Welltower Inc. stock research
FY2025 Q3
Welltower (WELL) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was higher compared to both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross profit grew more rapidly than cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was higher compared to both the prior quarter and the same quarter last year, while cost of revenue also increased. Gross profit grew more rapidly than cost of revenue, resulting in an improved gross margin.
- The strongest observable margin driver is the faster growth of gross profit relative to cost of revenue, which contributed to the improvement in gross margin.
- Sequentially, gross margin improved slightly from the prior quarter. Year over year, the gross margin showed a significant strengthening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.5%
Gross profit
$484.3M
Revenue
$2.1B
Cost of revenue
$1.6B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+3.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2025 | $2.1B | $484.3M | $1.6B | 23.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.3 pts
Year-over-year change
Sep 30, 2024
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster growth of gross profit relative to cost of revenue, which contributed to the improvement in gross margin.
Sequentially, gross margin improved slightly from the prior quarter. Year over year, the gross margin showed a significant strengthening.
Monitor the relationship between revenue and cost of revenue to see if the margin improvement can be sustained.