Generac Holdings Inc. stock research
FY2025 Q4
Generac Holdings (GNRC) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was stable compared to the prior quarter but lower than the same quarter last year, while gross profit and gross margin weakened sequentially and year-over-year as cost of revenue declined less than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was stable compared to the prior quarter but lower than the same quarter last year, while gross profit and gross margin weakened sequentially and year-over-year as cost of revenue declined less than revenue.
- The strongest observable margin driver was the relative increase in cost of revenue, which reduced gross margin despite stable revenue. Cost of revenue as a share of revenue rose compared to both the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, gross margin weakened as cost of revenue grew while revenue was unchanged. Versus the same quarter one year earlier, both revenue and gross margin were lower, with cost of revenue declining less than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.3%
Gross profit
$396.1M
Revenue
$1.1B
Cost of revenue
$695.4M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-4.3 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, 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% |
| Dec 31, 2025 | $1.1B | $396.1M | $695.4M | 36.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-2.0 pts
Year-over-year change
Dec 31, 2024
-4.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the relative increase in cost of revenue, which reduced gross margin despite stable revenue. Cost of revenue as a share of revenue rose compared to both the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, gross margin weakened as cost of revenue grew while revenue was unchanged. Versus the same quarter one year earlier, both revenue and gross margin were lower, with cost of revenue declining less than revenue.
Monitor the trend of cost of revenue relative to revenue; if cost continues to decline more slowly than revenue, gross margin may face further pressure.