Flex Ltd. stock research
FY2025 Q3
Flex (FLEX) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both increased, while cost of revenue remained stable, leading to an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin strengthened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q3
Revenue and gross profit both increased, while cost of revenue remained stable, leading to an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin strengthened sequentially and year-over-year.
- The relationship between higher revenue and unchanged cost of revenue drove gross profit higher and expanded gross margin. The strongest observable driver is the combination of revenue growth and cost discipline.
- Gross margin in the current quarter improved compared to the immediately preceding quarter and was higher than the same quarter one year earlier. Revenue and gross profit both showed sequential and year-over-year increases, while cost of revenue remained relatively flat.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.1%
Gross profit
$594.0M
Revenue
$6.6B
Cost of revenue
$6.0B
Quarter-over-quarter change
+0.9 pts
Year-over-year change
+2.3 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, 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% |
| Dec 31, 2024 | $6.6B | $594.0M | $6.0B | 9.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2024
+0.9 pts
Year-over-year change
Dec 31, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between higher revenue and unchanged cost of revenue drove gross profit higher and expanded gross margin. The strongest observable driver is the combination of revenue growth and cost discipline.
Gross margin in the current quarter improved compared to the immediately preceding quarter and was higher than the same quarter one year earlier. Revenue and gross profit both showed sequential and year-over-year increases, while cost of revenue remained relatively flat.
Monitor the sustainability of cost of revenue stability as revenue continues to grow.