First Solar, Inc. stock research
FY2025 Q3
First Solar (FSLR) Gross Margin — Quarter Ended Sep 30, 2025
The quarter's gross margin weakened compared to both the prior quarter and the same quarter a year earlier, driven by a proportionally larger increase in cost of revenue relative to revenue. Although gross profit and revenue reached their highest levels among the three periods, the margin compression reflects that cost of revenue grew at a faster pace.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
The quarter's gross margin weakened compared to both the prior quarter and the same quarter a year earlier, driven by a proportionally larger increase in cost of revenue relative to revenue. Although gross profit and revenue reached their highest levels among the three periods, the margin compression reflects that cost of revenue grew at a faster pace.
- The most observable margin driver is the substantial rise in cost of revenue, which increased at a rate that outpaced revenue growth, leading to margin contraction. This is the strongest factor directly visible in the financial data.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, yet gross margin was lower. Versus the same quarter one year ago, revenue and gross profit were also higher, while gross margin was again lower. In both comparisons, cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$610.7M
Revenue
$1.6B
Cost of revenue
$984.1M
Quarter-over-quarter change
-7.3 pts
Year-over-year change
-11.9 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, 2024 | $1.5B | $567.7M | $946.4M | 37.5% |
| Mar 31, 2025 | $844.6M | $344.4M | $500.2M | 40.8% |
| Jun 30, 2025 | $1.1B | $499.9M | $597.3M | 45.6% |
| Sep 30, 2025 | $1.6B | $610.7M | $984.1M | 38.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-7.3 pts
Year-over-year change
Sep 30, 2024
-11.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the substantial rise in cost of revenue, which increased at a rate that outpaced revenue growth, leading to margin contraction. This is the strongest factor directly visible in the financial data.
Compared to the immediately preceding quarter, revenue and gross profit were higher, yet gross margin was lower. Versus the same quarter one year ago, revenue and gross profit were also higher, while gross margin was again lower. In both comparisons, cost of revenue grew faster than revenue.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has been the primary factor behind gross margin compression in this quarter.