Take-Two Interactive Software, Inc. stock research
FY2025 Q4
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased from the prior quarter and from the same quarter one year earlier, while gross profit also rose in both comparisons. The gross margin declined from the prior quarter but improved significantly compared with the same quarter one year earlier, as cost of revenue increased less than gross profit on a sequential basis and decreased year over year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q4
Revenue increased from the prior quarter and from the same quarter one year earlier, while gross profit also rose in both comparisons. The gross margin declined from the prior quarter but improved significantly compared with the same quarter one year earlier, as cost of revenue increased less than gross profit on a sequential basis and decreased year over year.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which more than offset the sequential decline. The filing states liquidity is used for development, manufacturing, marketing, working capital, and debt payments, but does not cite a specific margin driver.
- Sequentially, revenue and gross profit both rose, but cost of revenue increased at a faster rate, causing gross margin to weaken. Year over year, gross profit grew more than revenue, as cost of revenue decreased, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.8%
Gross profit
$803.3M
Revenue
$1.6B
Cost of revenue
$779.2M
Quarter-over-quarter change
-5.1 pts
Year-over-year change
+17.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $1.6B | $803.3M | $779.2M | 50.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-5.1 pts
Year-over-year change
Mar 31, 2024
+17.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross margin, which more than offset the sequential decline. The filing states liquidity is used for development, manufacturing, marketing, working capital, and debt payments, but does not cite a specific margin driver.
Sequentially, revenue and gross profit both rose, but cost of revenue increased at a faster rate, causing gross margin to weaken. Year over year, gross profit grew more than revenue, as cost of revenue decreased, resulting in a higher gross margin.
Monitor the relationship between cost of revenue and revenue trends, as the sequential increase in cost outpaced revenue growth.