SoFi Technologies, Inc. stock research
FY2024 Q2
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but lower than the previous quarter. Cost of revenue rose relative to both periods, and gross margin weakened from the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than a year ago but lower than the previous quarter. Cost of revenue rose relative to both periods, and gross margin weakened from the prior quarter and the year-ago quarter.
- The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue increased more sharply, compressing gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit declined despite higher revenue. Compared to the same quarter one year earlier, gross margin also weakened, with gross profit slightly higher but cost of revenue rising more than proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.2%
Gross profit
$11.1M
Revenue
$120.8M
Cost of revenue
$109.7M
Quarter-over-quarter change
-4.3 pts
Year-over-year change
-1.2 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, 2023 | $104.9M | $6.7M | $98.3M | 6.4% |
| Dec 31, 2023 | $116.3M | $12.4M | $103.9M | 10.6% |
| Mar 31, 2024 | $115.6M | $15.5M | $100.1M | 13.4% |
| Jun 30, 2024 | $120.8M | $11.1M | $109.7M | 9.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-4.3 pts
Year-over-year change
Jun 30, 2023
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue increased more sharply, compressing gross margin.
Compared to the immediately preceding quarter, gross margin weakened as gross profit declined despite higher revenue. Compared to the same quarter one year earlier, gross margin also weakened, with gross profit slightly higher but cost of revenue rising more than proportionally.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether margin pressure persists.