Keurig Dr Pepper Inc. stock research
FY2025 Q2
Keurig Dr Pepper (KDP) Gross Margin — Quarter Ended Jun 30, 2025
Revenue, gross profit, and cost of revenue all moved higher compared with the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter and was lower than the year-ago period, indicating that cost of revenue grew at a faster pace relative to revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue, gross profit, and cost of revenue all moved higher compared with the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter and was lower than the year-ago period, indicating that cost of revenue grew at a faster pace relative to revenue.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose at a proportionally higher rate, pressuring gross margin.
- Compared with the previous quarter, gross margin was slightly lower due to a higher growth rate in cost of revenue relative to revenue. Versus the same quarter one year earlier, gross margin also weakened, as cost of revenue increased more than proportionally to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.2%
Gross profit
$2.3B
Revenue
$4.2B
Cost of revenue
$1.9B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-1.2 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 | $3.9B | $2.1B | $1.8B | 55.0% |
| Dec 31, 2024 | $4.1B | $2.3B | $1.8B | 55.9% |
| Mar 31, 2025 | $3.6B | $2.0B | $1.6B | 54.6% |
| Jun 30, 2025 | $4.2B | $2.3B | $1.9B | 54.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.4 pts
Year-over-year change
Jun 30, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue rose at a proportionally higher rate, pressuring gross margin.
Compared with the previous quarter, gross margin was slightly lower due to a higher growth rate in cost of revenue relative to revenue. Versus the same quarter one year earlier, gross margin also weakened, as cost of revenue increased more than proportionally to revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as it represents the key factor influencing gross margin stability.