D.R. Horton, Inc. stock research
FY2025 Q2
D.R. Horton (DHI) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit were both slightly higher than the prior quarter, while cost of revenue increased at a similar pace, resulting in a modestly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q2
Revenue and gross profit were both slightly higher than the prior quarter, while cost of revenue increased at a similar pace, resulting in a modestly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened.
- The gross margin declined sequentially and year-over-year, driven by cost of revenue growing faster than revenue relative to the prior quarter and declining less than revenue relative to the prior year.
- Compared to the immediately preceding quarter, revenue and cost of revenue both increased, with cost of revenue rising slightly more, leading to a lower gross margin. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—were lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.6%
Gross profit
$1.9B
Revenue
$7.7B
Cost of revenue
$5.8B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-1.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $7.7B | $1.9B | $5.8B | 24.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.5 pts
Year-over-year change
Mar 31, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined sequentially and year-over-year, driven by cost of revenue growing faster than revenue relative to the prior quarter and declining less than revenue relative to the prior year.
Compared to the immediately preceding quarter, revenue and cost of revenue both increased, with cost of revenue rising slightly more, leading to a lower gross margin. Versus the same quarter one year earlier, all three metrics—revenue, gross profit, and cost of revenue—were lower, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as its proportion increased both sequentially and year-over-year.