SBA Communications Corporation stock research
FY2025 Q3
SBA Communications (SBAC) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened substantially from both comparison periods, as cost of revenue grew faster than gross profit.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened substantially from both comparison periods, as cost of revenue grew faster than gross profit.
- The strongest observable margin driver is the proportion of cost of revenue to revenue, which increased, pressuring gross margin. This relationship is the primary factor behind the margin decline.
- Compared to the prior quarter, gross margin was lower, and compared to the same quarter last year, gross margin was also lower. Revenue and gross profit improved versus both periods, but cost of revenue increased at a faster rate.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
714.8%
Gross profit
$542.5M
Revenue
$75.9M
Cost of revenue
$189.8M
Quarter-over-quarter change
-69.3 pts
Year-over-year change
-519.8 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $41.9M | $517.3M | $150.3M | 1234.6% |
| Mar 31, 2025 | $48.0M | $510.6M | $153.7M | 1062.8% |
| Jun 30, 2025 | $67.2M | $526.9M | $172.1M | 784.1% |
| Sep 30, 2025 | $75.9M | $542.5M | $189.8M | 714.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-69.3 pts
Year-over-year change
Sep 30, 2024
-519.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the proportion of cost of revenue to revenue, which increased, pressuring gross margin. This relationship is the primary factor behind the margin decline.
Compared to the prior quarter, gross margin was lower, and compared to the same quarter last year, gross margin was also lower. Revenue and gross profit improved versus both periods, but cost of revenue increased at a faster rate.
Monitor the trend in cost of revenue relative to revenue, as its faster growth is the key factor weakening gross margin.