratio sits near 0.9, signaling tighter near-term working capital liquidity. Management commentary (where available) will be critical to assess plans to monetize live services, scale mobile/game services, and manage costs to drive cash generation. Overall, the QQ1 results underscore a business in the early stages of leveraging its IP portfolio toward more sustainable profitability, contingent on pipeline execution and cost discipline.