SoFi Technologies, Inc. stock research
FY2023 Q2
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit declined relative to both periods. Cost of revenue rose more than proportionally, causing gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit declined relative to both periods. Cost of revenue rose more than proportionally, causing gross margin to weaken sequentially and year-over-year.
- The strongest observable driver is the increase in cost of revenue, which outpaced revenue growth and compressed gross profit. This directly weakened gross margin.
- Compared to the prior quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter last year, revenue was higher while gross profit was substantially lower, leading to a significantly weakened gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.3%
Gross profit
$10.8M
Revenue
$104.7M
Cost of revenue
$93.9M
Quarter-over-quarter change
-1.8 pts
Year-over-year change
-9.3 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, 2023 | $95.5M | $11.6M | $83.9M | 12.1% |
| Jun 30, 2023 | $104.7M | $10.8M | $93.9M | 10.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.8 pts
Year-over-year change
Jun 30, 2022
-9.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the increase in cost of revenue, which outpaced revenue growth and compressed gross profit. This directly weakened gross margin.
Compared to the prior quarter, revenue was higher but gross profit was lower, resulting in a weakened gross margin. Versus the same quarter last year, revenue was higher while gross profit was substantially lower, leading to a significantly weakened gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth is the primary factor behind margin compression.