Moody's Corporation stock research
FY2025 Q2
Moody's (MCO) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit were unchanged from the prior quarter, while cost of revenue decreased slightly, resulting in a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit were unchanged from the prior quarter, while cost of revenue decreased slightly, resulting in a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was unchanged.
- The gross margin remained stable year-over-year as revenue growth matched the increase in cost of revenue. Sequentially, a slight decline in gross margin was driven by a smaller reduction in cost of revenue relative to revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue decreased less than revenue. Compared to the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.2%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$489.0M
Quarter-over-quarter change
-0.2 pts
Year-over-year change
+0.0 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 | $1.8B | $1.3B | $512.0M | 71.8% |
| Dec 31, 2024 | $1.7B | $1.2B | $497.0M | 70.3% |
| Mar 31, 2025 | $1.9B | $1.4B | $491.0M | 74.5% |
| Jun 30, 2025 | $1.9B | $1.4B | $489.0M | 74.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.2 pts
Year-over-year change
Jun 30, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin remained stable year-over-year as revenue growth matched the increase in cost of revenue. Sequentially, a slight decline in gross margin was driven by a smaller reduction in cost of revenue relative to revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue decreased less than revenue. Compared to the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Monitor the trend in cost of revenue relative to revenue, as the sequential decline in gross margin suggests a potential shift in cost efficiency.