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

Gross Profit Margin

The gross profit margin exhibited an upward trend from 50.07% in 2020 to 56.19% in 2022. However, this was followed by a significant decline to 42.72% in 2023 and a slight further decrease to 41.91% in 2024. The margin then rebounded sharply to 54.36% in 2025, indicating a recovery in the core profitability of sales after a period of deterioration.

Operating Profit Margin

The operating profit margin improved from 13.77% in 2020 to a peak of 18.66% in 2021, but then decreased steadily to 13.51% in 2022. A notable decline occurred in 2023 with the margin turning negative at -21.78%, followed by further significant negative margins of -67.12% in 2024 and -77.94% in 2025. This indicates escalating operational challenges and costs that outweighed revenues substantially in the later years.

Net Profit Margin

The net profit margin followed a similar trajectory to the operating margin, increasing from 13.09% in 2020 to 17.46% in 2021 before falling to 11.93% in 2022. A sharp downturn ensued, with the margin turning negative to -21.02% in 2023, then declining dramatically further to -69.99% in 2024 and -79.5% in 2025. This points to worsening overall profitability with significant losses in the most recent periods.

Return on Equity (ROE)

The ROE showed positive returns initially, increasing from 15.93% in 2020 to 17.67% in 2021. It then dropped to 10.97% in 2022 and turned negative at -12.44% in 2023. The decline became more severe in 2024 and 2025, with values of -66.06% and -209.52%, respectively. The substantial negative ROE in the last two years indicates severe erosion of shareholder value and potential financial distress.

Return on Assets (ROA)

ROA trends mirrored those of ROE, starting at 8.17% in 2020 and increasing to 9.77% in 2021. It then decreased to 6.39% in 2022 before becoming negative at -7.09% in 2023. Further negative deterioration occurred, reaching -30.65% in 2024 and -48.79% in 2025, reflecting declining efficiency in asset utilization and significant losses relative to total assets.

Gross Profit

The gross profit exhibited an overall increasing trend from 1,546,520 thousand US dollars in 2020 to 3,062,200 thousand US dollars projected in 2025. There was consistent growth each year, with a notable acceleration between 2023 and 2025, indicating improved operational efficiency or increased sales volume during this period.

Net Revenue

Net revenue also showed a general growth trajectory, rising from 3,088,970 thousand US dollars in 2020 to an anticipated 5,633,600 thousand US dollars in 2025. A significant jump occurred between 2022 and 2023, where revenue increased sharply from approximately 3.5 billion to over 5.3 billion US dollars, sustaining this elevated level through 2025.

Gross Profit Margin

The gross profit margin percentage displayed some volatility over the years. It increased steadily from 50.07% in 2020 to a peak of 56.19% in 2022, reflecting higher profitability relative to revenue during that time. However, there was a marked decline in 2023 and 2024, dropping to 42.72% and 41.91% respectively, before rebounding to 54.36% in the forecasted 2025 figure. This fluctuation may indicate changing cost structures or pricing strategies impacting profit efficiency during these years.

Income (loss) from operations

The income from operations exhibited a fluctuating trend over the analyzed periods. Initially, there was a significant increase from 425,267 thousand USD in 2020 to 629,384 thousand USD in 2021, followed by a decline to 473,595 thousand USD in 2022. A sharp deterioration is evident starting in 2023, with the figure turning negative to -1,165,200 thousand USD and continuing to deepen the loss in the subsequent years, reaching -4,391,100 thousand USD by 2025. This indicates a marked downturn in operational profitability beginning in 2023 and worsening thereafter.

Net revenue

Net revenue showed a consistent upward trajectory across the periods. It rose from 3,088,970 thousand USD in 2020 to 3,372,772 thousand USD in 2021, then to 3,504,800 thousand USD in 2022. A notable surge is observed in 2023, with revenue jumping to 5,349,900 thousand USD. This strong revenue level is largely maintained in 2024 at 5,349,600 thousand USD and further increased to 5,633,600 thousand USD in 2025. The data suggest growing sales or market presence despite declining operational income.

Operating profit margin

The operating profit margin reflected notable volatility. Starting at 13.77% in 2020, it increased significantly to 18.66% in 2021. However, a decline occurred in 2022, lowering the margin to 13.51%. A steep reversal is seen beginning in 2023, with margins turning deeply negative at -21.78%, followed by further pronounced negative margins of -67.12% in 2024 and -77.94% in 2025. This denotes escalating operational inefficiencies or increased costs relative to revenue despite revenue growth.

Overall, the data reveal a disjointed trend where revenue growth contrasts sharply with worsening operational results and profit margins from 2023 onward. The company appears to be generating higher sales but at the cost of significant operational losses, which may indicate rising expenses, restructuring costs, or other challenges impacting profitability.

