Essex Property Trust, Inc. stock research
FY2025 Q3
Essex Property Trust (ESS) Gross Margin — Quarter Ended Sep 30, 2025
Revenue, cost of revenue, and gross profit all decreased compared to both the prior quarter and the same quarter one year ago. The gross margin improved versus the year-ago quarter but weakened sequentially.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue, cost of revenue, and gross profit all decreased compared to both the prior quarter and the same quarter one year ago. The gross margin improved versus the year-ago quarter but weakened sequentially.
- The most observable driver is the relationship between revenue and cost of revenue; gross profit declined less than revenue compared to the prior quarter and year-ago quarter, leading to gross margin improvement year over year.
- Compared to the prior quarter, revenue was lower, cost of revenue was lower, and gross profit was lower, with gross margin weakening. Compared to the same quarter one year ago, revenue was lower, cost of revenue was lower, and gross profit was higher, with gross margin improving.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13871.5%
Gross profit
$327.5M
Revenue
$2.4M
Cost of revenue
-$325.1M
Quarter-over-quarter change
-1071.4 pts
Year-over-year change
+1645.9 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 | $2.4M | $318.3M | -$315.9M | 13176.4% |
| Mar 31, 2025 | $2.5M | $323.5M | -$321.0M | 12969.8% |
| Jun 30, 2025 | $2.2M | $332.2M | -$330.0M | 14942.9% |
| Sep 30, 2025 | $2.4M | $327.5M | -$325.1M | 13871.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-1071.4 pts
Year-over-year change
Sep 30, 2024
+1645.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the relationship between revenue and cost of revenue; gross profit declined less than revenue compared to the prior quarter and year-ago quarter, leading to gross margin improvement year over year.
Compared to the prior quarter, revenue was lower, cost of revenue was lower, and gross profit was lower, with gross margin weakening. Compared to the same quarter one year ago, revenue was lower, cost of revenue was lower, and gross profit was higher, with gross margin improving.
Monitor the trajectory of revenue relative to cost of revenue, as the decline in revenue with a proportionally smaller decline in cost of revenue contributed to gross margin improvement year over year.