Meta Platforms, Inc. stock research
FY2025 Q1
Meta Platforms (META) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit declined compared to the preceding quarter but increased compared to the same quarter a year earlier. Gross margin improved both sequentially and year-over-year as cost of revenue moved proportionally more favorably than revenue in each comparison.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue and gross profit declined compared to the preceding quarter but increased compared to the same quarter a year earlier. Gross margin improved both sequentially and year-over-year as cost of revenue moved proportionally more favorably than revenue in each comparison.
- The key observable margin driver is the relative change in cost of revenue: it fell more than revenue sequentially and rose less than revenue year-over-year, directly contributing to the margin improvement.
- Compared to the prior quarter, gross margin improved as revenue decreased while cost of revenue decreased even more. Compared to the same quarter a year earlier, gross margin improved as revenue increased while cost of revenue increased at a slower pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.1%
Gross profit
$34.7B
Revenue
$42.3B
Cost of revenue
$7.6B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $39.1B | $31.8B | $7.3B | 81.3% |
| Sep 30, 2024 | $40.6B | $33.2B | $7.4B | 81.8% |
| Dec 31, 2024 | $48.4B | $39.5B | $8.8B | 81.7% |
| Mar 31, 2025 | $42.3B | $34.7B | $7.6B | 82.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+0.4 pts
Year-over-year change
Mar 31, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The key observable margin driver is the relative change in cost of revenue: it fell more than revenue sequentially and rose less than revenue year-over-year, directly contributing to the margin improvement.
Compared to the prior quarter, gross margin improved as revenue decreased while cost of revenue decreased even more. Compared to the same quarter a year earlier, gross margin improved as revenue increased while cost of revenue increased at a slower pace.
The filing highlights capital expenditures and share repurchases as significant uses of cash; these are concrete items to monitor.