Generac Holdings Inc. stock research
FY2024 Q4
Generac Holdings (GNRC) Gross Margin — Quarter Ended Dec 31, 2024
Revenue was essentially unchanged from the prior quarter but higher than the same quarter a year ago. Gross profit and gross margin both improved compared with both periods, driven by a larger increase in gross profit relative to cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue was essentially unchanged from the prior quarter but higher than the same quarter a year ago. Gross profit and gross margin both improved compared with both periods, driven by a larger increase in gross profit relative to cost of revenue.
- The most observable margin driver was the gross margin improvement compared with the same quarter last year, as the margin widened more than it did sequentially. This was supported by a stronger increase in gross profit relative to revenue cost.
- Compared with the immediately preceding quarter, revenue was stable, gross profit and gross margin edged higher, while cost of revenue rose slightly. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also increasing but to a lesser degree.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.6%
Gross profit
$501.4M
Revenue
$1.2B
Cost of revenue
$733.4M
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+4.1 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, 2024 | $889.3M | $316.4M | $572.9M | 35.6% |
| Jun 30, 2024 | $998.2M | $375.6M | $622.6M | 37.6% |
| Sep 30, 2024 | $1.2B | $472.3M | $701.3M | 40.2% |
| Dec 31, 2024 | $1.2B | $501.4M | $733.4M | 40.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.4 pts
Year-over-year change
Dec 31, 2023
+4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the gross margin improvement compared with the same quarter last year, as the margin widened more than it did sequentially. This was supported by a stronger increase in gross profit relative to revenue cost.
Compared with the immediately preceding quarter, revenue was stable, gross profit and gross margin edged higher, while cost of revenue rose slightly. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also increasing but to a lesser degree.
Monitor the relationship between cost of revenue and revenue; although gross margin rose sequentially, cost increased more than gross profit in absolute terms.