Global Payments Inc. stock research
FY2024 Q4
Global Payments (GPN) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit declined from the prior quarter, while cost of revenue increased modestly, leading to a slight weakening of gross margin. Compared to the year-ago quarter, revenue is substantially higher, but the gross margin relationship is not directly comparable due to an unusual negative cost of revenue in that period.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit declined from the prior quarter, while cost of revenue increased modestly, leading to a slight weakening of gross margin. Compared to the year-ago quarter, revenue is substantially higher, but the gross margin relationship is not directly comparable due to an unusual negative cost of revenue in that period.
- The gross margin weakened as cost of revenue rose while revenue fell relative to the prior quarter. The filing notes that the company's liquidity is supported by operating cash flows and financing sources, which underpin its ongoing operations.
- Compared to the immediately preceding quarter, gross margin declined. The year-ago quarter shows a drastically different relationship, with negative cost of revenue and an abnormally high gross margin, making that comparison unreliable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
72.8%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$525.4M
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-490.1 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 | $2.4B | $1.5B | $922.4M | 61.9% |
| Jun 30, 2024 | $2.0B | $1.5B | $504.5M | 74.4% |
| Sep 30, 2024 | $2.0B | $1.5B | $504.6M | 74.7% |
| Dec 31, 2024 | $1.9B | $1.4B | $525.4M | 72.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.9 pts
Year-over-year change
Dec 31, 2023
-490.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened as cost of revenue rose while revenue fell relative to the prior quarter. The filing notes that the company's liquidity is supported by operating cash flows and financing sources, which underpin its ongoing operations.
Compared to the immediately preceding quarter, gross margin declined. The year-ago quarter shows a drastically different relationship, with negative cost of revenue and an abnormally high gross margin, making that comparison unreliable.
Monitor the trajectory of cost of revenue relative to revenue, as its increase contributed to the margin decline.