SoFi Technologies, Inc. stock research
FY2024 Q3
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Sep 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 more than revenue on a sequential basis, causing gross margin to weaken from the prior quarter and remain below the year-ago level.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
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 more than revenue on a sequential basis, causing gross margin to weaken from the prior quarter and remain below the year-ago level.
- The sequential decline in gross margin was driven by a larger increase in cost of revenue relative to revenue. The year-over-year comparison shows gross profit improved, but cost of revenue grew at a faster pace than revenue, limiting margin expansion.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased more than revenue. Versus the same quarter one year earlier, gross margin was lower despite higher gross profit, reflecting a higher cost structure.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
5.7%
Gross profit
$7.5M
Revenue
$131.2M
Cost of revenue
$123.7M
Quarter-over-quarter change
-3.4 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $131.2M | $7.5M | $123.7M | 5.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-3.4 pts
Year-over-year change
Sep 30, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a larger increase in cost of revenue relative to revenue. The year-over-year comparison shows gross profit improved, but cost of revenue grew at a faster pace than revenue, limiting margin expansion.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased more than revenue. Versus the same quarter one year earlier, gross margin was lower despite higher gross profit, reflecting a higher cost structure.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has pressured gross margin in both sequential and year-over-year comparisons.