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Bio-Techne Corporation stock research

Dec 31, 2024

FY2025 Q2

Bio-Techne (TECH) Gross Margin — Quarter Ended Dec 31, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2025 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and year-over-year.

  • The gross margin improvement was driven by higher revenue combined with a lower cost of revenue sequentially, and a proportionally smaller increase in cost of revenue compared to the revenue growth year-over-year.
  • Sequentially, gross margin strengthened as revenue rose while cost of revenue fell. Year-over-year, gross margin also improved as revenue growth outpaced the increase in cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

65.3%

Gross profit

$193.9M

Revenue

$297.0M

Cost of revenue

$103.1M

Quarter-over-quarter change

+2.0 pts

Year-over-year change

+0.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$303.4M$204.6M$98.8M67.4%
Jun 30, 2024$306.1M$203.3M$102.8M66.4%
Sep 30, 2024$289.5M$183.0M$106.4M63.2%
Dec 31, 2024$297.0M$193.9M$103.1M65.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

+2.0 pts

Year-over-year change

Dec 31, 2023

+0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement was driven by higher revenue combined with a lower cost of revenue sequentially, and a proportionally smaller increase in cost of revenue compared to the revenue growth year-over-year.

Sequentially, gross margin strengthened as revenue rose while cost of revenue fell. Year-over-year, gross margin also improved as revenue growth outpaced the increase in cost of revenue.

Monitor the trend in cost of revenue, which decreased sequentially but increased year-over-year.