O'Reilly Automotive, Inc. stock research
FY2025 Q2
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from a year ago, indicating that gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved slightly from the prior quarter and more notably from a year ago, indicating that gross profit grew faster than cost of revenue.
- The strongest observable margin driver is the relationship between gross profit and cost of revenue; gross profit increased more than cost of revenue relative to both comparison periods, supporting margin expansion.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.4%
Gross profit
$2.3B
Revenue
$4.5B
Cost of revenue
$2.2B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $4.4B | $2.3B | $2.1B | 51.6% |
| Dec 31, 2024 | $4.1B | $2.1B | $2.0B | 51.3% |
| Mar 31, 2025 | $4.1B | $2.1B | $2.0B | 51.3% |
| Jun 30, 2025 | $4.5B | $2.3B | $2.2B | 51.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.1 pts
Year-over-year change
Jun 30, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between gross profit and cost of revenue; gross profit increased more than cost of revenue relative to both comparison periods, supporting margin expansion.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influences gross margin stability.