Take-Two Interactive Software Inc. (NASDAQ:TTWO)

Net Income Analysis

Reported net income demonstrated a positive trajectory from March 31, 2020, to March 31, 2021, increasing from 404,459 thousand US dollars to 588,886 thousand US dollars. However, the figure declined to 418,022 thousand US dollars by March 31, 2022, indicating a downward movement.

From March 31, 2023, onwards, there was a notable shift into negative territory. The net loss recorded was 1,124,700 thousand US dollars in 2023, which sharply worsened to 3,744,200 thousand US dollars in 2024 and further deteriorated to 4,478,900 thousand US dollars estimated for 2025, showing an increasing magnitude of losses over these years.

Adjusted Net Income Analysis

The adjusted net income closely parallels the reported net income values but starts slightly below in 2020 with 401,127 thousand US dollars and increases to 592,250 thousand US dollars in 2021. It then decreases to 412,930 thousand US dollars by 2022, mirroring the reported net income trend.

The adjusted figures also reflect the transition to net losses starting from 2023, with losses of 1,121,800 thousand US dollars increasing to 3,742,700 thousand US dollars in 2024 and matching the projected reported loss of 4,478,900 thousand US dollars for 2025. This consistency indicates that adjustments made do not significantly alter the overall profitability trend.

Trend Summary

Overall, there is an observable initial growth peak in net income up until 2021, followed by a decline in 2022 and a pronounced shift to substantial losses from 2023 onwards. Adjusted data confirms this trend without significant deviation, signifying that non-recurring or adjustment factors do not materially change the observed financial performance.

The progressive increase in losses through 2023 to 2025 suggests deteriorating financial health, which may warrant further investigation into operational, market, or strategic factors contributing to this negative momentum.

Profit Margins

The reported net profit margin exhibited a positive trend between 2020 and 2021, increasing from 13.09% to 17.46%. However, this was followed by a decline to 11.93% in 2022, and a pronounced downturn thereafter, with margins turning negative to -21.02% in 2023 and worsening significantly to -69.99% in 2024 and -79.5% projected for 2025. The adjusted net profit margin mirrored this trend closely, showing a similar initial increase and subsequent steep decline into negative territory over the same periods.

Return on Equity (ROE)

The reported ROE initially increased from 15.93% in 2020 to 17.67% in 2021 before falling to 10.97% in 2022. Following this, there was a sharp decrease, with reported ROE becoming negative at -12.44% in 2023 and deteriorating further to -66.06% in 2024 and an extreme -209.52% projection for 2025. The adjusted ROE figures showed a consistent pattern with the reported metrics, indicating that core operational adjustments did not significantly alter the negative trajectory.

Return on Assets (ROA)

The reported ROA rose from 8.17% in 2020 to 9.77% in 2021, then declined to 6.39% in 2022. A marked shift occurred afterward, with ROA turning negative to -7.09% in 2023 and worsening to -30.65% and -48.79% in 2024 and 2025 respectively. Adjusted ROA followed the same pattern closely, suggesting the declining asset profitability trend persisted despite adjustments.

Overall Trends and Insights

The data reflects a period of initial improvement in profitability and returns from 2020 to 2021, followed by a steady and then precipitous decline from 2022 onward. Negative profit margins and returns from 2023 suggest significant operational or market challenges impacting the company's financial performance. Both reported and adjusted figures consistently show this downturn, indicating that extraordinary or non-recurring items are unlikely the primary drivers. The severe negative values projected for 2024 and 2025 imply risks to the company’s profitability and capital efficiency if current trends continue.

Net Income Trends

The reported net income experienced growth from 404,459 thousand US dollars in 2020 to a peak of 588,886 thousand US dollars in 2021. However, a decline followed in 2022 with net income dropping to 418,022 thousand US dollars. From 2023 onwards, the company reported substantial net losses, starting at -1,124,700 thousand US dollars, worsening to -3,744,200 thousand US dollars in 2024, and further deteriorating to -4,478,900 thousand US dollars by 2025.

