Generac Holdings Inc. stock research
FY2025 Q2
Generac Holdings (GNRC) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit improved as well, while cost of revenue rose relative to both periods, resulting in a gross margin that was slightly lower than the prior quarter but higher than a year ago.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit improved as well, while cost of revenue rose relative to both periods, resulting in a gross margin that was slightly lower than the prior quarter but higher than a year ago.
- Gross profit grew more than revenue on a year-over-year basis, supported by a proportionally smaller increase in cost of revenue relative to the prior year quarter.
- Compared to the immediately preceding quarter, gross margin weakened slightly, as revenue growth was accompanied by a broadly similar proportional rise in cost of revenue. Versus the same quarter one year earlier, gross margin improved, with gross profit increasing at a faster pace than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.3%
Gross profit
$416.7M
Revenue
$1.1B
Cost of revenue
$644.4M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+1.6 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $1.2B | $472.3M | $701.3M | 40.2% |
| Dec 31, 2024 | $1.2B | $501.4M | $733.4M | 40.6% |
| Mar 31, 2025 | $942.1M | $372.0M | $570.1M | 39.5% |
| Jun 30, 2025 | $1.1B | $416.7M | $644.4M | 39.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.2 pts
Year-over-year change
Jun 30, 2024
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew more than revenue on a year-over-year basis, supported by a proportionally smaller increase in cost of revenue relative to the prior year quarter.
Compared to the immediately preceding quarter, gross margin weakened slightly, as revenue growth was accompanied by a broadly similar proportional rise in cost of revenue. Versus the same quarter one year earlier, gross margin improved, with gross profit increasing at a faster pace than cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming periods to assess whether the recent margin compression from the prior quarter continues or reverses.