TTWOTAKE TWO INTERACTIVE SOFTWARE INC

Services-Prepackaged Software

Revenue: $6.7B; 18% YoY
Operating margin: -1.6%; 98% YoY
EBITDA: $94M; 102% YoY
Market cap: $35.6B
Employees: 12,909; $516K revenue each
Net debt / EBITDA: 12.4×; $1.2B net debt
AI in 10-K: 3.9; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersYes
5 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
$143K median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
5% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
0% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
12% of assets
Over 40% of assets
Shareholder dissentNo
95% lowest support
Any vote under 80% support

Buyer economics 0 of 4

Low revenue per employeeNo
$516K · 59th pct
Bottom quartile of its SIC industry
Quiet on AINo
3.9 per 10K words · 78th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
12.4× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$35.6B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$165M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$3.5B	$5.3B	$5.3B	$5.6B	$6.7B	18%
Operating income	$474M	−$1.2B	−$3.6B	−$4.4B	−$104M	98%
Net income	$418M	−$1.1B	−$3.7B	−$4.5B	−$298M	93%
Operating cash flow	$258M	$1M	−$16M	−$45M	$624M	1481%
Capex	$159M	$204M	$142M	$169M	$163M	3.9%
Stock-based comp	$183M	$318M	$336M	$324M	$305M	5.8%
Buybacks	$200M	$0	$0	—	—

Deal filings

None.

13D filers

None on file.

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $165M · 97
Net: −$165M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	$403K	$403K	112	137
FY2025	$106K	$106K	117	129
FY2024	$274K	$274K	84	121
FY2023	$115K	$115K	68	97
FY2022	$143K	$143K	87	107