BL

Builders FirstSource, Inc. stock research

Jun 30, 2023

FY2023 Q2

Builders FirstSource (BLDR) Gross Margin — Quarter Ended Jun 30, 2023

Revenue, gross profit, and cost of revenue all moved lower compared to the same quarter one year earlier, while gross margin improved slightly. Relative to the immediately preceding quarter, revenue and cost of revenue increased, gross profit rose, and gross margin was nearly stable.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue, gross profit, and cost of revenue all moved lower compared to the same quarter one year earlier, while gross margin improved slightly. Relative to the immediately preceding quarter, revenue and cost of revenue increased, gross profit rose, and gross margin was nearly stable.

  • The gross margin was higher than the year-ago quarter and essentially unchanged from the prior quarter, indicating a stable relationship between revenue and cost of revenue over the near term.
  • Compared to the prior quarter, revenue and cost of revenue both increased, with gross profit rising and gross margin remaining nearly flat. Versus the same quarter one year earlier, revenue, cost of revenue, and gross profit were all lower, while gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

35.2%

Gross profit

$1.6B

Revenue

$4.5B

Cost of revenue

$2.9B

Quarter-over-quarter change

-0.1 pts

Year-over-year change

+0.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$3.9B$1.4B$2.5B35.3%
Jun 30, 2023$4.5B$1.6B$2.9B35.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

-0.1 pts

Year-over-year change

Jun 30, 2022

+0.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin was higher than the year-ago quarter and essentially unchanged from the prior quarter, indicating a stable relationship between revenue and cost of revenue over the near term.

Compared to the prior quarter, revenue and cost of revenue both increased, with gross profit rising and gross margin remaining nearly flat. Versus the same quarter one year earlier, revenue, cost of revenue, and gross profit were all lower, while gross margin was higher.

Monitor whether the gross margin can sustain its relative stability if revenue and cost of revenue continue to move in the same direction.