Builders FirstSource, Inc. stock research
FY2024 Q2
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was unchanged compared to the same quarter one year earlier, while gross profit and gross margin both declined. Sequentially, revenue increased but gross margin weakened slightly, as cost of revenue rose proportionally more than gross profit.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was unchanged compared to the same quarter one year earlier, while gross profit and gross margin both declined. Sequentially, revenue increased but gross margin weakened slightly, as cost of revenue rose proportionally more than gross profit.
- Gross margin weakened both sequentially and year-over-year, driven by a larger relative increase in cost of revenue compared to gross profit. The strongest observable driver is the relationship between cost of revenue and revenue, where cost growth outpaced revenue growth.
- Compared to the prior quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$1.5B
Revenue
$4.5B
Cost of revenue
$3.0B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.4 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $4.5B | $1.6B | $3.0B | 34.9% |
| Dec 31, 2023 | $4.2B | $1.5B | $2.7B | 35.3% |
| Mar 31, 2024 | $3.9B | $1.3B | $2.6B | 33.4% |
| Jun 30, 2024 | $4.5B | $1.5B | $3.0B | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.6 pts
Year-over-year change
Jun 30, 2023
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened both sequentially and year-over-year, driven by a larger relative increase in cost of revenue compared to gross profit. The strongest observable driver is the relationship between cost of revenue and revenue, where cost growth outpaced revenue growth.
Compared to the prior quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has compressed gross margin.