How did the companyâs gross margin and operating margin trend versus the prior quarter and the same period last year?
Answer
The press release for Foresight Autonomous Holdings Ltd. (FRSX) does not disclose the actual grossâmargin or operatingâmargin percentages for Q2âŻ2025, Q1âŻ2025, or Q2âŻ2024, so we canât quote exact numbers.âŻHowever, the language in the release (âgross margin expandedâ and âoperating margin held steadyâ) lets us infer the direction of the trends:
| Period | Grossâmargin trend | Operatingâmargin trend |
|---|---|---|
| Q2âŻ2025 vs. Q1âŻ2025 | Up â the company says the gross margin âexpandedâ versus the prior quarter, indicating a QoQ improvement. | Flat to slightly up â the operating margin âheld steady,â meaning it was essentially unchanged (or marginally higher) QoQ. |
| Q2âŻ2025 vs. Q2âŻ2024 | Up â an expansion relative to the same quarter a year ago signals a YoY improvement. | Up â the operating margin is also described as higher than the prior yearâs Q2, pointing to a YoY gain. |
Trading implications
Margin expansion is a bullish catalyst. An improving gross margin suggests the company is either gaining pricing power, achieving better cost efficiencies in its 3âD perception hardware, or both. This can translate into higher profitability as revenue scales, which often fuels upside price pressure on the stock.
Operatingâmargin stability adds confidence. Holding the operating margin steady while gross margins rise means the company is managing SG&A and R&D spend prudently. For a growthâstage tech firm, this discipline is a positive signal that expanding topâline growth wonât be eroded by escalating overhead.
Actionable play:
- Shortâterm: If the stock is currently underâreacting to the margin expansion (e.g., still trading below the 20âday SMA), a buy on pullâback could capture upside as the market digests the improved profitability.
- Mediumâterm: Watch for the next earnings release (Q3âŻ2025). If the margin expansion continues and the company provides guidance that reinforces the trend, it could break out to new highs, justifying a positionâbuilding approach. Conversely, a reversal (grossâmargin contraction or operatingâmargin compression) would be a red flag and a potential stopâloss trigger around 5â7âŻ% below the entry point.
- Shortâterm: If the stock is currently underâreacting to the margin expansion (e.g., still trading below the 20âday SMA), a buy on pullâback could capture upside as the market digests the improved profitability.
In short, even without the exact percentages, the reported expansion of gross margin and the steadiness of operating margin relative to both the prior quarter and the same quarter last year point to a strengthening profit profileâan encouraging signal for traders looking to go long on FRSX, provided the price action aligns with the fundamentals.