10-K annual report · filed May 20, 2025

Take-Two Interactive (TTWO) FY2025 10-K Annual Report

Short answer

Take-Two Interactive (TTWO) filed its fiscal 2025 10-K annual report with the SEC on May 20, 2025. It reported revenue of $5.6B (+5.3% year over year) and net income of −$4.5B.

  • Top risk flagged: Regulatory risk: Apple’s AppTracking Transparency framework requiring explicit user consent, effective since April 2021, impacts advertising and user data use on iOS devices

FY2025 key financial metrics · XBRL

Revenue
$5.6B
+5.3% YoY
Net income
−$4.5B
−19.6% YoY
Operating margin
-77.9%
−10.8 pp YoY
Gross margin
54.4%
+12.5 pp YoY
EPS (diluted)
−$25.58
−16.2% YoY
ROE
-209.5%
−143.5 pp YoY
Operating cash flow
−$45M
−180.7% YoY

Source: XBRL data from the Take-Two Interactive (TTWO) FY2025 10-K on SEC EDGAR. USD.

Take-Two Interactive FY2025 10-K analysis

AI summary of each section, grounded in the filing text

Business Overview

  • Core business model: Interactive entertainment through development, publishing, and distribution of video games and related content worldwide
  • New acquisition: Completed purchase of The Gearbox Entertainment Company, Inc. in June 2024 for 2.8 million shares of common stock
  • Strategic emphasis: Increased focus on high-quality titles for key console platforms amid industry consolidation and economic challenges
  • Financial highlight: Net revenue $5.63B, up 5.3% YoY; operating loss increased to $4.39B mainly due to $3.5B goodwill impairment charges
  • Digital revenue accounted for 96.4% of net revenue; mobile platform reliance continues with noted margin impact from Apple and Google fees

Management Discussion & Analysis

  • Revenue $5,633.6M, up 5.3% YoY from $5,349.6M driven by Match Factory! (+$237.1M), Civilization (+$127.2M), and Toon Blast (+$84.2M)
  • Gross margin 54.3% vs 41.9% YoY, operating loss $(4,391.1)M vs $(3,590.6)M, driven by $3,545.2M goodwill impairment vs $2,342.1M prior year
  • Best performing segment: Mobile revenue $2,942.0M up $194.0M; worst: Console revenue $2,099.1M down $68.2M YoY
  • Operating cash flow used $(45.2)M; investing cash flow used $(151.5)M; financing cash flow provided $650.5M from debt issuance and stock; capital expenditures guidance $145M for FY26
  • Management highlights risks from goodwill impairments, tax uncertainties, foreign currency, and expects no share buybacks in FY25; cautious outlook on economic conditions and credit risk exposure

Risk Factors

  • Regulatory risk: Apple’s AppTracking Transparency framework requiring explicit user consent, effective since April 2021, impacts advertising and user data use on iOS devices
  • Geopolitical/macroeconomic threat: Supply chain disruptions worsened by Russia-Ukraine and Israel-Hamas wars complicate hardware infrastructure availability
  • Operational risk: Dependency on third-party platform approvals from Sony and Microsoft for game publishing, affecting 37.3% of net revenue by product platform in FY2025
  • Competitive risk: Intense competition from major publishers like Electronic Arts, Tencent, and Apple/Google’s mobile platforms, challenging player acquisition and retention
  • Financial risk: Significant outstanding debt posing financial leverage concerns affecting capital allocation and investment flexibility

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