CBRE Group, Inc. stock research
FY2025 Q1
CBRE Group (CBRE) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased from the prior quarter while cost of revenue also fell, but the decline in cost was proportionally smaller, resulting in a lower gross margin. Compared to the same quarter last year, gross margin was unchanged as revenue and cost of revenue increased at similar rates.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased from the prior quarter while cost of revenue also fell, but the decline in cost was proportionally smaller, resulting in a lower gross margin. Compared to the same quarter last year, gross margin was unchanged as revenue and cost of revenue increased at similar rates.
- The relationship between cost of revenue and revenue is the key factor affecting gross margin. The sequential decline in margin reflects a proportionally smaller decrease in cost of revenue relative to the revenue decline.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.2%
Gross profit
$1.5B
Revenue
$8.8B
Cost of revenue
$7.3B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
+0.0 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $8.8B | $1.5B | $7.3B | 17.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-1.4 pts
Year-over-year change
Mar 31, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between cost of revenue and revenue is the key factor affecting gross margin. The sequential decline in margin reflects a proportionally smaller decrease in cost of revenue relative to the revenue decline.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin was stable.
Monitor whether the relative change in cost of revenue versus revenue continues to differ, as this will influence future gross margin trends.