EX

Extra Space Storage Inc. stock research

Sep 30, 2025

FY2025 Q3

Extra Space Storage (EXR) Gross Margin — Quarter Ended Sep 30, 2025

Revenue increased slightly from both the prior quarter and the same quarter last year, but cost of revenue rose more sharply, causing gross profit to be further negative and gross margin to decline. The gross margin remained deeply negative and worsened sequentially and year-over-year.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue increased slightly from both the prior quarter and the same quarter last year, but cost of revenue rose more sharply, causing gross profit to be further negative and gross margin to decline. The gross margin remained deeply negative and worsened sequentially and year-over-year.

  • The primary observable driver was the faster growth in cost of revenue relative to revenue, which expanded the negative gap between revenue and gross profit.
  • Compared with the immediately preceding quarter, gross margin weakened further; relative to the same quarter one year earlier, gross margin also declined.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

-623.7%

Gross profit

-$202.9M

Revenue

$32.5M

Cost of revenue

$235.5M

Quarter-over-quarter change

-13.3 pts

Year-over-year change

-24.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$31.0M-$190.1M$221.1M-614.0%
Mar 31, 2025$30.9M-$192.7M$223.6M-623.4%
Jun 30, 2025$32.0M-$195.6M$227.6M-610.4%
Sep 30, 2025$32.5M-$202.9M$235.5M-623.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2025

-13.3 pts

Year-over-year change

Sep 30, 2024

-24.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The primary observable driver was the faster growth in cost of revenue relative to revenue, which expanded the negative gap between revenue and gross profit.

Compared with the immediately preceding quarter, gross margin weakened further; relative to the same quarter one year earlier, gross margin also declined.

Monitor cost control trends and liquidity position, as the company's filing discusses cash reserves that currently remain accessible but face uncertain future conditions.