Ulta Beauty, Inc. stock research
FY2025 Q3
Ulta Beauty (ULTA) Gross Margin — Quarter Ended Nov 1, 2025
Revenue increased while cost of revenue remained unchanged, leading to higher gross profit and an improved gross margin compared to the preceding quarter. Relative to the same quarter one year earlier, revenue and gross profit both rose, and the gross margin strengthened as revenue grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Nov 1, 2025 · FY2025 Q3
Revenue increased while cost of revenue remained unchanged, leading to higher gross profit and an improved gross margin compared to the preceding quarter. Relative to the same quarter one year earlier, revenue and gross profit both rose, and the gross margin strengthened as revenue grew faster than cost of revenue.
- The gross margin improvement was driven by revenue growth with no corresponding increase in cost of revenue, as cost of revenue was stable quarter over quarter.
- Gross margin in the current quarter was higher than both the immediate preceding quarter and the same quarter one year earlier. Revenue and gross profit were also higher in both comparisons, while cost of revenue was stable compared to the preceding quarter and higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.4%
Gross profit
$1.2B
Revenue
$2.9B
Cost of revenue
$1.7B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| Feb 1, 2025 | $3.5B | $1.3B | $2.2B | 38.2% |
| May 3, 2025 | $2.8B | $1.1B | $1.7B | 39.1% |
| Aug 2, 2025 | $2.8B | $1.1B | $1.7B | 39.2% |
| Nov 1, 2025 | $2.9B | $1.2B | $1.7B | 40.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 2, 2025
+1.3 pts
Year-over-year change
Nov 2, 2024
+0.7 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 with no corresponding increase in cost of revenue, as cost of revenue was stable quarter over quarter.
Gross margin in the current quarter was higher than both the immediate preceding quarter and the same quarter one year earlier. Revenue and gross profit were also higher in both comparisons, while cost of revenue was stable compared to the preceding quarter and higher than the year-ago quarter.
Monitor merchandise inventories, which were higher than the preceding quarter and the year-ago period as indicated in the filing.