Take-Two Interactive reported QQ2 2025 revenue of $1.353B, up 4.15% year over year and 1.11% quarter over quarter, reflecting enduring demand for flagship franchises and ongoing live-service monetization. Despite top-line growth, the company remains in a period of heavy investment, with operating income of -$297.2M and net income of -$365.5M, resulting in an EPS of -$2.08 for the quarter. The negative profitability extends to EBITDA (-$21.3M) and a standstill in earnings per share despite better gross margins.
Cash flow remained pressured by working capital dynamics, with net cash from operating activities at -$128.4M and free cash flow at -$165.2M. The balance sheet shows cash and cash equivalents of $1.239B and total debt of $4.112B, producing a net debt position of $2.878B. Liquidity metrics point to pressure, with a current ratio of 0.845 and a cash ratio of 0.385, underscoring near-term liquidity considerations even as the company holds ample cash reserves.
Looking ahead, the investment narrative centers on expanding live-service monetization, mobile growth, and an active release cadence for marquee IPs. The path to sustained profitability will hinge on operating leverage, cost discipline, and monetization efficiency within live services and recurring revenue streams. Investors should monitor franchise performance, capital allocation, and the trajectory of working capital as TTWO executes its long-term growth plan.