TTWO · 10-Q · 2026Q2 · Full report

Operating Expense Trends

TAKE TWO INTERACTIVE SOFTWARE INC · 2026-08-07 · Importance 18 · Surprise 14 · In source text

Total operating expenses decreased $5.4 million, or 0.6%, to $918.0 million, but increased to 59.8% of revenue from 61.5%? Actually decreased as percentage from 61.5% to 59.8%. Selling and marketing expense declined $39.5 million, or 9.7%, to $369.7 million because of lower marketing for Color Block Jam, Match Factory!, Sid Meier's Civilization, and Borderlands, partly offset by higher personnel expense. Research and development expense increased $17.4 million, or 6.8%, to $273.8 million because of higher personnel expense, partly offset by additional title-related R&D credits. General and administrative expense increased $18.9 million, or 9.1%, to $226.3 million because of higher personnel, cloud-service and IT-infrastructure expenses, and professional fees.

Key facts

• Selling and marketing expense for the three months ended June 30, 2026: $369.7 (24.1%); for the three months ended June 30, 2025: $409.2 (27.2%); decrease $39.5 (9.7%). source
• Research and development expense for the three months ended June 30, 2026: $273.8 (17.8%); for the three months ended June 30, 2025: $256.4 (17.1%); increase $17.4 (6.8%). source
• General and administrative expense for the three months ended June 30, 2026: $226.3 (14.8%); for the three months ended June 30, 2025: $207.4 (13.8%); increase $18.9 (9.1%). source
• Total operating expenses for the three months ended June 30, 2026: $918.0 (59.8%); for the three months ended June 30, 2025: $923.4 (61.5%); decrease $5.4 (0.6%). source
• Depreciation and amortization for the three months ended June 30, 2026: $48.2 (3.1%); for the three months ended June 30, 2025: $50.4 (3.4%); decrease $2.2 (4.4%). source

Impact estimates