CBRE Group, Inc. stock research
FY2024 Q4
CBRE Group (CBRE) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue rose compared to both the prior quarter and the same quarter a year earlier. Gross profit also increased sequentially but was lower than the year-ago level, while cost of revenue grew in both periods, resulting in a gross margin that improved from the prior quarter but declined from the same quarter one year prior.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue rose compared to both the prior quarter and the same quarter a year earlier. Gross profit also increased sequentially but was lower than the year-ago level, while cost of revenue grew in both periods, resulting in a gross margin that improved from the prior quarter but declined from the same quarter one year prior.
- The strongest observable margin driver is the sequential improvement in gross margin, which was supported by a larger relative increase in revenue versus cost of revenue when compared to the immediately preceding quarter.
- Gross margin improved compared to the prior quarter but weakened compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.7%
Gross profit
$1.9B
Revenue
$10.2B
Cost of revenue
$8.3B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-1.4 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 | $7.8B | $1.3B | $6.5B | 17.2% |
| Jun 30, 2024 | $8.3B | $1.5B | $6.8B | 17.7% |
| Sep 30, 2024 | $8.9B | $1.6B | $7.3B | 18.1% |
| Dec 31, 2024 | $10.2B | $1.9B | $8.3B | 18.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+0.6 pts
Year-over-year change
Dec 31, 2023
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which was supported by a larger relative increase in revenue versus cost of revenue when compared to the immediately preceding quarter.
Gross margin improved compared to the prior quarter but weakened compared to the same quarter one year earlier.
The company's capital expenditure commitments and co-investment funding obligations, as described in the filing, are a concrete item to monitor.