Welltower Inc. stock research
FY2024 Q4
Welltower (WELL) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and cost of revenue both increased compared to both the prior quarter and the same quarter last year, while gross profit rose more than proportionally, resulting in a higher gross margin. The gross margin improved sequentially and year-over-year, reflecting that gross profit grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and cost of revenue both increased compared to both the prior quarter and the same quarter last year, while gross profit rose more than proportionally, resulting in a higher gross margin. The gross margin improved sequentially and year-over-year, reflecting that gross profit grew at a faster pace than revenue.
- The strongest observable margin driver is the relationship between gross profit and revenue, as gross profit increased at a faster rate than revenue relative to both comparison periods.
- Sequentially, revenue was higher and gross margin improved slightly. Year-over-year, all primary metrics—revenue, cost of revenue, and gross profit—were higher, with gross margin showing a notable improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.0%
Gross profit
$352.6M
Revenue
$1.8B
Cost of revenue
$1.4B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| Mar 31, 2024 | $1.4B | $263.4M | $1.1B | 19.4% |
| Jun 30, 2024 | $1.4B | $282.2M | $1.1B | 20.2% |
| Sep 30, 2024 | $1.5B | $298.8M | $1.2B | 19.8% |
| Dec 31, 2024 | $1.8B | $352.6M | $1.4B | 20.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.2 pts
Year-over-year change
Dec 31, 2023
+2.1 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 gross profit and revenue, as gross profit increased at a faster rate than revenue relative to both comparison periods.
Sequentially, revenue was higher and gross margin improved slightly. Year-over-year, all primary metrics—revenue, cost of revenue, and gross profit—were higher, with gross margin showing a notable improvement.
Monitor whether the relationship between cost of revenue and revenue continues to allow gross profit growth that outpaces revenue growth.