Take-Two Interactive delivered Q3 2025 results with revenue of $1.360 billion, essentially flat vs. year-ago levels (-0.5% YoY) and modest QoQ growth (+0.5%). Gross profit stood at $759.9 million, yielding a gross margin of about 55.9%, while EBITDA remained healthy at $142.8 million. However, the company posted an operating loss of $132.1 million and a net loss of $125.2 million for the quarter, translating to an EPS of -$0.71. The divergence between EBITDA and net income reflects a heavy spend burden (R&D $240.9m; SG&A $578.5m; D&A $271.1m) and working capital pressure that together overwhelmed revenue gains. The near-term profitability trajectory remains exposed to a mix-shift toward higher-margin digital/live-service revenues and ongoing investment in development and user acquisition.
Key Performance Indicators
Revenue
Decreasing
1.36B
QoQ: 0.50% | YoY: -0.48%
Gross Profit
Increasing
759.90M
55.88% margin
QoQ: 4.40% | YoY: 21.25%
Operating Income
Decreasing
-132.10M
QoQ: 55.55% | YoY: -2.01%
Net Income
Decreasing
-125.20M
QoQ: 65.75% | YoY: -36.68%
EPS
Decreasing
-0.71
QoQ: 65.87% | YoY: -31.48%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $1,359.8m; YoY change: -0.5%; QoQ change: +0.5%
Gross Profit: $759.9m; Gross Margin: 55.9%; YoY Gross Profit change: +21.25%; QoQ: +4.40%
Operating Income: -$132.1m; Operating Margin: -9.71%; YoY: -2.01%; QoQ: +55.55%
Net Income: -$125.2m; Net Margin: -9.21%; YoY: -36.68%; QoQ: +65.75%
EPS: -$0.71; Diluted EPS: -$0.71; YoY: -31.48%; QoQ: +65.87%
EBITDA: $142.8m; EBITDA Margin: 10.5%
Free Cash Flow (FCF): -$48.2m; Operating Cash Flow (OCF): -$4.8m; Capital Expenditures (Capex): -$43.4m; Net Cash from Financing Activities: +$31.2m; Net Change in Cash: -$10.7m
Cash and Cash Equivalents: $1.2067b; Total Debt: $4.1037b; Net Debt: -$2.8969b
Current Ratio: 0.83; Debt/Equity: 0.72; LT Debt: $3.445b; Net Debt / EBITDA (approximate): negative to modestly negative given EBITDA level in the quarter
P/S (Price-to-Sales): ~23.92; P/E (negative); Cash Richness still supports near-term liquidity despite negative FCF
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.36B
-0.48%
0.50%
Gross Profit
759.90M
21.25%
4.40%
Operating Income
-132.10M
-2.01%
55.55%
Net Income
-125.20M
-36.68%
65.75%
EPS
-0.71
-31.48%
65.87%
Key Financial Ratios
Gross Profit Margin
Good
51.80%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-0.08%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.09%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.01%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.02%
Return on equity suggests inefficient capital allocation
Current Ratio
Concern
0.83
Current ratio below safe levels, potential liquidity risk