Quality score · TTWO · Communication Services

Is Take-Two Interactive Software, Inc. a quality business?

Take-Two Interactive Software, Inc. (TTWO) scored on five pillars from its reported financial statements, and ranked against 80 Communication Services companies.

3.5/ 10
Low quality
as of October 19, 2026
Profitability
1.3 Weak
Solvency
3.0 Weak
Growth
8.8 Strong
Efficiency
—
Predictability
1.5 Weak
Strongest pillar: Growth · Weakest: Profitability

Take-Two Interactive Software, Inc. (TTWO) scores 3.5 out of 10 as of , computed from its reported financial statements. That reads as low quality. The reading rests on growth, and profitability is what holds it back.

One pillar, efficiency, is unscored because the filings behind it carry too little to judge. It is shown as a dash rather than a zero, and the overall score is the weighted average of what could be scored.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Take-Two Interactive Software, Inc. have an economic moat?

No moat

Take-Two Interactive Software, Inc.’s filings do not show enough of the signs a moat leaves: 0 of 5 indicators passed.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Take-Two Interactive Software, Inc. scores

Take-Two Interactive Software, Inc. (TTWO) has a Lemma Quality Score of 3.5 out of 10 as of October 19, 2026, which reads as low quality. A low reading means the reported numbers show weakness on several pillars at once, which is a reason to understand the business before anything else. Five pillars feed it, and every one of them is computed from what the company reported rather than from its share price.

Set against 80 Communication Services companies, Take-Two Interactive Software, Inc. lands at the 27th percentile, just below the middle of the group. A typical company in the group scores 4.6, and the best quarter starts from 6.0. Take-Two Interactive Software, Inc. is below that typical reading.

Pillar by pillar

Profitability

Take-Two Interactive Software, Inc.’s profitability score is 1.3 out of 10 (weak). Against a median of 3.7 among 77 Communication Services companies, that is well below the group and the 20th percentile. Low margins and returns leave little cushion, so a downturn or a cost increase reaches the bottom line quickly.

Solvency

Solvency scores 3.0 out of 10, which reads as weak. The median across 62 Communication Services companies is 4.8, so Take-Two Interactive Software, Inc. is well below its peers on this pillar and ranks at the 31st percentile. Weak solvency means debt is heavy relative to earnings or cash flow, which makes the business more sensitive to interest rates and to any fall in profits.

Growth

On growth, Take-Two Interactive Software, Inc. scores 8.8, a strong reading. Its peers have a median of 4.7 across 64 Communication Services companies, which places it well above them, at the 90th percentile. A high growth score rewards a business that is getting bigger in a way that reaches the bottom line, not just the top one.

Efficiency

There is no efficiency score for Take-Two Interactive Software, Inc.: too little of the pillar could be measured from the filings to give an honest reading. The overall is therefore the weighted average of the other pillars. Across 76 Communication Services companies the median for this pillar is 6.1. Without it the overall cannot say how well reported profit turns into cash.

Predictability

On predictability, Take-Two Interactive Software, Inc. scores 1.5, a weak reading. Its peers have a median of 4.5 across 80 Communication Services companies, which places it well below them, at the 5th percentile. When results are this uneven, the averages behind the other pillars hide a lot of movement, and a longer history tells more than the latest year.

Strongest and weakest pillar

This is a lopsided profile. Growth scores 8.8 but profitability only 1.3, a gap of 7.5 points, so the overall hides a business that is excellent in one respect and weak in another. A growth lead says the business is expanding faster than it is doing anything else well, which is worth checking against predictability. A profitability shortfall is the one most worth understanding, since it bears directly on whether the business creates value.

What would move the score

Closing the gap on profitability would do the most for the overall. At the median of Communication Services companies, 3.7, Take-Two Interactive Software, Inc. would score about 4.2 instead of 3.5. Only four of the five pillars could be scored. Together they carry 85 of the 100 weight points (the full set is profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and the overall is the weighted average of those alone.

Take-Two Interactive Software, Inc. and similar companies

These are the Communication Services companies closest to Take-Two Interactive Software, Inc. in market value. Each has its own page scored on the same five pillars, so the comparison is like for like.

What each pillar measures

Profitability

1.3 / 10

How much profit the company generates from its capital and sales.

Solvency

3.0 / 10

The company’s ability to service debt and meet its obligations.

Growth

8.8 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

—

How well assets and earnings convert into cash and output.

Predictability

1.5 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Take-Two Interactive Software, Inc. a quality business?

On this reading Take-Two Interactive Software, Inc. scores 3.5 out of 10, which reads as low quality. Its strongest pillar is growth, its weakest is profitability. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Take-Two Interactive Software, Inc. compare with other Communication Services companies?

Take-Two Interactive Software, Inc. ranks at the 27th percentile of the 80 Communication Services companies Lemma publishes a score for. The median there is 4.6 and the top quarter starts at 6.0, against Take-Two Interactive Software, Inc.’s 3.5.

What does the TTWO quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 19, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for TTWO are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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Inside Lemma Analysis the same five pillars run on every company we cover, with the metrics behind each one, current fundamentals, a DCF you control and a watchlist that tells you when the price catches up.

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