TakeTwo Interactive (0LCX.L) Q4 2025 Earnings Report

Take-Two Interactive reported a solid top-line improvement for QQ4 2025 with revenue of $1.5825 billion, up 13.1% year over year and 16.4% quarter over quarter, underscoring ongoing demand for core franchises such as Grand Theft Auto, NBA 2K, and other 2K titles. However, profitability collapsed due to a substantial non-operating expense line, resulting in an EBITDA of -$3.7141 billion and an operating income of -$3.7770 billion. Net income totaled -$3.7262 billion with diluted EPS of -$21.08, a sharp deterioration from prior periods. The disproportionate swing is driven by a large “other expenses” charge of $3.1643 billion in the quarter, which overwhelmed the positive gross margin (50.8%) and revenue growth. Despite the softness in reported earnings, Take-Two generated operating cash flow of $279 million and free cash flow of $224.9 million, leaving cash and cash equivalents of $1.471 billion at period end and net debt of $2.6349 billion. The balance sheet remains asset-heavy, with total assets of $9.1807 billion and sizeable non-current intangibles ($4.2286 billion) and goodwill ($1.0573 billion). The near-term liquidity profile shows a current ratio of 0.779, indicating tighter working capital; nevertheless, cash generation underpins near-term obligations and debt maturities. Management commentary on the drivers of the large non-operating charge is not provided in the available data, and there is no formal forward-looking guidance in the provided dataset. The company’s investment thesis hinges on the durability of its IP-rich portfolio, potential stabilization of profitability, and continued cash generation to deleverage.