Executive Summary
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.
Key Performance Indicators
QoQ: -60.74% | YoY:45.34%
QoQ: -39.50% | YoY:32.76%
QoQ: -36.84% | YoY:35.00%
Key Insights
Revenue: $1.3531B; YoY +4.15%, QoQ +1.11% | Gross Profit: $727.9M; YoY +13.98%, QoQ -5.60% | Operating Income: -$297.2M; YoY +45.34%, QoQ +? (data not provided) | Net Income: -$365.5M; YoY +32.76%, QoQ -39.50% | EPS (Diluted): -$2.08; YoY +35.00%, QoQ -36.84% | EBITDA: -$21.3M; EBITDA Margin: -1.57% | Gross Margin: 53.80%; Operating Margin: -21.96%; Net Margin: -27.01% | OCF: -$128.4M; Capex: -$36.8M; Free Cash Flow: -$165.2M | Cash at end: $1.320B; Total Debt: $4.112B; Net Debt: $2.878B | Curre...
Financial Highlights
Revenue: $1.3531B; YoY +4.15%, QoQ +1.11% | Gross Profit: $727.9M; YoY +13.98%, QoQ -5.60% | Operating Income: -$297.2M; YoY +45.34%, QoQ +? (data not provided) | Net Income: -$365.5M; YoY +32.76%, QoQ -39.50% | EPS (Diluted): -$2.08; YoY +35.00%, QoQ -36.84% | EBITDA: -$21.3M; EBITDA Margin: -1.57% | Gross Margin: 53.80%; Operating Margin: -21.96%; Net Margin: -27.01% | OCF: -$128.4M; Capex: -$36.8M; Free Cash Flow: -$165.2M | Cash at end: $1.320B; Total Debt: $4.112B; Net Debt: $2.878B | Current Ratio: 0.845; Quick Ratio: 0.845; Cash Ratio: 0.385 | Debt/Equity: 0.709; Debt/Capitalization: 0.415; Interest Coverage: -14.08 | Asset Turnover: 0.103; Receivables Turnover: 1.442; Payables Turnover: 3.78; Gross Margin: 0.538; Operating Margin: -0.219; Net Margin: -0.270
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.35B |
4.15% |
1.11% |
| Gross Profit |
727.90M |
13.98% |
-5.60% |
| Operating Income |
-297.20M |
45.34% |
-60.74% |
| Net Income |
-365.50M |
32.76% |
-39.50% |
| EPS |
-2.08 |
35.00% |
-36.84% |
Key Financial Ratios
operatingProfitMargin
-19.9%
operatingCashFlowPerShare
$-0.73
freeCashFlowPerShare
$-0.94
priceEarningsRatio
-18.36
Management Commentary
Transcript highlights unavailable. The provided dataset includes an empty earnings transcript array, so management quotes and thematic insights from the QQ2 2025 call could not be extracted. If a transcript becomes available, expected thematic groupings would include: - Strategy: franchise monetization, live services expansion, and pipeline prioritization; - Operations: cost discipline, headcount management, and capital allocation; - Market Conditions: console/PC demand environment, platform changes, and macro trends. Note: quotes would be attributed to named executives with contextual significance.
Forward Guidance
No explicit forward guidance was disclosed in the provided data. Investors should consider the following factors as key drivers of TTWO's trajectory: (1) durability and monetization strength of live-services for flagship IPs (GTA, NBA 2K, Borderlands, etc.), (2) growth contribution from mobile gaming and new ancillary titles, (3) cost control and operating leverage as scale increases, (4) management's capital allocation decisions related to debt reduction, acquisitions, or selective investments, and (5) macro dynamics affecting consumer spending on discretionary entertainment. Monitoring quarterly cadence of pipeline releases, live-service performance metrics, and any updated guidance will be important to gauge the pace toward profitability.