Take-Two Interactive Software, Inc. stock research
FY2025 Q2
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Sep 30, 2024
Revenue was higher than both the prior quarter and the same quarter one year earlier. Gross profit was higher than the year-ago quarter but lower than the prior quarter, while cost of revenue was lower than the year-ago quarter but higher than the prior quarter. Gross margin improved relative to the year-ago quarter but weakened relative to the prior quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q2
Revenue was higher than both the prior quarter and the same quarter one year earlier. Gross profit was higher than the year-ago quarter but lower than the prior quarter, while cost of revenue was lower than the year-ago quarter but higher than the prior quarter. Gross margin improved relative to the year-ago quarter but weakened relative to the prior quarter.
- The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. Compared to the same quarter last year, cost of revenue was lower while revenue was higher, corresponding to a higher gross margin. Compared to the prior quarter, cost of revenue was higher while revenue was only slightly higher, corresponding to a lower gross margin.
- Relative to the prior quarter, gross margin weakened as cost of revenue grew more than revenue. Relative to the same quarter one year earlier, gross margin improved as cost of revenue declined while revenue increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.8%
Gross profit
$727.9M
Revenue
$1.4B
Cost of revenue
$625.2M
Quarter-over-quarter change
-3.8 pts
Year-over-year change
+21.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $1.4B | $678.1M | $688.2M | 49.6% |
| Mar 31, 2024 | $1.4B | $469.1M | $930.3M | 33.5% |
| Jun 30, 2024 | $1.3B | $771.1M | $567.1M | 57.6% |
| Sep 30, 2024 | $1.4B | $727.9M | $625.2M | 53.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-3.8 pts
Year-over-year change
Sep 30, 2023
+21.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. Compared to the same quarter last year, cost of revenue was lower while revenue was higher, corresponding to a higher gross margin. Compared to the prior quarter, cost of revenue was higher while revenue was only slightly higher, corresponding to a lower gross margin.
Relative to the prior quarter, gross margin weakened as cost of revenue grew more than revenue. Relative to the same quarter one year earlier, gross margin improved as cost of revenue declined while revenue increased.
Monitor the trend of cost of revenue relative to revenue, as it is the key factor influencing gross margin.