Adjusted Net Income Trends

The adjusted net income mirrored the reported net income pattern with slight variations. It rose from 401,127 thousand in 2020 to 592,250 thousand in 2021, then declined to 412,930 thousand in 2022. The adjusted figures also indicate significant losses commencing in 2023 with -1,121,800 thousand US dollars, worsening to -3,742,700 thousand US dollars in 2024, and reaching -4,478,900 thousand US dollars in 2025, closely aligning with reported losses.

Profit Margin Patterns

Reported net profit margin showed a strong positive trend initially, increasing from 13.09% in 2020 to 17.46% in 2021, followed by a decrease to 11.93% in 2022. Starting in 2023, there was a dramatic shift to negative profitability, with margins declining sharply to -21.02%. This negative trend intensified, reaching -69.99% in 2024 and further dropping to -79.5% by 2025.

Adjusted Profit Margin

The adjusted net profit margin closely aligns with the reported margin throughout the period. It rose from 12.99% in 2020 to 17.56% in 2021, decreased to 11.78% in 2022, and then turned negative starting in 2023 at -20.97%. The adjusted margin followed the reported margin's downward trajectory, falling to -69.96% in 2024 and -79.5% in 2025.

Summary

Overall, the financial data indicates a period of profitability improvement between 2020 and 2021, followed by a decline in 2022. Starting in 2023, significant financial challenges are evident, with substantial net losses and sharply negative profit margins that continue to worsen through 2025. The close alignment between reported and adjusted figures suggests that the adjustments have minimal impact on the overall profitability trends.

The financial data reveals a clear deterioration in the company's profitability over the observed periods, particularly after the fiscal year ending March 31, 2022.

Net Income (Loss) Trends

The reported net income increased from US$404,459 thousand in 2020 to a peak of US$588,886 thousand in 2021, followed by a decline to US$418,022 thousand in 2022. Subsequently, there is a pronounced shift to net losses, with a loss of US$1,124,700 thousand in 2023, further deepening to losses of US$3,744,200 thousand and US$4,478,900 thousand in 2024 and 2025 respectively. The adjusted net income follows a similar trend, closely aligning with reported figures across all periods.

Return on Equity (ROE) Evolution

Corresponding to the net income trends, the reported ROE indicates strong profitability in the initial three years, peaking at 17.67% in 2021 before declining sharply to 10.97% in 2022. The values then shift to negative territory, with -12.44% in 2023 and a steep drop to -66.06% and -209.52% in 2024 and 2025 respectively. Adjusted ROE values mirror the reported ROE closely, showing consistent negative returns from 2023 onwards.

Insights

The company experienced robust profitability and returns in the early years, followed by a significant and sustained downturn starting in 2023. The shift from profits to large losses suggests substantial operational or market challenges impacting income generation and equity returns. The adjusted figures' alignment with reported data confirms that the adjustments did not materially alter the overall financial performance trends.

The financial data reveals significant fluctuations in net income and return on assets (ROA) over the six-year period under review. Initially, reported net income showed a positive and growing trend from 404,459 thousand US dollars in 2020 to a peak of 588,886 thousand in 2021. However, this was followed by a marked decline to 418,022 thousand in 2022. Subsequently, the company faced substantial losses starting in 2023, with reported net income dropping to a negative 1,124,700 thousand US dollars, further deteriorating to negative 3,744,200 thousand in 2024, and reaching a trough of negative 4,478,900 thousand in 2025.

The adjusted net income closely mirrors the reported figures throughout the periods, indicating that the adjustments made have a minimal impact on the overall income trend.

Return on assets demonstrates a similar pattern. Reported ROA increases from 8.17% in 2020 to a high of 9.77% in 2021, but then declines sharply to 6.39% in 2022. From 2023 onwards, the company registers negative ROA values, indicating asset utilization is generating losses rather than profits. The decline continues precipitously through 2024 and 2025, with ROA reaching -30.65% and -48.79%, respectively.

Adjusted ROA tracks closely with the reported ROA, corroborating the consistency of the company's asset performance assessment under both reported and adjusted measures.

Overall, the data indicate the firm experienced a period of growth and profitability up to 2021, followed by a significant downturn starting in 2022, culminating in substantial net losses and severely negative returns on assets by 2025. This trend suggests deteriorating operational performance and/or considerable adverse events impacting financial outcomes in the latter years.