Essex Property Trust, Inc. stock research
FY2025 Q4
Essex Property Trust (ESS) Gross Margin — Quarter Ended Dec 31, 2025
For the quarter ended December 31, 2025, revenue was lower than the prior quarter, while gross profit increased and cost of revenue became more negative, resulting in a higher gross margin. The gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier, driven by a larger gap between gross profit and revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
For the quarter ended December 31, 2025, revenue was lower than the prior quarter, while gross profit increased and cost of revenue became more negative, resulting in a higher gross margin. The gross margin improved compared with both the immediately preceding quarter and the same quarter one year earlier, driven by a larger gap between gross profit and revenue.
- The strongest observable margin driver is the increase in gross profit relative to a slight decline in revenue, with cost of revenue becoming more negative than in prior periods.
- Sequentially, gross margin improved as gross profit rose while revenue fell slightly. Year-over-year, gross margin also strengthened, with gross profit higher and revenue stable compared with the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14582.0%
Gross profit
$335.8M
Revenue
$2.3M
Cost of revenue
-$333.5M
Quarter-over-quarter change
+710.5 pts
Year-over-year change
+1405.6 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, 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% |
| Dec 31, 2025 | $2.3M | $335.8M | -$333.5M | 14582.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+710.5 pts
Year-over-year change
Dec 31, 2024
+1405.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in gross profit relative to a slight decline in revenue, with cost of revenue becoming more negative than in prior periods.
Sequentially, gross margin improved as gross profit rose while revenue fell slightly. Year-over-year, gross margin also strengthened, with gross profit higher and revenue stable compared with the same quarter last year.
Monitor the cost of revenue line item, which remains negative and is increasing in magnitude, as its trend directly affects gross profit and margin.