Analysis for TTWO
- 📈 Growth — 21/30
- 💰 Profitability — 17/20
- 🏦 Financial Health — 16/20
- 💵 Valuation — 10/20
- ⚠️ Risk — 7/10
Summary:
📈 Growth & Financial Trajectory
Eight quarters show revenues rising from about $1.338B to about $1.680B, a roughly 25% increase. The trend is constructive on the top line, with a mild deceleration into 2026 Q4. Net income remains negative but improved from roughly -$262M in early 2025 to about -$59.5M in 2026 Q4, signaling narrowing losses and some operating leverage.
💰 Margins & Cash Flow
Gross margin stayed in the mid-50s to ~63% range, with a peak around 63% in 2025 Q1. Operating margin turned positive in several quarters (e.g., 2025 Q1) and remained modestly positive in 2026 Q4. Cash flow from operating activities has been positive in the latter quarters (e.g., $305.2M in 2025 Q3 and $235.4M in 2026 Q4), supporting liquidity despite ongoing net losses.
🛡️ Balance Sheet & Liquidity
Current assets ≈ $3.199B vs current liabilities ≈ $2.589B; the ratio is around 1.23x. Equity ≈ $3.511B against total liabilities ≈ $5.872B, implying a modest leverage profile and resilience amid cash-flow improvement.
⚠️ Key Drivers & Risks
- Drivers: Franchise game releases and sustained live services monetization.
- Risks: Ongoing quarterly losses and sensitivity to game-cycle timing; valuation risk if profitability remains subdued.