The financial data reveals several notable trends in the company's performance over the observed periods. Net income experienced growth from 2020 through 2021, increasing from approximately 404 million to nearly 589 million US dollars. However, following this peak, net income declined sharply beginning in 2022 and turned negative in 2023, with losses accelerating substantially through 2024 and 2025.

Net revenue showed a generally positive trend, increasing steadily from about 3.09 billion US dollars in 2020 to 3.5 billion in 2022. Thereafter, it rose significantly in 2023, reaching over 5.3 billion, and maintained a similar level in 2024, with a further increase projected for 2025 to approximately 5.63 billion US dollars. This indicates expansion in sales or services despite deteriorating profitability.

The net profit margin mirrors the net income trajectory but further highlights the contrast between revenue growth and profitability. The margin peaked in 2021 at roughly 17.46%, then declined to 11.93% in 2022. Starting in 2023, the margin turned negative, falling to -21.02%, and worsened dramatically to nearly -70% and -79.5% in the following two years. This indicates that increased revenues were not sufficient to offset rising costs or other expenses, resulting in substantial losses relative to sales.

Summary of Trends

Net income showed initial positive growth but deteriorated sharply, turning to large losses.

Net revenue increased steadily, with a marked jump in 2023 and continued growth thereafter.

Net profit margin declined from positive levels to severe negative values, indicating profitability challenges despite rising revenues.

Overall, the data points to a scenario where despite expanding revenue streams, the company faced significant operational or financial difficulties that eroded profit margins and culminated in substantial net losses in the most recent periods analyzed.

Net Income (Loss)

Net income exhibited growth from 404,459 thousand USD in March 2020 to a peak of 588,886 thousand USD in March 2021, followed by a decline to 418,022 thousand USD in March 2022. Subsequently, the company experienced significant losses, starting at -1,124,700 thousand USD in March 2023 and worsening substantially to -3,744,200 thousand USD in March 2024 and -4,478,900 thousand USD in March 2025.

Stockholders’ Equity

Stockholders' equity increased steadily from 2,539,244 thousand USD in March 2020 to 3,331,892 thousand USD in March 2021 and further to 3,809,659 thousand USD in March 2022. A marked rise was observed in March 2023, reaching 9,042,500 thousand USD. However, this was followed by a sharp decrease to 5,667,900 thousand USD in March 2024 and a continued decline to 2,137,700 thousand USD in March 2025.

Return on Equity (ROE)

ROE showed an improving trend from 15.93% in March 2020 to 17.67% in March 2021, before diminishing to 10.97% in March 2022. It then turned negative in March 2023, at -12.44%, with dramatic deterioration over the following years to -66.06% in March 2024 and an extreme -209.52% in March 2025, reflecting significant losses relative to equity.

Summary of Trends and Insights

Initially, the company experienced growth in net income and stockholders’ equity, supported by a reasonable and positive return on equity. Starting from March 2023, the financial position deteriorated significantly, as evidenced by increasing net losses, a sharp decline in equity, and worsening ROE. The drastic negative ROE values indicate that losses have severely impaired shareholder value. The fluctuations in equity indicate potential significant write-downs or capital restructuring activities coinciding with the losses. Overall, the data reveals a troubling financial trajectory in recent years, with profitability and equity being substantially eroded.

Net Income (Loss)

The net income exhibited a positive trend initially, increasing from approximately 404 million USD in 2020 to nearly 589 million USD in 2021, followed by a decline to about 418 million USD in 2022. However, starting in 2023, the company experienced significant losses, with figures turning negative at approximately -1.12 billion USD in 2023 and deteriorating further to -3.74 billion USD and -4.48 billion USD in the subsequent years respectively.

Total Assets

Total assets showed a steady growth from around 4.95 billion USD in 2020 to 6.55 billion USD in 2022. A notable surge occurred in 2023 when total assets more than doubled to approximately 15.86 billion USD. This was followed by a decline in 2024 and 2025, with assets decreasing to roughly 12.22 billion USD and 9.18 billion USD respectively.

Return on Assets (ROA)

The return on assets percentage reflected the profitability trend seen in net income. ROA rose from 8.17% in 2020 to a peak of 9.77% in 2021 before falling to 6.39% in 2022. From 2023 onwards, the ROA sharply declined into negative territory, reaching -7.09% in 2023 and worsening significantly to -30.65% in 2024 and -48.79% in 2025, indicating a substantial decline in asset profitability.

Overall Analysis

The company initially demonstrated growth and profitability through 2021, followed by a gradual decline in net income and returns in 2022. From 2023 forward, there is a pronounced negative shift, with substantial net losses and a steep decrease in asset profitability. Despite the increase in total assets in 2023, the returns generated from those assets deteriorated markedly, signaling challenges in effectively utilizing the asset base to generate profit in the more recent periods.