Name: Take-Two Interactive Software Inc. (NASDAQ:TTWO) | Common-Size Income Statement
Creator: Stock Analysis on Net

Common-Size Income Statement

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Take-Two Interactive Software Inc., common-size consolidated income statement

12 months ended:	Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Game	91.73%	87.74%	88.52%	97.67%	98.43%	100.00%
Advertising	8.27%	12.26%	11.48%	2.33%	1.57%	0.00%
Net revenue	100.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Cost of revenue	-45.64%	-58.09%	-57.28%	-43.81%	-45.51%	-49.93%
Gross profit	54.36%	41.91%	42.72%	56.19%	54.49%	50.07%
Selling and marketing	-29.89%	-28.98%	-29.65%	-14.73%	-13.19%	-14.84%
Research and development	-17.84%	-17.72%	-16.59%	-11.60%	-9.41%	-9.60%
General and administrative	-15.68%	-13.39%	-15.69%	-14.58%	-11.58%	-10.30%
Depreciation and amortization	-4.07%	-3.20%	-2.29%	-1.74%	-1.65%	-1.56%
Goodwill impairment	-62.93%	-43.78%	0.00%	0.00%	0.00%	0.00%
Business reorganization	-1.89%	-1.96%	-0.27%	-0.02%	0.01%	0.00%
Operating expenses	-132.30%	-109.02%	-64.50%	-42.68%	-35.83%	-36.30%
Income (loss) from operations	-77.94%	-67.12%	-21.78%	13.51%	18.66%	13.77%
Interest income	1.75%	1.16%	0.63%	0.50%	0.55%	1.53%
Interest expense	-2.97%	-2.63%	-2.42%	-0.53%	-0.18%	-0.09%
Foreign currency exchange gain (loss)	-0.40%	-0.53%	-0.59%	-0.21%	0.02%	-0.12%
Other	-0.04%	0.06%	-0.27%	-0.17%	-0.13%	-0.08%
Interest and other, net	-1.66%	-1.94%	-2.65%	-0.41%	0.26%	1.25%
Gain (loss) on fair value adjustments, net	-0.12%	-0.16%	-0.58%	0.17%	1.18%	-0.17%
Income (loss) before income taxes	-79.72%	-69.22%	-25.01%	13.28%	20.10%	14.84%
(Provision for) benefit from income taxes	0.22%	-0.77%	3.99%	-1.35%	-2.64%	-1.75%
Net income (loss)	-79.50%	-69.99%	-21.02%	11.93%	17.46%	13.09%

Based on: 10-K (reporting date: 2025-03-31), 10-K (reporting date: 2024-03-31), 10-K (reporting date: 2023-03-31), 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31).

The financial performance over the analyzed period is characterized by a transition from consistent profitability to significant net losses, driven primarily by a substantial increase in operating expenses and massive non-cash impairment charges.

Revenue Composition and Gross Margin: Net revenue was predominantly driven by game sales, which remained the primary source of income throughout the period. However, a diversification into advertising revenue became evident starting in 2023, peaking at 12.26% of net revenue in 2024 before moderating to 8.27% in 2025. Gross profit margins showed stability between 2020 and 2022, ranging from 50.07% to 56.19%, followed by a contraction to approximately 42% in 2023 and 2024. A recovery to 54.36% was observed by March 31, 2025, indicating a return to historical cost-of-revenue efficiency.
Operating Expense Trends: A significant escalation in operating costs is observed. Selling and marketing expenses experienced a sharp increase, nearly doubling from 14.73% of net revenue in 2022 to 29.65% in 2023, and remaining at approximately 29.89% by 2025. Research and development costs also trended upward steadily, rising from 9.60% in 2020 to 17.84% in 2025. General and administrative expenses and depreciation and amortization similarly showed gradual increases over the six-year period, contributing to a broader expansion of the company's cost base.
Non-Cash Impairments and Operational Loss: The most critical impact on the bottom line resulted from substantial goodwill impairment charges introduced in the latter years. These charges represented 43.78% of net revenue in 2024 and increased to 62.93% in 2025. Consequently, income from operations shifted from a positive 18.66% in 2021 to severe losses of -67.12% in 2024 and -77.94% in 2025. This indicates that while the core gross margin recovered, the operational structure was overwhelmed by these one-time asset write-downs and higher recurring operating costs.
Net Income and Financial Position: Net income transitioned from a peak of 17.46% of net revenue in 2021 to profound losses, ending at -79.50% in 2025. Interest income provided a marginal positive offset, increasing slightly to 1.75% by 2025, though this was eclipsed by rising interest expenses, which grew from 0.09% in 2020 to 2.97% in 2025. The overall trajectory reflects a company undergoing significant investment and asset revaluation, leading to severe short-term erosion of net profitability.

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