Take-Two Interactive Software, Inc. stock research
FY2026 Q1
Take-Two Interactive Software (TTWO) Gross Margin — Quarter Ended Jun 30, 2025
Revenue declined from the prior quarter but increased compared to the same quarter last year. Gross profit rose both sequentially and year-over-year, while cost of revenue decreased sequentially but was similar to the year-ago level, resulting in a higher gross margin relative to both periods.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2026 Q1
Revenue declined from the prior quarter but increased compared to the same quarter last year. Gross profit rose both sequentially and year-over-year, while cost of revenue decreased sequentially but was similar to the year-ago level, resulting in a higher gross margin relative to both periods.
- Gross profit increased while cost of revenue fell sequentially, leading to an improved gross margin. The same quarter last year had a lower gross margin, and the current quarter's margin is higher than both comparison periods.
- Compared to the prior quarter, gross margin strengthened as revenue decreased but cost of revenue declined more sharply. Compared to the same quarter last year, gross margin improved as revenue rose and cost of revenue stayed at a similar level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
62.8%
Gross profit
$945.0M
Revenue
$1.5B
Cost of revenue
$558.8M
Quarter-over-quarter change
+12.1 pts
Year-over-year change
+5.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $1.5B | $945.0M | $558.8M | 62.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+12.1 pts
Year-over-year change
Jun 30, 2024
+5.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased while cost of revenue fell sequentially, leading to an improved gross margin. The same quarter last year had a lower gross margin, and the current quarter's margin is higher than both comparison periods.
Compared to the prior quarter, gross margin strengthened as revenue decreased but cost of revenue declined more sharply. Compared to the same quarter last year, gross margin improved as revenue rose and cost of revenue stayed at a similar level.
Monitor the accounts receivable purchase facility arrangement entered into in May 2025, as it may affect cash flow and working capital management.