NASDAQ Shariah screener · October 2026

Is Take-Two Interactive Software, Inc. (TTWO) Halal?

PASS

Take-Two Interactive Software, Inc. · NASDAQ: TTWO · Technology

The short answer

Take-Two Interactive Software (NASDAQ: TTWO) passes this Shariah screener: its video-game publishing business is not in a prohibited industry, its debt is about 6.7% of market cap (under the 33% ceiling), and its separately disclosed interest income is about 1.5% of revenue (under the 5% ceiling).

Gate 1 — Business activity: PASS

Take-Two Interactive Software, Inc., based in New York, New York, describes itself in its Q1 FY2027 Form 10-Q as a leading developer, publisher, and marketer of interactive entertainment, operating principally through Rockstar Games, 2K, and Zynga, with products for console gaming systems, mobile, and PC delivered via physical retail, digital download, online platforms, and cloud streaming.

Business screen (factual, from the filing): the company's core business is video-game publishing — not conventional banking, lending, or insurance, and not alcohol, pork, tobacco, or weapons. The filing discloses that 84.1% of Q1 FY2027 net revenue ($1,289.8M of $1,533.9M) was recurrent consumer spending — defined as revenue from virtual currency, add-on content, in-game purchases, and in-game advertising — and that digital online channels were 98.3% of net revenue. Take-Two is a game publisher, not a gambling operation, so Gate 1 passes on the facts. Facts only.

Gate 2 — Debt and cash: PASS

Per Take-Two's Q1 FY2027 Form 10-Q (Condensed Consolidated Balance Sheet, June 30, 2026; $ millions; filed August 7, 2026), total interest-bearing debt was: short-term debt, net $629.9M (2027 Notes $600.0M + 2026 Convertible Notes $30.7M, less unamortized discount $0.8M) + long-term debt, net $1,889.8M (2028 Notes $800.0M + 2029 Notes $300.0M + 2032 Notes $500.0M + 2034 Notes $300.0M, less unamortized discount $10.2M) = $2,519.7M. Operating lease liabilities are excluded.

Against a market cap of ~$37.5B (Finnhub, October 2, 2026), the debt-to-market-cap ratio is about 6.7%, below the 33% ceiling. Cash and cash equivalents ($1,364.9M) plus short-term investments ($461.7M) total $1,826.6M, about 4.9% of market cap. Gate 2 passes.

Gate 3 — Non-compliant income: PASS

Take-Two's Condensed Consolidated Statements of Operations separately disclose an "Interest income" line: $22.8M for the three months ended June 30, 2026 (Q1 FY2027), against total net revenue of $1,533.9M — about 1.5%, below the 5% non-compliant income ceiling. Interest expense ($30.4M) and other income/(expense), net (($6.2M)) are disclosed on separate lines within "Interest and other, net." Gate 3 passes.

Key figures used

Business: Take-Two Interactive Software, Inc. (New York, NY); video-game developer and publisher — Rockstar Games (Grand Theft Auto, Red Dead Redemption), 2K (NBA 2K, Borderlands, Mafia), Zynga (mobile: Toon Blast, Words With Friends); console, mobile, and PC; physical retail, digital download, online platforms, cloud streaming
Gate 1: game publisher — not conventional banking, lending, or insurance, and not alcohol, pork, tobacco, or weapons; not a gambling operation; filing discloses 84.1% of Q1 FY2027 net revenue ($1,289.8M of $1,533.9M) was recurrent consumer spending (virtual currency, add-on content, in-game purchases, in-game advertising)
Gate 2: interest-bearing debt $2,519.7M (short-term debt, net $629.9M + long-term debt, net $1,889.8M) vs ~$37.5B market cap = ~6.7% (ceiling 33%); cash and cash equivalents $1,364.9M + short-term investments $461.7M = $1,826.6M (~4.9% of market cap)
Gate 3: interest income $22.8M / total net revenue $1,533.9M = ~1.5% (ceiling 5%); interest expense ($30.4M) and other income/(expense), net (($6.2M)) disclosed on separate lines
Third-party screeners: Zoya flags TTWO "questionable" (Sept 2026); Tabadulat says TTWO passes AAOIFI screening (Sept 2026, purification factor 97.99%); Musaffa/ShariaPortfolio coverage not found

Frequently asked questions

Is Take-Two Interactive (TTWO) stock halal?

In this screener, TTWO passes: its video-game publishing business is not in a prohibited industry, its debt is about 6.7% of market cap (under the 33% ceiling), and its separately disclosed interest income is about 1.5% of revenue (under the 5% ceiling). This is a financial screen, not a religious ruling — consider consulting a qualified scholar for personal guidance.

What does Take-Two Interactive do?

Take-Two develops, publishes, and markets video games through Rockstar Games (Grand Theft Auto, Red Dead Redemption), 2K (NBA 2K, Borderlands, Mafia), and Zynga (mobile titles such as Toon Blast, Empires & Puzzles, and Words With Friends), for console, mobile, and PC.

How much debt does Take-Two Interactive have?

Per its Q1 FY2027 10-Q (balance sheet at June 30, 2026), interest-bearing debt totaled about $2.52 billion — $629.9 million short-term and $1,889.8 million long-term — roughly 6.7% of its ~$37.5 billion market cap, well under the 33% ceiling.

Does Take-Two Interactive earn interest income?

Yes. Its Q1 FY2027 income statement separately discloses $22.8 million of interest income against $1,533.9 million of total net revenue — about 1.5%, under the 5% ceiling.

What do other Shariah screeners say about TTWO?

They disagree: Zoya flags TTWO as questionable (September 2026), while Tabadulat says TTWO passes AAOIFI screening (September 2026, with a 97.99% purification factor). No Musaffa or ShariaPortfolio coverage of TTWO was found. This page reports each source's position without endorsing one.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).