TTWO · News · 20260807N
Gross Margin Drivers
TAKE TWO INTERACTIVE SOFTWARE INC · 2026-08-07 · Importance 38 · Surprise 42 · In source text
Take-Two’s gross margin declined to 57.5% in the fiscal first quarter ended June 30, 2026. The margin pressure reflected higher software development costs and an impairment charge related to cancelled projects. The impairment and development-cost increases contributed to the company’s wider GAAP loss despite higher revenue. No dollar amount for the impairment charge was provided in the reported digest.
Key facts
- Take-Two's gross margin declined to 57.5% due to higher software development costs and an impairment charge on cancelled projects. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | — | Take-Two's gross margin declined to 57.5% due to higher software development costs and an impairment charge on cancelled projects. |