Generac Holdings Inc. stock research
FY2025 Q3
Generac Holdings (GNRC) Gross Margin — Quarter Ended Sep 30, 2025
Revenue remained stable compared to the prior quarter but was lower than the same quarter a year ago. Gross profit improved slightly from the prior quarter but declined year over year, while cost of revenue increased sequentially and decreased from a year ago, resulting in gross margin that weakened both on a sequential and year-over-year basis.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue remained stable compared to the prior quarter but was lower than the same quarter a year ago. Gross profit improved slightly from the prior quarter but declined year over year, while cost of revenue increased sequentially and decreased from a year ago, resulting in gross margin that weakened both on a sequential and year-over-year basis.
- The primary observable driver of the gross margin movement was the rise in cost of revenue relative to revenue. This relationship was consistent both sequentially and year over year.
- Compared to the previous quarter, revenue was flat while gross margin narrowed due to a higher cost of revenue. Versus the same quarter last year, both revenue and gross profit were lower, and gross margin also declined as cost of revenue did not fall as much as revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$426.9M
Revenue
$1.1B
Cost of revenue
$687.4M
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-1.9 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 | $1.2B | $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% |
| Sep 30, 2025 | $1.1B | $426.9M | $687.4M | 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
-1.0 pts
Year-over-year change
Sep 30, 2024
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin movement was the rise in cost of revenue relative to revenue. This relationship was consistent both sequentially and year over year.
Compared to the previous quarter, revenue was flat while gross margin narrowed due to a higher cost of revenue. Versus the same quarter last year, both revenue and gross profit were lower, and gross margin also declined as cost of revenue did not fall as much as revenue.
Monitor the trend of cost of revenue growth compared to revenue growth in upcoming quarters.