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.
Key Performance Indicators
Revenue
Increasing
1.34B
QoQ: -4.37% | YoY: 4.16%
Gross Profit
Increasing
771.10M
57.62% margin
QoQ: -10.50% | YoY: 13.53%
Operating Income
Increasing
-184.90M
QoQ: 93.18% | YoY: 9.50%
Net Income
Decreasing
-262.00M
QoQ: 90.97% | YoY: -27.18%
EPS
Decreasing
-1.52
QoQ: 91.07% | YoY: -24.59%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and Profitability
- Revenue: USD 1.3382B; YoY +4.16%; QoQ -4.37%.
- Gross Profit: USD 771.1M; Gross Margin 57.6%; YoY +13.53%; QoQ -10.50%.
- Operating Income: USD -184.9M; Operating Margin -13.82%; YoY +9.50% (improvement in losses); QoQ improvement not explicit due to seasonality but still negative.
- EBITDA: USD 116.3M; EBITDA Margin 8.69%.
- Net Income: USD -262.0M; Net Margin -19.58%; YoY -27.18%; QoQ +90.97% (strong sequential improvement in a negative quarter).
- Earnings per Share (EPS): USD -1.52; Diluted EPS: USD -1.52; Weighted avg shares ~172.3M.
Cash Flow and Liquidity
- Net Cash Provided by Operating Activities: USD -191.0M (cash burn from ops).
- Free Cash Flow: USD -226.1M (capex USD 35.1M).
- Cash and Equivalents at End of Period: USD 1.3872B; Cash and Short-Term Investments: USD 1.4026B.
- Net Change in Cash: USD +369.9M; Net Cash Used in Financing Activities: USD -? (net positive USD 596.5M reported in financing activities).
- Debt Position: Total debt USD 4.1223B; Net debt USD 2.7351B; Interest coverage negative, highlighting ongoing leverage concerns.
Balance Sheet Health
- Total Assets: USD 12.946B; Total Liabilities: USD 6.9531B; Total Stockholders’ Equity: USD 5.9915B.
- Current Assets: USD 2.559B; Current Liabilities: USD 2.8463B; Current ratio 0.899; Quick ratio 0.899; Cash ratio 0.487.
- Major Intangible Assets: Goodwill USD 4.7068B; Intangible Assets USD 4.6119B; Goodwill and Intangibles total USD 9.3187B.
- Equity Multipliers and Returns: ROE negative; ROA negative; Asset turnover 0.103; Cash flow per share (operating) -1.11; Free cash flow per share -1.31.
Operating and Efficiency Metrics
- Asset Turnover: 0.103; Fixed Asset Turnover: 1.747; Revenue per dollar of assets remains modest, reflecting substantial intangible assets and a large IP portfolio driving long-term value but near-term cash generation pressures.
- Net Debt to EBITDA and other leverage metrics indicate a high leverage profile relative to current earnings power.
Notes on Guidance and Peer Context
- The dataset does not include explicit forward guidance from management for QQ2 2025 or beyond. The company operates in a mature, IP-centric consumer entertainment market with heavy reliance on evergreen franchises (e.g., GTA, NBA 2K) and live-services monetization, which can influence revenue volatility and cash flow profiles across quarters.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.34B
4.16%
-4.37%
Gross Profit
771.10M
13.53%
-10.50%
Operating Income
-184.90M
9.50%
93.18%
Net Income
-262.00M
-27.18%
90.97%
EPS
-1.52
-24.59%
91.07%
Key Financial Ratios
Gross Profit Margin
Good
57.60%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.14%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.20%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.02%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.04%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.90
Current ratio below safe levels, potential liquidity risk