Broadridge Financial Solutions, Inc. stock research
FY2025 Q1
Broadridge Financial Solutions (BR) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and cost of revenue were similar to the year-ago quarter, while gross profit was slightly lower, resulting in a marginally weaker gross margin. Compared to the immediately preceding quarter, revenue decreased more sharply than cost of revenue, leading to a notably lower gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q1
Revenue and cost of revenue were similar to the year-ago quarter, while gross profit was slightly lower, resulting in a marginally weaker gross margin. Compared to the immediately preceding quarter, revenue decreased more sharply than cost of revenue, leading to a notably lower gross margin.
- The most observable driver of the gross margin change is the relationship between revenue and cost of revenue. In the current quarter, revenue declined proportionally more than cost of revenue relative to the prior quarter, compressing the margin.
- Gross margin weakened compared to both the prior quarter and the same quarter last year. The decline from the prior quarter was more pronounced.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.5%
Gross profit
$347.9M
Revenue
$1.4B
Cost of revenue
$1.1B
Quarter-over-quarter change
-11.1 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2023 | $1.4B | $347.8M | $1.1B | 24.8% |
| Mar 31, 2024 | $1.7B | $539.2M | $1.2B | 31.2% |
| Jun 30, 2024 | $1.9B | $691.2M | $1.3B | 35.6% |
| Sep 30, 2024 | $1.4B | $347.9M | $1.1B | 24.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-11.1 pts
Year-over-year change
Sep 30, 2023
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin change is the relationship between revenue and cost of revenue. In the current quarter, revenue declined proportionally more than cost of revenue relative to the prior quarter, compressing the margin.
Gross margin weakened compared to both the prior quarter and the same quarter last year. The decline from the prior quarter was more pronounced.
Monitor the relative movement of revenue and cost of revenue in future quarters, as the company's forward-looking statements note risks and uncertainties that could affect results.