Take-Two 10-K — FY2023 (May 2024)

Take‑Two’s FY 2024 operating results demonstrate a company in transition, with revenue essentially flat at $5.35 billion—only a 0.3 % decline from FY 2023—yet net losses widening to $3.74 billion, largely due to a $2.34 billion goodwill impairment and substantial Zynga‑related write‑downs. Gross profit margin slipped to 41.9 % from 42.7 %, reflecting higher amortization of intangible assets and the impact of a $577 million Zynga acquisition impairment. Operating expenses surged 69 % to $5.83 billion, driven by acquisition costs and increased personnel spending, while operating cash flow turned negative at $16.1 million.

Revenue composition has shifted toward mobile, which now accounts for 51.4 % of total sales, while console and PC revenues have declined as flagship franchises such as Tiny Tina’s Wonderlands and NBA 2K underperformed. Digital distribution remains dominant, with 96 % of sales through online channels and a heavy reliance on third‑party platforms (Apple, Google, Sony, Microsoft). The company’s top five customers generate roughly 80 % of net revenue, underscoring concentration risk.

Geographically, 38.7 % of revenue originates outside the United States, exposing Take‑Two to foreign‑currency fluctuations and varying regulatory regimes. The firm’s liquidity position is supported by a $750 million credit facility and ample cash, but ongoing debt refinancing and contingent earn‑outs from recent acquisitions (Zynga, Gearbox) create future cash‑flow uncertainty. Risk disclosures highlight sensitivity to platform policy changes, content‑rating shifts, cyber incidents, and talent retention—all of which could materially affect future profitability.