Essex Property Trust, Inc. stock research
FY2025 Q1
Essex Property Trust (ESS) Gross Margin — Quarter Ended Mar 31, 2025
Revenue rose while cost of revenue increased, resulting in higher gross profit. Gross margin weakened versus the prior quarter but improved compared to the same quarter a year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue rose while cost of revenue increased, resulting in higher gross profit. Gross margin weakened versus the prior quarter but improved compared to the same quarter a year earlier.
- The change in gross margin was driven primarily by the relationship between revenue and cost of revenue, with revenue growth outpacing cost growth on a year-over-year basis.
- Compared to the prior quarter, gross margin declined as cost of revenue grew at a faster rate than revenue. Versus the same quarter last year, gross margin strengthened as revenue rose more relative to cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12969.8%
Gross profit
$323.5M
Revenue
$2.5M
Cost of revenue
-$321.0M
Quarter-over-quarter change
-206.5 pts
Year-over-year change
+1996.1 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 | $2.6M | $313.2M | -$310.7M | 12174.4% |
| Sep 30, 2024 | $2.6M | $313.3M | -$310.8M | 12225.6% |
| Dec 31, 2024 | $2.4M | $318.3M | -$315.9M | 13176.4% |
| Mar 31, 2025 | $2.5M | $323.5M | -$321.0M | 12969.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-206.5 pts
Year-over-year change
Mar 31, 2024
+1996.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in gross margin was driven primarily by the relationship between revenue and cost of revenue, with revenue growth outpacing cost growth on a year-over-year basis.
Compared to the prior quarter, gross margin declined as cost of revenue grew at a faster rate than revenue. Versus the same quarter last year, gross margin strengthened as revenue rose more relative to cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue, as changes in their growth rates directly affect gross margin.