Vertiv Holdings Co stock research
FY2025 Q1
Vertiv Holdings (VRT) Gross Margin — Quarter Ended Mar 31, 2025
Revenue was lower than the preceding quarter, and gross profit also decreased, with cost of revenue declining less proportionally, resulting in a weakened gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit improved, while gross margin weakened slightly.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue was lower than the preceding quarter, and gross profit also decreased, with cost of revenue declining less proportionally, resulting in a weakened gross margin. Compared to the same quarter one year earlier, revenue was higher and gross profit improved, while gross margin weakened slightly.
- The strongest observable margin driver is the relationship between cost of revenue and revenue; in the current quarter, the decline in revenue was accompanied by a smaller reduction in cost of revenue, pressuring gross margin downward.
- Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin was slightly lower, as the higher gross profit did not keep pace with the increase in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$686.5M
Revenue
$2.0B
Cost of revenue
$1.3B
Quarter-over-quarter change
-3.4 pts
Year-over-year change
-0.8 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 | $2.0B | $741.2M | $1.2B | 38.0% |
| Sep 30, 2024 | $2.1B | $756.4M | $1.3B | 36.5% |
| Dec 31, 2024 | $2.3B | $870.2M | $1.5B | 37.1% |
| Mar 31, 2025 | $2.0B | $686.5M | $1.3B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-3.4 pts
Year-over-year change
Mar 31, 2024
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue; in the current quarter, the decline in revenue was accompanied by a smaller reduction in cost of revenue, pressuring gross margin downward.
Compared to the immediately preceding quarter, gross margin weakened. Compared to the same quarter one year earlier, gross margin was slightly lower, as the higher gross profit did not keep pace with the increase in revenue.
Monitor the relative movement between cost of revenue and revenue to assess whether gross margin stability can return.