Extra Space Storage Inc. stock research
FY2025 Q4
Extra Space Storage (EXR) Gross Margin — Quarter Ended Dec 31, 2025
In the current quarter, revenue exceeded cost of revenue by a smaller negative margin compared to the prior quarter, resulting in an improved gross margin. However, compared to the same quarter last year, the gross margin weakened as cost of revenue grew more than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
In the current quarter, revenue exceeded cost of revenue by a smaller negative margin compared to the prior quarter, resulting in an improved gross margin. However, compared to the same quarter last year, the gross margin weakened as cost of revenue grew more than revenue.
- The most observable driver is the relationship between revenue and cost of revenue; the quarter-over-quarter improvement in gross margin was driven by a larger increase in revenue relative to the decrease in cost of revenue.
- Gross margin improved from the immediately preceding quarter but was lower than the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-580.9%
Gross profit
-$197.5M
Revenue
$34.0M
Cost of revenue
$231.5M
Quarter-over-quarter change
+42.8 pts
Year-over-year change
+33.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $34.0M | -$197.5M | $231.5M | -580.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+42.8 pts
Year-over-year change
Dec 31, 2024
+33.1 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; the quarter-over-quarter improvement in gross margin was driven by a larger increase in revenue relative to the decrease in cost of revenue.
Gross margin improved from the immediately preceding quarter but was lower than the same quarter one year earlier.
Monitor the trajectory of cost of revenue relative to revenue in future quarters.