D.R. Horton, Inc. stock research
FY2025 Q3
D.R. Horton (DHI) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared with the prior quarter, while gross profit rose and cost of revenue moved higher. Gross margin weakened slightly from the prior quarter and weakened year over year.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q3
Revenue increased compared with the prior quarter, while gross profit rose and cost of revenue moved higher. Gross margin weakened slightly from the prior quarter and weakened year over year.
- The relationship between revenue and gross profit improved sequentially, but the increase in cost of revenue outpaced revenue growth, leading to a lower gross margin.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all higher, but gross margin was lower. Compared to the same quarter one year ago, revenue, gross profit, and cost of revenue were all lower, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.9%
Gross profit
$2.2B
Revenue
$9.2B
Cost of revenue
$7.0B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-2.6 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 | $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% |
| Jun 30, 2025 | $9.2B | $2.2B | $7.0B | 23.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.6 pts
Year-over-year change
Jun 30, 2024
-2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and gross profit improved sequentially, but the increase in cost of revenue outpaced revenue growth, leading to a lower gross margin.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all higher, but gross margin was lower. Compared to the same quarter one year ago, revenue, gross profit, and cost of revenue were all lower, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth sequentially compressed gross margin.