What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Take-Two Interactive Software (TTWO) revenue becomes net income?

For TTM through Q1 2026, Take-Two Interactive Software turned $6.66B of revenue into -$298M of net income — a net margin of -4.5%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Take-Two Interactive Software (TTWO) gross, operating, and net margins?

For TTM through Q1 2026, Take-Two Interactive Software reported a gross margin of 57.2%, an operating margin of -0.9%, and a net margin of -4.5%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Take-Two Interactive Software (TTWO) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Take-Two Interactive Software (TTWO) Income Statement Waterfall

Revenue

$6.66B

Gross Margin

+57.2%

Operating Margin

-0.9%

Net Margin

-4.5%

Income statement waterfall for Take-Two Interactive Software (TTWO) — TTM through Q1 2026

Net income: -$298M

Margin breakdown for Take-Two Interactive Software (TTWO) — TTM through Q1 2026

Line item	Amount	Running total
Revenue	$6.66B	$6.66B
Cost of Revenue	-$2.85B	$3.81B
Gross Profit	$3.81B	$3.81B
Operating Expenses	-$3.87B	-$58.5M
Operating Income	-$58.5M	-$58.5M
Other Income / Expense	-$139M	-$198M
Pre-tax Income	-$198M	-$198M
Income Tax	-$100M	-$298M
Net Loss	-$298M	-$298M

Revenue$6.66B
Cost of Revenue-$2.85B
Gross Profit$3.81B
Operating Expenses-$3.87B
Operating Income-$58.5M
Other Income / Expense-$139M
Pre-tax Income-$198M
Income Tax-$100M
Net Loss-$298M

Want to see what changed vs last year?Profit Bridge

Frequently asked questions

Data & methodology

Take-Two Interactive Software (TTWO) Key Financials

Charts, filings, and peer comparison for every metric

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

TTWO Overview

Counters

Income Statement

Cash Flow

Capital Return

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation