D.R. Horton, Inc. stock research
FY2025 Q1
D.R. Horton (DHI) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit decreased compared to both the prior quarter and the same quarter a year ago, while cost of revenue also declined. Gross margin weakened sequentially and year-over-year as a result.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q1
Revenue and gross profit decreased compared to both the prior quarter and the same quarter a year ago, while cost of revenue also declined. Gross margin weakened sequentially and year-over-year as a result.
- The most significant driver of the gross margin change was the difference in the rates of decline between revenue and cost of revenue. Cost of revenue decreased less than revenue, putting downward pressure on margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was slightly lower, gross profit was lower, and gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
25.1%
Gross profit
$1.9B
Revenue
$7.6B
Cost of revenue
$5.7B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.9 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, 2024 | $9.1B | $2.3B | $6.8B | 25.6% |
| Jun 30, 2024 | $10.0B | $2.6B | $7.3B | 26.5% |
| Sep 30, 2024 | $10.0B | $2.6B | $7.4B | 25.5% |
| Dec 31, 2024 | $7.6B | $1.9B | $5.7B | 25.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.4 pts
Year-over-year change
Dec 31, 2023
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant driver of the gross margin change was the difference in the rates of decline between revenue and cost of revenue. Cost of revenue decreased less than revenue, putting downward pressure on margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was slightly lower, gross profit was lower, and gross margin also weakened.
Monitor the trend of cost of revenue relative to revenue, as any persistent divergence may further affect gross margin.