Forensic Analysis · Technology / Software · as of Jun 27, 2026
TAKE TWO INTERACTIVE SOFTWARE INC (TTWO)
A forensic read on TAKE TWO INTERACTIVE SOFTWARE INC built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Distress
Financial health
-1.6
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-8.6%
ROE
$44.3B
Market cap
TAKE TWO INTERACTIVE SOFTWARE INC earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is -1.6, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-2%Return on invested capital.Return on invested capital is -2% and rising from -7% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+15.7%/yrShare-count dilution.Diluted share count changed +47% over the last 3 years to FY2024 (+15.7%/yr). The count is GROWING — existing holders are being diluted. That's ~15.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2021 has been diluted ~47%.
5% of revStock-based comp load.Stock-based compensation ran 5% of revenue and 66% of free cash flow in FY2026. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
stoppedShareholder returns — halted.Capital returns have STOPPED — $200M of buybacks + dividends in FY2022, but ~$0 in FY2024. A halt usually means the company is conserving cash; understand why before reading it as neutral.
$5.9BGoodwill impairments.Took $5.9B of goodwill writedowns across 2 year(s) (FY2024 ($2.3B), FY2025 ($3.5B)). Writedowns mean past acquisitions underperformed what was paid for them — worth weighing on capital-allocation skill.
Key fundamentals
Net Margin-4.5%
Debt / Equity0.72x
Free Cash Flow$461.5M
Latest Revenue$6.66B
Return on Equity-8.5%
Revenue Growth YoY+18.2%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on TAKE TWO INTERACTIVE SOFTWARE INC:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about TTWO's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown