SoFi Technologies, Inc. stock research
FY2025 Q2
SoFi Technologies (SOFI) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased from the prior quarter and from the same quarter a year ago. Gross profit weakened markedly versus both periods, and cost of revenue rose substantially, causing gross margin to narrow.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased from the prior quarter and from the same quarter a year ago. Gross profit weakened markedly versus both periods, and cost of revenue rose substantially, causing gross margin to narrow.
- Cost of revenue grew at a much faster rate than revenue, outpacing the top-line gain and compressing the gross profit. The gap between revenue and cost of revenue narrowed sequentially and year-over-year.
- Compared to the immediately preceding quarter, revenue improved while gross profit weakened and gross margin fell. Versus the same quarter one year earlier, revenue was higher but gross profit was lower and gross margin declined.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
1.0%
Gross profit
$1.5M
Revenue
$151.9M
Cost of revenue
$150.4M
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-8.2 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, 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% |
| Jun 30, 2025 | $151.9M | $1.5M | $150.4M | 1.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-2.5 pts
Year-over-year change
Jun 30, 2024
-8.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue grew at a much faster rate than revenue, outpacing the top-line gain and compressing the gross profit. The gap between revenue and cost of revenue narrowed sequentially and year-over-year.
Compared to the immediately preceding quarter, revenue improved while gross profit weakened and gross margin fell. Versus the same quarter one year earlier, revenue was higher but gross profit was lower and gross margin declined.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been the primary observable factor behind margin compression.