CluenexTake-Two Interactive TTWO
Take-Two Interactive scores weak on business quality (4.2 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Take-Two Interactive does
Take-Two Interactive develops and publishes interactive entertainment for console, PC, and mobile, generating revenue through video game sales and in-game purchases. Major franchises like Grand Theft Auto and NBA 2K drive its top-line expansion. The company is leaning into upcoming major franchise releases visible in recent multi-billion dollar bookings targets.
- What it does best
Take-Two dominates blockbuster console game development, posting 18.1% revenue growth to $6.7 billion. Its edge relies on massive intellectual property budgets and multi-year development cycles that smaller peers cannot easily replicate.
- The main risk
Negative interest coverage of -0.8x leaves the business vulnerable to debt servicing pressures. With $2.5 billion in total debt and ongoing net losses of $320 million, capital structure fragility remains a primary threat.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin reached 56.8% while operating margin stands at -1.7% and net margin is -4.8%. Ongoing losses show that scale has not yet translated into positive operating earnings.
Ecosystem lock-in rests on iconic multi-billion dollar franchises that keep millions of players engaged. Operating margin sits in the bottom decile at the 8th sector percentile.
Revenue grew 18.1% to $6.7 billion, placing it in the top quartile of its sector at the 78th percentile. This marks an acceleration compared to historical periods.
Total debt sits at $2.5 billion against $2 billion in cash, resulting in $529 million of net debt. Free cash flow rebounded to $337 million, signaling improving liquidity.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $10.2M outside pre-planned sales.
Our sealed record on TTWO
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Take-Two Interactive scores weak on the Cluenex quality check (4.2 of 10), measured against its own industry. Profitability is weak, moat fair, growth steady and financial health weak.
In the last 90 days of SEC Form 4 filings: 2 sold $10.2M outside pre-planned sales.
Nov 4, 2026.
See TTWO today
- Today's verdict on TTWO, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Take-Two Interactive (TTWO)”, https://cluenex.com/stocks/ttwo/, data as of Oct 10, 2026.