Marvell Technology, Inc. stock research
FY2025 Q3
Marvell Technology (MRVL) Gross Margin — Quarter Ended Nov 2, 2024
Revenue increased compared with the prior quarter and the same quarter a year ago, but gross profit declined and cost of revenue rose, resulting in a significantly lower gross margin. The relationship shows that the rise in cost of revenue outpaced the increase in revenue, compressing the gross profit margin.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2025 Q3
Revenue increased compared with the prior quarter and the same quarter a year ago, but gross profit declined and cost of revenue rose, resulting in a significantly lower gross margin. The relationship shows that the rise in cost of revenue outpaced the increase in revenue, compressing the gross profit margin.
- The strongest observable driver of the gross margin change is the disproportionate increase in cost of revenue relative to revenue. This shift in the cost structure outweighed the revenue growth and directly weakened the margin.
- Gross margin weakened substantially from the immediately preceding quarter and from the same quarter one year earlier. Revenue was higher in both comparisons, but gross profit was lower and cost of revenue was higher, indicating a reversal of prior margin strength.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.0%
Gross profit
$349.4M
Revenue
$1.5B
Cost of revenue
$1.2B
Quarter-over-quarter change
-23.1 pts
Year-over-year change
-15.8 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 |
|---|---|---|---|---|
| Feb 3, 2024 | $1.4B | $664.1M | $762.4M | 46.6% |
| May 4, 2024 | $1.2B | $527.8M | $633.1M | 45.5% |
| Aug 3, 2024 | $1.3B | $587.6M | $685.3M | 46.2% |
| Nov 2, 2024 | $1.5B | $349.4M | $1.2B | 23.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2024
-23.1 pts
Year-over-year change
Oct 28, 2023
-15.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the disproportionate increase in cost of revenue relative to revenue. This shift in the cost structure outweighed the revenue growth and directly weakened the margin.
Gross margin weakened substantially from the immediately preceding quarter and from the same quarter one year earlier. Revenue was higher in both comparisons, but gross profit was lower and cost of revenue was higher, indicating a reversal of prior margin strength.
Monitor the trajectory of cost of revenue relative to revenue, as its continued growth could further pressure gross margin.