IonQ, Inc. stock research
FY2025 Q1
IonQ (IONQ) Gross Margin — Quarter Ended Mar 31, 2025
In the current quarter, revenue was unchanged from the same quarter a year earlier but declined from the preceding quarter. Gross profit turned negative as cost of revenue exceeded revenue, resulting in a weakened gross margin compared to both prior periods.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
In the current quarter, revenue was unchanged from the same quarter a year earlier but declined from the preceding quarter. Gross profit turned negative as cost of revenue exceeded revenue, resulting in a weakened gross margin compared to both prior periods.
- The most significant observable driver of the gross margin change is the relationship between cost of revenue and revenue. Cost of revenue remained similar to the previous quarter while revenue fell, causing the margin to shift from positive to negative.
- Compared to the immediately preceding quarter, revenue was lower and gross profit declined sharply from a positive to a negative figure, leading to a weakened gross margin. Compared to the same quarter one year earlier, revenue was flat, but gross profit moved from positive to negative as cost of revenue increased, resulting in a worse gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-14.7%
Gross profit
-$1.1M
Revenue
$7.6M
Cost of revenue
$8.7M
Quarter-over-quarter change
-37.4 pts
Year-over-year change
-17.5 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $11.4M | $2.9M | $8.5M | 25.1% |
| Sep 30, 2024 | $12.4M | $2.4M | $10.0M | 19.3% |
| Dec 31, 2024 | $11.7M | $2.7M | $9.0M | 22.7% |
| Mar 31, 2025 | $7.6M | -$1.1M | $8.7M | -14.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-37.4 pts
Year-over-year change
Mar 31, 2024
-17.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant observable driver of the gross margin change is the relationship between cost of revenue and revenue. Cost of revenue remained similar to the previous quarter while revenue fell, causing the margin to shift from positive to negative.
Compared to the immediately preceding quarter, revenue was lower and gross profit declined sharply from a positive to a negative figure, leading to a weakened gross margin. Compared to the same quarter one year earlier, revenue was flat, but gross profit moved from positive to negative as cost of revenue increased, resulting in a worse gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its current level has driven gross margin into negative territory.