Builders FirstSource, Inc. stock research
FY2025 Q4
Builders FirstSource (BLDR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both declined from the prior quarter and from the same quarter last year, while cost of revenue decreased at a slower pace, resulting in a lower gross margin. The gross margin weakened sequentially and compared to the year-ago period, reflecting a tighter spread between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both declined from the prior quarter and from the same quarter last year, while cost of revenue decreased at a slower pace, resulting in a lower gross margin. The gross margin weakened sequentially and compared to the year-ago period, reflecting a tighter spread between revenue and cost of revenue.
- The strongest observable driver is the decline in gross profit relative to revenue, as cost of revenue did not fall proportionally. This indicates that the cost structure absorbed a larger share of revenue in the current quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Versus the same quarter one year earlier, revenue and gross profit were also lower, with gross margin showing a more pronounced weakening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
29.8%
Gross profit
$1.0B
Revenue
$3.4B
Cost of revenue
$2.4B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.5 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, 2025 | $3.7B | $1.1B | $2.5B | 30.5% |
| Jun 30, 2025 | $4.2B | $1.3B | $2.9B | 30.7% |
| Sep 30, 2025 | $3.9B | $1.2B | $2.7B | 30.4% |
| Dec 31, 2025 | $3.4B | $1.0B | $2.4B | 29.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.6 pts
Year-over-year change
Dec 31, 2024
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the decline in gross profit relative to revenue, as cost of revenue did not fall proportionally. This indicates that the cost structure absorbed a larger share of revenue in the current quarter.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Versus the same quarter one year earlier, revenue and gross profit were also lower, with gross margin showing a more pronounced weakening.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline is the primary factor compressing gross margin.