TAKE TWO INTERACTIVE SOFTWARE INC (TTWO)
Vertical SaaSSaaS Metrics & Investor Data — Q2 2026
analyticsEditorial Financial Analysis
Financial Performance & Trajectory
Take-Two Interactive’s trailing revenue reached $6.34B in Q4 2025, reflecting a decisive acceleration in YoY growth from 5.3% in Q1 to 12.5% by year-end. This step-change suggests strong execution on major franchise releases or back-catalog monetization. Gross margins improved 290 basis points sequentially to 57.3%, indicating a favorable mix shift toward higher-margin digital sales and recurring microtransactions. However, free cash flow margins remain negative at -4.2%, signaling elevated capital expenditure or working capital demands tied to game development cycles. The business is scaling effectively on the top line, but cash generation lags—a typical tension for asset-heavy vertical software firms with long development pipelines.
Operational & Go-to-Market (GTM) Efficiency
The Rule of 40 score improved markedly from 1.5 in Q1 to 8.3 in Q4, driven primarily by revenue growth acceleration rather than margin expansion. While still below the 40-point threshold, the trajectory suggests improving capital efficiency. NRR and CAC payback are not disclosed, limiting visibility into unit economics. The negative FCF margin (-4.2%) implies that reinvestment into R&D and marketing is outpacing operational cash generation, likely reflecting heavy investment in upcoming title launches. This is characteristic of a studio-led model where upfront costs precede revenue recognition. Investors should monitor whether these reinvestments translate into sustained growth acceleration or compress margins further.
Market Valuation & Sentiment
At 6.6x EV/Revenue, Take-Two trades at a discount to its prior multiple of 8.1x in Q1 2025, despite stronger growth and margin improvement. This compression suggests the market is pricing in execution risk or a peak-cycle growth narrative. Insider activity reveals a net selling trend of -$13.4M over the last ten filings with zero buys, signaling caution from management. Wall Street remains bullish with a consensus Buy rating (44 Buys, 12 Holds) and an average price target of $288.67, implying significant upside. The divergence between insider caution and analyst optimism warrants careful scrutiny—valuation appears reasonable relative to growth, but insider behavior tempers conviction.
Disclaimer: The editorial financial analysis above is generated using data sourced from SEC EDGAR filings and Wall Street consensus ratings. This analysis is provided for informational and educational purposes only and does not constitute financial, investment, or professional advice. Readers should conduct their own research or consult with a registered financial advisor before making any investment decisions.
TAKE TWO INTERACTIVE SOFTWARE INC (TTWO) is a Vertical SaaS SaaS company with a market cap of N/A as of Q2 2026. The company trades at N/A EV/Revenue and has delivered +15.6% revenue growth year-over-year. With a gross margin of 58% and FCF margin of -7.9%, TAKE TWO INTERACTIVE SOFTWARE INC scores 8 on the Rule of 40 — placing it in the below-median of public SaaS companies tracked by SaaSDB.
compare_arrowsSector Benchmarking
Latest company metrics compared to the Vertical SaaS sector medians
Rule of 40 is 7.6% (sector median: 33.1%) — underperforming peers by 25.4%.
Revenue Growth is 15.6% (sector median: 17.6%) — underperforming peers by 2.1%.
Gross Margin is 57.6% (sector median: 73.7%) — underperforming peers by 16.1%.
FCF Margin is -7.9% (sector median: 11.8%) — underperforming peers by 19.7%.
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rocket_launchFounder & Operator Metrics
Not publicly disclosed by this company: Net Revenue Retention·Gross Retention·ARR·ARR Growth·CAC Payback
trending_upEfficiency & Investment Trends
biotechR&D Intensity Trend
R&D expense as % of revenue over time
insightsOperating Leverage Trend
Operating leverage ratio (margin expansion vs growth)
Growing efficiently. Operating income is expanding faster than revenue growth, indicating positive operating leverage.
Insider Trading Activity
90-Day Insider Sentiment: Bearish / Net Selling. Insiders executed 8 sell transactions (totaling $1.3M) with zero buys. Last activity on Sep 15, 2026.
Analyst Ratings
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