Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Take-Two Interactive Software Inc., consolidated income statement

US$ in thousands

12 months ended:	Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Game	5,167,500)	4,693,500)	4,735,600)	3,423,200)	3,319,672)	3,088,970)
Advertising	466,100)	656,100)	614,300)	81,600)	53,100)	—)
Net revenue	5,633,600)	5,349,600)	5,349,900)	3,504,800)	3,372,772)	3,088,970)
Cost of revenue	(2,571,400)	(3,107,800)	(3,064,600)	(1,535,401)	(1,535,085)	(1,542,450)
Gross profit	3,062,200)	2,241,800)	2,285,300)	1,969,399)	1,837,687)	1,546,520)
Selling and marketing	(1,683,700)	(1,550,200)	(1,586,500)	(516,429)	(444,985)	(458,424)
Research and development	(1,005,200)	(948,200)	(887,600)	(406,566)	(317,311)	(296,398)
General and administrative	(883,300)	(716,100)	(839,500)	(510,855)	(390,683)	(318,235)
Depreciation and amortization	(229,400)	(171,200)	(122,300)	(61,105)	(55,596)	(48,113)
Goodwill impairment	(3,545,200)	(2,342,100)	—)	—)	—)	—)
Business reorganization	(106,500)	(104,600)	(14,600)	(849)	272)	(83)
Operating expenses	(7,453,300)	(5,832,400)	(3,450,500)	(1,495,804)	(1,208,303)	(1,121,253)
Income (loss) from operations	(4,391,100)	(3,590,600)	(1,165,200)	473,595)	629,384)	425,267)
Interest income	98,600)	62,300)	33,800)	17,622)	18,701)	47,341)
Interest expense	(167,300)	(140,600)	(129,600)	(18,628)	(6,207)	(2,637)
Foreign currency exchange gain (loss)	(22,600)	(28,600)	(31,800)	(7,289)	727)	(3,589)
Other	(2,000)	3,300)	(14,300)	(5,917)	(4,425)	(2,610)
Interest and other, net	(93,300)	(103,600)	(141,900)	(14,212)	8,796)	38,505)
Gain (loss) on fair value adjustments, net	(6,900)	(8,600)	(31,000)	6,015)	39,636)	(5,333)
Income (loss) before income taxes	(4,491,300)	(3,702,800)	(1,338,100)	465,398)	677,816)	458,439)
(Provision for) benefit from income taxes	12,400)	(41,400)	213,400)	(47,376)	(88,930)	(53,980)
Net income (loss)	(4,478,900)	(3,744,200)	(1,124,700)	418,022)	588,886)	404,459)

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).

Revenue and Gross Profit: The company’s net revenue has demonstrated a consistent upward trend from 2020 through 2025. Starting at approximately $3.09 billion in 2020, revenue increased steadily each year, reaching about $5.63 billion by 2025. The gross profit followed a similar pattern, rising from $1.55 billion in 2020 to $3.06 billion in 2025. This indicates growing sales effectiveness despite increasing cost pressures.
Cost of Revenue and Operating Expenses: Cost of revenue remained relatively stable around $1.53 billion to $1.54 billion from 2020 to 2022, but then increased substantially to $3.07 billion by 2025. Operating expenses showed a notable increase, escalating from approximately $1.12 billion in 2020 to a peak of $7.45 billion in 2025. The major contributors to operating expenses were selling and marketing, research and development, and general and administrative costs, all of which showed significant growth. Depreciation and amortization expenses also more than quadrupled over the period.
Advertising and Marketing Expenses: Advertising costs displayed marked volatility, starting with a low base in 2020 and ramping up dramatically in 2022 and 2023 before declining somewhat by 2025. Selling and marketing expenses similarly surged, with over a threefold increase from 2022 to 2025, indicating higher investment in promotion activities.
Research and Development, General and Administrative Expenses: Research and development expenses increased steadily throughout the period, nearly tripling by 2025. General and administrative expenses increased significantly until 2023, peaking at $839 million, then decreased in 2024 before rising again in 2025. These trends suggest ongoing investment in innovation combined with variable management costs.
Goodwill Impairment and Business Reorganization: Goodwill impairment appeared only in the last two years, with a substantial amount recorded in 2024 and 2025, totaling nearly $5.9 billion cumulatively. This indicates a significant write-down affecting profitability. Business reorganization costs, while smaller, showed consistent increases, indicating ongoing restructuring efforts.
Profitability and Income Metrics: Operating income showed positive values from 2020 to 2022 but turned negative from 2023 onward, with losses increasing sharply. This trend continued in pre-tax income, which also became negative starting in 2023. Net income followed the same pattern, with profitable years initially turning into significant losses from 2023 onwards. The large goodwill impairment and elevated operating expenses primarily contributed to these losses.
Interest and Other Financial Items: Interest income increased steadily, while interest expense grew substantially, especially after 2022, indicating increased borrowing costs. Foreign exchange losses fluctuated but remained negative overall. Net other items and fair value adjustments showed mixed results but were relatively minor compared to the main operational losses.
Tax Provision: The company recorded tax provisions consistent with profitability in the early years, with tax benefits appearing only in 2023 when losses were recorded. In subsequent years, tax provisions fluctuated between benefits and minor expenses, reflecting volatile earnings before tax.
Summary: Overall, the company experienced strong revenue growth drivers alongside rising costs and expenses, leading to deterioration in profitability starting in 2023. Significant non-cash charges from goodwill impairments and expanded operating expenses have been major factors in negative income results. The upward trend in investment-related costs such as R&D and marketing, combined with increased depreciation and amortization, highlights an aggressive growth and restructuring phase. However, these efforts have strained earnings, reflected in large operating and net losses in the last three reported years.

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Take-Two Interactive Software Inc. (NASDAQ:TTWO)

Income Statement