TTWOTake-Two Interactive

$233.41

Is the business good?

How good a business is TTWO?

Take-Two Interactive earns −3.0% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

−3.0%

Return on invested capital · cost of capital 9.0% · 12 points below what the capital costs: growth destroys value

Operating margin
−2.4%

Operating margin · Communication Services median 12% · 12 months to Q1 2027

R&D as % of revenue
16%

R&D as % of revenue

Gross margin
56%

Gross margin

Operating margin by fiscal year
YearOperating margin
FY202119%
FY202214%
FY2023−22%
FY2024−67%
FY2025−78%
FY2026−1.6%
Details
Gross margin12 months to Q1 2027
56%
Operating margin12 months to Q1 2027
−2.4%
Net margin12 months to Q1 2027
−4.8%
Free cash flow margin
5.1%
R&D as % of revenue
16%
Revenue, trailing twelve months
$6.69B
Free cash flow, trailing twelve months
$338M
Net income, trailing twelve months
−$320M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
−3.0%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.