Take-Two Interactive Software (TTWO) Financials

Take-Two Interactive’s recent financial statements show a company with strong top-line scale and ample liquidity, but also one that has become meaningfully less profitable and more leveraged over the last few years. In the latest quarter, revenue was still solid, but operating expenses remained high enough to leave the company near break-even at the operating level and in a net loss overall.

• Revenue remains large and relatively stable. Q4 2026 revenue was $1.68 billion, only modestly below $1.70 billion in Q3 2026 and above the roughly $1.34 billion to $1.50 billion range seen in earlier quarters.
• Gross profit is still substantial. Q4 2026 gross profit was $938.7 million, showing the business still has strong underlying unit economics before operating expenses.
• Operating cash flow is positive in the most recent quarter. TTWO generated $235.4 million of operating cash flow in Q4 2026, which is a meaningful positive despite the net loss.
• The company still holds a sizable cash position. Cash and equivalents were $2.16 billion at Q3 2026, giving Take-Two a buffer to manage operations and debt.
• Short-term liquidity looks adequate on paper. Current assets of $3.68 billion exceeded current liabilities of $3.24 billion at Q3 2026.
• Equity improved in the latest reported balance sheet. Total common equity rose to $3.50 billion at Q3 2026 from $3.43 billion at Q2 2026.
• Weighted share count has been fairly stable. Diluted shares were 185.7 million in Q4 2026 versus 184.8 million in Q2 2026, so dilution has been limited recently.
• Capital spending is not excessive. Purchases of property and equipment were $36.8 million in Q4 2026, suggesting capex is manageable relative to revenue.
• Deferred revenue remains material. Current deferred revenue was $1.29 billion in Q3 2026, which supports future recognized revenue, though it also reflects significant upfront customer obligations.
• Profitability weakened sharply in the latest quarter. Q4 2026 posted a net loss of $59.5 million, compared with a loss of $92.9 million in Q3 2026 and smaller losses in earlier quarters.
• Operating income turned from positive to negative. Q4 2026 operating income was just $10.9 million, down from positive $21.6 million in Q1 2026 and $10.9 million in Q4 2026, while prior periods also showed losses.
• Operating expenses are consuming most of gross profit. In Q4 2026, total operating expenses were $927.8 million versus gross profit of $938.7 million, leaving very little margin for error.
• Net income has been volatile and mostly negative across the recent periods. TTWO reported losses in Q1, Q2, Q3, and Q4 2026, with Q4 2025 also showing a very large loss.
• Debt is still significant. At Q3 2026, short-term debt was $582.2 million and long-term debt was $2.49 billion, meaning leverage remains an important risk factor.
• Investing cash flow has been heavily negative in the latest quarter. Q4 2026 investing activities used $290.4 million of cash, reflecting a combination of acquisitions, capex, and other investing outflows.
• Cash declined sharply in the latest quarter. Net change in cash and equivalents was negative $613.7 million in Q4 2026, largely due to debt repayment and investing outflows.
• Longer-term trends show pressure on the balance sheet mix. Compared with Q3 2025 and earlier, debt and liabilities have remained elevated while retained earnings have been negative in some periods, underscoring a more leveraged profile.

Bottom line: Take-Two still has scale, brand strength, and solid operating cash flow generation, but the recent pattern is not especially encouraging for near-term earnings. Investors will likely want to see operating expenses come down and revenue growth reaccelerate before the bottom line improves meaningfully.