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O'Reilly Automotive, Inc. stock research

Mar 31, 2025

FY2025 Q1

O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Mar 31, 2025

Revenue, gross profit, and cost of revenue were stable compared with the prior quarter, while all three measures were slightly higher than the same quarter last year. Gross margin held steady sequentially and improved modestly year over year.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue, gross profit, and cost of revenue were stable compared with the prior quarter, while all three measures were slightly higher than the same quarter last year. Gross margin held steady sequentially and improved modestly year over year.

  • The gross margin was essentially unchanged from the prior quarter and slightly improved from a year ago, with cost of revenue rising at a slower pace than revenue over the year.
  • Relative to the immediately preceding quarter, all metrics showed no material change. Compared with the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin improved marginally.

Gross margin snapshot

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

Gross margin

51.3%

Gross profit

$2.1B

Revenue

$4.1B

Cost of revenue

$2.0B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+0.1 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$4.3B$2.2B$2.1B50.7%
Sep 30, 2024$4.4B$2.3B$2.1B51.6%
Dec 31, 2024$4.1B$2.1B$2.0B51.3%
Mar 31, 2025$4.1B$2.1B$2.0B51.3%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

-0.0 pts

Year-over-year change

Mar 31, 2024

+0.1 pts

What the margin says

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

The gross margin was essentially unchanged from the prior quarter and slightly improved from a year ago, with cost of revenue rising at a slower pace than revenue over the year.

Relative to the immediately preceding quarter, all metrics showed no material change. Compared with the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, while gross margin improved marginally.

Monitor whether cost of revenue growth continues to lag revenue growth, as that dynamic has supported gross margin.