First Solar, Inc. stock research
FY2024 Q4
First Solar (FSLR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin weakened from the prior quarter and from the year-ago quarter, as cost of revenue grew at a faster rate than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin weakened from the prior quarter and from the year-ago quarter, as cost of revenue grew at a faster rate than revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased while cost of revenue rose more sharply, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue was higher in both comparisons, but cost of revenue increased proportionally more.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.5%
Gross profit
$567.7M
Revenue
$1.5B
Cost of revenue
$946.4M
Quarter-over-quarter change
-12.7 pts
Year-over-year change
-5.8 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $794.1M | $346.0M | $448.1M | 43.6% |
| Jun 30, 2024 | $1.0B | $498.9M | $511.6M | 49.4% |
| Sep 30, 2024 | $887.7M | $445.3M | $442.4M | 50.2% |
| Dec 31, 2024 | $1.5B | $567.7M | $946.4M | 37.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-12.7 pts
Year-over-year change
Dec 31, 2023
-5.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue increased while cost of revenue rose more sharply, compressing gross margin.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue was higher in both comparisons, but cost of revenue increased proportionally more.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary factor behind the margin decline.