Super Micro Computer, Inc. stock research
FY2025 Q2
Super Micro Computer (SMCI) Gross Margin — Quarter Ended Dec 31, 2024
Revenue decreased compared to the prior quarter, while gross profit declined at a faster rate, causing gross margin to weaken. Versus the same quarter last year, revenue was higher but gross margin was lower, as cost of revenue grew more than proportionally.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2025 Q2
Revenue decreased compared to the prior quarter, while gross profit declined at a faster rate, causing gross margin to weaken. Versus the same quarter last year, revenue was higher but gross margin was lower, as cost of revenue grew more than proportionally.
- Gross margin weakened sequentially and year-over-year, driven by a larger relative increase in cost of revenue compared to gross profit.
- Compared to the prior quarter, revenue was lower and gross profit declined more sharply, resulting in a weaker gross margin. Versus the same quarter last year, revenue was higher but gross margin was lower, as cost of revenue grew faster than gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.8%
Gross profit
$670.0M
Revenue
$5.7B
Cost of revenue
$5.0B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-3.6 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $3.9B | $597.4M | $3.3B | 15.5% |
| Jun 30, 2024 | $5.4B | $546.0M | $4.8B | 10.2% |
| Sep 30, 2024 | $5.9B | $775.6M | $5.2B | 13.1% |
| Dec 31, 2024 | $5.7B | $670.0M | $5.0B | 11.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-1.3 pts
Year-over-year change
Dec 31, 2023
-3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially and year-over-year, driven by a larger relative increase in cost of revenue compared to gross profit.
Compared to the prior quarter, revenue was lower and gross profit declined more sharply, resulting in a weaker gross margin. Versus the same quarter last year, revenue was higher but gross margin was lower, as cost of revenue grew faster than gross profit.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has compressed gross margin.