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

The financial data reveals significant fluctuations in the company's performance over the analyzed periods. Net revenue displays an overall growth trajectory with notable variability.

Net Revenue

Initially, net revenue decreased from approximately 1.2 billion in 2005 to under 1 billion by 2007, displaying a downward trend that bottomed out in 2009 at around 763 million. Following this, revenues generally increased, with occasional fluctuations. Notably, there is a sharp rise in revenue starting in 2012 reaching over 2.3 billion by 2014, and continuing growth to about 3.5 billion by 2018. A more pronounced increase is recorded in 2023, when revenue jumps to over 5.3 billion, holding steady into 2024 and further growing towards 5.6 billion projected for 2025.

Income (Loss) from Operations

Operating income exhibits considerable volatility and periods of loss. Early years show negative results with losses recorded in 2006, 2007, 2009, 2010, and again in 2012, alternating with positive outcomes such as in 2005, 2008, 2011, and notably 2014. From 2015, profit improves substantially, peaking at over 629 million in 2021. However, a sharp reversal occurs in the last three periods, with large operating losses observed, increasing in magnitude to over 4.3 billion by 2025.

Net Income (Loss)

Net income trends broadly mirror operating income, with significant losses in early years (2006-2007, 2009-2010, and 2012). Positive net income resumes from 2011, growing steadily through 2018 and reaching a peak near 589 million in 2021. The years following 2021 reveal a severe decline, culminating in net losses surpassing 4.4 billion by 2025, indicating a substantial downturn in profitability despite rising revenues.

Overall, the data depicts a company experiencing cyclical financial health with phases of recovery and growth interspersed by severe losses. The recent periods demonstrate increasing revenues which, however, coincide with escalating operating and net losses, suggesting challenges with cost management, investment, or market conditions impacting profitability significantly despite higher sales volumes.

The data reveals significant trends in the company's asset base over the period under review.

Current Assets

Current assets show considerable fluctuation with an overall upward trend from 2005 to 2025. Starting at approximately 613 million US dollars in 2005, the figure dips to around 427 million in early 2010 before rebounding significantly to a peak exceeding 4.2 billion in early 2021. This peak is followed by a decline over the subsequent years, ending near 2.8 billion in early 2025. The volatility suggests periods of varying liquidity or changes in working capital components, with an expanding asset base generally supporting increased operational scale or investment activity until 2021, followed by a reduction in current assets.

Total Assets

Total assets exhibit a similar pattern but with a more marked overall growth. Beginning just under 933 million in 2005, there is a dip around 2010, followed by substantial increases reaching a maximum of approximately 15.86 billion in early 2023. After this peak, total assets decline to below 9.2 billion by early 2025. The large rise through the 2010s reflects significant asset accumulation, possibly due to expansion, acquisitions, or capital investment, while the subsequent contraction might indicate asset sales, write-downs, or restructuring activities.

In summary, both current and total assets reflect a phase of rapid growth and expansion through the 2010s, peaking in the early 2020s, followed by a period of asset reduction. This may suggest strategic shifts, changes in capital structure, or market conditions influencing the company’s asset management in recent years.

Current liabilities

The current liabilities show a generally increasing trend over the entire period. From 2005 to around 2009, the values rose steadily, reaching a peak in 2009 at approximately 354 million US dollars. After a decline in the subsequent years until 2012, there is a notable and sharp increase starting in 2013, culminating in a very high level in 2023 at over 3.8 billion US dollars. In 2024 and 2025, there appears to be some fluctuation, but values remain significantly higher than in earlier years.

Total liabilities

Total liabilities also increased over the years, with fluctuations reflecting changes in current liabilities and other liabilities. From 2005 through 2010, there is a consistent rise, followed by a marked jump between 2010 and 2012. Between 2013 and 2022, the trend remains upward, peaking at nearly 6.8 billion in 2023. Similar to current liabilities, total liabilities experience some variability in 2024 and 2025, remaining elevated compared to earlier periods.

Total debt, net

Net total debt data is only available from 2007 onwards, revealing growth from 18 million US dollars in 2007 to a level surpassing 476 million by 2014. Following 2014, the net debt shows a declining pattern with gaps in data, before a substantial increase post-2021, reaching over 3 billion by 2025. This suggests periods of reduction in net debt, followed by aggressive leveraging or borrowing in recent years.

