SoFi Technologies, Inc. stock research
FY2025 Q1
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit declined relative to both periods. The cost of revenue grew faster than revenue, causing gross margin to weaken sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit declined relative to both periods. The cost of revenue grew faster than revenue, causing gross margin to weaken sequentially and year-over-year.
- The strongest observable driver is the disproportionate increase in cost of revenue relative to revenue, which compressed gross profit and margin.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
3.5%
Gross profit
$4.9M
Revenue
$140.4M
Cost of revenue
$135.5M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-10.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $140.4M | $4.9M | $135.5M | 3.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-2.0 pts
Year-over-year change
Mar 31, 2024
-10.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the disproportionate increase in cost of revenue relative to revenue, which compressed gross profit and margin.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.