Take-Two Interactive drew 15 news stories in the 24 hours to 10 November, against a usual one a day. The coverage centres on second-quarter results and the approaching GTA VI launch, with pre-order performance described as exceeding expectations and a maintained $8 billion bookings outlook. The most telling point from the filings: revenue growth has slowed to 3.1% over twelve months, down 12.2 percentage points from the rate a quarter earlier, while free cash flow fell 51.8% over the same stretch.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY27 Q2.
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| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY25 Q3 | 1.0% | -61.0% | -9.1% |
| FY25 Q4 | 5.3% | -77.9% | -3.8% |
| FY26 Q1 | 7.3% | -72.2% | -1.0% |
| FY26 Q2 | 14.0% | -64.1% | 3.3% |
| FY26 Q3 | 20.3% | -59.3% | 7.4% |
| FY26 Q4 | 18.2% | -1.6% | 6.9% |
| FY27 Q1 | 15.3% | -2.4% | 5.0% |
| FY27 Q2 | 3.1% | -2.8% | 1.5% |
Growth has slowed
Growth is decelerating. Revenue over the twelve months to Q2 2027 was $6.4 billion, up 3.1% on the year before. That growth rate was down 12.2 percentage points on the rate a quarter earlier.
Sales are outrunning cash. Revenue rose 3.1% over the year while free cash flow fell 51.8%, to $98.0 million. Less of each dollar of sales is turning into cash for shareholders.
Investment is absorbing more of what the business generates. Capital spending rose 74.2% to $269.1 million, while operating cash flow rose 2.6% to $367.1 million. The gap between the two left $98.0 million of free cash flow, a 1.5% margin on revenue, down 1.7 percentage points from a year earlier.
Dilution is working against per-share claims. The average diluted share count rose 3.5% over the year, so each share's claim on profit grows more slowly than profit itself. The company reported a net loss of $240.5 million over the twelve months, with an operating margin of −2.8%, up 61.3 percentage points from a year earlier.
Where Take TWO Interactive Software's figures sit in its own record
Today's free-cash-flow margin of 1.5% is higher than 30% of the company's own past quarterly readings, which have ranged from −19.4% to 35.5%. The operating margin of −2.8% is higher than 33% of past readings, spanning −77.9% to 21.7%. The twelve-month revenue growth rate of 3.1% is higher than 31% of past readings, which have ranged from −60.2% to 130.9%.
The value hinges on margins more than growth
Our model shows the valuation is sensitive to both growth and cash conversion. Growth 5 percentage points lower would lower the value by 32.7%; growth 5 percentage points higher would raise it by 43.0%. A free-cash-flow margin 1 percentage point lower would lower it by 40.0%.
What the filings cannot tell you at Take TWO Interactive Software
Our figures run to Q2 2027, from the company's own filings; they cannot confirm, explain or rule out anything in the reports. The revenue growth and free cash flow figures above are the current-state numbers against which the coverage's focus on the GTA VI launch and pre-order performance is set.