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

The net income values exhibit considerable volatility over the analyzed period. After a positive net income of approximately 37 million USD in 2005, the company experienced significant losses in subsequent years, reaching peaks of negative 184.9 million USD in 2006 and negative 122.9 million USD in 2010. There are notable intermittent recoveries, such as in 2008, 2014, and the period from 2017 through 2022, where net income returned to positive territory and even demonstrated substantial growth, peaking at approximately 588.9 million USD in 2021.

However, a marked deterioration is observed in the most recent years, with net income dropping sharply to negative figures again, including a loss of around 1.12 billion USD in 2023 and further deepening losses in 2024 and 2025. This suggests the company has encountered significant challenges or extraordinary events impacting profitability towards the end of the period under review.

Stockholders’ equity shows an overall upward trend despite some fluctuations. Starting at approximately 696 million USD in 2005, equity declined gradually to 471 million USD by 2007. A recovery phase then took place, with equity increasing steadily to reach a peak of around 9.04 billion USD in 2023, indicating substantial growth in the company's net assets during this interval.

However, after this peak, equity decreased in 2024 and further in 2025, ending at roughly 2.14 billion USD, signaling a significant reduction in shareholder value in the most recent years. This decline aligns with the observed net income losses, reflecting possible write-downs or other adjustments negatively impacting equity.

The ROE metric mirrors the patterns seen in net income and equity, demonstrating notable instability. Early in the period, ROE values were negative with large magnitude losses, such as negative 33.59% in 2006 and negative 49.63% in 2014, corresponding to years with considerable net losses.

Positive ROE values appear in some years, including 2008 (15.79%), 2013 (45.1%), and a sustained period from 2017 through 2021 where ROE ranged between approximately 6.71% to 17.67%. These figures reflect periods of relative profitability and efficient use of equity capital.

In the latest years, ROE strongly turned negative again, with ratios of -12.44% in 2023, worsening to -66.06% and -209.52% in 2024 and 2025 respectively. Such dramatic declines indicate substantial losses relative to equity and underscore the financial difficulties faced recently.

The company’s financial performance over the analyzed period is characterized by cyclical fluctuations in profitability and equity levels. While there are intervals of strong recovery and growth, particularly between 2016 and 2021, these gains are interspersed with years of deep losses and declining equity.

The severe net losses and corresponding negative returns on equity in the latest years suggest significant operational or market challenges. Despite the overall long-term growth in stockholders' equity, recent downward trends point to deteriorating financial health and increased risk for stakeholders if such patterns persist.