MN

Monster Beverage Corporation stock research

Mar 31, 2025

FY2025 Q1

Monster Beverage (MNST) Gross Margin — Quarter Ended Mar 31, 2025

Revenue increased from the prior quarter while gross profit remained stable, resulting in an improved gross margin. Compared to the same quarter last year, revenue was similar but cost of revenue was lower, leading to a higher gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue increased from the prior quarter while gross profit remained stable, resulting in an improved gross margin. Compared to the same quarter last year, revenue was similar but cost of revenue was lower, leading to a higher gross margin.

  • The primary driver of the gross margin improvement was the reduction in cost of revenue relative to revenue, as cost of revenue decreased both sequentially and year-over-year while revenue grew or held steady.
  • Gross margin strengthened compared to both the immediately preceding quarter and the same quarter one year earlier, reflecting a lower cost of revenue relative to revenue in each comparison.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

56.5%

Gross profit

$1.0B

Revenue

$1.9B

Cost of revenue

$806.6M

Quarter-over-quarter change

+1.2 pts

Year-over-year change

+2.4 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2024$1.9B$1.0B$881.1M53.6%
Sep 30, 2024$1.9B$999.8M$881.2M53.2%
Dec 31, 2024$1.8B$1.0B$809.6M55.3%
Mar 31, 2025$1.9B$1.0B$806.6M56.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2024

+1.2 pts

Year-over-year change

Mar 31, 2024

+2.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary driver of the gross margin improvement was the reduction in cost of revenue relative to revenue, as cost of revenue decreased both sequentially and year-over-year while revenue grew or held steady.

Gross margin strengthened compared to both the immediately preceding quarter and the same quarter one year earlier, reflecting a lower cost of revenue relative to revenue in each comparison.

Monitor the trajectory of cost of revenue, as its relationship with revenue is the key factor influencing gross margin.