Generac Holdings (GNRC) Gross Margin — Quarter Ended Mar 31, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter a year ago. The gross margin also decreased, reflecting a weaker relationship between cost of revenue and revenue.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

The decrease in gross margin was accompanied by a relative increase in cost of revenue compared to revenue.
Compared to the preceding quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter one year earlier, these metrics also declined.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

30.7%

Gross profit

$272.5M

Revenue

$887.9M

Cost of revenue

$615.4M

Quarter-over-quarter change

n/a

Year-over-year change

-1.1 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, 2023	$887.9M	$272.5M	$615.4M	30.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

-1.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The decrease in gross margin was accompanied by a relative increase in cost of revenue compared to revenue.

Compared to the preceding quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter one year earlier, these metrics also declined.

Monitor the trend in cost of revenue relative to revenue, as the increased cost ratio weighed on margin.