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Bio-Techne Corporation stock research

Mar 31, 2025

FY2025 Q3

Bio-Techne (TECH) Gross Margin — Quarter Ended Mar 31, 2025

Revenue increased while cost of revenue decreased compared to the prior quarter, and revenue grew year-over-year with a smaller increase in cost of revenue, resulting in gross margin improvement both sequentially and annually.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q3

Revenue increased while cost of revenue decreased compared to the prior quarter, and revenue grew year-over-year with a smaller increase in cost of revenue, resulting in gross margin improvement both sequentially and annually.

  • The gross margin improvement was driven by revenue growth combined with a reduction in cost of revenue sequentially, and by revenue outpacing the increase in cost of revenue year-over-year.
  • Compared to the immediately preceding quarter, gross margin was higher as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin was also slightly higher, with revenue and cost of revenue both higher but revenue growing at a greater pace.

Gross margin snapshot

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

Gross margin

67.9%

Gross profit

$214.6M

Revenue

$316.2M

Cost of revenue

$101.6M

Quarter-over-quarter change

+2.6 pts

Year-over-year change

+0.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Mar 31, 2025$316.2M$214.6M$101.6M67.9%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

+2.6 pts

Year-over-year change

Mar 31, 2024

+0.4 pts

What the margin says

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

The gross margin improvement was driven by revenue growth combined with a reduction in cost of revenue sequentially, and by revenue outpacing the increase in cost of revenue year-over-year.

Compared to the immediately preceding quarter, gross margin was higher as revenue increased and cost of revenue decreased. Compared to the same quarter one year earlier, gross margin was also slightly higher, with revenue and cost of revenue both higher but revenue growing at a greater pace.

Monitor the trend of cost of revenue relative to revenue, as its direction will directly influence future gross margin.