SoFi Technologies, Inc. stock research
FY2024 Q4
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter and significantly lower than a year ago. Cost of revenue rose more than revenue, causing gross margin to weaken sequentially and decline sharply year over year.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter and significantly lower than a year ago. Cost of revenue rose more than revenue, causing gross margin to weaken sequentially and decline sharply year over year.
- The most observable driver is the relationship between cost of revenue and revenue: cost of revenue increased at a faster pace than revenue, compressing gross profit and margin.
- Compared to the prior quarter, gross margin weakened as gross profit was slightly lower despite higher revenue. Compared to the same quarter last year, gross margin declined substantially, with gross profit falling while revenue rose.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
5.4%
Gross profit
$7.4M
Revenue
$135.5M
Cost of revenue
$128.2M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-5.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $135.5M | $7.4M | $128.2M | 5.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.3 pts
Year-over-year change
Dec 31, 2023
-5.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relationship between cost of revenue and revenue: cost of revenue increased at a faster pace than revenue, compressing gross profit and margin.
Compared to the prior quarter, gross margin weakened as gross profit was slightly lower despite higher revenue. Compared to the same quarter last year, gross margin declined substantially, with gross profit falling while revenue rose.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth continues to pressure gross margin.