Welltower Inc. stock research
FY2025 Q2
Welltower (WELL) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit both increased from the prior quarter and the same quarter a year ago, while cost of revenue was unchanged sequentially and higher year over year. As a result, gross margin improved compared with both the prior quarter and the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit both increased from the prior quarter and the same quarter a year ago, while cost of revenue was unchanged sequentially and higher year over year. As a result, gross margin improved compared with both the prior quarter and the year-ago period.
- The strongest observable margin driver is the combination of higher revenue and stable cost of revenue relative to the prior quarter, which allowed gross profit to grow at a faster rate than revenue.
- Compared with the prior quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue remained the same. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.2%
Gross profit
$456.3M
Revenue
$2.0B
Cost of revenue
$1.5B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+2.9 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 |
|---|---|---|---|---|
| Sep 30, 2024 | $1.5B | $298.8M | $1.2B | 19.8% |
| Dec 31, 2024 | $1.8B | $352.6M | $1.4B | 20.0% |
| Mar 31, 2025 | $1.9B | $402.1M | $1.5B | 21.6% |
| Jun 30, 2025 | $2.0B | $456.3M | $1.5B | 23.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.6 pts
Year-over-year change
Jun 30, 2024
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the combination of higher revenue and stable cost of revenue relative to the prior quarter, which allowed gross profit to grow at a faster rate than revenue.
Compared with the prior quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue remained the same. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin improving.
Monitor the relationship between revenue growth and cost of revenue changes in upcoming quarters to assess whether the current margin improvement can be sustained.