MO

The Mosaic Company stock research

Mar 31, 2025

FY2025 Q1

The Mosaic (MOS) Gross Margin — Quarter Ended Mar 31, 2025

Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit improved relative to both periods. The gross margin strengthened versus the preceding quarter and the year-ago quarter, driven by a larger decline in cost of revenue relative to the drop in revenue.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue decreased compared to the prior quarter and the same quarter last year, while gross profit improved relative to both periods. The gross margin strengthened versus the preceding quarter and the year-ago quarter, driven by a larger decline in cost of revenue relative to the drop in revenue.

  • The most observable driver of gross margin improvement is the reduction in cost of revenue, which fell more sharply than revenue when compared to both the prior quarter and the year-ago quarter.
  • Compared to the immediately preceding quarter, revenue was lower while gross profit was higher, resulting in a stronger gross margin. Versus the same quarter one year earlier, revenue was slightly lower but gross profit was higher, leading to an improved gross margin.

Gross margin snapshot

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

Gross margin

18.6%

Gross profit

$488.4M

Revenue

$2.6B

Cost of revenue

$2.1B

Quarter-over-quarter change

+7.9 pts

Year-over-year change

+3.7 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$2.8B$394.0M$2.4B14.0%
Sep 30, 2024$2.8B$416.8M$2.4B14.8%
Dec 31, 2024$2.8B$301.9M$2.5B10.7%
Mar 31, 2025$2.6B$488.4M$2.1B18.6%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

+7.9 pts

Year-over-year change

Mar 31, 2024

+3.7 pts

What the margin says

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

The most observable driver of gross margin improvement is the reduction in cost of revenue, which fell more sharply than revenue when compared to both the prior quarter and the year-ago quarter.

Compared to the immediately preceding quarter, revenue was lower while gross profit was higher, resulting in a stronger gross margin. Versus the same quarter one year earlier, revenue was slightly lower but gross profit was higher, leading to an improved gross margin.

Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the margin improvement can be sustained.