Stockholders’ equity

Stockholders’ equity exhibits a somewhat volatile pattern initially, decreasing from around 696 million in 2005 to 471 million in 2007, then experiencing gradual increases and fluctuations until 2012. A strong upward trend becomes apparent from 2012 onward, with equity nearly doubling between 2012 and 2020, reaching over 3 billion in 2021 and peaking dramatically at about 9 billion in 2023. However, a notable decline occurs in the final two years, dropping first to 5.7 billion and then to around 2.1 billion in 2025, indicating significant equity restructuring or losses.

General observations

The data indicates an overall growth in the company’s liabilities and equity over the 20-year timeframe, with particularly sharp increases in the last decade. The rapid escalation in both current and total liabilities since 2013 points to increased financial obligations. Concurrently, the steep rise and subsequent fall in stockholders’ equity in recent years could reflect major financial restructuring, investment activities, or impacts from market conditions. The net debt data implies cyclical patterns of debt management, with recent years showing a move towards higher indebtedness.

The analysis of cash flow activities over the presented periods reveals significant volatility and trend shifts in operating, investing, and financing cash flows.

Operating Activities

The net cash provided by operating activities displays notable fluctuations. Initial values are positive but relatively modest, followed by sharp negative outflows in 2007 and 2009. After 2009, there are marked recoveries with several years of strong positive cash flow, peaking around 2014 and 2019 with substantial inflows exceeding 700 million and 840 million USD, respectively. However, from 2022 onwards, a steep decline is evident, ending with negative cash flows in the last two years, indicating recent operational difficulties or increased working capital requirements.

Investing Activities

Investing cash flows generally show consistent negative values, reflecting cash outflows likely due to acquisitions or capital expenditures. The cash used in investing activities slightly improved or turned positive only once around early 2010, followed by a return to significant negative outflows in subsequent years. Starting from 2015, the scale of investing outflows expands dramatically, culminating in a severe outflow in 2023 exceeding 2.8 billion USD. The final years indicate continued heavy investment or asset purchases with large negative cash flows.

Financing Activities

Financing activities show a pattern of smaller inflows and outflows in the earlier periods, with occasional positive spikes indicating debt or equity issuance, such as in 2008 and 2013. From 2014 onward, financing cash flows become more volatile, including large outflows around 2014 to 2019, possibly attributable to debt repayments or share repurchases. Noteworthy is the large positive spike in 2023 exceeding 1.9 billion USD suggesting significant capital raised or debt financing. The last period shows a sizeable inflow, indicating active financing strategies continued recently.

In summary, operational cash flows exhibit cycles of strong performance interrupted by downturns, investing activities reflect heavy, increasing capital deployment especially in recent years, and financing flows fluctuate widely, pointing to strategic adjustments in capital structure. The sharp increase in investing cash outflows paired with recent financing inflows may suggest aggressive expansion or acquisitions financed through external capital. The negative operating cash flows in the latest years warrant attention as potential risks to cash sustainability if trends persist.

Basic earnings per share (EPS)

The basic EPS exhibits significant volatility over the period analyzed. Initially, the EPS was positive at $0.54 in 2005 but experienced a notable decline to negative values in 2006 and 2007, reaching as low as -$2.60 and -$1.93 respectively. There was a brief recovery in 2008 with a positive value of $1.29, followed by another dip into negative territory in 2009 and 2010. From 2011 onwards, the earnings showed fluctuating positive and negative values with a general upward trend, peaking at $5.14 in 2021. However, this positive trend reversed sharply in the last three years, with EPS falling significantly to -$7.03 in 2022, and further declining to -$25.58 by 2025. Overall, the pattern indicates irregular profitability with periods of recovery but culminating in a steep downturn in the most recent years.

Diluted earnings per share

The trend in diluted EPS closely mirrors that of basic EPS, suggesting minimal dilution effects. The values also show high volatility, transitioning from $0.53 in 2005 to negative values through 2006 and 2007, a brief positive rebound in 2008, and further fluctuation thereafter. The maximum peak of diluted EPS occurs around 2021 at $5.09, followed by a rapid decrease to negative values in the final years, reaching -$25.58 by 2025. This similarity indicates that share dilution did not significantly alter the earnings per share trends.

Dividend per share

No dividend payments are reported throughout the entire period, indicating that the company has not distributed earnings to shareholders via dividends during these years.