Flex Ltd. stock research
FY2025 Q1
Flex (FLEX) Gross Margin — Quarter Ended Jun 28, 2024
Revenue and gross profit both increased compared to the preceding quarter, while cost of revenue also rose. Compared to the same quarter a year earlier, revenue was lower but gross profit was slightly lower, yet gross margin improved on both sequential and year-over-year bases.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2025 Q1
Revenue and gross profit both increased compared to the preceding quarter, while cost of revenue also rose. Compared to the same quarter a year earlier, revenue was lower but gross profit was slightly lower, yet gross margin improved on both sequential and year-over-year bases.
- The strongest observable driver of the gross margin improvement was the proportion of cost of revenue relative to revenue, which decreased compared to both the prior quarter and the year-ago period.
- Relative to the preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Versus the same quarter a year earlier, revenue and cost of revenue were lower, while gross profit was slightly lower, but gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
7.5%
Gross profit
$471.0M
Revenue
$6.3B
Cost of revenue
$5.8B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $6.9B | $476.0M | $6.4B | 6.9% |
| Sep 29, 2023 | $6.9B | $519.0M | $6.4B | 7.5% |
| Dec 31, 2023 | $6.4B | $433.0M | $5.9B | 6.7% |
| Jun 28, 2024 | $6.3B | $471.0M | $5.8B | 7.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.7 pts
Year-over-year change
Jun 30, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin improvement was the proportion of cost of revenue relative to revenue, which decreased compared to both the prior quarter and the year-ago period.
Relative to the preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Versus the same quarter a year earlier, revenue and cost of revenue were lower, while gross profit was slightly lower, but gross margin improved.
Monitor the impact of ongoing logistical constraints and freight costs as noted in the filing.