Builders FirstSource, Inc. stock research
FY2025 Q2
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter one year earlier.
- Gross profit grew at a pace similar to revenue, leading to a stable gross margin relative to the prior quarter. The year-over-year decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.7%
Gross profit
$1.3B
Revenue
$4.2B
Cost of revenue
$2.9B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-2.1 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $4.2B | $1.4B | $2.8B | 32.8% |
| Dec 31, 2024 | $3.8B | $1.2B | $2.6B | 32.3% |
| Mar 31, 2025 | $3.7B | $1.1B | $2.5B | 30.5% |
| Jun 30, 2025 | $4.2B | $1.3B | $2.9B | 30.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.2 pts
Year-over-year change
Jun 30, 2024
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew at a pace similar to revenue, leading to a stable gross margin relative to the prior quarter. The year-over-year decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved slightly. Compared to the same quarter one year earlier, revenue and gross profit were lower, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion increased year-over-year and compressed gross margin.