Aureus
FRed Flag

Take-Two Interactive Software,(TTWO)

F

Financial data as of Mar 31, 2026Declining · Communication Services

FCF Margin1.9%Free Cash Flow / Revenue
Cash Conversion-209.4%Operating CF / Net Income
Free Cash Flow$461.5M
Revenue$6.7B
Net Cash-$1.4BNet debt position
Debt / FCF23.1xElevated debt burden
Current Ratio1.24Adequate short-term liquidity
YoY FCF Growth-40.3%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-2Extreme debt-to-FCF ratio (23.1x)
→
-1Significant YoY FCF decline (-40.3%)
→
-0.5Highly volatile FCF (consistency: 1.77)
→
FinalF

Analysis Summary

Concerns

  • Low FCF margin (1.9%)
  • Heavy debt position ($1.4B net debt, 23.1x FCF)
  • High debt-to-FCF ratio (23.1x)
  • Significant YoY FCF decline (-40.3%)
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.3B stock-based compensation (72% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin1.9%
Net Margin-4.5%
Operating CF Margin9.4%
CapEx Ratio2.4%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$1.4BNet debt position
Debt / FCF23.1xElevated debt burden
Current Ratio1.24Adequate liquidity
Debt / Equity0.84Low leverage

Quarterly FCF Trend

-40.3% YoYDeclining (-40.3%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameTake-Two Interactive Software,
SectorCommunication Services
Free Cash Flow$461.5M
Revenue$6.7B
Net Income-$298.2M
Operating Cash Flow$624.3M
Capital Expenditure$162.8M
FCF Margin1.9%
Cash Conversion Rate-209.4%
Net Margin-4.5%
Total Debt$3.0B
Total Cash$1.5B
Net Cash-$1.4B
Current Ratio1.24
Debt / Equity0.84
Debt / FCF23.1x
YoY FCF Growth-40.3%
Positive Quarters4 of 5
Trend DirectionDeclining
Report DateMar 31, 2026
GradeF
Data SourceYahoo Finance

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