D.R. Horton, Inc. stock research
FY2025 Q4
D.R. Horton (DHI) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased from the prior quarter but decreased from the same quarter last year. Gross profit declined both sequentially and year-over-year, resulting in a lower gross margin as cost of revenue rose relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q4
Revenue increased from the prior quarter but decreased from the same quarter last year. Gross profit declined both sequentially and year-over-year, resulting in a lower gross margin as cost of revenue rose relative to revenue.
- The most observable driver of the margin decline is the increase in cost of revenue, which grew faster than revenue sequentially and also rose year-over-year while revenue fell.
- Compared to the prior quarter, gross margin weakened as revenue growth was outpaced by cost growth. Compared to the same quarter last year, gross margin also weakened due to lower revenue and higher cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.7%
Gross profit
$2.1B
Revenue
$9.7B
Cost of revenue
$7.6B
Quarter-over-quarter change
-2.3 pts
Year-over-year change
-3.9 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $9.7B | $2.1B | $7.6B | 21.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-2.3 pts
Year-over-year change
Sep 30, 2024
-3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the margin decline is the increase in cost of revenue, which grew faster than revenue sequentially and also rose year-over-year while revenue fell.
Compared to the prior quarter, gross margin weakened as revenue growth was outpaced by cost growth. Compared to the same quarter last year, gross margin also weakened due to lower revenue and higher cost of revenue.
Monitor the trajectory of cost of revenue, as it has increased relative to revenue in both comparisons, and the company's liquidity position as discussed in the filing.