FA

Fastenal Company stock research

Mar 31, 2025

FY2025 Q1

Fastenal (FAST) Gross Margin — Quarter Ended Mar 31, 2025

Revenue increased compared to both the previous quarter and the same quarter last year. Gross margin improved compared to the prior quarter but weakened compared to the year-ago period.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue increased compared to both the previous quarter and the same quarter last year. Gross margin improved compared to the prior quarter but weakened compared to the year-ago period.

  • The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, revenue grew faster than cost of revenue, improving margin; year over year, cost of revenue grew faster than revenue, compressing margin.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

45.1%

Gross profit

$883.9M

Revenue

$2.0B

Cost of revenue

$1.1B

Quarter-over-quarter change

+0.3 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.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$1.9B$863.5M$1.1B45.1%
Sep 30, 2024$1.9B$858.6M$1.1B44.9%
Dec 31, 2024$1.8B$818.2M$1.0B44.8%
Mar 31, 2025$2.0B$883.9M$1.1B45.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

+0.3 pts

Year-over-year change

Mar 31, 2024

-0.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the change in cost of revenue relative to revenue. Sequentially, revenue grew faster than cost of revenue, improving margin; year over year, cost of revenue grew faster than revenue, compressing margin.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Monitor the trajectory of cost of revenue relative to revenue, as the company's filing highlights changes in working capital and inventories.