Builders FirstSource, Inc. stock research
FY2023 Q3
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the prior quarter, while gross profit remained nearly unchanged, leading to a slightly lower gross margin. Versus the same quarter last year, revenue and gross profit were both lower, yet gross margin was broadly similar.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the prior quarter, while gross profit remained nearly unchanged, leading to a slightly lower gross margin. Versus the same quarter last year, revenue and gross profit were both lower, yet gross margin was broadly similar.
- The gross margin was slightly lower than the prior quarter, as cost of revenue decreased at a marginally slower pace than revenue. Compared to a year ago, the margin was broadly stable despite lower revenue and gross profit.
- Sequentially, revenue was flat, gross profit was flat, and gross margin weakened slightly. Year over year, revenue and gross profit were lower, while gross margin was mixed—slightly lower than the prior quarter but comparable to the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.9%
Gross profit
$1.6B
Revenue
$4.5B
Cost of revenue
$3.0B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-0.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $3.9B | $1.4B | $2.5B | 35.3% |
| Jun 30, 2023 | $4.5B | $1.6B | $2.9B | 35.2% |
| Sep 30, 2023 | $4.5B | $1.6B | $3.0B | 34.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.3 pts
Year-over-year change
Sep 30, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was slightly lower than the prior quarter, as cost of revenue decreased at a marginally slower pace than revenue. Compared to a year ago, the margin was broadly stable despite lower revenue and gross profit.
Sequentially, revenue was flat, gross profit was flat, and gross margin weakened slightly. Year over year, revenue and gross profit were lower, while gross margin was mixed—slightly lower than the prior quarter but comparable to the year-ago quarter.
Monitor the trajectory of cost of revenue relative to revenue, as a slight divergence in their rates of change contributed to the margin movement.