Summary
Take-Two Interactive Software, Inc. (TTWO) reported its financial results for the quarter ending December 31, 2024. The company experienced a slight decrease in total net revenue for the quarter, down 0.5% year-over-year to $1,359.8 million. However, this was accompanied by a significant improvement in gross profit margin, which rose to 55.9% from 49.7% in the prior year period. This margin expansion was primarily driven by lower amortization of intangible assets and reduced internal royalties. Despite the revenue dip, the company saw growth in its Recurrent Consumer Spending (RCS) segment, which now represents 80.0% of net revenue. Mobile revenue also showed an increase, contributing 53.8% to total net revenue. Management highlighted the upcoming release of Grand Theft Auto VI in the fall of calendar year 2025 as a key future driver. While the company incurred a net loss of $125.2 million for the quarter, an increase from the previous year's loss of $91.6 million, the company ended the period with a solid cash position and available borrowing capacity, indicating a stable liquidity outlook.
Financial Highlights
53 data points| Revenue | $1.36B |
| Cost of Revenue | $599.90M |
| Gross Profit | $759.90M |
| Operating Expenses | $892.00M |
| Operating Income | -$132.10M |
| Interest Expense | $41.00M |
| Net Income | -$125.20M |
| EPS (Basic) | $-0.71 |
| EPS (Diluted) | $-0.71 |
| Shares Outstanding (Basic) | 176.00M |
Key Highlights
- 1Total net revenue for the third quarter of fiscal year 2025 was $1,359.8 million, a slight decrease of 0.5% compared to the prior year period.
- 2Gross profit margin significantly improved to 55.9% from 49.7% in the prior year quarter, primarily due to lower amortization of intangibles and internal royalties.
- 3Recurrent Consumer Spending (RCS) continued to grow, representing 80.0% of net revenue, up from 75.7% in the prior year quarter.
- 4Mobile revenue increased by $24.9 million, accounting for 53.8% of total net revenue for the quarter.
- 5The company incurred a net loss of $125.2 million ($0.71 per share) for the quarter, compared to a net loss of $91.6 million ($0.54 per share) in the prior year period.
- 6As of December 31, 2024, the company had $1,308.9 million in cash, cash equivalents, and restricted cash, with $747.8 million available under its credit facility.
- 7Key upcoming releases include Grand Theft Auto VI in the fall of calendar year 2025 and Sid Meier's Civilization VII.