Take-Two Interactive Software, Inc. stock research
FY2025 Q3
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was essentially unchanged versus both the prior quarter and the same quarter last year. Gross profit improved relative to both periods, while cost of revenue decreased from the preceding quarter and fell more sharply versus the year-ago period, resulting in an expansion of gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q3
Revenue was essentially unchanged versus both the prior quarter and the same quarter last year. Gross profit improved relative to both periods, while cost of revenue decreased from the preceding quarter and fell more sharply versus the year-ago period, resulting in an expansion of gross margin.
- Gross margin expanded compared with both the prior quarter and the same quarter last year. The most observable driver was the reduction in cost of revenue relative to gross profit, as revenue remained stable.
- Revenue was stable compared with both the prior quarter and the year-ago quarter. Gross profit was higher than both periods, and cost of revenue was lower than both periods, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.9%
Gross profit
$759.9M
Revenue
$1.4B
Cost of revenue
$599.9M
Quarter-over-quarter change
+2.1 pts
Year-over-year change
+6.3 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $1.4B | $759.9M | $599.9M | 55.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+2.1 pts
Year-over-year change
Dec 31, 2023
+6.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin expanded compared with both the prior quarter and the same quarter last year. The most observable driver was the reduction in cost of revenue relative to gross profit, as revenue remained stable.
Revenue was stable compared with both the prior quarter and the year-ago quarter. Gross profit was higher than both periods, and cost of revenue was lower than both periods, leading to an improved gross margin.
Monitor the trajectory of cost of revenue given its decline was the primary factor behind gross margin improvement.