Flex Ltd. stock research
FY2025 Q2
Flex (FLEX) Gross Margin — Quarter Ended Sep 27, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose proportionally, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was lower but gross profit was slightly higher, resulting in a gross margin that improved.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose proportionally, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was lower but gross profit was slightly higher, resulting in a gross margin that improved.
- The gross margin improved sequentially from the prior quarter, driven by a higher gross profit relative to revenue. The year-over-year comparison also shows a stronger gross margin despite lower revenue, indicating improved cost efficiency.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased. Compared to the same quarter one year earlier, revenue was lower, but gross profit was slightly higher and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.1%
Gross profit
$531.0M
Revenue
$6.5B
Cost of revenue
$6.0B
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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2024 | $6.5B | $531.0M | $6.0B | 8.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
+0.7 pts
Year-over-year change
Sep 29, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially from the prior quarter, driven by a higher gross profit relative to revenue. The year-over-year comparison also shows a stronger gross margin despite lower revenue, indicating improved cost efficiency.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all increased. Compared to the same quarter one year earlier, revenue was lower, but gross profit was slightly higher and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as logistical constraints have increased freight costs according to the filing.